Attached files
| file | filename |
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| 8-K - FORM 8-K - BANCORPSOUTH INC | d383900d8k.htm |
| EX-99.1 - PRESS RELEASE - BANCORPSOUTH INC | d383900dex991.htm |
 BancorpSouth, Inc.
Financial Information
As of June 30, 2012
Exhibit 99.2 |
 Forward Looking
Information 2
Certain
statements
contained
in
this
presentation
and
the
accompanying
slides
may
not
be
based
on
historical
facts
and
are
“forward-looking
statements”
within
the
meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. These forward-looking statements may be
identified
by
reference
to
a
future
period
or
by
the
use
of
forward-looking
terminology,
such
as
“anticipate,”
“believe,”
“estimate,”
“expect,”
“foresee,”
“may,”
“might,”
“will,”
“intend,”
“could,”
“would”
or “plan,”
or future or conditional verb tenses, and variations or negatives of such terms. These
forward-looking statements include, without limitation, statements
about long-term prospects for shareholder value, the use of non-GAAP financial
measures, results of operations and financial condition. We caution you not to place
undue reliance on the forward-looking statements contained in this presentation, in that actual results could differ materially from those indicated in such forward-looking
statements as a result of a variety of factors. These factors may include, but are not
limited to, conditions in the financial markets and economic conditions generally, the
ongoing debt crisis and the downgrade of the sovereign credit ratings for various nations,
the adequacy of the Company’s provision and allowance for credit losses to cover
actual credit losses, the credit risk associated with real estate construction, acquisition
and development loans, losses resulting from the significant amount of the Company’s
other real estate owned, limitations on the Company’s ability to declare and pay
dividends, the impact of legal or administrative proceedings, the availability of capital on
favorable
terms
if
and
when
needed,
liquidity
risk,
governmental
regulation,
including
the
Dodd
Frank
Act,
and
supervision
of
the
Company’s
operations,
the
impact
of
regulations on service charges on the Company’s core deposit accounts, the
susceptibility of the Company’s business to local economic conditions, the soundness of other
financial
institutions,
changes
in
interest
rates,
the
impact
of
monetary
policies
and
economic
factors
on
the
Company’s
ability
to
attract
deposits
or
make
loans,
volatility
in
capital and credit markets, reputational risk, the impact of hurricanes or other adverse
weather events, any requirement that the Company write down goodwill or other
intangible assets, diversification in the types of financial services the Company offers,
competition with other financial services companies, risks in connection with completed
or potential acquisitions, the Company’s growth strategy, interruptions or breaches in
the Company’s information system security, the failure of certain third party vendors to
perform,
dilution
caused
by
the
Company’s
issuance
of
any
additional
shares
of
its
common
stock
to
raise
capital
or
acquire
other
banks,
bank
holding
companies,
financial
holding companies and insurance agencies, the effectiveness of the Company’s internal
controls, other factors generally understood to affect the financial results of financial
services
companies
and other factors detailed from time to time in the Company’s press releases and
filings with the Securities and Exchange Commission. Forward-looking
statements
speak
only
as
of
the
date
they
were
made,
and,
except
as
required
by
law,
we
do
not
undertake
any
obligation
to
update
or
revise
forward-looking
statements
to
reflect
events
or circumstances
after the date of this presentation. Certain tabular presentations may not reconcile
because of rounding. Unless otherwise noted, any quotes in this presentation can be
attributed to company management. |
 This presentation contains financial information determined by methods other than
those prescribed by accounting principles generally accepted in the United
States ("GAAP”). Management uses these "non-GAAP" financial measures in its analysis of the Company's capital and
performance. Management believes that the ratio of tangible common equity to
tangible assets is important to investors who are interested in evaluating
the adequacy of the Company’s capital levels. You should not view these
disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily
comparable to non-GAAP measures used by other companies. The limitations
associated with these measures are the risks that persons might disagree as
to the appropriateness of items comprising these measures and that different companies might calculate these measures
differently. Information provided in the Appendix of this presentation reconciles
these non-GAAP measures with comparable measures calculated in
accordance with GAAP. Non-GAAP Financial Disclaimer
3 |
 Financial Highlights
At and for the three months ended June 30, 2012
Net income of $20.6 million, or $0.22 per diluted share
Continued improvement in many credit quality indicators including the
provision for credit losses, total NPLs and NPAs, classified loans, and
net charge-offs
Net interest margin remained relatively stable at 3.65%
Mortgage production increased to $444 million, and mortgage lending
contributed $14.9 million of non-interest revenue excluding a negative
MSR valuation adjustment of $3.8 million
Improving loan production, particularly in the Commercial and
Industrial portfolio
Announced the third quarter acquisition of the assets of The Securance
Group, Inc. which has three locations in Alabama
4 |
 5
Capital Highlights
14.66%
13.41%
10.07%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
6/30/11
9/30/11
12/31/11
3/31/12
6/30/12
Total capital
Tier I capital
Tier I leverage capital |
 Provision for credit losses declined $4.0 million, or 40.0%, from the
previous quarter
NPLs decreased $18.3 million, or 6.4%, and NPAs declined $42.5 million,
or 9.4%, from the previous quarter
OREO decreased $24.2 million, or 14.4%, from the previous quarter
55% of non-accrual loans were paying as agreed
Net charge-offs decreased $11.4 million, or 48.9%, from the previous
quarter
Substandard classified loans declined $79.6 million, or 12.5%
Credit Quality Highlights
At and for the three months ended June 30, 2012
“Paying as Agreed”
includes loans < 30 days past due with payments occurring at least quarterly
6 |
 7
Recent Operating Results
Dollars in millions, except per share data
NM –
Not meaningful
6/30/12
3/31/12
6/30/11
Net interest revenue
$104.7
$105.6
$109.9
(4.7)
%
Provision for credit losses
6.0
10.0
32.2
(81.4)
Noninterest revenue
66.5
72.4
75.1
(11.5)
Noninterest expense
136.5
135.7
137.1
(0.4)
Income before income taxes
28.7
32.3
15.7
82.3
Income tax provision
8.1
9.4
2.9
NM
Net income
$20.6
$22.9
$12.8
60.8
Net income per share: diluted
$0.22
$0.25
$0.15
46.7
Three Months Ended
Q2'12 vs.
Q2'11 |
 Noninterest Revenue
Dollars in thousands
NM –
Not meaningful
8
Q2 '12 vs.
6/30/12
3/31/12
6/30/11
Q2 '11
Mortgage origination and servicing
14,877
$
11,445
$
5,842
$
154.7
%
MSR valuation adjustment
(3,837)
3,697
(3,839)
(0.1)
Credit card, debit card and merchant fees
7,787
7,523
11,263
(30.9)
Service charges
13,697
15,116
16,556
(17.3)
Trust income
3,139
2,282
2,850
10.1
Security gains, net
177
74
10,045
(98.2)
Insurance commissions
22,964
23,153
22,941
0.1
Other
7,664
9,070
9,486
(19.2)
Total noninterest revenue
66,468
$
72,360
$
75,144
$
(11.5)
%
Three Months Ended |
 Loan
Portfolio Dollars
in
millions
Net
loans
and
leases
as
of
June
30,
2012
9
As of
6/30/12
3/31/12
$ Change
Commercial and industrial
1,498
$
1,442
$
56
$
3.9
%
Real estate:
1,904
1,938
(34)
(1.7)
Home equity
496
501
(5)
(1.0)
252
257
(5)
(1.8)
Commercial and industrial-owner occupied
1,289
1,288
1
0.1
Construction, acquisition and development
835
858
(23)
(2.7)
Commercial
1,749
1,742
7
0.4
Credit Cards
101
101
1
0.6
Other
608
612
(4)
(0.6)
Total
8,732
$
8,738
$
(6)
$
(0.1)
%
% Change
Consumer mortgages Agricultural |
 NPLs
Dollars
in
millions
Net
loans
and
leases
as
of
June
30,
2012
10
As of
6/30/12
3/31/12
$ Change
Commercial and industrial
13.6
$
12.5
$
1.1
$
9.0
%
Real estate:
Consumer mortgages
39.4
52.2
(12.8)
(24.6)
Home equity
3.0
2.7
0.3
11.5
Agricultural
8.8
4.3
4.6
107.9
Commercial and industrial-owner occupied
32.0
37.1
(5.1)
(13.8)
Construction, acquisition and development
110.2
121.4
(11.1)
(9.2)
Commercial
52.0
46.8
5.2
11.0
Credit Cards
2.9
3.1
(0.2)
(6.5)
Other
5.1
5.2
(0.2)
(3.1)
Total
266.9
$
285.2
$
(18.3)
$
(6.4)
%
% Change |
 NPA
Improvement 11
NPLs include nonaccrual loans, loans 90+ days past due and restructured
loans $236
$302
$409
$394
$425
$380
$363
$322
$285
$267
$59
$68
$83
$133
$136
$151
$163
$174
$168
$144
$295
$370
$492
$528
$561
$531
$525
$496
$453
$411
$100
$200
$300
$400
$500
$600
3/31/10
6/30/10
9/30/10
12/31/10
3/31/11
6/30/11
9/30/11
12/31/11
3/31/12
6/30/12
NPLs
OREO
Dollars in millions
NPAs include NPLs and other real estate owned |
 $0
$100
$200
$300
$400
6/30/11
9/30/11
12/31/11
3/31/12
6/30/12
Non-Accrual Lns Paying as Agreed
All Other Non-Accrual Lns
Non-Accrual Loans
Dollars
in
millions
“Paying
as
Agreed”
includes
loans
<
30
days
past
due
with
payments
occurring
at
least
quarterly
47%
48%
51%
54%
55%
55% of non-accrual loans were paying as agreed as of June 30, 2012
12 |
 Dollars
in
millions
Data
for
quarters
ended
as
of
dates
shown
Payments Received on Non-Accrual Loans
13
Payments of over $100 million received on non-accrual loans over the past 5
quarters $18.2
$20.2
$15.1
$20.6
$27.1
$0
$5
$10
$15
$20
$25
$30
6/30/11
9/30/11
12/31/11
3/31/12
6/30/12 |
 Construction Acquisition and Development
14
Dollars in millions
Net loans and leases
$601
$570
$523
$456
$420
$393
$377
$342
$317
$288
$1,429
$1,419
$1,336
$1,175
$1,117
$1,061
$977
$908
$858
$835
$0
$400
$800
$1,200
$1,600
3/31/10
6/30/10
9/30/10
12/31/10
3/31/11
6/30/11
9/30/11
12/31/11
3/31/12
6/30/12
Residential
CAD
All Other Construction, Acquisition and Development |
 Dollars
in
millions
Net
charge-offs
for
the
quarters
ended
as
of
the
dates
shown
Net Charge-offs Have Improved
% Avg. Loans
15
$31
$50
$51
$51
$52
$33
$23
$24
$23
$12
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
$0
$10
$20
$30
$40
$50
$60
3/31/10
6/30/10
9/30/10
12/31/10
3/31/11
6/30/11
9/30/11
12/31/11
3/31/12
6/30/12
Net charge-offs
Net charge-offs / average loans |
 16
Securance Group Acquisition |
 Appendix |
 18
Non-GAAP Financial Reconciliation
Tangible Common Equity / Tangible Assets (TCE/TA)
As of
As of
As of
6/30/2012
3/31/2012
6/30/2011
(Dollars In Thousands)
Common Equity --> A
$1,418,311
$1,392,199
$1,246,703
Assets --> B
13,147,818
13,307,572
13,367,050
Intangibles --> C
286,405
287,147
289,546
Tangible Common Equity --> D=A-C
1,131,906
1,105,052
957,157
Tangible Assets --> E=B-C
12,861,413
13,020,425
13,077,504
TCE/TA --> D/E
8.80%
8.49%
7.32% |