Attached files
| file | filename |
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| 8-K - FORM 8-K - BANCORPSOUTH INC | d572201d8k.htm |
| EX-99.1 - EX-99.1 - BANCORPSOUTH INC | d572201dex991.htm |
 BancorpSouth, Inc.
Financial Information
As of June 30, 2013
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 expense savings related to the voluntary early retirement program, interest
expense reduction related to the redemption of the trust preferred securities, 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 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
short-term and long-term impact of changes to banking capital standards on the
Company’s regulatory capital and liquidity, the impact of regulations on service charges on the Company’s core deposit accounts, the susceptibility
of the Company’s business to local economic or environmental 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, the Company’s ability to adapt its products and services to evolving industry
standards and consumer preferences, 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, unfavorable ratings by rating agencies, 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, 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.
|
 Q2
Highlights At and for the three months ended June 30, 2013
Net income of $20.8 million, or $0.22 per diluted share
Announced the results of a Voluntary Early Retirement Program
Resulted in pre-tax non-operating charge of $10.9 million during the
quarter Projected annual pre-tax savings of $9 million, or $0.06 per
share net of tax, when fully phased in Announced redemption of $125 million of
8.15% Trust Preferred Securities Expected to result in annual reduction of
interest expense of $9.1 million, or $0.06 per share net of tax Pre-tax
non-operating charge of $2.9 million will be recorded in the third quarter of 2013 related to
unamortized issuance costs
Generated net loan growth of $97.2 million, or 4.5% annualized
Mortgage production of $435.0 million, which contributed to mortgage lending revenue
of $17.9 million (including a positive MSR valuation adjustment of $5.3
million) Insurance commission revenue of $25.9 million, which represents an
increase of 12.6% on a comparable-quarter basis
Continued progress in improving credit quality metrics
3 |
 Recent
Operating Results Dollars in millions, except per share data
6/30/13
3/31/13
6/30/12
vs 3/31/13
Net interest revenue
98.2
$
98.1
$
104.7
$
0.1
%
(6.2)
%
Provision for credit losses
3.0
4.0
6.0
(25.0)
(50.0)
Noninterest revenue
76.1
71.3
66.5
6.7
14.5
Noninterest expense
142.3
135.4
136.5
5.1
4.2
Income before income taxes
29.1
30.0
28.7
(3.2)
1.3
Income tax provision
8.3
9.2
8.1
(9.8)
2.9
Net income
20.8
$
20.8
$
20.6
$
(0.2)
%
0.6
%
Net income per share: diluted
0.22
$
0.22
$
0.22
$
0.0
%
0.0
%
Three Months Ended
% Change
vs 6/30/12
4 |
 Noninterest Revenue
Dollars in thousands
NM –
Not Meaningful
5
6/30/13
3/31/13
6/30/12
vs 3/31/13
Mortgage lending revenue
17,892
12,346
11,040
44.9
62.1
Credit card, debit card and merchant fees
8,324
7,523
7,787
10.6
6.9
Deposit service charges
12,824
12,832
13,697
(0.1)
(6.4)
Trust income
3,192
3,210
3,139
(0.6)
1.7
Security gains, net
3
19
177
NM
NM
Insurance commissions
25,862
26,641
22,964
(2.9)
12.6
Other
8,012
8,747
7,664
(8.4)
4.5
Total noninterest revenue
76,109
$
71,318
$
66,468
$
6.7
%
14.5
%
% of total revenue
43.7%
42.1%
38.8%
Three Months Ended
% Change
vs 6/30/12 |
 Mortgage and Insurance Revenue
Dollars in thousands
6
Mortgage Lending Revenue
6/30/13
3/31/13
12/31/12
9/30/12
6/30/12
Origination revenue
10,471
$
9,187
$
15,131
$
15,326
$
13,119
$
Servicing revenue
3,908
3,827
3,879
3,610
3,495
MSR payoffs/paydowns
(1,739)
(1,705)
(2,005)
(2,181)
(1,737)
MSR valuation adjustment
5,252
1,037
183
(3,206)
(3,837)
Total mortgage lending revenue
17,892
$
12,346
$
17,188
$
13,549
$
11,040
$
Production volume
434,966
$
425,882
$
549,392
$
607,887
$
444,136
$
Margin on production
2.41%
2.16%
2.75%
2.52%
2.95%
Insurance Commission Revenue
Property and casualty commissions
18,762
$
16,878
$
14,968
$
17,704
$
16,894
$
Life and health commissions
5,093
4,688
4,376
4,651
4,681
Risk management income
573
650
581
698
618
Other
1,434
4,425
577
466
771
Total insurance commissions
25,862
$
26,641
$
20,502
$
23,519
$
22,964
$
Three Months Ended |
 Loan
Portfolio Dollars in millions
Net loans and leases
7
As of
6/30/13
3/31/13
6/30/12
Commercial and industrial
1,553
$
1,481
$
1,498
$
19.5
%
3.7
%
Real estate:
Consumer mortgages
1,880
1,871
1,904
1.9
(1.3)
Home equity
482
482
496
(0.3)
(2.9)
Agricultural
238
249
252
(18.6)
(5.6)
Commercial and industrial-owner occupied
1,376
1,335
1,289
12.2
6.7
Construction, acquisition and development
709
728
835
(10.2)
(15.0)
Commercial
1,755
1,740
1,749
3.5
0.3
Credit Cards
103
99
101
18.1
2.1
Other
582
596
608
(9.2)
(4.3)
Total
8,679
$
8,582
$
8,732
$
4.5
%
(0.6)
%
vs 6/30/12
% Change
vs 3/31/13
Annualized |
 Provision for credit losses of $3.0 million declined from $4.0 million for
the first quarter of 2013 and $6.0 million for the second quarter of 2012
NPLs decreased $39.1 million, or 18.9%, and NPAs declined $47.0
million, or 15.5%
OREO decreased $7.9 million, or 8.2%
48% of non-accrual loans were paying as agreed
Near-term delinquencies declined $3.2 million, or 13.0%, the lowest
level dating back to pre-2009
Substandard classified loans declined $36.6 million, or 8.1%
Credit Quality Highlights
8
At and for the three months ended June 30, 2013
includes loans < 30 days past due with payments occurring at least
quarterly “Paying as Agreed” |
 Non-Performing Loans
Dollars in millions
Net loans and leases
9
As of
6/30/13
3/31/13
6/30/12
Commercial and industrial
6.5
$
7.4
$
13.6
$
(12.1)
%
(52.0)
%
Real estate:
Consumer mortgages
37.6
41.3
39.4
(9.1)
(4.6)
Home equity
3.9
4.3
3.0
(9.6)
28.9
Agricultural
5.4
7.1
8.8
(23.4)
(38.5)
Commercial and industrial-owner occupied
21.1
25.5
32.0
(17.5)
(34.0)
Construction, acquisition and development
46.0
58.9
110.2
(21.9)
(58.2)
Commercial
42.6
56.5
52.0
(24.6)
(18.1)
Credit Cards
2.3
2.5
2.9
(8.7)
(18.9)
Other
2.5
3.3
5.1
(25.1)
(50.8)
Total
167.9
$
207.0
$
266.9
$
(18.9)
%
(37.1)
%
% Change
vs 3/31/13
vs 6/30/12 |
 NPA
Improvement 10
$64
$74
$98
$112
$186
$236
$302
$409
$394
$425
$380
$363
$322
$285
$267
$247
$234
$207
$168
$46
$47
$51
$62
$59
$59
$68
$83
$133
$136
$151
$163
$174
$168
$144
$128
$103
$96
$88
$110
$121
$149
$174
$246
$295
$370
$492
$528
$561
$531
$525
$496
$453
$411
$376
$337
$303
$256
$125
$250
$375
$500
$625
12/31/08
3/31/09
6/30/09
9/30/09
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
9/30/12
12/31/12
3/31/13
6/30/13
NPLs
OREO
$0
Dollars in millions
NPLs include nonaccrual loans, loans 90+ days past due and restructured loans
NPAs include NPLs and other real estate owned |
 Dollars in millions
Net charge-offs for the quarters ended as of the dates shown
Net Charge-offs
% Avg. Loans
11
$52
$33
$23
$24
$23
$12
$13
$11
$6
$5
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
$0
$10
$20
$30
$40
$50
$60
3/31/11
6/30/11
9/30/11
12/31/11
3/31/12
6/30/12
9/30/12
12/31/12
3/31/13
6/30/13
Net charge
-offs
Net charge
-offs / average loans |