UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________

FORM 10-Q

___________________________

(Mark One)

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

For the quarterly period ended September 30, 2017

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

For the transition period from ________________ to ________________

Certificate No. 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

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 ☒ 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).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):


Large Accelerated Filer	☒		Accelerated Filer	☐
Non-Accelerated Filer	☐	(Do not check if a smaller reporting company)	Smaller Reporting Company	☐
			Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

As of November 1, 2017, the registrant had outstanding 90,329,772 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 September 30, 2017 and 2016 (Unaudited) and December 31, 2016	3
		Consolidated Statements of Income (Unaudited)
		Three Months and Nine Months ended September 30, 2017 and 2016	4
		Consolidated Statements of Comprehensive Income (Unaudited)
		Three Months and Nine Months ended September 30, 2017 and 2016	5
		Consolidated Statements of Cash Flows (Unaudited)
		Nine Months ended September 30, 2017 and 2016	6
		Notes to Consolidated Financial Statements (Unaudited)	8
	ITEM 2.	Management's Discussion and Analysis of Financial
		Condition and Results of Operations	46
	ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	80
	ITEM 4.	Controls and Procedures	80

PART II.	Other Information
	ITEM 1.	Legal Proceedings	81
	ITEM 1A.	Risk Factors	82
	ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	83
	ITEM 6.	Exhibits	84

PART I.

FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.


BANCORPSOUTH, INC. AND SUBSIDIARIES
Consolidated Balance Sheets

	September 30,	December 31,	September 30,
	2017	2016	2016
	(Unaudited)	(1)	(Unaudited)
	(In thousands)
ASSETS
Cash and due from banks	$ 167,871	$ 184,152	$ 172,782
Interest bearing deposits with other banks	52,316	38,813	151,944
Available-for-sale securities, at fair value	2,359,967	2,531,676	2,468,199
Loans and leases	11,073,306	10,835,512	10,685,166
Less: Unearned income	17,797	23,521	26,405
Allowance for credit losses	119,496	123,736	125,887
Net loans and leases	10,936,013	10,688,255	10,532,874
Loans held for sale, at fair value	138,353	166,927	204,441
Premises and equipment, net	311,530	305,561	305,245
Accrued interest receivable	44,454	42,005	41,583
Goodwill	300,798	300,798	294,901
Other identifiable intangibles	18,860	21,894	19,908
Bank-owned life insurance	259,361	258,648	257,015
Other real estate owned	5,956	7,810	11,391
Other assets	164,915	177,849	151,200
TOTAL ASSETS	$ 14,760,394	$ 14,724,388	$ 14,611,483
LIABILITIES
Deposits:
Demand: Noninterest bearing	$ 3,414,397	$ 3,250,537	$ 3,308,361
Interest bearing	4,925,127	5,034,470	4,877,482
Savings	1,638,033	1,561,819	1,533,401
Other time	1,798,431	1,841,315	1,870,815
Total deposits	11,775,988	11,688,141	11,590,059
Securities sold under agreement to repurchase	421,044	454,002	468,969
Federal funds purchased and other short-term borrowings	625,000	92,000	-
Accrued interest payable	4,826	3,975	4,107
Junior subordinated debt securities	-	12,888	23,198
Long-term debt	30,000	530,000	563,495
Other liabilities	203,034	219,499	237,551
TOTAL LIABILITIES	13,059,892	13,000,505	12,887,379
SHAREHOLDERS' EQUITY
Common stock, $2.50 par value per share
Authorized - 500,000,000 shares; Issued - 90,329,896
93,696,687 and 94,074,740 shares, respectively	225,825	234,242	235,187
Capital surplus	175,837	271,292	278,973
Accumulated other comprehensive loss	(50,203)	(50,937)	(33,549)
Retained earnings	1,349,043	1,269,286	1,243,493
TOTAL SHAREHOLDERS' EQUITY	1,700,502	1,723,883	1,724,104
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 14,760,394	$ 14,724,388	$ 14,611,483

(1) Derived from audited consolidated financial statements.

See accompanying notes to consolidated financial statements.



BANCORPSOUTH, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)

	Three months ended		Nine months ended
	September 30,		September 30,
	2017	2016	2017	2016
	(In thousands, except per share amounts)
INTEREST REVENUE:
Loans and leases	$ 119,599	$ 111,605	$ 346,383	$ 328,488
Deposits with other banks	214	409	955	901
Available-for-sale securities:
Taxable	7,378	6,189	22,237	18,086
Tax-exempt	2,514	2,898	7,657	8,854
Loans held for sale	1,229	1,239	3,483	3,406
Total interest revenue	130,934	122,340	380,715	359,735

INTEREST EXPENSE:
Deposits:
Interest bearing demand	3,482	2,361	9,472	6,732
Savings	494	462	1,449	1,356
Other time	3,819	3,661	11,126	10,451
Federal funds purchased and securities
sold under agreement to repurchase	754	173	1,585	472
Short-term and long-term debt	1,824	902	4,422	2,097
Junior subordinated debt	-	190	9	560
Other	-	1	2	2
Total interest expense	10,373	7,750	28,065	21,670
Net interest revenue	120,561	114,590	352,650	338,065
Provision for credit losses	500	-	2,500	3,000
Net interest revenue, after provision for
credit losses	120,061	114,590	350,150	335,065

NONINTEREST REVENUE:
Mortgage banking	6,909	11,087	22,033	20,803
Credit card, debit card and merchant fees	9,346	9,292	27,814	27,748
Deposit service charges	10,388	11,313	29,783	33,345
Security gains, net	5	1	1,099	89
Insurance commissions	28,616	28,194	92,682	90,246
Wealth management	5,386	5,312	15,835	15,768
Other	5,310	4,474	15,713	14,927
Total noninterest revenue	65,960	69,673	204,959	202,926

NONINTEREST EXPENSE:
Salaries and employee benefits	81,415	80,884	244,398	243,238
Occupancy, net of rental income	10,343	10,412	31,100	30,794
Equipment	3,352	3,423	10,358	10,483
Deposit insurance assessments	2,499	3,227	7,244	8,097
Regulatory settlement	-	-	-	10,277
Other	29,294	30,371	88,465	94,501
Total noninterest expense	126,903	128,317	381,565	397,390
Income before income taxes	59,118	55,946	173,544	140,601
Income tax expense	19,590	18,129	58,034	45,543
Net income	$ 39,528	$ 37,817	$ 115,510	$ 95,058

Earnings per share: Basic	$ 0.43	$ 0.40	$ 1.26	$ 1.01
Diluted	$ 0.43	$ 0.40	$ 1.25	$ 1.00
				$ 1.00
Dividends declared per common share	$ 0.14	$ 0.13	$ 0.39	$ 0.33

See accompanying notes to consolidated financial statements.



BANCORPSOUTH, INC. AND SUBSIDIARIES
Consolidated Statements of Comprehensive Income
(Unaudited)

	Three months ended		Nine months ended
	September 30,		September 30,
	2017	2016	2017	2016

	(In thousands)
Net income	$ 39,528	$ 37,817	$ 115,510	$ 95,058
Other comprehensive (loss) income, net of tax
Unrealized (losses) gains on securities	(1,289)	(6,895)	(2,107)	5,477
Pension and other postretirement benefits	947	933	2,841	2,799
Other comprehensive (loss) income, net of tax	(342)	(5,962)	734	8,276
Comprehensive income	$ 39,186	$ 31,855	$ 116,244	$ 103,334

See accompanying notes to consolidated financial statements.



BANCORPSOUTH, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
	Nine months ended
	September 30,
	2017	2016
	(In thousands)
Operating Activities:
Net income	$ 115,510	$ 95,058
Adjustment to reconcile net income to net
cash provided by operating activities:
Provision for credit losses	2,500	3,000
Depreciation and amortization	19,581	19,023
Amortization of intangibles	3,034	2,672
Amortization of debt securities premium and discount, net	5,345	7,751
Share-based compensation expense	6,987	6,856
Security gains, net	(1,099)	(89)
Net deferred loan origination expense	(5,141)	(5,059)
Increase in interest receivable	(2,449)	(682)
Increase in interest payable	851	1,036
Realized gain on mortgages sold, net	(37,017)	(40,209)
Proceeds from mortgages sold	1,080,551	1,249,605
Origination of mortgages held for sale	(1,016,090)	(1,256,131)
Loss on other real estate owned, net	1,125	2,254
Increase in bank-owned life insurance	(6,079)	(5,481)
Other, net	7,338	15,465
Net cash provided by operating activities	174,947	95,069
Investing activities:
Proceeds from calls and maturities of available-for-sale securities	425,719	315,221
Proceeds from sales of available-for-sale securities	1,071	15
Purchases of available-for-sale securities	(266,808)	(690,820)
Net increase in loans and leases	(250,290)	(293,761)
Purchases of premises and equipment	(27,050)	(17,637)
Proceeds from sale of premises and equipment	288	1,362
Proceeds from death benefits from COLI	5,366	-
Acquisition of Insurance agency	-	(3,716)
Proceeds from sale of other real estate owned	5,899	10,352
Other, net	(356)	(87)
Net cash used in investing activities	(106,161)	(679,071)
Financing activities:
Net increase in deposits	87,847	258,898
Net increase in short-term debt and other liabilities	42	1,023
Advances of long-term debt	-	500,000
Repayment of long-term debt	-	(6,280)
Redemption of junior subordinated debt	(12,888)	-
Issuance of common stock	880	1,879
Repurchase of common stock	(111,739)	(14,162)
Payment of cash dividends	(35,706)	(30,599)
Net cash (used in) provided by financing activities	(71,564)	710,759

(Decrease) increase in cash and cash equivalents	(2,778)	126,757
Cash and cash equivalents at beginning of period	222,965	197,969
Cash and cash equivalents at end of period	$ 220,187	$ 324,726

See accompanying notes to consolidated financial statements

BANCORPSOUTH, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Unaudited)


		Nine months ended
		September 30,
		2017		2016
Supplemental Cash Flow Information		(In thousands)
Cash paid during the period for:
Income tax payments, net	$	61,368	$	36,897
Interest paid		27,408		20,634
Non-cash Activities:
Transfers of loans to other real estate owned		5,173		9,266
MSR fair value adjustment		(671)		(10,233)
Financed sales of other real estate owned		1,442		673
Transfers of loans held for sale to loan portfolio		642		-
Transfers of long-term debt to short-term debt		500,000		-
See accompanying notes to consolidated financial statements.

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, 2016. 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 nine-month periods ended September 30, 2017 are not necessarily indicative of the results to be expected for the full year. Certain 2016 amounts have been reclassified to conform with the 2017 presentation.

The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiary, BancorpSouth Bank (the “Bank”), and the Bank’s wholly-owned subsidiaries, BancorpSouth Insurance Services, Inc., BancorpSouth Municipal Development Corporation, BancorpSouth Bank Securities Corporation, Gumtree Wholesale Insurance Brokers, Inc and BXS Forrest Investment Fund, LLC.

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. The real estate segment is further disaggregated into the following classes: consumer mortgages; home equity; agricultural; commercial and industrial-owner occupied; construction, acquisition and development; and commercial. A summary of gross loans and leases by segment and class as of the dates indicated follows:



		September 30,		December 31,
		2017	2016	2016

	(In thousands)

Commercial and industrial		$ 1,508,794	$ 1,619,668	$ 1,615,608
Real estate
Consumer mortgages		2,826,333	2,611,387	2,643,966
Home equity		626,961	622,566	628,846
Agricultural		247,211	242,171	245,377
Commercial and industrial-owner occupied		1,835,430	1,668,477	1,764,265
Construction, acquisition and development		1,175,979	1,121,386	1,157,248
Commercial real estate		2,336,219	2,240,717	2,237,719
Credit cards		104,613	107,447	109,656
All other		411,766	451,347	432,827
Gross Loans Total (1)		11,073,306	10,685,166	10,835,512
Less: Unearned Income		17,797	26,405	23,521
Net Loans		$ 11,055,509	$ 10,658,761	$ 10,811,991

(1)

Gross loans and leases are net of deferred costs of $3.5 million, $2.2 million and approximately $282,000 at September 30, 2017 and 2016 and December 31, 2016, respectively.

The following table shows the Company’s loans and leases, net of unearned income, as of September 30, 2017 by segment, class and geographical location:



	Alabama
	and Florida
	Panhandle	Arkansas	Louisiana	Mississippi	Missouri	Tennessee	Texas	Other	Total
	(In thousands)
Commercial and industrial	$ 136,368	$ 195,461	$ 193,882	$ 551,391	$ 70,856	$ 108,389	$ 200,118	$ 49,887	$ 1,506,352
Real estate
Consumer mortgages	379,388	327,113	233,715	879,524	92,807	316,209	543,855	53,722	2,826,333
Home equity	96,418	47,361	70,916	230,493	21,531	139,521	19,348	1,373	626,961
Agricultural	8,298	83,830	25,290	66,829	7,205	13,019	42,722	18	247,211
Commercial and industrial-owner occupied	210,503	203,249	223,947	710,693	46,384	154,354	286,300	-	1,835,430
Construction, acquisition and development	126,581	75,400	57,445	355,559	20,391	164,014	376,589	-	1,175,979
Commercial real estate	300,226	357,712	236,589	574,667	209,097	212,296	445,632	-	2,336,219
Credit cards	-	-	-	-	-	-	-	104,613	104,613
All other	52,154	40,023	22,141	210,898	2,969	22,066	39,332	6,828	396,411
Total	$ 1,309,936	$ 1,330,149	$ 1,063,925	$ 3,580,054	$ 471,240	$ 1,129,868	$ 1,953,896	$ 216,441	$ 11,055,509

There are no other loan and lease concentrations which exceed 10% of total loans and leases not already 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 loan policy generally prohibits loans for the sole purpose of carrying interest reserves. 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 were originated through the permanent financing of construction, acquisition and development loans. Future economic distress could negatively impact 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 September 30, 2017 and December 31, 2016:



	September 30, 2017
							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	$ 2,704	$ 2,083	$ 7,091	$ 11,878	$ 1,494,474	$ 1,506,352	$ 115
Real estate
Consumer mortgages	15,221	6,328	13,620	35,169	2,791,164	2,826,333	1,240
Home equity	1,380	681	1,479	3,540	623,421	626,961	-
Agricultural	1,737	27	4,793	6,557	240,654	247,211	34
Commercial and industrial-owner occupied	3,294	2,083	4,134	9,511	1,825,919	1,835,430	-
Construction, acquisition and development	4,441	100	1,583	6,124	1,169,855	1,175,979	-
Commercial real estate	632	607	2,478	3,717	2,332,502	2,336,219	-
Credit cards	427	329	492	1,248	103,365	104,613	466
All other	479	273	250	1,002	395,409	396,411	-
Total	$ 30,315	$ 12,511	$ 35,920	$ 78,746	$ 10,976,763	$ 11,055,509	$ 1,855



	December 31, 2016
							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	$ 3,231	$ 1,610	$ 9,152	$ 13,993	$ 1,598,302	$ 1,612,295	$ 58
Real estate
Consumer mortgages	12,393	6,785	15,054	34,232	2,609,734	2,643,966	3,439
Home equity	2,771	670	2,959	6,400	622,446	628,846	-
Agricultural	969	354	247	1,570	243,807	245,377	-
Commercial and industrial-owner occupied	2,551	530	4,342	7,423	1,756,842	1,764,265	-
Construction, acquisition and development	2,101	440	1,443	3,984	1,153,264	1,157,248	14
Commercial real estate	312	933	11,211	12,456	2,225,263	2,237,719	-
Credit cards	466	297	501	1,264	108,392	109,656	472
All other	550	148	230	928	411,691	412,619	-
Total	$ 25,344	$ 11,767	$ 45,139	$ 82,250	$ 10,729,741	$ 10,811,991	$ 3,983

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.

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. These loans are further characterized by the possibility that the Company will sustain some loss if the deficiencies are not corrected.

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.

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 September 30, 2017 and December 31, 2016:


	September 30, 2017
		Special
	Pass	Mention	Substandard	Doubtful	Loss	Impaired (1)	Total
	(In thousands)
Commercial and industrial	$ 1,449,512	$ 762	$ 50,633	$ 290	$ 146	$ 5,009	$ 1,506,352
Real estate
Consumer mortgages	2,768,161	-	55,836	272	-	2,064	2,826,333
Home equity	617,463	-	8,731	-	-	767	626,961
Agricultural	234,563	-	7,372	-	-	5,276	247,211
Commercial and industrial-owner occupied	1,766,055	2,920	62,232	-	-	4,223	1,835,430
Construction, acquisition and development	1,159,359	3,718	12,902	-	-	-	1,175,979
Commercial real estate	2,293,845	-	39,805	177	-	2,392	2,336,219
Credit cards	104,613	-	-	-	-	-	104,613
All other	392,100	-	4,211	100	-	-	396,411
Total	$ 10,785,671	$ 7,400	$ 241,722	$ 839	$ 146	$ 19,731	$ 11,055,509

(1) Impaired loans are shown exclusive of $7.4 million of accruing troubled debt restructurings (“TDRs”) and $3.3 million of non-accruing TDRs.


	December 31, 2016
		Special
	Pass	Mention	Substandard	Doubtful	Loss	Impaired (1)	Total
	(In thousands)
Commercial and industrial	$ 1,562,263	$ -	$ 41,618	$ 100	$ -	$ 8,314	$ 1,612,295
Real estate
Consumer mortgages	2,579,905	522	61,602	282	-	1,655	2,643,966
Home equity	616,758	-	11,231	-	-	857	628,846
Agricultural	233,939	-	10,577	-	-	861	245,377
Commercial and industrial-owner occupied	1,705,266	3,668	47,010	-	-	8,321	1,764,265
Construction, acquisition and development	1,135,618	-	15,697	-	-	5,933	1,157,248
Commercial real estate	2,179,318	634	45,471	-	-	12,296	2,237,719
Credit cards	109,656	-	-	-	-	-	109,656
All other	405,611	-	7,008	-	-	-	412,619
Total	$ 10,528,334	$ 4,824	$ 240,214	$ 382	$ -	$ 38,237	$ 10,811,991

(1) Impaired loans are shown exclusive of $26.0 million of accruing TDRs and $2.2 million of non-accruing TDRs.

The following tables provide details regarding impaired loans and leases, net of unearned income, which exclude accruing TDRs, by segment and class as of and for the three months and nine months ended September 30, 2017 and as of and for the year ended December 31, 2016:


	September 30, 2017
		Unpaid		Average Recorded Investment		Interest Income Recognized
	Recorded	Principal	Related	Three months	Nine months	Three months	Nine months
	Investment	Balance of	Allowance	ended	ended	ended	ended
	in Impaired	Impaired	for Credit	September 30,	September 30,	September 30,	September 30,
	Loans (1)	Loans	Losses	2017	2017	2017	2017
	(In thousands)
With no related allowance:
Commercial and industrial	$ 4,460	$ 11,545	$ -	$ 5,356	$ 6,010	$ -	$ 28
Real estate:
Consumer mortgages	2,064	2,573	-	1,296	1,325	-	3
Home equity	767	1,510	-	514	483	1	4
Agricultural	5,276	5,909	-	5,262	3,780	-	10
Commercial and industrial-owner occupied	4,223	6,156	-	5,718	6,700	40	148
Construction, acquisition and development	-	-	-	88	1,061	-	1
Commercial real estate	1,759	1,809	-	2,663	2,529	10	15
All other	-	-	-	-	-	-	-
Total	$ 18,549	$ 29,502	$ -	$ 20,897	$ 21,888	$ 51	$ 209

With an allowance:
Commercial and industrial	$ 549	$ 549	$ 528	$ 1,281	$ 2,978	$ -	$ 2
Real estate:
Consumer mortgages	-	-	-	997	531	-	-
Home equity	-	-	-	294	353	-	-
Agricultural	-	-	-	-	-	-	-
Commercial and industrial-owner occupied	-	-	-	-	1,685	-	5
Construction, acquisition and development	-	-	-	-	155	-	-
Commercial real estate	633	633	53	899	4,348	10	20
All other	-	-	-	-	-	-	-
Total	$ 1,182	$ 1,182	$ 581	$ 3,471	$ 10,050	$ 10	$ 27

Total:
Commercial and industrial	$ 5,009	$ 12,094	$ 528	$ 6,637	$ 8,988	$ -	$ 30
Real estate:
Consumer mortgages	2,064	2,573	-	2,293	1,856	-	3
Home equity	767	1,510	-	808	836	1	4
Agricultural	5,276	5,909	-	5,262	3,780	-	10
Commercial and industrial-owner occupied	4,223	6,156	-	5,718	8,385	40	153
Construction, acquisition and development	-	-	-	88	1,216	-	1
Commercial real estate	2,392	2,442	53	3,562	6,877	20	35
All other	-	-	-	-	-	-	-
Total	$ 19,731	$ 30,684	$ 581	$ 24,368	$ 31,938	$ 61	$ 236

(1)

Excludes $3.3 million of non-accruing TDRs and $7.4 million of accruing TDRs.



	December 31, 2016
		Unpaid
	Recorded	Principal	Related
	Investment	Balance of	Allowance	Average	Interest
	in Impaired	Impaired	for Credit	Recorded	Income
	Loans (1)	Loans	Losses	Investment	Recognized
	(In thousands)
With no related allowance:
Commercial and industrial	$ 6,222	$ 11,856	$ -	$ 6,394	$ 72
Real estate:
Consumer mortgages	1,655	2,305	-	1,851	22
Home equity	857	1,600	-	1,176	9
Agricultural	861	919	-	440	8
Commercial and industrial-owner occupied	8,321	9,520	-	10,314	355
Construction, acquisition and development	4,803	4,803	-	5,379	4
Commercial real estate	2,646	2,646	-	4,391	94
All other	-	-	-	-	-
Total	$ 25,365	$ 33,649	$ -	$ 29,945	$ 564
With an allowance:
Commercial and industrial	$ 2,092	$ 2,092	$ 1,837	$ 1,190	$ 20
Real estate:
Consumer mortgages	-	-	-	431	-
Home equity	-	-	-	367	1
Agricultural	-	-	-	352	-
Commercial and industrial-owner occupied	-	-	-	741	-
Construction, acquisition and development	1,130	1,130	35	739	10
Commercial real estate	9,650	9,650	2,481	9,868	203
All other	-	-	-	-	-
Total	$ 12,872	$ 12,872	$ 4,353	$ 13,688	$ 234
Total:
Commercial and industrial	$ 8,314	$ 13,948	$ 1,837	$ 7,584	$ 92
Real estate:
Consumer mortgages	1,655	2,305	-	2,282	22
Home equity	857	1,600	-	1,543	10
Agricultural	861	919	-	792	8
Commercial and industrial-owner occupied	8,321	9,520	-	11,055	355
Construction, acquisition and development	5,933	5,933	35	6,118	14
Commercial real estate	12,296	12,296	2,481	14,259	297
All other	-	-	-	-	-
Total	$ 38,237	$ 46,521	$ 4,353	$ 43,633	$ 798

(1)

Excludes $2.2 million of non-accruing TDRs and $26.0 million of accruing TDRs.

The following tables provide details regarding impaired loans and leases, net of unearned income, which include accruing TDRs, by segment and class as of and for the three months and nine months ended September 30, 2017 and as of and for the year ended December 31, 2016:


	September 30, 2017
	Recorded	Unpaid Principal		Average Recorded Investment		Interest Income Recognized
	Investment	Balance of	Related	Three months	Nine months	Three months	Nine months
	in Impaired	Impaired Loans,	Allowance	ended	ended	ended	ended
	Loans, including	including	for Credit	September 30,	September 30,	September 30,	September 30,
	Accruing TDRs	Accruing TDRs	Losses	2017	2017	2017	2017
	(In thousands)
With no related allowance:
Commercial and industrial	$ 4,460	$ 11,545	$ -	$ 5,356	$ 6,010	$ -	$ 28
Real estate:
Consumer mortgages	2,064	2,573	-	1,296	1,325	-	3
Home equity	767	1,510	-	514	483	1	4
Agricultural	5,276	5,909	-	5,262	3,780	-	10
Commercial and industrial-owner occupied	4,223	6,156	-	5,718	6,700	40	148
Construction, acquisition and development	-	-	-	88	1,061	-	1
Commercial real estate	1,759	1,809	-	2,663	2,529	10	15
All other	-	-	-	-	-	-	-
Total	$ 18,549	$ 29,502	$ -	$ 20,897	$ 21,888	$ 51	$ 209
With an allowance:
Commercial and industrial	$ 1,684	$ 1,778	$ 779	$ 2,327	$ 4,804	$ 11	$ 30
Real estate:
Consumer mortgages	1,743	2,097	313	2,684	2,432	11	38
Home equity	139

BANCORPSOUTH INC 10-Q