BancorpSouth Announces Fourth Quarter 2020 and Annual Financial Results

January 25, 2021 4:30 PM EST

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TUPELO, Miss., Jan. 25, 2021 /PRNewswire/ -- BancorpSouth Bank (NYSE: BXS) (the "Company") today announced financial results for the quarter and year ended December 31, 2020.

Annual highlights for 2020 included:

  • Achieved net income available to common shareholders of $218.6 million, or $2.12 per diluted common share, and net operating income available to common shareholders – excluding mortgage servicing rights ("MSR") – of $237.3 million, or $2.30 per diluted common share.
  • Recorded provision for credit losses of $86.0 million associated primarily with economic deterioration associated with the COVID-19 pandemic while net charge-offs totaled 0.18 percent of average loans and leases, 0.14 percent of which was related to previously acquired loans; adopted Accounting Standards Update 2016-13 "Financial Instruments – Credit Losses" ("CECL") effective January 1, 2020 which, combined with the provision, contributed to an increase of $125.4 million in the allowance for credit losses.
  • Reported record annual pre-tax pre-provision net revenue ("PPNR") of $397.5 million, or 1.75 percent of average assets; represents an increase of 20.7 percent from $329.2 million, or 1.73 percent of average assets, for 2019.
  • Generated total organic deposit and customer repo growth of approximately $3.2 billion, or 19 percent for the year.
  • Originated over 15,000 loans totaling $1.2 billion under the Paycheck Protection Program ("PPP"); processed forgiveness applications on approximately 6,900 loans totaling $608.9 million and received forgiveness funds from the U.S. Small Business Administration ("SBA") on just over 4,000 loans totaling $262.5 million.
  • Reported record annual mortgage production volume and mortgage revenue for the year – production volume of $3.2 billion contributed to production and servicing revenue totaling $99.1 million.
  • Improvement in cost structure; operating efficiency ratio – excluding MSR – improved to 61.6 percent compared to 64.9 percent for 2019.
  • Completed merger with Texas First Bancshares, Inc. which added $396.9 million in assets to the Company's Central Texas presence.
  • Repurchased 3,300,000 shares of outstanding common stock at a weighted average price of $26.42 per share.

Highlights for the fourth quarter of 2020 included:

  • Achieved quarterly net income available to common shareholders of $66.4 million, or $0.65 per diluted common share, and net operating income available to common shareholders – excluding MSR – of $70.8 million, or $0.69 per diluted common share.
  • Recorded provision for credit losses of $5.0 million; total non-performing assets declined 15.7% while past dues, loan deferrals, and modifications remained relatively stable.
  • Generated $93.6 million in PPNR, or 1.57 percent of average assets on an annualized basis; PPNR was impacted by seasonal revenue factors as well as certain other elevated one-time or non-recurring expense items.
  • Generated total deposit and customer repo growth of $459.7 million for the quarter, or 9.1 percent on an annualized basis.
  • Record fourth quarter mortgage production volume of $845.9 million contributed to mortgage production and servicing revenue of $19.9 million.
  • Recorded a charge of $5.8 million in accordance with Accounting Standards Codification ("ASC") 715 "Compensation – Retirement Benefits" to reflect the settlement accounting impact of the lump sum payments associated with an elevated number of retirements that occurred in the fourth quarter of 2020.
  • Maintained strong regulatory capital metrics; estimated total risk-based capital of 14.24 percent at December 31, 2020 compared to 14.17 percent at December 31, 2019.
  • Announced the signing of a definitive merger agreement with National United Bancshares, Inc., the parent company of National United, which is expected to add approximately $750 million in assets to the Company's Central Texas presence.
  • On January 13, 2021, announced the signing of a definitive merger agreement with FNS Bancshares, Inc., the parent company of FNB Bank, which is expected to add approximately $790 million in assets across Alabama, Tennessee, and Georgia.

"As we look at our financial results for 2020, the COVID-19 pandemic certainly created a challenging year for our industry as a whole," remarked Dan Rollins, Chairman and Chief Executive Officer.  "I am extremely proud of our team's ability to navigate this difficult environment while continuing to improve our core operating results.  While protecting the health of our teammates and customers was our first priority, we achieved some unprecedented milestones in several areas of our Company.    Our mortgage team generated record production of $3.2 billion, which exceeds our previous annual production record of $2.0 billion by 60 percent.  As we have previously reported, our bankers and support staff produced over 15,000 PPP loans totaling over $1.2 billion in a very short period of time.  We are currently actively working with our customers on the second phase of funding under the PPP.  I am also pleased with our lenders and credit administrators' ability to work with our customers on deferrals and modifications while actively managing our credit risk.     While we recorded a provision of credit losses of $86 million for the year, our credit quality indicators continue to remain stable.  Net charge-offs, excluding acquired loans, totaled 0.04 percent of net loans and leases for the year. Finally, we reported record pre-tax pre-provision net revenue of $397.5 million, or 1.75 percent of average assets. This represents an increase from $329.2 million, or 1.73 percent of average assets for 2019." 

"As we look specifically at our fourth quarter performance, we had another great quarter of deposit and customer repo growth, which totaled $459.7 million, or 9.1 percent on an annualized basis.  We were also pleased to be able to continue to work our total cost of deposits down meaningfully and hold our net interest margin in a relatively tight range.  Our mortgage team had another outstanding quarter generating production volume of $845.9 million and total production and servicing revenue of $19.9 million.  While we had several items that created some noise in our results, we are pleased to report operating earnings per share – excluding MSR – of $0.69 per diluted share in a quarter that has historically faced seasonal headwinds in both our mortgage and insurance business.  The largest of these items was a $5.8 million pension accounting charge resulting from elevated retirements and lump sum pension payouts in the fourth quarter.   While this charge adversely impacted earnings, the decline of employee FTE of approximately 100 over the course of 2020 reflects our continued focus on improving our operating efficiency.  Finally, we are excited about the growth opportunities that we have recently announced with National United in Gatesville, Texas and FNB Bank in Scottsboro, Alabama, which will collectively add approximately $1.5 billion in assets to our Company.  We are hopeful that we can receive the required approvals in order to close these transactions during the second quarter of this year."

Earnings Summary

The Company reported net income available to common shareholders of $66.4 million, or $0.65 per diluted common share, for the fourth quarter of 2020, compared with net income available to common shareholders of $65.8 million, or $0.63 per diluted common share, for the fourth quarter of 2019 and net income available to common shareholders of $71.5 million, or $0.69 per diluted common share, for the third quarter of 2020.  The Company reported net operating income available to common shareholders – excluding MSR – of $70.8 million, or $0.69 per diluted common share, for the fourth quarter of 2020, compared with $67.8 million, or $0.65 per diluted common share, for the fourth quarter of 2019 and $71.2 million, or $0.69 per diluted common share, for the third quarter of 2020.

Additionally, the Company reported net income available to common shareholders of $218.6 million, or $2.12 per diluted common share, for the year ended December 31, 2020 compared with $234.3 million, or $2.30 per diluted common share, for the year ended December 31, 2019.  The Company reported net operating income available to common shareholders – excluding MSR – of $237.3 million, or $2.30 per diluted common share, for the year ended December 31, 2020 compared with $255.4 million, or $2.51 per diluted common share, for the year ended December 31, 2019. 

The Company reported pre-tax pre-provision net revenue of $93.6 million, or 1.57 percent of average assets on an annualized basis, for the fourth quarter of 2020 compared to $85.8 million, or 1.68 percent of average assets on an annualized basis, for the fourth quarter of 2019 and $110.0 million, or 1.88 percent of average assets, for the third quarter of 2020.  Additionally, the Company reported pre-tax pre-provision net revenue of $397.5 million, or 1.75 percent of average assets, for the year ended December 31, 2020 compared with $329.2 million, or 1.73 percent of average assets, for the year ended December 31, 2019.

Net Interest Revenue

Net interest revenue was $176.9 million for the fourth quarter of 2020, an increase of 3.6 percent from $170.8 million for the fourth quarter of 2019 and an increase of 0.6 percent from $175.9 million for the third quarter of 2020.  The fully taxable equivalent net interest margin was 3.29 percent for the fourth quarter of 2020, compared with 3.76 percent for the fourth quarter of 2019 and 3.31 percent for the third quarter of 2020.  Yields on net loans and leases were 4.55 percent for the fourth quarter of 2020, compared with 5.13 percent for the fourth quarter of 2019 and 4.54 percent for the third quarter of 2020, while yields on total interest earning assets were 3.70 percent for the fourth quarter of 2020, compared with 4.48 percent for the fourth quarter of 2019 and 3.77 percent for the third quarter of 2020.  The net interest margin, excluding accretable yield, was 3.24 percent for the fourth quarter of 2020, compared with 3.61 percent for the fourth quarter of 2019 and 3.23 percent for the third quarter of 2020, while yields on net loans and leases, excluding accretable yield, were 4.49 percent for the fourth quarter of 2020, compared with 4.95 percent for the fourth quarter of 2019 and 4.44 percent for the third quarter of 2020. 

The $975.4 million in PPP loans on the balance sheet had an adverse impact of approximately four basis points on the yield on net loans and leases, excluding accretable yield, for the fourth quarter of 2020.  Net interest income for the fourth quarter of 2020 included approximately $2.5 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 0.38 percent for the fourth quarter of 2020, compared with 0.68 percent for the fourth quarter of 2019 and 0.44 percent for the third quarter of 2020.

Balance Sheet Activity

Loans and leases, net of unearned income, decreased $305.3 million during the fourth quarter of 2020 primarily as a result of the SBA forgiveness of $262.5 million of PPP loans during the quarter.  Deposits and customer repos increased $459.7 million, or 9.1 percent on an annualized basis, during the fourth quarter of 2020.  There were no acquisitions during the fourth quarter of 2020. 

Provision for Credit Losses and Allowance for Credit Losses

Earnings for the fourth quarter of 2020 reflect a provision for credit losses of $5.0 million, compared with no provision for the fourth quarter of 2019 and a provision of $15.0 million for the third quarter of 2020.  Net charge-offs for the fourth quarter of 2020 were $11.2 million, or 0.29 percent of net loans and leases on an annualized basis, compared with net recoveries of $2.2 million for the fourth quarter of 2019 and net charge-offs of $1.4 million for the third quarter of 2020.  Net charge-offs for the fourth quarter of 2020 consisted primarily of the charge down of loans that were previously identified as impaired in prior quarters. The allowance for credit losses was $244.4 million, or 1.63 percent of net loans and leases, at December 31, 2020, compared with $119.1 million, or 0.85 percent of net loans and leases, at December 31, 2019, and $250.6 million, or 1.64 percent of net loans and leases, at September 30, 2020.   The allowance for credit losses coverage, excluding the impact of PPP loans, was 1.74 percent at December 31, 2020.   

The Company adopted CECL effective January 1, 2020.  The increase in the allowance for credit losses resulting from this implementation was $62.6 million.  Of this increase, $22.6 million was a result of the reclassification of non-accretable difference on previously purchased credit impaired loans that are now considered purchased credit deteriorated loans, while $40.0 million was the result primarily of the requirement of estimating credits losses over the life of the loan portfolio.  The adoption of this standard impacted the comparability of credit quality and coverage metrics to all periods preceding January 1, 2020.

Total non-performing assets were $132.6 million, or 0.55 percent of total assets, at December 31, 2020, compared with $118.3 million, or 0.56 percent of total assets, at December 31, 2019, and $157.3 million, or 0.67 percent of total assets, at September 30, 2020.  Other real estate owned was $11.4 million at December 31, 2020, compared with $6.7 million at December 31, 2019 and $6.4 million at September 30, 2020.

Noninterest Revenue

Noninterest revenue was $78.8 million for the fourth quarter of 2020, compared with $74.7 million for the fourth quarter of 2019 and $89.9 million for the third quarter of 2020.  These results include a positive MSR valuation adjustment of $0.2 million for the fourth quarter of 2020, compared with a positive MSR valuation adjustment of $3.2 million for the fourth quarter of 2019 and a positive MSR valuation adjustment of $0.4 million for the third 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 $19.9 million for the fourth quarter of 2020, compared with $6.9 million for the fourth quarter of 2019 and $26.7 million for the third quarter of 2020.  Mortgage origination volume for the fourth quarter of 2020 was $845.9 million, compared with $504.9 million for the fourth quarter of 2019 and $937.7 million for the third quarter of 2020.  Home purchase money volume was $466.4 million for the fourth quarter of 2020, compared with $321.7 million for the fourth quarter of 2019 and $568.4 million for the third quarter of 2020.  Of the total mortgage origination volume for the fourth quarter of 2020, $157.8 million was portfolio loans, compared with $106.4 million for the fourth quarter of 2019 and $218.0 million for the third quarter of 2020.

Credit card, debit card, and merchant fee revenue was $10.1 million for the fourth quarter of 2020, compared with $9.8 million for the fourth quarter of 2019 and $9.9 million for the third quarter of 2020.  Deposit service charge revenue was $9.7 million for the fourth quarter of 2020, compared with $12.2 million for the fourth quarter of 2019 and $8.9 million for the third quarter of 2020.  Wealth management revenue was $6.8 million for the fourth quarter of 2020, compared with $6.6 million for the fourth quarter of 2019 and $6.5 million for the third quarter of 2020.  Insurance commission revenue was $29.8 million for the fourth quarter of 2020, compared with $27.6 million for the fourth quarter of 2019 and $32.8 million for the third quarter of 2020.  Other noninterest revenue was $2.3 million for the fourth quarter of 2020, compared with $8.3 million for the fourth quarter of 2019 and $4.8 million for the third 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 quarter. 

Noninterest Expense

Noninterest expense for the fourth quarter of 2020 was $167.9 million, compared with $162.4 million for the fourth quarter of 2019 and $155.5 million for the third quarter of 2020.  Salaries and employee benefits expense was $97.2 million for the fourth quarter of 2020, compared with $97.1 million for the fourth quarter of 2019 and $104.2 million for the third quarter of 2020.  Occupancy expense was $13.0 million for the fourth quarter of 2020, compared with $12.3 million for the fourth quarter of 2019 and $13.1 million for the third quarter of 2020.  Other noninterest expense was $45.4 million for the fourth quarter of 2020, compared with $46.0 million for the fourth quarter of 2019 and $32.2 million for the third quarter of 2020.  Additionally, merger-related expense for the fourth quarter of 2020 was $0.2 million, compared with merger-related expense of $5.8 million for the fourth quarter of 2019 and $0.1 million for the third quarter of 2020. 

Noninterest expense for the fourth quarter of 2020 included certain items that were either non-operating or non-routine in nature as defined by the Company.  The Company recorded a charge of $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 11.72 percent at December 31, 2020, compared with 12.75 percent at December 31, 2019 and 11.81 percent at September 30, 2020.  The ratio of tangible common shareholders' equity to tangible assets was 7.54 percent at December 31, 2020, compared with 8.09 percent at December 31, 2019 and 7.56 percent at September 30, 2020.  The $975.4 million in PPP loans had an adverse impact of approximately 33 basis points on tangible common shareholders' equity to tangible assets at December 31, 2020.

During the fourth quarter of 2020, the Company did not repurchase any shares of its common stock pursuant to its share repurchase program.  On December 9, 2020, the Company announced a new share repurchase program, pursuant to which the Board of Directors has authorized the repurchase of up to an aggregate of 6 million shares, which commenced on January 4, 2021 and will expire on December 31, 2021.  

Estimated regulatory capital ratios at December 31, 2020 were calculated in accordance with the Basel III capital framework as well as the interagency interim final rule published on March 31, 2020 entitled "Revised Transition of the Current Expected Credit Losses Methodology for Allowances".  The Company is a "well capitalized" bank, as defined by federal regulations, at December 31, 2020, with Tier 1 risk-based capital of 11.70 percent and total risk-based capital of 14.24 percent, compared with required minimum levels of 8 percent and 10 percent, respectively, in order to qualify for "well capitalized" classification. 

Summary

Rollins concluded, "I am proud of the accomplishments that our teammates achieved over the course of the year in unprecedented circumstances.  We reported record deposit growth and mortgage origination volume, while our bankers cultivated current relationships and built new ones through the government stimulus programs as well as other opportunities to assist customers during this time.  As a company, we have taken other actions to drive continued efficiency improvement including our efforts to improve our branch structure and employee headcount as well as various other initiatives to enhance our technology offerings and customer experience.  While we expect the industry to continue to experience revenue headwinds as we enter the New Year, we are glad 2020 is behind us.  We look forward to the opportunity to continue to grow our Company and improve shareholder value."

TRANSACTIONS

FNS Bancshares, Inc.

On January 13, 2021, the Company announced the signing of a definitive merger agreement (the "FNS Merger Agreement") with FNS Bancshares, Inc., the parent company of FNB Bank, (collectively referred to as "FNS"), pursuant to which FNS will be merged with and into the Company (the "FNS Merger").  FNS operates 17 full-service banking offices in Alabama, Georgia and Tennessee.  The merger will expand the Company's presence in Jackson, DeKalb and Marshall counties in Alabama and the Chattanooga, Tennessee-Georgia and Nashville-Davidson-Murfreesboro-Franklin, Tennessee metropolitan statistical areas.  As of December 31, 2020, FNS collectively reported total assets of $797.0 million, total loans of $483.5 million and total deposits of $675.5 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 Federal Deposit Insurance Corporation ("FDIC") on January 13, 2021.  The FNS Merger Agreement has been unanimously approved by the Boards of Directors of the Company and FNS. FNS has agreed to convene a meeting of its shareholders to vote upon the approval of the FNS Merger Agreement. Subject to the satisfaction of all closing conditions, including the receipt of all required regulatory approvals, the FNS Merger is expected to be completed during the first half of 2021, although the Company can provide no assurance that the FNS Merger will close during this time period or at all.

National United Bancshares, Inc.

On December 2, 2020, the Company announced the signing of a definitive merger agreement (the "National United Merger Agreement") with National United Bancshares, Inc., the parent company of National United, (collectively referred to as "National United"), pursuant to which National United will be merged with and into the Company (the "National United Merger").  National United operates 6 full-service banking offices in the Killeen-Temple, Texas; Waco, Texas; and Austin-Round Rock-Georgetown, Texas metropolitan statistical areas.  As of December 31, 2020, National United collectively reported total assets of $752.3 million, total loans of $446.0 million and total deposits of $676.7 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.  The National United Merger Agreement has been unanimously approved by the Boards of Directors of the Company and National United. National United has agreed to convene a meeting of its shareholders to vote upon the approval of the National United Merger Agreement. Subject to the satisfaction of all closing conditions, including the receipt of all required regulatory approvals, the National United Merger is expected to be completed during the first half of 2021, although the Company can provide no assurance that the National United Merger will close during this time period or at all.

Texas First Bancshares, Inc.

On January 1, 2020, the Company completed the merger with Texas First Bancshares, Inc., the parent company of Texas First State Bank, (collectively referred to as "Texas First"), pursuant to which Texas First was merged with and into the Company.  Texas First operated 6 full-service banking offices in the Waco, Texas and Killeen-Temple, Texas metropolitan statistical areas ("MSA").  As of January 1, 2020, Texas First collectively reported total assets of $396.9 million, total loans of $185.7 million and total deposits of $369.3 million.  Under the terms of the definitive merger agreement, the Company issued approximately 1,040,000 shares of the Company's common stock plus $13.0 million in cash for all outstanding shares of Texas First.  For more information regarding this transaction, see our Current Report on Form 8-K that was filed with the FDIC on January 2, 2020. 

Non-GAAP Measures and Ratios

This news release presents certain financial measures and ratios that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP").  A discussion regarding these non-GAAP measures and ratios, including reconciliations of non-GAAP measures to the most directly comparable GAAP measures and definitions for non-GAAP ratios, appears under the caption "Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions"  beginning on page 26 of this news release.

Statement Regarding Impact of COVID-19 Pandemic

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

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

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

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

Conference Call and Webcast

The Company will conduct a conference call to discuss its fourth quarter 2020 financial results on January 26, 2021, at 10:00 a.m. (Central Time).  This conference call will be an interactive session between management and analysts. Interested parties may listen to this live conference call via Internet webcast by accessing www.bancorpsouth.investorroom.com/webcasts. The webcast will also be available in archived format at the same address.

About BancorpSouth Bank

BancorpSouth Bank (NYSE: BXS) is headquartered in Tupelo, Mississippi, with approximately $24 billion in assets.  BancorpSouth operates approximately 305 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: @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 our business; our: assets; business; cash flows; financial condition; liquidity; prospects; results of operations; deposit and customer repo growth; interest and fee-based revenue; capital resources; capital metrics; efficiency ratio; valuation of mortgage servicing rights; mortgage production volume; net income; net interest revenue; non-interest revenue; net interest margin; interest expense; non-interest expense; earnings per share; interest rate sensitivity; interest rate risk; balance sheet and liquidity management; off-balance sheet arrangements; fair value determinations; asset quality; credit quality; credit losses; provision and allowance for credit losses, impairments, charge-offs, recoveries and changes in loan volumes; investment securities portfolio yields and values; ability to manage the impact of pandemics and natural disasters; adoption and use of critical accounting policies; adoption and implementation of new accounting standards and their effect on our financial results and our financial reporting; utilization of non-GAAP financial metrics; declaration and payment of dividends;  ability to pay dividends or coupons on our 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 our 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, our management at the time such statements were made. Forward-looking statements are not historical facts, are not guarantees of future results or performance and are subject to certain known and unknown risks, uncertainties and other factors that are beyond our control and that may cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. These risks, uncertainties and other factors include, without limitation, potential delays or other problems in implementing and executing our growth, expansion and acquisition strategies, including delays in obtaining regulatory or other necessary approvals or the failure to realize any anticipated benefits or synergies from any acquisitions or growth strategies; the risks of changes in interest rates and their effects on the level and composition of deposits, loan demand and the values of loan collateral, securities and interest sensitive assets and liabilities; the failure of assumptions underlying the establishment of reserves for possible credit losses, fair value for loans and other real estate owned; changes in real estate values; the availability of and access to capital; possible downgrades in our credit ratings or outlook which could increase the costs or availability of funding from capital markets; the ability to attract new or retain existing deposits or to retain or grow loans; the ability to grow additional interest and fee income or to control noninterest expense; the potential impact of the proposed phase-out of the London Interbank Offered Rate ("LIBOR") or other changes involving LIBOR; competitive factors and pricing pressures, including their effect on our net interest margin; general economic, unemployment, credit market and real estate market conditions, and the effect of such conditions on the creditworthiness of borrowers, collateral values, the value of investment securities and asset recovery values; changes in legal, financial and/or regulatory requirements; recently enacted and potential legislation and regulatory actions and the costs and expenses to comply with new and/or existing legislation and regulatory actions, including those actions in response to the COVID-19 pandemic such as the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"), the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the "Economic Aid Act") and any related rules and regulations; changes in U.S. Government monetary and fiscal policy, including any changes that result from the recent U.S. elections; FDIC special assessments or changes to regular assessments; possible adverse rulings, judgments, settlements and other outcomes of pending, ongoing and future litigation and governmental, administrative and investigatory matters (including litigation or actions arising from our participation in and administration of programs related to the COVID-19 pandemic (including, among other things, the PPP loan programs authorized by the CARES Act and the Economic Aid Act); the ability to keep pace with technological changes, including changes regarding maintaining cybersecurity; the impact of failure in, or breach of, our operational or security systems or infrastructure, or those of third parties with whom we do business, including as a result of cyber-attacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting us or our customers; natural disasters or acts of war or terrorism; the adverse effects of the ongoing global COVID-19 pandemic, including the magnitude and duration of the pandemic, and the impact of actions taken to contain or treat COVID-19 on us, our employees, our customers, the global economy and the financial markets; international or political instability; impairment of our goodwill or other intangible assets; losses of key employees and personnel; adoption of new accounting standards, including the effects from the adoption of the current expected credit loss methodology on January 1, 2020, or changes in existing standards; and other factors as detailed from time to time in our press and news releases, periodic and current reports and other filings we file with the FDIC.

The foregoing factors should not be construed as exhaustive and should be read in conjunction with those factors that are set forth from time to time in our periodic and current reports filed with the FDIC, including those factors included in our Annual Report on Form 10-K for the year ended December 31, 2019 under the heading "Item 1A. Risk Factors," in our Quarterly Reports on Form 10-Q and in our Current Reports on Form 8-K.

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

BancorpSouth Bank

Selected Financial Information

(Dollars in thousands, except per share data)

(Unaudited)

Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended

Year Ended

Year Ended

12/31/2020

9/30/2020

6/30/2020

3/31/2020

12/31/2019

12/31/2020

12/31/2019

Earnings Summary:

Interest revenue

$                    199,287

$                    200,670

$                    197,472

$                    202,064

$                    203,812

$            799,493

$            775,012

Interest expense

22,351

24,739

26,902

34,534

33,038

108,526

125,068

Net interest revenue

176,936

175,931

170,570

167,530

170,774

690,967

649,944

Provision for credit losses

5,000

15,000

20,000

46,000

-

86,000

1,500

Net interest revenue, after provision

   for credit losses

171,936

160,931

150,570

121,530

170,774

604,967

648,444

Noninterest revenue

78,826

89,924

91,258

76,496

74,697

336,504

280,681

Noninterest expense

167,911

155,505

162,504

168,006

162,351

653,926

629,607

Income before income taxes

82,851

95,350

79,324

30,020

83,120

287,545

299,518

Income tax expense

14,046

21,525

18,164

5,759

17,271

59,494

65,257

Net income

$                      68,805

$                      73,825

$                      61,160

$                      24,261

$                      65,849

$            228,051

$            234,261

Less: Preferred dividends

2,372

2,372

2,372

2,372

-

9,488

-

Net income available to common shareholders

$                      66,433

$                      71,453

$                      58,788

$                      21,889

$                      65,849

$            218,563

$            234,261

Balance Sheet - Period End Balances

Total assets

$               24,081,194

$               23,555,422

$               23,236,176

$               21,032,524

$               21,052,576

$       24,081,194

$       21,052,576

Total earning assets

21,792,725

21,340,371

21,119,073

18,939,750

18,891,021

21,792,725

18,891,021

Total securities

6,231,006

5,659,785

4,973,171

4,468,340

4,481,974

6,231,006

4,481,974

Loans and leases, net of unearned income

15,022,479

15,327,735

15,427,421

14,224,645

14,089,683

15,022,479

14,089,683

Allowance for credit losses

244,422

250,624

237,025

218,199

119,066

244,422

119,066

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

1,160,267

1,320,671

1,510,008

1,661,329

1,628,265

1,160,267

1,628,265

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

975,421

1,212,246

1,192,715

-

-

975,421

-

Remaining loan mark on acquired loans

13,886

16,198

19,977

22,286

46,240

13,886

46,240

Total deposits

19,846,441

19,412,979

19,179,486

16,887,916

16,410,699

19,846,441

16,410,699

Total deposits and securities sold under agreement to repurchase

20,484,156

20,024,434

19,849,502

17,426,878

16,924,121

20,484,156

16,924,121

Long-term debt

4,402

4,508

4,615

4,721

5,053

4,402

5,053

Junior subordinated debt securities

297,250

297,074

296,898

296,723

296,547

297,250

296,547

Total shareholders' equity

2,822,477

2,782,539

2,732,687

2,681,904

2,685,017

2,822,477

2,685,017

Common shareholders' equity

2,655,484

2,615,546

2,565,694

2,514,911

2,517,996

2,655,484

2,517,996

Balance Sheet - Average Balances

Total assets

$               23,660,503

$               23,318,877

$               22,707,686

$               21,189,637

$               20,243,023

$       22,723,386

$       19,027,644

Total earning assets

21,497,938

21,241,896

20,594,889

19,113,449

18,125,676

20,616,184

17,036,618

Total securities

5,820,425

5,309,982

4,437,614

4,461,298

3,555,014

5,010,378

2,934,654

Loans and leases, net of unearned income

15,219,402

15,369,684

15,114,732

14,226,788

14,061,118

14,984,356

13,606,951

PPP loans (included in loans and leases above)

1,139,959

1,207,097

975,029

-

-

830,467

-

Total deposits

19,600,863

19,258,930

18,454,472

16,905,229

16,218,715

18,559,655

15,319,130

Total deposits and securities sold under agreement to repurchase

20,272,881

19,940,330

19,098,599

17,446,936

16,748,932

19,194,697

15,814,512

Long-term debt

4,488

4,592

4,699

4,800

5,138

4,644

5,415

Junior subordinated debt securities

297,145

296,969

296,793

296,617

135,535

296,882

34,162

Total shareholders' equity

2,774,589

2,729,870

2,738,434

2,658,699

2,572,750

2,725,545

2,366,745

Common shareholders' equity

2,607,596

2,562,877

2,571,441

2,491,678

2,498,033

2,558,545

2,347,913

Nonperforming Assets:

Non-accrual loans and leases

$                      96,378

$                    122,108

$                    126,753

$                    110,074

$                      78,796

$              96,378

$              78,796

Loans and leases 90+ days past due, still accruing

14,320

17,641

9,877

7,272

17,531

14,320

17,531

Restructured loans and leases, still accruing

10,475

11,154

11,575

11,284

15,184

10,475

15,184

Non-performing loans (NPLs)

121,173

150,903

148,205

128,630

111,511

121,173

111,511

Other real estate owned

11,395

6,397

7,164

9,200

6,746

11,395

6,746

Non-performing assets (NPAs)

$                    132,568

$                    157,300

$                    155,369

$                    137,830

$                    118,257

$            132,568

$            118,257

Financial Ratios and Other Data:

Return on average assets

1.16%

1.26%

1.08%

0.46%

1.29%

1.00%

1.23%

Operating return on average assets-excluding MSR*

1.23%

1.26%

1.12%

0.70%

1.33%

1.09%

1.34%

Return on average shareholders' equity

9.87%

10.76%

8.98%

3.67%

10.15%

8.37%

9.90%

Operating return on average shareholders' equity-excluding MSR*

10.49%

10.72%

9.29%

5.56%

10.46%

9.05%

10.79%

Return on average common shareholders' equity

10.14%

11.09%

9.19%

3.53%

10.46%

8.54%

9.98%

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

10.80%

11.05%

9.53%

5.55%

10.78%

9.27%

10.88%

Return on average tangible equity*

14.66%

16.08%

13.43%

5.56%

15.47%

12.53%

15.04%

Operating return on average tangible equity-excluding MSR*

15.58%

16.03%

13.89%

8.42%

15.94%

13.56%

16.40%

Return on average tangible common equity*

15.54%

17.13%

14.20%

5.54%

16.19%

13.22%

15.22%

Operating return on average tangible common equity-excluding MSR*

16.56%

17.08%

14.71%

8.71%

16.68%

14.35%

16.60%

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

1.57%

1.88%

1.81%

1.74%

1.68%

1.75%

1.73%

Noninterest income to average assets

1.33%

1.53%

1.62%

1.45%

1.46%

1.48%

1.48%

Noninterest expense to average assets

2.82%

2.65%

2.88%

3.19%

3.18%

2.88%

3.31%

Net interest margin-fully taxable equivalent

3.29%

3.31%

3.35%

3.54%

3.76%

3.36%

3.84%

Net interest margin-fully taxable equivalent, excluding net accretion

  on acquired loans and leases

3.24%

3.23%

3.30%

3.48%

3.61%

3.31%

3.72%

Net interest rate spread

3.07%

3.06%

3.08%

3.24%

3.44%

3.11%

3.53%

Efficiency ratio (tax equivalent)*

65.47%

58.36%

61.89%

68.65%

65.92%

63.47%

67.38%

Operating efficiency ratio-excluding MSR (tax equivalent)*

63.18%

58.41%

61.16%

63.89%

64.39%

61.62%

64.90%

Loan/deposit ratio

75.69%

78.96%

80.44%

84.23%

85.86%

75.69%

85.86%

Price to earnings multiple (close)

12.88

9.18

11.15

9.46

13.60

12.88

13.60

Market value to common book value

105.98%

75.99%

90.91%

77.21%

130.38%

105.98%

130.38%

Market value to common book value (avg)

97.56%

83.75%

84.79%

107.86%

128.18%

90.96%

122.58%

Market value to common tangible book value

161.00%

116.01%

140.44%

120.81%

201.13%

161.00%

201.13%

Market value to common tangible book value (avg)

148.21%

127.86%

130.99%

168.76%

197.74%

138.19%

189.09%

Employee FTE

4,596

4,691

4,742

4,737

4,693

4,596

4,693

*Denotes non-GAAP financial measure.  Refer to related disclosure and reconciliation on pages 26 and 27.

Credit Quality Ratios:

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

0.29%

0.04%

0.03%

0.39%

(0.06%)

0.18%

0.02%

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

0.13%

0.39%

0.53%

1.30%

0.00%

0.57%

0.01%

Allowance for credit losses to net loans and leases

1.63%

1.64%

1.54%

1.53%

0.85%

1.63%

0.85%

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

1.74%

1.78%

1.67%

1.53%

0.85%

1.74%

0.85%

Allowance for credit losses to non-performing loans and leases

201.71%

166.08%

159.93%

169.63%

106.78%

201.71%

106.78%

Allowance for credit losses to non-performing assets

184.37%

159.33%

152.56%

158.31%

100.68%

184.37%

100.68%

Non-performing loans and leases to net loans and leases

0.81%

0.98%

0.96%

0.90%

0.79%

0.81%

0.79%

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

  acquired loans and leases

0.62%

0.74%

0.63%

0.64%

0.65%

0.62%

0.65%

Non-performing assets to total assets

0.55%

0.67%

0.67%

0.66%

0.56%

0.55%

0.56%

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

0.42%

0.49%

0.43%

0.44%

0.40%

0.42%

0.40%

Equity Ratios:

Total shareholders' equity to total assets

11.72%

11.81%

11.76%

12.75%

12.75%

11.72%

12.75%

Total common shareholders' equity to total assets

11.03%

11.10%

11.04%

11.96%

11.96%

11.03%

11.96%

Tangible shareholders' equity to tangible assets*

8.26%

8.30%

8.18%

8.82%

8.92%

8.26%

8.92%

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

8.63%

8.77%

8.65%

8.82%

8.92%

8.63%

8.92%

Tangible common shareholders' equity to tangible assets*

7.54%

7.56%

7.44%

7.99%

8.09%

7.54%

8.09%

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

7.87%

7.99%

7.86%

7.99%

8.09%

7.87%

8.09%

Capital Adequacy:

Common  Equity Tier 1 capital

10.70%

10.64%

10.21%

10.11%

10.57%

10.70%

10.57%

Tier 1 capital

11.70%

11.65%

11.22%

11.13%

11.60%

11.70%

11.60%

Total capital

14.24%

14.20%

13.79%

13.75%

14.17%

14.24%

14.17%

Tier 1 leverage capital

8.63%

8.59%

8.54%

8.90%

9.69%

8.63%

9.69%

   Estimated for current quarter

Common Share Data:

Basic earnings per share

$                          0.65

$                          0.70

$                          0.57

$                          0.21

$                          0.63

$                  2.12

$                  2.31

Diluted earnings per share

0.65

0.69

0.57

0.21

0.63

2.12

2.30

Operating earnings per share*

0.69

0.70

0.57

0.25

0.67

2.20

2.40

Operating earnings per share- excluding MSR*

0.69

0.69

0.59

0.33

0.65

2.30

2.51

Cash dividends per share

0.190

0.185

0.185

0.185

0.185

0.745

0.710

Book value per share

25.89

25.50

25.01

24.50

24.09

25.89

24.09

Tangible book value per share*

17.04

16.71

16.19

15.66

15.62

17.04

15.62

Market value per share (last)

27.44

19.38

22.74

18.92

31.41

27.44

31.41

Market value per share (high)

28.54

24.29

25.93

31.61

32.97

31.61

33.45

Market value per share (low)

18.77

18.11

17.21

17.24

28.13

17.21

25.76

Market value per share (avg)

25.26

21.36

21.21

26.43

30.88

23.55

29.53

Dividend payout ratio

29.34%

26.56%

32.29%

88.20%

29.43%

35.12%

30.76%

Total shares outstanding

102,561,480

102,558,459

102,566,301

102,632,484

104,522,804

102,561,480

104,522,804

Average shares outstanding - basic

102,569,547

102,564,466

102,603,525

104,354,328

104,739,906

103,022,966

101,506,583

Average shares outstanding - diluted

102,817,409

102,839,749

102,827,225

104,733,897

105,144,032

103,304,570

101,810,640

Yield/Rate:

(Taxable equivalent basis)

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

4.55%

4.54%

4.59%

5.00%

5.13%

4.66%

5.13%

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

  net accretion on acquired loans and leases

4.49%

4.44%

4.53%

4.93%

4.95%

4.59%

4.98%

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

  net accretion on acquired loans and leases - excluding PPP loans

4.53%

4.55%

4.67%

4.93%

4.95%

4.66%

4.98%

PPP loans

3.99%

3.11%

2.50%

N/A

N/A

3.38%

N/A

Available-for-sale securities:

  Taxable

1.53%

1.64%

1.95%

1.99%

2.00%

1.75%

2.06%

  Tax-exempt

3.40%

3.67%

3.86%

4.44%

4.69%

3.85%

4.82%

Short-term, FHLB and other equity investments

0.13%

0.19%

0.20%

1.53%

1.95%

0.43%

2.37%

  Total interest earning assets and revenue

3.70%

3.77%

3.87%

4.27%

4.48%

3.89%

4.57%

Deposits

0.38%

0.44%

0.50%

0.67%

0.68%

0.49%

0.68%

  Demand - interest bearing

0.47%

0.53%

0.61%

0.84%

0.88%

0.61%

0.89%

  Savings

0.15%

0.18%

0.18%

0.26%

0.28%

0.19%

0.29%

  Other time

1.28%

1.41%

1.54%

1.64%

1.68%

1.47%

1.61%

  Total interest bearing deposits

0.57%

0.65%

0.74%

0.92%

0.96%

0.71%

0.95%

Short-term borrowings

0.26%

0.25%

0.39%

1.25%

1.51%

0.54%

1.93%

Total interest bearing deposits and short-term borrowings

0.55%

0.63%

0.71%

0.95%

1.01%

0.70%

1.03%

Junior subordinated debt

4.05%

4.24%

4.18%

4.42%

4.17%

4.40%

4.17%

Long-term debt

4.84%

4.85%

4.81%

4.96%

4.83%

4.87%

4.88%

  Total interest bearing liabilities and expense

0.63%

0.71%

0.79%

1.03%

1.04%

0.78%

1.04%

Interest bearing liabilities to interest earning assets

65.99%

65.61%

66.65%

70.81%

69.37%

67.17%

70.25%

Net interest tax equivalent adjustment

$                           709

$                           618

$                           725

$                           714

$                           800

$                2,766

$                3,782

*Denotes non-GAAP financial measure.  Refer to related disclosure and reconciliation on pages 26 and 27.

 

BancorpSouth Bank

Consolidated Balance Sheets

(Unaudited)

Dec-20

Sep-20

Jun-20

Mar-20

Dec-19

(Dollars in thousands)

Assets

Cash and due from banks

$                284,095

$                306,164

$                240,354

$                253,495

$                261,773

Interest bearing deposits with other banks

and Federal funds sold

133,273

39,782

318,615

29,490

71,233

Available-for-sale securities, at fair value

6,231,006

5,659,785

4,973,171

4,468,340

4,481,974

Loans and leases*

15,039,239

15,344,006

15,444,794

14,241,912

14,107,743

  Less:  Unearned income

16,760

16,271

17,373

17,267

18,060

             Allowance for credit losses

244,422

250,624

237,025

218,199

119,066

Net loans and leases

14,778,057

15,077,111

15,190,396

14,006,446

13,970,617

Loans held for sale

397,076

304,215

391,051

194,321

210,361

Premises and equipment, net

508,147

508,149

504,748

497,669

480,901

Accrued interest receivable

106,318

110,185

101,321

70,463

65,173

Goodwill

851,612

847,531

847,984

848,242

825,679

Other identifiable intangibles

55,899

54,757

56,989

59,345

60,008

Bank owned life insurance

333,264

331,799

329,167

327,312

326,417

Other real estate owned

11,395

6,397

7,164

9,200

6,746

Other assets

391,052

309,547

275,216

268,201

291,694

Total Assets

$           24,081,194

$           23,555,422

$           23,236,176

$           21,032,524

$           21,052,576

Liabilities

Deposits:

  Demand:  Noninterest bearing

$             6,341,457

$             6,336,792

$             6,385,370

$             4,861,155

$             4,661,821

                  Interest bearing

8,524,010

8,170,402

7,907,637

7,268,053

7,176,934

  Savings

2,452,059

2,325,980

2,234,853

2,013,343

1,937,985

  Other time

2,528,915

2,579,805

2,651,626

2,745,365

2,633,959

Total deposits

19,846,441

19,412,979

19,179,486

16,887,916

16,410,699

Securities sold under agreement to repurchase

637,715

611,455

670,016

538,962

513,422

Federal funds purchased

   and other short-term borrowing

-

95,217

220

290,224

725,000

Accrued interest payable

10,885

15,286

13,476

17,482

15,124

Junior subordinated debt securities

297,250

297,074

296,898

296,723

296,547

Long-term debt

4,402

4,508

4,615

4,721

5,053

Other liabilities

462,024

336,364

338,778

314,592

401,714

Total Liabilities

21,258,717

20,772,883

20,503,489

18,350,620

18,367,559

Shareholders' Equity

Preferred stock

166,993

166,993

166,993

166,993

167,021

Common stock

256,404

256,396

256,416

256,581

261,307

Capital surplus

565,187

565,635

561,541

558,114

605,976

Accumulated other comprehensive income (loss)

11,923

18,490

25,191

17,849

(62,663)

Retained earnings

1,821,970

1,775,025

1,722,546

1,682,367

1,713,376

Total Shareholders' Equity

2,822,477

2,782,539

2,732,687

2,681,904

2,685,017

Total Liabilities & Shareholders' Equity

$           24,081,194

$           23,555,422

$           23,236,176

$           21,032,524

$           21,052,576

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

 

BancorpSouth Bank

Consolidated Average Balance Sheets

(Unaudited)

Dec-20

Sep-20

Jun-20

Mar-20

Dec-19

(Dollars in thousands)

Assets

Cash and due from banks

$                247,799

$                232,421

$                229,334

$                246,860

$                244,444

Interest bearing deposits with other banks

and Federal funds sold

171,650

257,057

760,789

239,766

300,495

Available-for-sale securities, at fair value

5,820,425

5,309,982

4,437,614

4,461,298

3,555,014

Loans and leases*

15,235,827

15,386,721

15,132,600

14,244,649

14,078,793

  Less:  Unearned income

16,425

17,037

17,868

17,861

17,675

             Allowance for credit losses

247,049

236,536

217,508

193,796

117,668

Net loans and leases

14,972,353

15,133,148

14,897,224

14,032,992

13,943,450

Loans held for sale

277,600

296,352

261,377

147,798

173,649

Premises and equipment, net

508,053

507,190

499,767

494,413

481,623

Accrued interest receivable

105,513

104,435

137,456

64,010

60,678

Goodwill

852,472

847,744

848,160

844,635

823,812

Other identifiable intangibles

54,858

56,045

58,280

58,805

60,559

Bank owned life insurance

332,543

330,642

328,037

326,808

328,567

Other real estate owned

14,872

7,754

8,410

8,151

7,820

Other assets

302,365

236,107

241,238

264,101

262,912

Total Assets

$           23,660,503

$           23,318,877

$           22,707,686

$           21,189,637

$           20,243,023

Liabilities

Deposits:

  Demand:  Noninterest bearing

$             6,391,006

$             6,340,942

$             5,942,570

$             4,717,202

$             4,803,104

                  Interest bearing

8,268,528

8,022,755

7,674,479

7,466,674

6,872,921

  Savings

2,386,034

2,280,860

2,152,092

1,975,690

1,913,650

  Other time

2,555,295

2,614,373

2,685,331

2,745,663

2,629,040

Total deposits

19,600,863

19,258,930

18,454,472

16,905,229

16,218,715

Securities sold under agreement to repurchase

672,018

681,400

644,127

541,707

530,217

Federal funds purchased

   and other short-term borrowing

3,893

36,696

269,121

502,257

487,272

Accrued interest payable

14,175

15,589

16,268

19,205

14,942

Junior subordinated debt securities

297,145

296,969

296,793

296,617

135,535

Long-term debt

4,488

4,592

4,699

4,800

5,138

Other liabilities

293,332

294,831

283,772

261,123

278,454

Total Liabilities

20,885,914

20,589,007

19,969,252

18,530,938

17,670,273

Shareholders' Equity

Preferred stock

166,993

166,993

166,993

167,021

74,717

Common stock

256,422

256,412

256,515

261,065

261,905

Capital surplus

568,343

563,267

559,737

600,880

611,667

Accumulated other comprehensive income (loss)

12,432

24,758

23,016

(36,367)

(53,111)

Retained earnings

1,770,399

1,718,440

1,732,173

1,666,100

1,677,572

Total Shareholders' Equity

2,774,589

2,729,870

2,738,434

2,658,699

2,572,750

Total Liabilities & Shareholders' Equity

$           23,660,503

$           23,318,877

$           22,707,686

$           21,189,637

$           20,243,023

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

 

BancorpSouth Bank

Consolidated Condensed Statements of Income

(Dollars in thousands, except per share data)

(Unaudited)

Quarter Ended

Year Ended

Dec-20

Sep-20

Jun-20

Mar-20

Dec-19

Dec-20

Dec-19

INTEREST REVENUE:

Loans and leases

$      174,072

$     175,810

$        173,164

$      177,019

$     182,269

$    700,065

$    697,425

Deposits with other banks

50

74

207

739

1,225

1,070

6,489

Federal funds sold, securities purchased

   under agreement to resell, FHLB and 

      other equity investments

6

52

178

315

426

551

2,077

Available-for-sale securities:

    Taxable

21,895

21,280

20,783

21,508

17,241

85,466

56,660

    Tax-exempt

760

986

1,178

1,060

1,266

3,984

7,160

Loans held for sale

2,504

2,468

1,962

1,423

1,385

8,357

5,201

        Total interest revenue

199,287

200,670

197,472

202,064

203,812

799,493

775,012

INTEREST EXPENSE:

Interest bearing demand

9,766

10,773

11,631

15,522

15,202

47,692

58,771

Savings

872

1,012

943

1,290

1,334

4,117

5,361

Other time

8,189

9,287

10,296

11,168

11,134

38,940

39,380

Federal funds purchased and securities sold

   under agreement to repurchase

276

279

291

1,436

1,591

2,282

7,195

Short-term and long-term debt

47

49

477

1,857

2,293

2,430

12,875

Junior subordinated debt

3,201

3,338

3,263

3,261

1,482

13,063

1,482

Other

-

1

1

-

2

2

4

        Total interest expense

22,351

24,739

26,902

34,534

33,038

108,526

125,068

        Net interest revenue

176,936

175,931

170,570

167,530

170,774

690,967

649,944

  Provision for credit losses

5,000

15,000

20,000

46,000

-

86,000

1,500

        Net interest revenue, after provision for

          credit losses

171,936

160,931

150,570

121,530

170,774

604,967

648,444

NONINTEREST REVENUE:

Mortgage banking

20,129

27,097

29,557

9,470

10,102

86,253

19,782

Credit card, debit card and merchant fees

10,053

9,938

9,080

9,176

9,836

38,247

38,656

Deposit service charges

9,708

8,892

7,647

11,682

12,193

37,929

46,015

Security gains(losses), net

63

18

62

(85)

(41)

58

174

Insurance commissions

29,815

32,750

33,118

29,603

27,648

125,286

123,291

Wealth management

6,751

6,471

6,421

6,570

6,617

26,213

24,809

Other

2,307

4,758

5,373

10,080

8,342

22,518

27,954

        Total noninterest revenue

78,826

89,924

91,258

76,496

74,697

336,504

280,681

NONINTEREST EXPENSE:

Salaries and employee benefits

97,215

104,219

108,103

108,272

97,137

417,809

396,500

Occupancy, net of rental income

13,004

13,053

12,890

12,708

12,267

51,655

48,129

Equipment

4,756

4,519

4,762

4,649

4,725

18,686

17,712

Deposit insurance assessments

1,696

1,522

1,962

1,546

2,200

6,726

9,143

Pension settlement expense

5,846

-

-

-

-

5,846

-

Other

45,394

32,192

34,787

40,831

46,022

153,204

158,123

        Total noninterest expense

167,911

155,505

162,504

168,006

162,351

653,926

629,607

        Income before income taxes

82,851

95,350

79,324

30,020

83,120

287,545

299,518

Income tax expense

14,046

21,525

18,164

5,759

17,271

59,494

65,257

        Net income

$        68,805

$       73,825

$          61,160

$        24,261

$       65,849

$    228,051

$    234,261

Less: Preferred dividends

2,372

2,372

2,372

2,372

-

9,488

-

        Net income available to common shareholders

$        66,433

$       71,453

$          58,788

$        21,889

$       65,849

$    218,563

$    234,261

Net income per common share: Basic

$            0.65

$           0.70

$              0.57

$            0.21

$           0.63

$          2.12

$          2.31

                                                   Diluted

$            0.65

$           0.69

$              0.57

$            0.21

$           0.63

$          2.12

$          2.30

 

BancorpSouth Bank

Selected Loan Data

(Dollars in thousands)

(Unaudited)

Quarter Ended

Dec-20

Sep-20

Jun-20

Mar-20

Dec-19

LOAN AND LEASE PORTFOLIO:

Commercial and industrial

   Commercial and industrial-non real estate

2,673,429

2,937,608

3,038,957

2,008,043

1,979,507

   Commercial and industrial-owner occupied

2,281,127

2,297,008

2,296,287

2,290,585

2,268,813

      Total commercial and industrial

4,954,556

5,234,616

5,335,244

4,298,628

4,248,320

Commercial real estate

   Agricultural

317,994

333,839

333,615

339,539

337,349

   Construction, acquisition and development

1,728,682

1,700,030

1,658,678

1,582,039

1,577,342

   Commercial real estate

3,211,434

3,229,959

3,323,744

3,303,537

3,220,914

      Total commercial real estate

5,258,110

5,263,828

5,316,037

5,225,115

5,135,605

Consumer

   Consumer mortgages

3,726,241

3,704,490

3,646,168

3,572,277

3,543,075

   Home equity

630,097

658,708

655,543

686,202

683,515

   Credit cards

89,077

85,760

86,592

93,896

102,559

      Total consumer

4,445,415

4,448,958

4,388,303

4,352,375

4,329,149

All other

364,398

380,333

387,837

348,527

376,609

      Total loans

$  15,022,479

$  15,327,735

$  15,427,421

$  14,224,645

$  14,089,683

ALLOWANCE FOR CREDIT LOSSES:

Balance, beginning of period

$      250,624

$      237,025

$      218,199

$       119,066

$      116,908

Impact of adopting ASC 326 - cumulative effect adjustment

-

-

-

40,000

-

Impact of adopting ASC 326 - purchased loans with credit

   deterioration

-

-

-

22,634

-

Loans and leases charged-off:

Commercial and industrial

   Commercial and industrial-non real estate

(4,343)

(560)

(1,506)

(10,792)

(1,273)

   Commercial and industrial-owner occupied

(1,168)

(441)

(13)

(184)

(192)

     Total commercial and industrial

(5,511)

(1,001)

(1,519)

(10,976)

(1,465)

Commercial real estate

   Agricultural

(155)

-

(21)

(65)

(11)

   Construction, acquisition and development

(1,773)

-

(9)

(3,173)

(26)

   Commercial real estate

(3,134)

(738)

-

(67)

-

     Total commercial real estate

(5,062)

(738)

(30)

(3,305)

(37)

Consumer

   Consumer mortgages

(731)

(81)

(124)

(524)

(687)

   Home equity

(395)

(41)

(162)

(236)

(173)

   Credit cards

(458)

(682)

(703)

(798)

(797)

     Total consumer

(1,584)

(804)

(989)

(1,558)

(1,657)

All other

(875)

(599)

(396)

(914)

(965)

     Total loans charged-off

(13,032)

(3,142)

(2,934)

(16,753)

(4,124)

Recoveries:

Commercial and industrial

   Commercial and industrial-non real estate

779

294

277

355

353

   Commercial and industrial-owner occupied

37

163

136

1,179

30

     Total commercial and industrial

816

457

413

1,534

383

Commercial real estate

   Agricultural

24

3

6

6

4

   Construction, acquisition and development

73

55

172

245

584

   Commercial real estate

45

209

50

135

4,212

     Total commercial real estate

142

267

228

386

4,800

Consumer

   Consumer mortgages

230

352

345

397

407

   Home equity

151

132

259

80

216

   Credit cards

211

270

195

285

218

     Total consumer

592

754

799

762

841

All other

280

263

320

344

258

     Total recoveries

1,830

1,741

1,760

3,026

6,282

Net (charge-offs)recoveries

(11,202)

(1,401)

(1,174)

(13,727)

2,158

Initial allowance on loans purchased with credit deterioration

-

-

-

4,226

-

Provision:

   Initial provision for loans acquired during the quarter

-

-

-

1,000

-

   Provision for credit losses related to loans and leases

5,000

15,000

20,000

45,000

-

     Total provision

5,000

15,000

20,000

46,000

-

Balance, end of period

$      244,422

$      250,624

$      237,025

$       218,199

$      119,066

Average loans for period

$ 15,219,402

$ 15,369,684

$ 15,114,732

$ 14,226,788

$ 14,061,118

Ratio:

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

0.29%

0.04%

0.03%

0.39%

(0.06%)

 

BancorpSouth Bank

Selected Loan Data

(Dollars in thousands)

(Unaudited)

Quarter Ended

Dec-20

Sep-20

Jun-20

Mar-20

Dec-19

BXS ORIGINATED LOANS AND LEASES:

Loans and leases charged off:

Commercial and industrial

   Commercial and industrial-non real estate

$        (1,991)

$          (490)

$          (420)

$           (230)

$          (844)

   Commercial and industrial-owner occupied

(303)

(434)

(13)

(19)

(184)

     Total commercial and industrial

(2,294)

(924)

(433)

(249)

(1,028)

Commercial real estate

   Agricultural

(124)

-

-

(65)

(6)

   Construction, acquisition and development

(1,709)

-

-

(121)

(26)

   Commercial real estate

(1,704)

(155)

-

(67)

-

     Total real estate

(3,537)

(155)

-

(253)

(32)

Consumer

   Consumer mortgages

(537)

(70)

(113)

(357)

(648)

   Home equity

(395)

(41)

(162)

(236)

(173)

   Credit cards

(458)

(682)

(703)

(798)

(797)

     Total consumer

(1,390)

(793)

(978)

(1,391)

(1,618)

All other

(698)

(459)

(288)

(704)

(782)

     Total loans charged off

(7,919)

(2,331)

(1,699)

(2,597)

(3,460)

Recoveries:

Commercial and industrial

   Commercial and industrial-non real estate

645

231

210

325

277

   Commercial and industrial-owner occupied

27

163

136

1,177

30

     Total commercial and industrial

672

394

346

1,502

307

Commercial real estate

   Agricultural

23

3

5

4

4

   Construction, acquisition and development

73

55

170

244

583

   Commercial real estate

45

208

50

135

4,212

     Total real estate

141

266

225

383

4,799

Consumer

   Consumer mortgages

221

350

343

395

405

   Home equity

149

130

258

79

215

   Credit cards

211

270

195

285

218

     Total consumer

581

750

796

759

838

All other

249

235

275

316

245

     Total recoveries

1,643

1,645

1,642

2,960

6,189

Net (charge-offs)/recoveries

$        (6,276)

$          (686)

$            (57)

$            363

$         2,729

 

BancorpSouth Bank

Selected Loan Data

(Dollars in thousands)

(Unaudited)

Quarter Ended

Dec-20

Sep-20

Jun-20

Mar-20

Dec-19

ACQUIRED LOANS AND LEASES:

Loans and leases charged off:

Commercial and industrial

   Commercial and industrial-non real estate

$        (2,352)

$            (70)

$       (1,086)

$      (10,562)

$          (429)

   Commercial and industrial-owner occupied

(865)

(7)

-

(165)

(8)

     Total commercial and industrial

(3,217)

(77)

(1,086)

(10,727)

(437)

Commercial real estate

   Agricultural

(31)

-

(21)

-

(5)

   Construction, acquisition and development

(64)

-

(9)

(3,052)

-

   Commercial real estate

(1,430)

(583)

-

-

-

     Total real estate

(1,525)

(583)

(30)

(3,052)

(5)

Consumer

   Consumer mortgages

(194)

(11)

(11)

(167)

(39)

   Home equity

-

-

-

-

-

   Credit cards

-

-

-

-

-

     Total consumer

(194)

(11)

(11)

(167)

(39)

All other

(177)

(140)

(108)

(210)

(183)

     Total loans charged off

(5,113)

(811)

(1,235)

(14,156)

(664)

Recoveries:

Commercial and industrial

   Commercial and industrial-non real estate

134

63

67

30

76

   Commercial and industrial-owner occupied

10

-

-

2

-

     Total commercial and industrial

144

63

67

32

76

Commercial real estate

   Agricultural

1

-

1

2

-

   Construction, acquisition and development

-

-

2

1

1

   Commercial real estate

-

1

-

-

-

     Total real estate

1

1

3

3

1

Consumer

   Consumer mortgages

9

2

2

2

2

   Home equity

2

2

1

1

1

   Credit cards

-

-

-

-

-

     Total consumer

11

4

3

3

3

All other

31

28

45

28

13

     Total recoveries

187

96

118

66

93

Net (charge-offs)/recoveries

$        (4,926)

$          (715)

$       (1,117)

$      (14,090)

$          (571)

 

BancorpSouth Bank

Selected Loan Data

(Dollars in thousands)

(Unaudited)

Quarter Ended

Dec-20

Sep-20

Jun-20

Mar-20

Dec-19

NON-PERFORMING ASSETS

NON-PERFORMING LOANS AND LEASES:

  Nonaccrual Loans and Leases

    Commercial and industrial

       Commercial and industrial-non real estate

$    12,768

$       17,936

$       16,124

$    16,589

$       11,105

       Commercial and industrial-owner occupied

15,783

18,343

16,745

11,212

7,838

         Total commercial and industrial

28,551

36,279

32,869

27,801

18,943

    Commercial real estate

       Agricultural

5,013

5,907

5,244

5,454

4,772

       Construction, acquisition and development

9,738

10,434

9,715

13,899

6,225

       Commercial real estate

16,249

32,554

45,047

29,697

16,199

         Total commercial real estate

31,000

48,895

60,006

49,050

27,196

    Consumer

       Consumer mortgages

32,951

32,872

30,672

29,834

28,879

       Home equity

2,657

3,325

2,584

2,597

2,993

       Credit cards

173

144

90

122

63

         Total consumer

35,781

36,341

33,346

32,553

31,935

    All other

1,046

593

532

670

722

         Total nonaccrual loans and leases

$    96,378

$      122,108

$      126,753

$  110,074

$       78,796

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

14,320

17,641

9,877

7,272

17,531

  Restructured Loans and Leases, Still Accruing

10,475

11,154

11,575

11,284

15,184

     Total non-performing loans and leases

$  121,173

$      150,903

$      148,205

$  128,630

$      111,511

OTHER REAL ESTATE OWNED:

11,395

6,397

7,164

9,200

6,746

Total Non-performing Assets

$  132,568

$      157,300

$      155,369

$  137,830

$      118,257

  BXS originated assets

$    97,025

$      109,418

$       94,155

$    85,908

$       78,295

  Acquired assets

35,543

47,882

61,214

51,922

39,962

Total Non-performing Assets

$  132,568

$      157,300

$      155,369

$  137,830

$      118,257

Additions to Nonaccrual Loans and Leases During the Quarter

$    11,087

$       19,973

$       36,619

$    47,523

$       25,147

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

    BXS originated loans

$    40,424

$       42,978

$       35,002

$    54,315

$       44,559

    Acquired loans

6,048

5,694

10,450

14,405

23,054

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

$    46,472

$       48,672

$       45,452

$    68,720

$       67,613

 

BancorpSouth Bank

Selected Loan Data

(Dollars in thousands)

(Unaudited)

December 31, 2020

Purchased

Special

Credit

Pass

Mention

Substandard

Doubtful

Loss

Impaired

Deteriorated (Loss)

Total

LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:

Commercial and industrial

   Commercial and industrial-non real estate

$   2,616,471

$         7,202

$       39,040

$        172

$                -

$    1,949

$                8,595

$          2,673,429

   Commercial and industrial-owner occupied

2,208,214

-

58,683

-

-

11,579

2,651

2,281,127

     Total commercial and industrial

4,824,685

7,202

97,723

172

-

13,528

11,246

4,954,556

Commercial real estate

   Agricultural

310,766

-

4,526

-

-

777

1,925

317,994

   Construction, acquisition and development

1,686,907

1,534

32,363

-

-

2,054

5,824

1,728,682

   Commercial real estate

3,062,894

-

134,054

-

-

10,780

3,706

3,211,434

     Total commercial real estate

5,060,567

1,534

170,943

-

-

13,611

11,455

5,258,110

Consumer

   Consumer mortgages

3,645,357

-

78,287

-

-

2,406

191

3,726,241

   Home equity

624,581

-

5,516

-

-

-

-

630,097

   Credit cards

89,077

-

-

-

-

-

-

89,077

     Total consumer

4,359,015

-

83,803

-

-

2,406

191

4,445,415

All other

357,812

-

6,519

-

-

-

67

364,398

     Total loans

$ 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

September 30, 2020

Purchased

Special

Credit

Pass

Mention

Substandard

Doubtful

Loss

Impaired

Deteriorated (Loss)

Total

LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:

Commercial and industrial

   Commercial and industrial-non real estate

$   2,875,468

$                -

$       47,526

$        178

$                -

$    3,664

$              10,772

$          2,937,608

   Commercial and industrial-owner occupied

2,224,302

-

56,919

-

-

12,116

3,671

2,297,008

     Total commercial and industrial

5,099,770

-

104,445

178

-

15,780

14,443

5,234,616

Commercial real estate

   Agricultural

324,010

-

7,109

-

-

725

1,995

333,839

   Construction, acquisition and development

1,656,961

-

34,197

-

-

2,961

5,911

1,700,030

   Commercial real estate

3,070,472

-

127,835

-

-

27,493

4,159

3,229,959

     Total commercial real estate

5,051,443

-

169,141

-

-

31,179

12,065

5,263,828

Consumer

   Consumer mortgages

3,615,071

-

85,827

-

-

2,859

733

3,704,490

   Home equity

651,525

-

7,183

-

-

-

-

658,708

   Credit cards

85,760

-

-

-

-

-

-

85,760

     Total consumer

4,352,356

-

93,010

-

-

2,859

733

4,448,958

All other

374,374

-

5,887

-

-

-

72

380,333

     Total loans

$ 14,877,943

$                -

$      372,483

$        178

$                -

$  49,818

$              27,313

$         15,327,735

  BXS originated loans

$ 13,592,460

$              -

$      252,875

$        178

$                -

$  30,909

$                    -

$         13,876,422

  Acquired loans*

1,285,483

-

119,608

-

-

18,909

27,313

1,451,313

     Total Loans

$ 14,877,943

$              -

$      372,483

$        178

$                -

$  49,818

$              27,313

$         15,327,735

*Includes certain loans that are no longer included in the "Net book value of acquired loans" on page 12 as a result of maturity, refinance, or other triggering event.

 

BancorpSouth Bank

Selected Loan Data

(Dollars in thousands)

(Unaudited)

Quarter Ended

Dec-20

Sep-20

Jun-20

Mar-20

Dec-19

LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:

Pass

$ 14,602,079

$ 14,877,943

$ 14,985,673

$ 13,821,602

$  13,738,979

Special Mention

8,736

-

4,264

7,129

2,240

Substandard

358,988

372,483

350,264

323,697

298,491

Doubtful

172

178

179

191

194

Loss

-

-

-

667

-

Impaired

29,545

49,818

57,406

40,627

24,094

Purchased Credit Deteriorated (Loss)

22,959

27,313

29,635

30,732

-

Purchased Credit Impaired

-

-

-

-

25,685

   Total

$ 15,022,479

$ 15,327,735

$ 15,427,421

$ 14,224,645

$  14,089,683

BXS ORIGINATED LOAN PORTFOLIO BY INTERNALLY

   ASSIGNED GRADE:

Pass

$ 13,459,529

$ 13,592,460

$ 13,516,292

$ 12,150,616

$  12,080,336

Special Mention

8,736

-

2,741

2,045

-

Substandard

259,682

252,875

231,687

225,506

202,017

Doubtful

172

178

179

191

194

Loss

-

-

-

-

-

Impaired

17,520

30,909

28,288

22,356

17,110

Purchased Credit Deteriorated (Loss)

-

-

-

-

-

Purchased Credit Impaired

-

-

-

-

-

   Total

$ 13,745,639

$ 13,876,422

$ 13,779,187

$ 12,400,714

$  12,299,657

ACQUIRED LOAN PORTFOLIO BY INTERNALLY

   ASSIGNED GRADE:

Pass

$  1,142,550

$   1,285,483

$  1,469,381

$   1,670,986

$    1,658,643

Special Mention

-

-

1,523

5,084

2,240

Substandard

99,306

119,608

118,577

98,191

96,474

Doubtful

-

-

-

-

-

Loss

-

-

-

667

-

Impaired

12,025

18,909

29,118

18,271

6,984

Purchased Credit Deteriorated (Loss)

22,959

27,313

29,635

30,732

-

Purchased Credit Impaired

-

-

-

-

25,685

   Total

$  1,276,840

$   1,451,313

$  1,648,234

$   1,823,931

$    1,790,026

 

BancorpSouth Bank

Geographical Information

(Dollars in thousands)

(Unaudited)

December 31, 2020

Alabama

and Florida

Panhandle

Arkansas

Louisiana

Mississippi

Missouri

Tennessee

Texas

Other

Total

LOAN AND LEASE PORTFOLIO:

Commercial and industrial

   Commercial and industrial-non real estate

$    235,705

$    203,719

$    315,937

$    685,643

$      78,660

$    156,025

$    993,617

$       4,123

$   2,673,429

   Commercial and industrial-owner occupied

266,149

184,830

230,662

615,647

64,430

123,899

785,629

9,881

2,281,127

     Total commercial and industrial

501,854

388,549

546,599

1,301,290

143,090

279,924

1,779,246

14,004

4,954,556

Commercial real estate

   Agricultural

26,568

67,754

18,735

69,091

6,818

10,552

117,374

1,102

317,994

   Construction, acquisition and development

176,272

56,042

79,577

333,078

20,293

87,469

975,951

-

1,728,682

   Commercial real estate

332,075

336,629

260,110

664,930

221,773

221,706

1,171,593

2,618

3,211,434

     Total commercial real estate

534,915

460,425

358,422

1,067,099

248,884

319,727

2,264,918

3,720

5,258,110

Consumer

   Consumer mortgages

598,700

325,951

342,591

820,025

111,956

326,826

1,148,809

51,383

3,726,241

   Home equity

94,774

46,559

77,749

218,451

16,314

133,636

42,268

346

630,097

   Credit cards

-

-

-

-

-

-

-

89,077

89,077

     Total consumer

693,474

372,510

420,340

1,038,476

128,270

460,462

1,191,077

140,806

4,445,415

All other

56,584

39,079

37,097

114,565

3,054

24,281

80,821

8,917

364,398

     Total loans

$ 1,786,827

$ 1,260,563

$ 1,362,458

$ 3,521,430

$    523,298

$ 1,084,394

$ 5,316,062

$    167,447

$ 15,022,479

Loan growth, excluding loans acquired during

    the quarter (annualized)

(8.03%)

(14.12%)

(27.10%)

(8.00%)

(6.33%)

(26.19%)

2.81%

(6.11%)

(7.92%)

Loan growth, excluding PPP loans (annualized)

0.96%

(7.80%)

(21.61%)

(2.52%)

(3.49%)

(17.32%)

8.16%

4.28%

(1.78%)

NON-PERFORMING LOANS AND LEASES:

Commercial and industrial

   Commercial and industrial-non real estate

$          233

$       1,050

$       1,774

$       1,113

$       1,408

$          530

$       7,202

$          283

$       13,593

   Commercial and industrial-owner occupied

1,211

1,630

497

3,196

166

280

13,938

-

20,918

     Total commercial and industrial

1,444

2,680

2,271

4,309

1,574

810

21,140

283

34,511

Commercial real estate

   Agricultural

312

409

44

988

-

-

3,264

-

5,017

   Construction, acquisition and development

102

133

1,692

932

-

215

6,949

-

10,023

   Commercial real estate

3,027

204

4,488

1,054

-

94

8,282

-

17,149

     Total commercial real estate

3,441

746

6,224

2,974

-

309

18,495

-

32,189

Consumer

   Consumer mortgages

9,401

3,621

4,345

13,420

1,807

2,646

12,738

1,323

49,301

   Home equity

331

115

306

859

103

1,038

399

-

3,151

   Credit cards

-

-

-

-

-

-

-

918

918

     Total consumer

9,732

3,736

4,651

14,279

1,910

3,684

13,137

2,241

53,370

All other

191

2

97

116

-

14

678

5

1,103

     Total loans

$      14,808

$       7,164

$      13,243

$      21,678

$       3,484

$       4,817

$      53,450

$       2,529

$      121,173

NON-PERFORMING LOANS AND LEASES

   AS A PERCENTAGE OF OUTSTANDING:

Commercial and industrial

   Commercial and industrial-non real estate

0.10%

0.52%

0.56%

0.16%

1.79%

0.34%

0.72%

6.86%

0.51%

   Commercial and industrial-owner occupied

0.46%

0.88%

0.22%

0.52%

0.26%

0.23%

1.77%

0.00%

0.92%

     Total commercial and industrial

0.29%

0.69%

0.42%

0.33%

1.10%

0.29%

1.19%

2.02%

0.70%

Commercial real estate

   Agricultural

1.17%

0.60%

0.23%

1.43%

0.00%

0.00%

2.78%

0.00%

1.58%

   Construction, acquisition and development

0.06%

0.24%

2.13%

0.28%

0.00%

0.25%

0.71%

N/A

0.58%

   Commercial real estate

0.91%

0.06%

1.73%

0.16%

0.00%

0.04%

0.71%

0.00%

0.53%

     Total commercial real estate

0.64%

0.16%

1.74%

0.28%

0.00%

0.10%

0.82%

0.00%

0.61%

Consumer

   Consumer mortgages

1.57%

1.11%

1.27%

1.64%

1.61%

0.81%

1.11%

2.57%

1.32%

   Home equity

0.35%

0.25%

0.39%

0.39%

0.63%

0.78%

0.94%

0.00%

0.50%

   Credit cards

N/A

N/A

N/A

N/A

N/A

N/A

N/A

1.03%

1.03%

     Total consumer

1.40%

1.00%

1.11%

1.37%

1.49%

0.80%

1.10%

1.59%

1.20%

All other

0.34%

0.01%

0.26%

0.10%

0.00%

0.06%

0.84%

0.06%

0.30%

     Total loans

0.83%

0.57%

0.97%

0.62%

0.67%

0.44%

1.01%

1.51%

0.81%

 

BancorpSouth Bank

Noninterest Revenue and Expense

(Dollars in thousands)

(Unaudited)

Quarter Ended

Year Ended

Dec-20

Sep-20

Jun-20

Mar-20

Dec-19

Dec-20

Dec-19

NONINTEREST REVENUE:

Mortgage banking excl. MSR and MSR Hedge market value adj

$    19,917

$       26,667

$       31,930

$    20,553

$         6,938

$  99,067

$  34,297

MSR and MSR Hedge market value adjustment

212

430

(2,373)

(11,083)

3,164

(12,814)

(14,515)

Credit card, debit card and merchant fees

10,053

9,938

9,080

9,176

9,836

38,247

38,656

Deposit service charges

9,708

8,892

7,647

11,682

12,193

37,929

46,015

Securities gains (losses), net

63

18

62

(85)

(41)

58

174

Insurance commissions

29,815

32,750

33,118

29,603

27,648

125,286

123,291

Trust income

4,046

3,902

4,064

4,013

3,951

16,025

16,042

Annuity fees

53

53

54

55

136

215

830

Brokerage commissions and fees

2,652

2,516

2,303

2,502

2,530

9,973

7,937

Bank-owned life insurance

2,425

1,902

1,855

1,999

3,427

8,181

9,632

Other miscellaneous income

(118)

2,856

3,518

8,081

4,915

14,337

18,322

     Total noninterest revenue

$    78,826

$       89,924

$       91,258

$    76,496

$       74,697

$ 336,504

$ 280,681

NONINTEREST EXPENSE:

Salaries and employee benefits

$    97,215

$      104,219

$      108,103

$  108,272

$       97,137

$ 417,809

$ 396,500

Occupancy, net of rental income

13,004

13,053

12,890

12,708

12,267

51,655

48,129

Equipment

4,756

4,519

4,762

4,649

4,725

18,686

17,712

Deposit insurance assessments

1,696

1,522

1,962

1,546

2,200

6,726

9,143

Pension settlement expense

5,846

-

-

-

-

5,846

-

Advertising

899

826

918

1,099

1,153

3,742

4,909

Foreclosed property expense

2,122

(278)

1,306

924

855

4,074

2,868

Telecommunications

1,448

1,462

1,512

1,461

1,504

5,883

5,663

Public relations

897

1,130

459

680

880

3,166

3,648

Data processing

9,980

9,477

9,693

9,646

10,041

38,796

35,517

Computer software

5,301

4,779

4,979

4,315

4,478

19,374

15,837

Amortization of intangibles

2,499

2,357

2,355

2,394

2,508

9,605

9,118

Legal

1,474

(316)

1,375

898

854

3,431

3,555

Merger expense

212

129

510

4,494

5,782

5,345

13,871

Postage and shipping

1,418

1,199

1,198

1,441

1,353

5,256

5,263

Other miscellaneous expense

19,144

11,427

10,482

13,479

16,614

54,532

57,874

     Total noninterest expense

$  167,911

$      155,505

$      162,504

$  168,006

$      162,351

$ 653,926

$ 629,607

INSURANCE COMMISSIONS:

Property and casualty commissions

$    21,304

$       24,060

$       23,644

$    21,246

$       19,994

$  90,254

$  87,304

Life and health commissions

5,915

6,072

6,771

6,175

5,979

24,933

25,432

Risk management income

829

609

540

532

667

2,510

2,440

Other

1,767

2,009

2,163

1,650

1,008

7,589

8,115

     Total insurance commissions

$    29,815

$       32,750

$       33,118

$    29,603

$       27,648

$ 125,286

$ 123,291

 

BancorpSouth Bank

Selected Additional Information

(Dollars in thousands)

(Unaudited)

Quarter Ended

Dec-20

Sep-20

Jun-20

Mar-20

Dec-19

MORTGAGE SERVICING RIGHTS:

Fair value, beginning of period

$      44,944

$       40,821

$       42,243

$      57,109

$       51,492

Additions to mortgage servicing rights:

   Originations of servicing assets

6,608

7,041

4,297

3,079

4,025

Changes in fair value:

   Due to payoffs/paydowns

(3,898)

(3,198)

(3,144)

(2,506)

(2,323)

   Due to change in valuation inputs or

     assumptions used in the valuation model

(83)

280

(2,575)

(15,438)

3,915

   Other changes in fair value

-

-

-

(1)

-

Fair value, end of period

$      47,571

$       44,944

$       40,821

$      42,243

$       57,109

MORTGAGE BANKING REVENUE:

Production revenue:

   Origination

$      18,561

$       23,632

$       30,194

$      17,906

$         4,326

   Servicing

5,254

6,233

4,880

5,153

4,935

   Payoffs/Paydowns

(3,898)

(3,198)

(3,144)

(2,506)

(2,323)

     Total production revenue

19,917

26,667

31,930

20,553

6,938

Market value adjustment on MSR

(83)

280

(2,575)

(15,438)

3,915

Market value adjustment on MSR Hedge

295

150

202

4,355

(751)

Total mortgage banking revenue

$      20,129

$       27,097

$       29,557

$       9,470

$       10,102

Mortgage loans serviced

$ 7,330,293

$   7,218,090

$   7,000,425

$ 6,999,383

$   6,898,195

MSR/mtg loans serviced

0.65%

0.62%

0.58%

0.60%

0.83%

AVAILABLE-FOR-SALE SECURITIES, at fair value

U.S. Government agencies

2,871,408

$   3,116,458

$   3,348,206

$ 3,532,905

$   3,599,317

U.S. Government agency issued residential

   mortgage-back securities

2,421,409

1,625,325

699,864

132,902

133,375

U.S. Government agency issued commercial

   mortgage-back securities

806,206

758,116

759,980

595,885

609,009

Obligations of states and political subdivisions

113,953

141,896

163,121

206,648

140,273

Corporate bonds

18,030

17,990

2,000

-

-

Total available-for-sale securities

$ 6,231,006

$   5,659,785

$   4,973,171

$ 4,468,340

$   4,481,974

 

BancorpSouth Bank

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

(Dollars in thousands, except per share amounts)

(Unaudited)

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

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

Quarter ended

Year Ended

12/31/2020

9/30/2020

6/30/2020

3/31/2020

12/31/2019

12/31/2020

12/31/2019

Net income

$      68,805

$      73,825

$       61,160

$          24,261

$          65,849

$         228,051

$       234,261

Plus:

Merger expense, net of tax

159

97

383

3,372

4,339

4,011

10,411

Initial provision for acquired loans,

  net of tax

-

-

-

751

-

751

-

Pension settlement expense, net of tax

4,388

-

-

-

-

4,388

-

Less:

Security gains(losses), net of tax

48

13

47

(64)

(30)

44

132

Net operating income

$      73,304

$      73,909

$       61,496

$          28,448

$          70,218

$         237,157

$       244,540

Less:

Preferred dividends

2,372

2,372

2,372

2,372

-

9,488

-

Net operating income available to

common shareholders

$      70,932

$      71,537

$       59,124

$          26,076

$          70,218

$         227,669

$       244,540

Net operating income

$      73,304

$      73,909

$       61,496

$          28,448

$          70,218

$         237,157

$       244,540

Less:

MSR market value adjustment, net of tax

159

323

(1,781)

(8,318)

2,374

(9,617)

(10,894)

Net operating income-excluding MSR

$      73,145

$      73,586

$       63,277

$          36,766

$          67,844

$         246,774

$       255,434

Less:

Preferred dividends

2,372

2,372

2,372

2,372

-

9,488

-

Net operating income available to common

shareholders-excluding MSR

$      70,773

$      71,214

$       60,905

$          34,394

$          67,844

$         237,286

$       255,434

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

Net income

$      68,805

$      73,825

$       61,160

$          24,261

$          65,849

$         228,051

$       234,261

Plus:

Provision for credit losses

5,000

15,000

20,000

46,000

-

86,000

1,500

Merger expense

212

129

510

4,494

5,782

5,345

13,871

Pension settlement expense

5,846

-

-

-

-

5,846

-

Income tax expense

14,046

21,525

18,164

5,759

17,271

59,494

65,257

Less:

Security gains(losses)

63

18

62

(85)

(41)

58

174

MSR market value adjustment

212

430

(2,373)

(11,083)

3,164

(12,814)

(14,515)

Pre-tax pre-provision net revenue

$      93,634

$    110,031

$     102,145

$          91,682

$          85,779

$         397,492

$       329,230

Reconciliation of Total Operating Expense to Total Noninterest Expense:

Total noninterest expense

$    167,911

$    155,505

$     162,504

$         168,006

$         162,351

$         653,926

$       629,607

Less:

Merger expense

212

129

510

4,494

5,782

5,345

13,871

Pension settlement expense

5,846

-

-

-

-

5,846

-

Total operating expense

$    161,853

$    155,376

$     161,994

$         163,512

$         156,569

$         642,735

$       615,736

 

BancorpSouth Bank

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

(Dollars in thousands, except per share amounts)

(Unaudited)

Reconciliation of Tangible Assets and Tangible Shareholders' Equity to 

Total Assets and Total Shareholders' Equity:

Quarter ended

Year Ended

12/31/2020

9/30/2020

6/30/2020

3/31/2020

12/31/2019

12/31/2020

12/31/2019

Tangible assets

Total assets

$ 24,081,194

$  23,555,422

$  23,236,176

$ 21,032,524

$  21,052,576

$ 24,081,194

$ 21,052,576

Less:  

Goodwill

851,612

847,531

847,984

848,242

825,679

851,612

825,679

Other identifiable intangible assets

55,899

54,757

56,989

59,345

60,008

55,899

60,008

Total tangible assets

$ 23,173,683

$  22,653,134

$  22,331,203

$ 20,124,937

$  20,166,889

$ 23,173,683

$ 20,166,889

Less:  

PPP loans

975,421

1,212,246

1,192,715

-

-

975,421

-

Total tangible assets-excluding PPP loans

$ 22,198,262

$  21,440,888

$  21,138,488

$ 20,124,937

$  20,166,889

$ 22,198,262

$ 20,166,889

PERIOD END BALANCES:

Tangible shareholders' equity

Total shareholders' equity

$   2,822,477

$    2,782,539

$    2,732,687

$   2,681,904

$    2,685,017

$   2,822,477

$   2,685,017

Less:

Goodwill

851,612

847,531

847,984

848,242

825,679

851,612

825,679

Other identifiable intangible assets

55,899

54,757

56,989

59,345

60,008

55,899

60,008

Total tangible shareholders' equity

$   1,914,966

$    1,880,251

$    1,827,714

$   1,774,317

$    1,799,330

$   1,914,966

$   1,799,330

Less:

Preferred stock

166,993

166,993

166,993

166,993

167,021

166,993

167,021

Total tangible common shareholders' equity

$   1,747,973

$    1,713,258

$    1,660,721

$   1,607,324

$    1,632,309

$   1,747,973

$   1,632,309

AVERAGE BALANCES:

Tangible shareholders' equity

Total shareholders' equity

$   2,774,589

$    2,729,870

$    2,738,434

$   2,658,699

$    2,572,750

$   2,725,545

$   2,366,745

Less:

Goodwill

852,472

847,744

848,160

844,635

823,812

848,263

754,426

Other identifiable intangible assets

54,858

56,045

58,280

58,805

60,559

56,988

54,787

Total tangible shareholders' equity

$   1,867,259

$    1,826,081

$    1,831,994

$   1,755,259

$    1,688,379

$   1,820,294

$   1,557,532

Less:

Preferred stock

166,993

166,993

166,993

167,021

74,717

167,000

18,833

Total tangible common shareholders' equity

$   1,700,266

$    1,659,088

$    1,665,001

$   1,588,238

$    1,613,662

$   1,653,294

$   1,538,699

Total average assets

$ 23,660,503

$  23,318,877

$  22,707,686

$ 21,189,637

$  20,243,023

$ 22,723,386

$ 19,027,644

Total shares of common stock outstanding

102,561,480

102,558,459

102,566,301

102,632,484

104,522,804

102,561,480

104,522,804

Average shares outstanding-diluted

102,817,409

102,839,749

102,827,225

104,733,897

105,144,032

103,304,570

101,810,640

Tangible shareholders' equity to tangible assets (1)

8.26%

8.30%

8.18%

8.82%

8.92%

8.26%

8.92%

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

8.63%

8.77%

8.65%

8.82%

8.92%

8.63%

8.92%

Tangible common shareholders' equity to tangible assets (3)

7.54%

7.56%

7.44%

7.99%

8.09%

7.54%

8.09%

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

7.87%

7.99%

7.86%

7.99%

8.09%

7.87%

8.09%

Return on average tangible equity (5)

14.66%

16.08%

13.43%

5.56%

15.47%

12.53%

15.04%

Return on average tangible common equity (6)

15.54%

17.13%

14.20%

5.54%

16.19%

13.22%

15.22%

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

15.58%

16.03%

13.89%

8.42%

15.94%

13.56%

16.40%

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

16.56%

17.08%

14.71%

8.71%

16.68%

14.35%

16.60%

Operating return on average assets-excluding MSR (9)

1.23%

1.26%

1.12%

0.70%

1.33%

1.09%

1.34%

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

10.49%

10.72%

9.29%

5.56%

10.46%

9.05%

10.79%

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

10.80%

11.05%

9.53%

5.55%

10.78%

9.27%

10.88%

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

1.57%

1.88%

1.81%

1.74%

1.68%

1.75%

1.73%

Tangible book value per common share (13)

$         17.04

$          16.71

$          16.19

$         15.66

$         15.62

$         17.04

$         15.62

Operating earnings per common share (14)

$           0.69

$            0.70

$            0.57

$           0.25

$           0.67

$           2.20

$           2.40

Operating earnings per common share-excluding MSR (15)

$           0.69

$            0.69

$            0.59

$           0.33

$           0.65

$           2.30

$           2.51

(1)

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

(2)

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

(3)

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

(4)

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

(5)

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

(6)

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

(7)

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

(8)

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

(9)

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

(10)

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

(11)

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

(12)

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

(13)

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

(14)

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

(15)

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

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

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

 

Cision View original content:http://www.prnewswire.com/news-releases/bancorpsouth-announces-fourth-quarter-2020-and-annual-financial-results-301214402.html

SOURCE BancorpSouth Bank



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