XNYS:BXS BancorpSouth Inc. Quarterly Report 10-Q Filing - 6/30/2012

Effective Date 6/30/2012

XNYS:BXS (BancorpSouth Inc.): Fair Value Estimate
Premium
XNYS:BXS (BancorpSouth Inc.): Consider Buying
Premium
XNYS:BXS (BancorpSouth Inc.): Consider Selling
Premium
XNYS:BXS (BancorpSouth Inc.): Fair Value Uncertainty
Premium
XNYS:BXS (BancorpSouth Inc.): Economic Moat
Premium
XNYS:BXS (BancorpSouth Inc.): Stewardship
Premium
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
________________________________________

FORM 10-Q
(Mark One)
 X
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2012

OR

 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________________    to    ________________

Commission File Number:  001-12991

BANCORPSOUTH, INC.
(Exact name of registrant as specified in its charter)

Mississippi
64-0659571
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
   
One Mississippi Plaza, 201 South Spring Street          Tupelo, Mississippi
 
38804
(Address of principal executive offices)
(Zip Code)

Registrant's telephone number, including area code:  (662) 680-2000

NOT APPLICABLE
 (Former name, former address, and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant:  (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes  [X]   No [  ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  [X] Yes [  ] No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.  (Check One):  Large accelerated filer [X]  Accelerated filer [  ]  Non-accelerated filer (Do not check if a smaller reporting company) [  ]  Smaller reporting company [  ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [  ] No [X] 
 
 
As of August 1, 2012, the registrant had outstanding 94,436,377 shares of common stock, par value $2.50 per share.
 
 
 

 

 BANCORPSOUTH, INC.
TABLE OF CONTENTS


PART I.
       Financial Information
Page
 
 
ITEM 1.
Financial Statements
 
   
Consolidated Balance Sheets June 30, 2012  and 2011
 (Unaudited) and December 31, 2011
3
   
Consolidated Statements of Operations (Unaudited)
    Three Months and Six Months Ended June 30, 2012 and 2011
4
   
Consolidated Statements of Comprehensive Income
Three Months and Six Months Ended June 30, 2012 and 2011
5
   
Consolidated Statements of Cash Flows (Unaudited) Six Months Ended June 30, 2012 and 2011
6
   
Notes to Consolidated Financial Statements (Unaudited)
7
 
ITEM 2.
Management's Discussion and Analysis of Financial
 
   
Condition and Results of Operations
38
 
ITEM 3.
Quantitative and Qualitative Disclosures About Market Risk
75
 
ITEM 4.
Controls and Procedures
76
 
PART II.
 
Other Information
 
 
ITEM 1.
Legal Proceedings
76
 
ITEM 1A.
Risk Factors
77
 
ITEM 6.
Exhibits
78
 
 
 
2

 

PART I.
 
FINANCIAL INFORMATION
 
                   
ITEM 1.  FINANCIAL STATEMENTS.
                 
                   
BANCORPSOUTH, INC. AND SUBSIDIARIES
 
Consolidated Balance Sheets
 
                   
   
June 30,
   
December 31,
   
June 30,
 
   
2012
   
2011
   
2011
 
   
(Unaudited)
      (1)    
(Unaudited)
 
   
(Dollars in thousands, except per share amounts)
 
ASSETS
                   
Cash and due from banks
  $ 224,084     $ 195,681     $ 166,761  
Interest bearing deposits with other banks
    603,458       303,663       304,344  
Available-for-sale securities, at fair value
    2,462,831       2,513,518       2,560,824  
Loans and leases
    8,771,642       8,911,258       9,255,879  
  Less:  Unearned income
    39,247       40,947       41,326  
            Allowance for credit losses
    175,847       195,118       197,627  
Net loans
    8,556,548       8,675,193       9,016,926  
Loans held for sale
    108,134       83,458       70,519  
Premises and equipment, net
    320,419       323,383       328,075  
Accrued interest receivable
    47,358       51,266       55,525  
Goodwill
    271,297       271,297       271,297  
Bank-owned life insurance
    202,620       200,085       197,028  
Other real estate owned
    143,615       173,805       151,204  
Other assets
    207,454       204,502       244,547  
TOTAL ASSETS
  $ 13,147,818     $ 12,995,851     $ 13,367,050  
                         
LIABILITIES
                       
Deposits:
                       
  Demand:  Noninterest bearing
  $ 2,312,044     $ 2,269,799     $ 2,096,655  
                  Interest bearing
    4,782,243       4,706,825       4,939,553  
  Savings
    1,083,255       991,702       944,993  
  Other time
    2,778,795       2,986,863       3,327,262  
Total deposits
    10,956,337       10,955,189       11,308,463  
Federal funds purchased and securities
sold under agreement to repurchase
    361,990       373,933       426,097  
Short-term Federal Home Loan Bank
   and other short-term borrowings
    1,500       1,500       703  
Accrued interest payable
    7,161       8,644       11,348  
Junior subordinated debt securities
    160,312       160,312       160,312  
Long-term Federal Home Loan Bank borrowings
    33,500       33,500       35,000  
Other liabilities
    208,707       199,861       178,424  
TOTAL LIABILITIES
    11,729,507       11,732,939       12,120,347  
                         
SHAREHOLDERS' EQUITY
                       
 Common stock, $2.50 par value per share
   Authorized - 500,000,000 shares; Issued - 94,436,377,
   83,483,796 and 83,488,962 shares, respectively
    236,091       208,709       208,722  
Capital surplus
    310,388       227,567       226,362  
Accumulated other comprehensive income (loss)
    1,334       (2,261 )     6,289  
Retained earnings
    870,498       828,897       805,330  
TOTAL SHAREHOLDERS' EQUITY
    1,418,311       1,262,912       1,246,703  
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
  $ 13,147,818     $ 12,995,851     $ 13,367,050  
                         
(1)  Derived from audited financial statements.
                       
                         
See accompanying notes to consolidated financial statements.
                       

 
3

 

 
BANCORPSOUTH, INC. AND SUBSIDIARIES
 
Consolidated Statements of Operations
 
(Unaudited)
 
                         
                         
   
Three months ended
   
Six months ended
 
   
June 30,
   
June 30,
 
   
2012
   
2011
   
2012
   
2011
 
   
(In thousands, except for per share amounts)
 
INTEREST REVENUE:
                       
Loans and leases
  $ 107,737     $ 116,892     $ 216,749     $ 234,250  
Deposits with other banks
    382       124       783       246  
Federal funds sold and securities
purchased
under agreement to resell
    1       35       1       166  
Held-to-maturity securities:
                               
  Taxable
    -       5,066       -       13,080  
  Tax-exempt
    -       2,291       -       5,638  
Available-for-sale securities:
                               
  Taxable
    10,188       10,451       21,350       19,036  
  Tax-exempt
    4,210       1,871       8,466       2,695  
Loans held for sale
    686       505       1,230       952  
  Total interest revenue
    123,204       137,235       248,579       276,063  
                                 
INTEREST EXPENSE:
                               
Deposits:
                               
  Interest bearing demand
    4,185       6,039       8,634       12,585  
  Savings
    691       810       1,405       1,636  
  Other time
    10,275       16,285       21,566       33,768  
                                 
Federal funds purchased and securities
sold under agreement to repurchase
    66       135       129       287  
Federal Home Loan Bank borrowings
    366       1,194       733       2,717  
Junior subordinated debt
    2,879       2,860       5,758       5,719  
Other
    1       -       3       2  
  Total interest expense
    18,463       27,323       38,228       56,714  
  Net interest revenue
    104,741       109,912       210,351       219,349  
Provision for credit losses
    6,000       32,240       16,000       85,719  
  Net interest revenue, after provision
for credit losses
    98,741       77,672       194,351       133,630  
                                 
NONINTEREST REVENUE:
                               
Mortgage lending
    11,040       2,003       26,182       9,584  
Credit card, debit card and merchant fees
    7,787       11,263       15,310       21,609  
Service charges
    13,697       16,556       28,813       31,924  
Trust income
    3,139       2,850       5,421       5,984  
Security gains, net
    177       10,045       251       10,062  
Insurance commissions
    22,964       22,941       46,117       45,490  
Other
    7,664       9,486       16,734       18,802  
  Total noninterest revenue
    66,468       75,144       138,828       143,455  
                                 
NONINTEREST EXPENSE:
                               
Salaries and employee benefits
    77,661       70,142       152,592       140,517  
Occupancy, net of rental income
    10,487       10,232       20,553       20,903  
Equipment
    5,124       5,595       10,457       11,253  
Deposit insurance assessments
    3,994       6,436       9,377       11,861  
Prepayment penalty on FHLB borrowings
    -       9,778       -       9,778  
Other
    39,240       34,886       79,207       72,767  
  Total noninterest expense
    136,506       137,069       272,186       267,079  
  Income before income taxes
    28,703       15,747       60,993       10,006  
Income tax expense (benefit)
    8,079       2,921       17,503       (2,326 )
  Net income
  $ 20,624     $ 12,826     $ 43,490     $ 12,332  
                                 
Earnings per share:  Basic
  $ 0.22     $ 0.15     $ 0.47     $ 0.15  
                                        Diluted
  $ 0.22     $ 0.15     $ 0.47     $ 0.15  
                                 
Dividends declared per common share
  $ 0.01     $ 0.01     $ 0.02     $ 0.12  
                                 
See accompanying notes to consolidated financial statements.
                         
 
 
4

 
BANCORPSOUTH, INC. AND SUBSIDIARIES
 
Consolidated Statements of Comprehensive Income
 
(Unaudited)
 
                         
                         
                         
   
Three months ended
   
Six months ended
 
   
June 30,
   
June 30,
 
   
2012
   
2011
   
2012
   
2011
 
   
(In thousands)
 
Net income
  $ 20,624     $ 12,826     $ 43,490     $ 12,332  
                                 
Other comprehensive income, net of tax
                               
Unrealized gains on securities
    5,076       22,477       2,123       19,960  
Pension and other postretirement benefits
    394       391       1,472       782  
Other comprehensive income
    5,470       22,868       3,595       20,742  
Comprehensive income
  $ 26,094     $ 35,694     $ 47,085     $ 33,074  
 
 
See accompanying notes to consolidated financial statements.
 
 
5

BANCORPSOUTH, INC. AND SUBSIDIARIES
 
Consolidated Statements of Cash Flows
 
(Unaudited)
 
   
   
   
Six months ended
 
   
June 30,
 
   
2012
   
2011
 
   
(In thousands)
Operating Activities:
           
Net income
  $ 43,490     $ 12,332  
  Adjustment to reconcile net income to net cash
provided by operating activities:
               
      Provision for credit losses
    16,000       85,719  
      Depreciation and amortization
    13,540       14,789  
      Deferred taxes
    -       (267 )
      Amortization of intangibles
    1,504       1,687  
      Amortization of debt securities premium and discount, net
    6,562       13,936  
      Share-based compensation expense
    1,524       1,285  
      Security gains, net
    (251 )     (10,062 )
      Net deferred loan origination expense
    (4,085 )     (4,384 )
      Excess tax benefit from exercise of stock options
    -       (8 )
      Decrease in interest receivable
    3,908       5,500  
      Decrease in interest payable
    (1,483 )     (2,988 )
      Realized gain on mortgages sold
    (27,693 )     (14,225 )
      Proceeds from mortgages sold
    441,930       483,065  
      Origination of mortgages held for sale
    (444,051 )     (448,082 )
      Increase in bank-owned life insurance
    (2,535 )     (2,964 )
      Decrease (increase) in prepaid pension asset
    2,587       (186 )
      Decrease in prepaid deposit insurance assessments
    8,985       11,040  
      Other, net
    (2,071 )     (1,035 )
Net cash provided by operating activities
    57,861       145,152  
Investing activities:
               
Proceeds from calls and maturities of held-to-maturity securities
    -       135,781  
Proceeds from calls and maturities of available-for-sale securities
    266,829       131,124  
Proceeds from sales of available-for-sale securities
    4,727       180,057  
Purchases of held-to-maturity securities
    -       (151,105 )
Purchases of available-for-sale securities
    (223,716 )     (119,089 )
Net decrease in short-term investments
    -       150,000  
Net decrease in loans and leases
    136,920       20,141  
Purchases of premises and equipment
    (11,362 )     (10,520 )
Proceeds from sale of premises and equipment
    968       1,693  
Contingency earn-out payment
    -       (1,200 )
Other, net
    (16 )     (31 )
Net cash provided by investing activities
    174,350       336,851  
Financing activities:
               
Net increase (decrease) in deposits
    1,147       (181,558 )
Net decrease in short-term debt and other liabilities
    (11,950 )     (16,526 )
Repayment of long-term debt
    -       (75,000 )
Issuance of common stock
    108,678       110  
Excess tax benefit from exercise of stock options
    -       8  
Payment of cash dividends
    (1,888 )     (10,018 )
Net cash provided by (used in) financing activities
    95,987       (282,984 )
                 
Increase in cash and cash equivalents
    328,198       199,019  
Cash and cash equivalents at beginning of period
    499,344       272,086  
Cash and cash equivalents at end of period
  $ 827,542     $ 471,105  
                 
See accompanying notes to consolidated financial statements.
               

 
6

 
BANCORPSOUTH, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)

NOTE 1 – BASIS OF FINANCIAL STATEMENT PRESENTATION AND PRINCIPLES OF CONSOLIDATION

The accompanying unaudited interim consolidated financial statements of BancorpSouth, Inc. (the “Company”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and follow general practices within the industries in which the Company operates.  For further information, refer to the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011.  In the opinion of management, all adjustments necessary for a fair presentation of the consolidated financial statements have been included and all such adjustments were of a normal, recurring nature.  The results of operations for the three-month and six-month period ended June 30, 2012 are not necessarily indicative of the results to be expected for the full year.  Certain 2011 amounts have been reclassified to conform with the 2012 presentation.
The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, BancorpSouth Bank (the “Bank”) and Gumtree Wholesale Insurance Brokers, Inc., and the Bank’s wholly-owned subsidiaries, Century Credit Life Insurance Company, Personal Finance Corporation of Tennessee, BancorpSouth Insurance Services, Inc., BancorpSouth Investment Services, Inc., BancorpSouth Municipal Development Corporation and BancorpSouth Bank Securities Corporation.

NOTE 2 – LOANS AND LEASES

The Company’s loan and lease portfolio is disaggregated into the following segments:  commercial and industrial; real estate; credit card; and all other loans and leases.  The real estate segment is further disaggregated into the following classes:  consumer mortgage; home equity; agricultural; commercial and industrial-owner occupied; construction, acquisition and development; and commercial real estate.  A summary of gross loans and leases by segment and class as of the dates indicated follows:

 
   
June 30,
   
December 31,
 
   
2012
   
2011
   
2011
 
   
(In thousands)
 
                   
Commercial and industrial
  $ 1,507,382     $ 1,540,048     $ 1,484,967  
Real estate
                       
   Consumer mortgages
    1,904,420       1,971,499       1,945,190  
   Home equity
    496,245       531,787       514,362  
   Agricultural
    251,975       255,310       239,487  
   Commercial and industrial-owner occupied
    1,288,887       1,366,734       1,301,575  
   Construction, acquisition and development
    835,022       1,060,675       908,362  
   Commercial real estate
    1,748,748       1,764,648       1,754,022  
Credit cards
    101,085       101,955       106,281  
All other
    637,878       663,223       657,012  
     Total
  $ 8,771,642     $ 9,255,879     $ 8,911,258  


 
7

 
 
     The following table shows the Company’s  loans and leases, net of unearned income, as of June 30, 2012 by segment, class and geographical location:

 
 
Alabama
and Florida
Panhandle
   
Arkansas*
   
Mississippi*
   
Missouri
   
Greater
Memphis
Area
   
Tennessee*
   
Texas and
Louisiana
   
Other
   
Total
 
 
(In thousands)
       
           
Commercial and industrial
$ 57,950     $ 191,231     $ 340,454     $ 56,176     $ 17,036     $ 83,517     $ 248,738     $ 502,576     $ 1,497,678  
Real estate
                                                                     
   Consumer mortgages
  104,590       266,625       748,850       44,442       83,380       161,013       448,735       46,785       1,904,420  
   Home equity
  59,969       38,511       168,552       24,417       66,302       74,942       61,547       2,005       496,245  
   Agricultural
  6,632       81,867       68,990       3,439       9,497       14,043       62,527       4,980       251,975  
   Commercial and industrial-owner occupied
  116,744       159,231       454,193       81,542       90,680       89,351       250,432       46,714       1,288,887  
   Construction, acquisition and development
  95,278       60,747       251,977       44,756       91,437       88,684       174,818       27,325       835,022  
   Commercial real estate
  190,195       346,586       360,704       204,377       115,061       101,883       377,008       52,934       1,748,748  
Credit cards
  -       -       -       -       -       -       -       101,085       101,085  
All other
  30,890       86,350       190,620       6,852       56,187       49,481       95,729       92,226       608,335  
     Total
$ 662,248     $ 1,231,148     $ 2,584,340     $ 466,001     $ 529,580     $ 662,914     $ 1,719,534     $ 876,630     $ 8,732,395  
 
* Excludes the Greater Memphis Area.

 
The Company’s loan concentrations which exceed 10% of total loans are reflected in the preceding tables.  A substantial portion of construction, acquisition and development loans are secured by real estate in markets in which the Company is located.  The Company’s general loan policy prohibits the use of interest reserves on loans originated after March 2010.  Certain of the construction, acquisition and development loans were structured with interest-only terms.  A portion of the consumer mortgage and commercial real estate portfolios originated through the permanent financing of construction, acquisition and development loans.  The prolonged economic downturn has negatively impacted many borrowers’ and guarantors’ ability to make payments under the terms of the loans as their liquidity has been depleted.  Accordingly, the ultimate collectability of a substantial portion of these loans and the recovery of a substantial portion of the carrying amount of other real estate owned are susceptible to changes in real estate values in the corresponding market areas.  Continued economic distress could negatively impact additional borrowers’ and guarantors’ ability to repay their debt which would make more of the Company’s loans collateral dependent.
The following tables provide details regarding the aging of the Company’s loan and lease portfolio, net of unearned income, by segment and class at June 30, 2012 and December 31, 2011:

 
   
June 30, 2012
 
                                       
90+ Days
 
   
30-59 Days
   
60-89 Days
   
90+ Days
   
Total
         
Total
   
Past Due still
 
   
Past Due
   
Past Due
   
Past Due
   
Past Due
   
Current
   
Outstanding
   
Accruing
 
   
(In thousands)
 
       
Commercial and industrial
  $ 5,516     $ 782     $ 5,697     $ 11,995     $ 1,485,683     $ 1,497,678     $ -  
Real estate
                                                       
   Consumer mortgages
    12,472       3,849       15,421       31,742       1,872,678       1,904,420       1,141  
   Home equity
    1,268       547       157       1,972       494,273       496,245       -  
   Agricultural
    1,162       952       4,209       6,323       245,652       251,975       -  
   Commercial and industrial-owner occupied
    2,888       1,609       7,209       11,706       1,277,181       1,288,887       -  
   Construction, acquisition and development
    7,449       1,012       17,319       25,780       809,242       835,022       -  
   Commercial real estate
    1,549       3,305       8,592       13,446       1,735,302       1,748,748       -  
Credit cards
    420       286       564       1,270       99,815       101,085       324  
All other
    2,597       289       440       3,326       605,009       608,335       167  
     Total
  $ 35,321     $ 12,631     $ 59,608     $ 107,560     $ 8,624,835     $ 8,732,395     $ 1,632  

 
8

 
 
   
December 31, 2011
 
                                       
90+ Days
 
   
30-59 Days
   
60-89 Days
   
90+ Days
   
Total
         
Total
   
Past Due still
 
   
Past Due
   
Past Due
   
Past Due
   
Past Due
   
Current
   
Outstanding
   
Accruing
 
   
(In thousands)
 
       
Commercial and industrial
  $ 5,571     $ 4,209     $ 4,193     $ 13,973     $ 1,459,755     $ 1,473,728     $ 12  
Real estate
                                                       
   Consumer mortgages
    15,740       6,485       14,569       36,794       1,908,396       1,945,190       2,974  
   Home equity
    1,837       265       594       2,696       511,666       514,362       -  
   Agricultural
    666       54       719       1,439       238,048       239,487       -  
   Commercial and industrial-owner occupied
    2,199       844       12,977       16,020       1,285,555       1,301,575       -  
   Construction, acquisition and development
    4,826       4,955       33,584       43,365       864,997       908,362       -  
   Commercial real estate
    3,778       2,702       9,397       15,877       1,738,145       1,754,022       -  
Credit cards
    595       303       697       1,595       104,686       106,281       299  
All other
    2,124       390       1,579       4,093       623,211       627,304       149  
     Total
  $ 37,336     $ 20,207     $ 78,309     $ 135,852     $ 8,734,459     $ 8,870,311     $ 3,434  

The Company utilizes an internal loan classification system to grade loans according to certain credit quality indicators.  These credit quality indicators include, but are not limited to, recent credit performance, delinquency, liquidity, cash flows, debt coverage ratios, collateral type and loan-to-value ratio.  The Company’s internal loan classification system is compatible with classifications used by the Federal Deposit Insurance Corporation, as well as other regulatory agencies.  Loans may be classified as follows:

Pass:  Loans which are performing as agreed with few or no signs of weakness.  These loans show sufficient cash flow, capital and collateral to repay the loan as agreed.  Borrowers for these loans include well capitalized public corporations.

Special Mention:  Loans where potential weaknesses have developed which could cause a more serious problem if not corrected.

Substandard:  Loans where well-defined weaknesses exist that require corrective action to prevent further deterioration.

Doubtful:  Loans having all the characteristics of Substandard and which have deteriorated to a point where collection and liquidation in full is highly questionable.

Loss:  Loans that are considered uncollectible or with limited possible recovery.

Impaired:  Loans for which it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement and for which a specific impairment reserve has been considered.

 
 
9

 
The following tables provide details of the Company’s loan and lease portfolio, net of unearned income, by segment, class and internally assigned grade at June 30, 2012 and December 31, 2011:

 
   
June 30, 2012
 
   
Pass
   
Special
Mention
   
Substandard
   
Doubtful
   
Loss
   
Impaired
   
Total
 
   
(In thousands)
 
Commercial and industrial
  $ 1,426,787     $ 12,480     $ 46,512     $ 959     $ 34     $ 10,906     $ 1,497,678  
Real estate
                                                       
  Consumer mortgage
    1,720,260       29,254       132,775       4,748       302       17,081       1,904,420  
  Home equity
    472,291       3,476       17,759       908       243       1,568       496,245  
  Agricultural
    225,886       2,989       15,687       20       -       7,393       251,975  
  Commercial and industrial-owner occupied
    1,158,082       25,740       83,048       276       28       21,713       1,288,887  
  Construction, acquisition and development
    607,942       26,947       99,471       589       20       100,053       835,022  
  Commercial real estate
    1,515,262       48,217       144,301       71       199       40,698       1,748,748  
Credit Cards
    101,085       -       -       -       -       -       101,085  
All other
    572,073       18,060       16,425       803       9       965       608,335  
    Total
  $ 7,799,668     $ 167,163     $ 555,978     $ 8,374     $ 835     $ 200,377     $ 8,732,395  
 
 
 
   
December 31, 2011
 
   
Pass
   
Special
Mention
   
Substandard
   
Doubtful
   
Loss
   
Impaired
   
Total
 
   
(In thousands)
 
Commercial and industrial
  $ 1,415,731     $ 4,947     $ 43,549     $ 1,263     $ 405     $ 7,833     $ 1,473,728  
Real estate
                                                       
  Consumer mortgage
    1,742,593       17,914       148,267       4,434       189       31,793       1,945,190  
  Home equity
    492,235       2,775       17,050       1,134       493       675       514,362  
  Agricultural
    213,280       3,795       19,296       20       -       3,096       239,487  
  Commercial and industrial-owner occupied
    1,167,220       18,280       90,778       496       -       24,801       1,301,575  
  Construction, acquisition and development
    619,497       23,429       136,412       845       -       128,179       908,362  
  Commercial real estate
    1,501,196       37,409       179,295       -       -       36,122       1,754,022  
Credit Cards
    105,867       41       175       188       10       -       106,281  
All other
    587,970       16,104       20,263       470       73       2,424       627,304  
    Total
  $ 7,845,589     $ 124,694     $ 655,085     $ 8,850     $ 1,170     $ 234,923     $ 8,870,311  

 
 
10

 

The following tables provide details regarding impaired loans and leases, net of unearned income, by segment and class at June 30, 2012 and December 31, 2011:

 
   
June 30, 2012
 
                     
Average Recorded Investment
   
Interest Income Recognized
 
   
Recorded
Investment
in Impaired
Loans
   
Unpaid
Principal
Balance of
Impaired
Loans
   
Related
Allowance
for Credit
Losses
   
Three months
ended
June 30,
2012
   
Six months
ended
June 30,
2012
   
Three months
ended
June 30,
2012
   
Six months
ended
June 30,
2012
 
   
(In thousands)
 
With no related allowance:
                                         
Commercial and industrial
  $ 2,527     $ 2,882     $ -     $ 2,366     $ 2,916     $ 2     $ 11  
Real estate
                                                       
  Consumer mortgage
    9,206       11,260       -       12,784       12,981       17       39  
  Home equity
    868       1,011       -       869       790       2       2  
  Agricultural
    6,192       7,606       -       4,548       3,075       3       7  
  Commercial and industrial-owner occupied
    13,028       17,697       -       11,139       10,289       26       51  
  Construction, acquisition and development
    56,319       75,149       -       60,735       60,576       73       160  
  Commercial
    22,330       33,569       -       18,708       17,415       27       65  
All other
    706       1,019       -       711       750       1       3  
    Total
  $ 111,176     $ 150,193     $ -     $ 111,860     $ 108,792     $ 151     $ 338  
                                                         
With an allowance:
                                                       
Commercial and industrial
  $ 8,379     $ 8,877     $ 5,575     $ 8,078     $ 5,931     $ 10     $ 19  
Real estate
                                                       
  Consumer mortgage
    7,875       8,657       2,002       12,623       15,046       30       72  
  Home equity
    700       700       168       703       481       3       3  
  Agricultural
    1,201       1,207       378       1,264       1,373       3       3  
  Commercial and industrial-owner occupied
    8,685       10,726       1,019       12,385       14,360       16       34  
  Construction, acquisition and development
    43,734       58,264       10,641       47,429       54,153       101       226  
  Commercial
    18,368       20,749       3,924       14,718       16,567       60       96  
All other
    259       330       232       265       296       1       2  
    Total
  $ 89,201     $ 109,510     $ 23,939     $ 97,465     $ 108,207     $ 224     $ 455  
                                                         
Total:
                                                       
Commercial and industrial
  $ 10,906     $ 11,759     $ 5,575     $ 10,444     $ 8,847     $ 12     $ 30  
Real estate
                                                       
  Consumer mortgage
    17,081       19,917       2,002       25,407       28,027       47       111  
  Home equity
    1,568       1,711       168       1,572       1,271       5       5  
  Agricultural
    7,393       8,813       378       5,812       4,448       6       10  
  Commercial and industrial-owner occupied
    21,713       28,423       1,019       23,524       24,649       42       85  
  Construction, acquisition and development
    100,053       133,413       10,641       108,164       114,729       174       386  
  Commercial
    40,698       54,318       3,924       33,426       33,982       87       161  
All other
    965       1,349       232       976       1,046       2       5  
    Total
  $ 200,377     $ 259,703     $ 23,939     $ 209,325     $ 216,999     $ 375     $ 793  


 
11

 
 
   
December 31, 2011
 
         
Unpaid
             
   
Recorded
   
Principal
   
Related
             
   
Investment
   
Balance of
   
Allowance
   
Average
   
Interest
 
   
in Impaired
   
Impaired
   
for Credit
   
Recorded
   
Income
 
   
Loans
   
Loans
   
Losses
   
Investment
   
Recognized
 
   
(In thousands)
 
With no related allowance:
                             
Commercial and industrial
  $ 4,874     $ 6,854     $ -     $ 3,879     $ 78  
Real estate
                                       
  Consumer mortgage
    16,883       19,538       -       19,628       397  
  Home equity
    627       771       -       541       1  
  Agricultural
    1,549       2,676       -       2,502       20  
  Commercial and industrial-owner occupied
    6,973       9,191       -       11,598       185  
  Construction, acquisition and development
    69,843       89,782       -       107,596       941  
  Commercial real estate
    15,184       24,198       -       20,702       311  
All other
    1,284       1,668       -       1,169       67  
    Total
  $ 117,217     $ 154,678     $ -     $ 167,615     $ 2,000  
                                         
With an allowance: