Attached files
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| 8-K - FORM 8-K - BANCORPSOUTH INC | d15982d8k.htm |
 BancorpSouth, Inc. KBW 2015 Community Bank Investor Conference July 28-29, 2015 Exhibit 99.1 |
 Forward
Looking Information 2
Certain statements contained in this this presentation and the accompanying slides may
not be based upon 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 their
reference to a future period or periods or by the use of forward-looking
terminology such as “anticipate,” “believe,” “could,”
“estimate,” “expect,” “foresee,” “hope,” “intend,” “may,” “might,” “plan,” “will,” or “would” or future or conditional verb tenses and variations or
negatives of such terms. These forward-looking statements include,
without limitation, those relating to the terms, timing and closings of the proposed mergers with Ouachita Bancshares Corp. and Central Community Corporation, the Company’s ability to
operate its regulatory compliance programs consistent with federal, state and local
laws, including its BSA/AML compliance program, the findings and results of the joint investigation by the Consumer Financial Protection Bureau (the “CFPB”) and the United States Department of Justice (“DOJ”) of the Company’s fair lending practices, the
acceptance by customers of Ouachita Bancshares Corp. and Central Community Corporation of the Company’s products and services if the proposed mergers close, the outcome of any instituted, pending or threatened material litigation,
amortization expense for intangible assets, goodwill impairments, loan impairment, utilization of appraisals and inspections for real estate loans, maturity, renewal or extension of construction, acquisition and development
loans, net interest revenue, fair value determinations, the amount of the Company’s non-performing loans and leases, additions to Other Real Estate Owned (“OREO”), credit quality, credit losses, liquidity,
off-balance sheet commitments and arrangements, valuation of mortgage servicing rights, allowance and provision for credit losses, continued weakness in the economic environment, early identification and resolution of credit issues, utilization of
non-GAAP financial measures, the ability of the Company to collect all amounts due according to the contractual terms of loan agreements, the Company’s reserve for losses from representation and warranty obligations, the
Company’s foreclosure process related to mortgage loans, the resolution of non- performing loans that are collaterally dependent, real estate values, fully-indexed interest rates, interest rate risk, interest rate
sensitivity, calculation of economic value of equity, impaired loan charge-offs, troubled debt restructurings, diversification of the Company’s revenue stream, liquidity needs and strategies, sources of funding, net interest margin,
declaration and payment of dividends, cost saving initiatives, improvement in the Company’s efficiencies, operating expense trends, future acquisitions and consideration to be used therefor, the impact of litigation
regarding debit card fees and the impact of certain claims and ongoing, pending or threatened litigation, administrative and investigatory matters. The Company cautions readers not to place undue reliance on the forward-looking statements contained in this this presentation and the
accompanying slides, 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, the Company’s
ability to operate its regulatory compliance programs consistent with federal, state and local laws, including its BSA/AML compliance program, the findings and results of the CFPB and the DOJ in their review of the Company’s fair
lending practices, the ability of the Company, Ouachita Bancshares Corp. and Central Community Corporation to obtain regulatory approval of and close the proposed mergers, the potential impact upon the Company of the delay in the
closings of these proposed mergers, the impact of any ongoing, pending or
threatened litigation, administrative and investigatory matters involving the Company,
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 OREO, limitations on the Company’s ability to declare and pay dividends, 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 and 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 the loss of
any key Company personnel, 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 assets, business, cash flows, financial condition, liquidity, prospects and/or results of operations of financial services companies and other factors detailed from time to time in the Company’s press
and this presentation and the accompanying slides, reports and other filings with the SEC. Forward-looking statements speak only as of the date that they were made, and, except as required by law, the Company does not
undertake any obligation to update or revise forward-looking statements to reflect events or circumstances that occur after the date of this this presentation and the accompanying slides.
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 About
BancorpSouth, Inc. (NYSE:BXS) Total assets of $13.6 billion
Headquartered in Tupelo, MS
240 banking locations reaching throughout an 8-state footprint
Customer-focused business model with comprehensive line of
financial products and banking services for individuals and small to
mid-size businesses
Strong core capital base consisting of 100% common equity
Market capitalization of $2.5 billion
3 Market Capitalization as of July 17, 2015 All Other Data as of June 30, 2015 |
 Community
Bank Structure – 8 State Footprint
4 240 Full Service Branches 6 Loan Production Offices 33 Insurance Locations (28 stand-alone) 82 Mortgage Locations (13 stand-alone) 18 Wealth Management Locations |
 5 As of June 30, 2015 Wide Range of Product Offerings Mortgage 122 Originators in 82 Locations $728 million in Production YTD ($1.1 billion in Production in 2014) Insurance 175 Licensed Producers in 33 Locations Commercial, P&C, and Life Insurance COMMUNITY BANK Personal Banking Business Banking Deposit Offerings Business Loans Consumer Lending Full Range of Deposit Products Home Equity Lending Treasury Management Mobile/Internet Banking Merchant Services Prepaid Cards Payroll and HR Management Equipment Finance and Leasing Territory Managers Covering 14 States Portfolio Balance of $500+ Million Trust and Wealth Management $7 Billion Total Assets Under Management 18 Locations |
 Net
Interest Revenue
59% Noninterest Revenue 41% Diversified Revenue Stream Approximately 40% of Total Revenue is Derived from Noninterest Sources Total Noninterest Revenue of $146.3M* 6 Total Revenue of $359.7M* Percentages and amounts based on data for six month period ended June 30, 2015 *Excludes positive MSR valuation adjustment of $1.3 million Insurance Commissions 43% Mortgage lending 15% Card and merchant fees 12% Deposit service charges 15% Wealth management 8% Other 7% |
 Q2
Highlights As of and for the three months ended June 30, 2015
7 Net income of $39.7 million, or $0.41 per diluted share Generated net loan growth of $280.6 million, or 11.6% annualized Originated $417.2 million in mortgage loans, which contributed to mortgage lending
revenue of $14.1 million
Elevated recoveries of previously charged-off loans contributed to a negative
provision for credit losses of $5.0 million
Continued progress toward improving cost structure reflected by decline in efficiency
ratio to 69.52 percent
Improvement in other operating metrics, including Return on Assets and Return on
Equity |
 Diluted
EPS 8 Growth in Earnings Per Share Fiscal Year Quarter Ended $0.99 $0.27 $0.45 $0.90 $0.99 $1.21 $0.33 $0.41 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 2009 2010 2011 2012 2013 2014 Q1 15 Q2 15 |
 Loan
Growth Dollars in millions
9 Fiscal Year Quarter Ended Produced net loan growth of approximately $700 million over the last year $9,691 $9,775 $9,333 $8,870 $8,637 $8,958 $9,068 $9,312 $9,511 $9,713 $9,727 $10,008 $7,500 $8,000 $8,500 $9,000 $9,500 $10,000 $10,500 4Q 08 4Q 09 4Q 10 4Q 11 4Q 12 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 |
 NPA
Improvement 10
Total NPAs Have Stabilized Over the Past Several Quarters
$64 $186 $394 $425 $322 $234 $120 $93 $74 $69 $72 $61 $79 $46 $59 $133 $136 $174 $103 $69 $64 $55 $43 $34 $28 $24 $110 $528 $561 $496 $337 $157 $129 $112 $106 $89 $104 $0 $125 $250 $375 $500 $625 4Q 08 4Q 09 4Q 10 1Q 11 4Q 11 4Q 12 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 NPLs OREO $246 $190 Dollars in millions NPLs consist of nonaccrual loans, loans 90+ days past due and accruing, and restructured loan NPAs consist of NPLs and other real estate owned
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 Summary Highlights Continued improvement in profitability Meaningful loan growth Growth in noninterest revenue Stabilization of credit quality metrics Improvement in efficiency Current Focus Continue to attract quality producers and grow Loans & deposits Noninterest products Challenge expenses and continue to improve efficiency 11 |
 BancorpSouth’s common stock is listed on the New York Stock
Exchange under the symbol BXS. Additional information can
be found at www.bancorpsouth.com.*
Investor Inquiries: Will Fisackerly Director of Corporate Finance BancorpSouth, Inc. 662-680-2475 will.fisackerly@bxs.com *Reference to BancorpSouth’s website does not constitute incorporation by reference of the information
contained on the website and is not, and should not, be deemed a part of this
presentation |