Attached files
| file | filename |
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| 8-K - FORM 8-K - BANCORPSOUTH INC | d426998d8k.htm |
| EX-99.1 - EX-99.1 - BANCORPSOUTH INC | d426998dex991.htm |
 BancorpSouth, Inc.
Financial Information
As of September 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,
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 short-term and long-term impact of changes to banking capital
standards on the Company’s regulatory capital and liquidity, 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. |
 Financial Highlights
At and for the three months ended September 30, 2012
Net income of $23.8 million, or $0.25 per diluted share
Record mortgage production of $608 million, which contributed to
$16.8 million of mortgage lending revenue excluding a negative MSR
valuation adjustment of $3.2 million
Sequential quarter growth in other non-interest revenue sources
including credit and debit card fees, service charges, and insurance
commissions
Continued improvement in many credit quality indicators including
total NPLs and NPAs, classified loans, and nonaccrual loan formation
and stabilization in other such indicators including the provision for
credit losses and net charge-offs
Capital ratios continue to improve
3 |
 4
Capital Highlights
14.81%
13.55%
10.21%
12.62%
11.36%
8.66%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
Total capital
Tier I capital
Tier I leverage capital
9/30/11
12/31/11
3/31/12
6/30/12
9/30/12 |
 Provision for credit losses of $6.0 million was flat compared to
the
previous quarter
NPLs decreased $19.6 million, or 7.4%, and NPAs declined $35.0 million,
or 8.5%, from the previous quarter
OREO decreased $15.4 million, or 10.7%, from the previous quarter
57% of non-accrual loans were paying as agreed
Gross non-accrual loan formation declined to $28.9 million, which
represents the lowest level since the beginning of the credit cycle
Substandard classified loans declined $26.5 million, or 4.8%
Credit Quality Highlights
5
At and for the three months ended September 30, 2012
“Paying as Agreed” includes loans < 30 days past due with payments occurring at least
quarterly |
 6
Recent Operating Results
9/30/12
6/30/12
9/30/11
Net interest revenue
$103.4
$104.7
$108.1
(4.3)
%
Provision for credit losses
6.0
6.0
25.1
(76.1)
Noninterest revenue
70.4
66.5
62.1
13.5
Noninterest expense
133.8
136.5
130.7
2.4
Income before income taxes
34.0
28.7
14.3
137.5
Income tax provision
10.2
8.1
2.4
NM
Net income
$23.8
$20.6
$11.9
99.6
Net income per share: diluted
$0.25
$0.22
$0.14
78.6
Three Months Ended
Q3'12 vs.
Q3'11
Dollars in millions, except per share data
NM
–
Not meaningful |
 Noninterest Revenue
7
Q3 '12 vs.
9/30/12
6/30/12
9/30/11
Q3 '11
Mortgage origination and servicing
16,755
$
14,877
$
10,233
$
63.7
%
MSR valuation adjustment
(3,206)
(3,837)
(11,676)
(72.5)
Credit card, debit card and merchant fees
8,270
7,787
12,981
(36.3)
Service charges
14,189
13,697
17,334
(18.1)
Trust income
3,101
3,139
2,854
8.7
Security gains, net
39
177
2,047
NM
Insurance commissions
23,519
22,964
22,012
6.8
Other
7,753
7,664
6,270
23.7
Total noninterest revenue
70,420
$
66,468
$
62,055
$
13.5
%
Three Months Ended
Dollars in thousands
NM
–
Not meaningful |
 Loan
Portfolio Dollars in millions
Net loans and leases
8
As of
9/30/12
6/30/12
$ Change
Commercial and industrial
1,463
$
1,498
$
(35)
$
(2.3)
%
Real estate:
Consumer mortgages
1,889
1,904
(16)
(0.8)
Home equity
493
496
(3)
(0.7)
Agricultural
258
252
6
2.3
Commercial and industrial-owner occupied
1,310
1,289
21
1.6
Construction, acquisition and development
824
835
(11)
(1.4)
Commercial
1,739
1,749
(10)
(0.6)
Credit Cards
101
101
0
0.3
Other
605
608
(4)
(0.6)
Total
8,680
$
8,732
$
(52)
$
(0.6)
%
% Change |
 Non-Performing Loans
Dollars in millions
Net loans and leases
9
As of
9/30/12
6/30/12
$ Change
Commercial and industrial
9.1
$
13.6
$
(4.5)
$
(32.9)
%
Real estate:
Consumer mortgages
39.6
39.4
0.2
0.6
Home equity
3.5
3.0
0.5
15.9
Agricultural
7.6
8.8
(1.2)
(13.6)
Commercial and industrial-owner occupied
33.6
32.0
1.6
5.1
Construction, acquisition and development
97.4
110.2
(12.8)
(11.6)
Commercial
48.0
52.0
(4.0)
(7.7)
Credit Cards
2.7
2.9
(0.2)
(5.9)
Other
5.7
5.1
0.7
13.1
Total
247.3
$
266.9
$
(19.6)
$
(7.4)
%
% Change |
 NPA
Improvement 10
Dollars in millions
NPLs include nonaccrual loans, loans 90+ days past due and restructured loans
NPAs include NPLs and other real estate owned
$302
$409
$394
$425
$380
$363
$322
$285
$267
$247
$68
$83
$133
$136
$151
$163
$174
$168
$144
$128
$370
$492
$528
$561
$531
$525
$496
$453
$411
$376
$100
$200
$300
$400
$500
$600
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
9/30/12
NPLs
OREO |
 $0
$100
$200
$300
$400
9/30/11
12/31/11
3/31/12
6/30/12
9/30/12
Non-Accrual Lns Paying as Agreed
All Other Non-Accrual Lns
Non-Accrual Loans
Dollars
in
millions
48%
51%
54%
55%
57%
57% of non-accrual loans were paying as agreed as of September 30, 2012
11
“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
Payments Received on Non-Accrual Loans
12
Payments of $110 million received on non-accrual loans over the past 5
quarters $20.2
$15.1
$20.6
$27.1
$26.7
$0
$5
$10
$15
$20
$25
$30
9/30/11
12/31/11
3/31/12
6/30/12
9/30/12 |
 Dollars in millions
Net charge-offs for the quarters ended as of the dates shown
Net Charge-offs Are Stabilizing
% Avg. Loans
13
$50
$51
$51
$52
$33
$23
$24
$23
$12
$13
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
$0
$10
$20
$30
$40
$50
$60
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
9/30/12
Net charge-offs
Net charge-offs / average loans |