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| 8-K - 8-K - BANCORPSOUTH INC | d388535d8k.htm |
 BancorpSouth, Inc.
Investor Presentation
July 2012
Exhibit 99.1 |
 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 maturities of our CDs, our strategic
focus, revenue growth opportunities, integration of specialty lending lines of business,
disposition of OREO, branch optimization, the effectiveness of our new regional management structure, geographic expansion of
mortgage originators, expansion of insurance agencies, marketing of foreclosed properties, our ability
to exit non-performing and criticized relationships, 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 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. |
 Footprint –
260 Bank Locations
3
Locations as of June 30, 2012 |
 30
Insurance Locations With 157 Licensed Producers 4
Locations and head count adjusted to reflect the acquisition of the
assets of The Securance Group, Inc., which closed on July 2, 2012
|
 72
Mortgage Locations With 98 Originators 5
Locations and head count as of June 30, 2012 |
 Diversified Revenue Stream
Percentages and amounts based on data for the six months ended June 30, 2012
*Excludes net securities gains of $0.3 million and negative MSR valuation adjustment
of $0.1 million Almost 40% of Total Revenue is Derived from Noninterest
Sources Total Noninterest Revenue of $138.7M*
6
Insurance
Commissions
34%
Mortgage
lending
17%
Card and
merchant fees
11%
Service
charges
22%
Trust income
3%
Other
13% |
 $71
$87
$81
$82
$87
$23
$23
$0
$200
$400
$600
$800
$1,000
$0
$20
$40
$60
$80
$100
2007
2008
2009
2010
2011
3/31/12
6/30/12
Insurance Commission Revenue
Premium Dollars Written
7
Insurance Commissions
Insurance Commissions Account for Approximately 1/3 of Noninterest Revenue
Fiscal Year
Quarter Ended
Dollars in millions
Premium Dollars Written
Commission Revenue |
 $10
$13
$30
$34
$31
$11
$15
$0
$500
$1,000
$1,500
$2,000
$0
$10
$20
$30
$40
2007
2008
2009
2010
2011
3/31/12
6/30/12
Mortgage Lending Revenue*
Mortgage Production
8
Mortgage Lending Revenue
Mortgage Production Volume Totaled $444 Million for the Second Quarter
Fiscal Year
Quarter Ended
Dollars in millions
*Excludes MSR valuation adjustments
Revenue
Production |
 Core
Deposit Franchise Reduced reliance on public funds
deposits and single service CDs
Noninterest bearing deposits have
grown approximately 10% since June
30, 2011
Cost of total deposits for the quarter
ended June 30, 2012 was 0.56%
Over $1 billion in CDs maturing over the
next two quarters at a weighted average
rate of approximately 0.89%
As of and for the period ended June 30, 2012
(except where otherwise indicated)
$11.0B Total
Deposit Composition
9
Non-Interest
Bearing
21%
Interest Bearing
DDA
44%
Time
25%
Savings
10% |
 3.68%
3.75%
3.77%
3.70%
3.69%
3.66%
3.65%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
2007
2008
2009
2010
2011
3/31/12
6/30/12
Stable Net Interest Margin
Fiscal Year
Quarter Ended
Shown on a fully taxable equivalent basis
10 |
 Strong Core Capital Base
Core capital base consisting of 100% common equity
Continued improvement in capital levels, internally generated and
through common stock offering in January 2012
11
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
14.66%
13.41%
10.07% |
 12
Financial Highlights |
 Second Quarter Financial Highlights
At and for the three months ended June 30, 2012
13
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 added three locations in Alabama |
 Net
Income Meaningful Improvement in Profitability Levels
14
Net Income for quarters ended as of dates shown
Dollars in millions
($2.1)
$8.4
($12.6)
$11.3
$15.8
($0.5)
$12.8
$11.9
$13.3
$22.9
$20.6
($20)
($10)
$0
$10
$20
$30
12/31/09
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 |
 NPA
Improvement Dollars in millions
NPLs include non-accrual loans, loans 90+ days past due and restructured
loans NPAs include NPLs and other real estate owned
Total NPAs Have Declined $150 Million Since the Peak at 3/31/11
15
$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
Data for quarters ended as of dates shown
Payments Received on Non-Accrual Loans
16
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 |
 $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
48%
51%
54%
55%
55% of non-accrual loans were paying as agreed as of June 30, 2012
47%
17
“Paying as Agreed”
includes loans < 30 days past due with payments occurring at least
quarterly |
 Dollars in millions
Data for quarters ended as of dates shown
Positive Trend in Net Charge-Offs
% Avg. Loans
18
$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 |
 Decreased Exposure in CAD Portfolio
Dollars in millions
Net loans and leases
Residential CAD has declined almost 50% over the past 2 years
19
$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 |
 20
Strategic Focus |
 Revenue Growth Opportunities
Pursue quality loan growth
C&I loans increased $56 million, or 3.9%, during the second quarter
Branch expansion in certain growth markets
Continue to focus on fee revenue growth
Grow insurance line business, organically and through acquisition
opportunities (recently acquired the assets of The Securance Group, Inc.)
Expand mortgage footprint into new markets through additions to
mortgage origination team
Integration of specialty lending lines of business into the general
banking organization structure
21 |
 Specialty Lending Lines of Business
Corporate Banking
Commitment to growing lending group
Small Business Lending
Equipment Leasing
10 commercial territory managers covering 14 states
Leasing portfolio totals over $500 million as of June 30, 2012
Production
volume
of
approximately
$120
million
during
the
first
half
of
2012
Centralized Consumer Lending Outreach
22 |
 Efficiency Opportunities
23
Focus on disposition of other real estate owned
Branch optimization
Closed 22 branches during 2011
Continue to evaluate the performance and potential of all branches
Monitoring of headcount
Total head count down approximately 3.5%, over the past 3 years
despite hiring of additional mortgage originators and credit support staff
as well as new branch openings in certain markets
Geographic reorganization of general bank from 10 regions to 4
regions |
 Summary
Consistent core earnings with almost 40% of total revenue
derived from noninterest sources
Focus on expanding mortgage originators geographically
Continue to seek opportunities for expansion in insurance
Continued progress in improving asset quality
Continue to aggressively market foreclosed properties
Continue efforts on directed exits of non-performing and criticized
relationships
Measurable increases in profitability levels
Strategic focus on revenue growth opportunities
Efficiency and expense control initiatives
Data as of and for the quarter ended June 30, 2012
24 |