Exhibit 99.1
The Emerging Regional Bank of the Mid-South |
![()](https://capedge.com/proxy/8-K/0000950144-08-000858/g11706g11706z0001.gif)
Forward Looking Information |
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 BancorpSouth’s focus on high quality assets, new loan markets, BancorpSouth’s market presence, growth opportunities, opportunities for mobile banking, strategic initiatives for 2008, and the future operating results of BancorpSouth, through BancorpSouth Bank. 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, the ability of BancorpSouth to provide and market competitive products and services, the ability of BancorpSouth to manage growth and effectively serve an expanding customer and market base, changes in economic conditions, the ability of BancorpSouth to identify and enter new markets, changes in BancorpSouth’s operating or expansion strategy, changes in the national economy and in the economy in BancorpSouth’s market areas, the ability of BancorpSouth to attract, train and retain qualified personnel, changes in consumer preferences, geographic concentrations of BancorpSouth’s assets, the ability of BancorpSouth to implement and integrate new technologies, changes in business conditions, including, for example, changes in interest rates and regulatory changes, and other factors detailed from time to time in BancorpSouth’s press releases and filings with the Securities and Exchange Commission. BancorpSouth does not undertake any obligation to update or revise forward-looking statements to reflect events or circumstances after the date of this presentation. |
2 |
![()](https://capedge.com/proxy/8-K/0000950144-08-000858/g11706g11706z0002.gif)
Corporate Profile |
Data as of December 31, 2007$ 13.2 billion in assets 8-state financial holding company 290 locations |
Provides a comprehensive line of financial products and services to individuals and to small- to mid-size businesses |
Traditional banking and non-interest products$ 1.9 billion market capitalization |
![()](https://capedge.com/proxy/8-K/0000950144-08-000858/g11706g11706z0003.gif)
Mission Statement |
Be the leading financial services company in our markets, close to the client and focused on the economic development of the communities we serve. |
Maximize shareholder value through consistently strong earnings performance, strong and growing market share, and focus on high quality assets. |
Continuously transform BancorpSouth into a more diverse and comprehensive financial services company. |
Be our clients’ provider of choice for financial services, a multi-faceted relationship providing maximum long term value to both the client and our company. |
Provide an inspiring career opportunity for dedicated professionals. |
![()](https://capedge.com/proxy/8-K/0000950144-08-000858/g11706g11706z0004.gif)
Market Footprint |
Existing Banking & Insurance Markets Selected New Markets 5 |
5 |
![()](https://capedge.com/proxy/8-K/0000950144-08-000858/g11706g11706z0005.gif)
BancorpSouth, Right Where You AreSM |
![()](https://capedge.com/proxy/8-K/0000950144-08-000858/g11706g11706z0006.gif)
Meeting the Needs of Customers |
Personal andPersonal and Business Business |
Mortgage Lending Banking Banking Investment and Mortgage Lending Investment and andand BrokerageBrokerage Servicing Servicing Services Services |
BancorpSouth BancorpSouth |
Trust and AssetTrust and Asset Credit Cards Credit Cards Family of Family of Management Management Services Services |
Student Loans Student Loans Insurance Insurance CommercialCommercial Banking and CashBanking and Cash Management Management |
7 |
![()](https://capedge.com/proxy/8-K/0000950144-08-000858/g11706g11706z0007.gif)
71 8 $ 2006. |
% |
1 8 |
. |
3 3 7 |
0 0 0 2 0 8 - |
, r t |
4 5 o 0 p 2 , |
R e $ 1 e |
m |
S |
M o c n I |
e e |
F |
K t n m e |
BA N t s |
H v e |
U T n |
I |
& |
For 2007, commissions totaled million, a 12.5% increase over S O |
e |
R P c n |
C O r a s u n |
I |
BA N k n |
% |
B a 1 4 . s ’ |
1 5 t e i h |
4 1 W 5 l 9 , a |
e $ 5 c h i M |
5 |
: |
5 5 e |
, r c 6 8 u $ |
S o BancorpSouth Insurance Services 9 |
![()](https://capedge.com/proxy/8-K/0000950144-08-000858/g11706g11706z0008.gif)
Wealth Management Group |
12/31/2007 12/31/2006 |
Number of Trust Accounts 4,743 4,705 Number of Brokerage Accounts 10,756 9,698 |
Total Client Accounts 15,499 14,403 |
Trust Assets $4.1 $3.7 Brokerage Assets 0.9 0.8 |
Assets Under Management (billions) $5.0 $4.5 |
9 |
![()](https://capedge.com/proxy/8-K/0000950144-08-000858/g11706g11706z0009.gif)
Wealth Management Group |
Total Commissions and Fees |
as of December 31 |
($ in millions) |
$18.0 $16.0 $10.2 $14.0 $10.4 $12.0 $8.5 $7.7 $10.0 $7.2 $8.0 $6.0 $7.4 $5.2 $4.0 $3.7 $3.9 $2.9 $2.0 $0.0 2003 2004 2005 2006 2007 |
Brokerage Trust |
10 |
![()](https://capedge.com/proxy/8-K/0000950144-08-000858/g11706g11706z0010.gif)
Mobile Banking Innovator |
First in the Nation Mobile Banking with Firethorn Holdings and AT&T Mobility BancorpSouth Benefits: |
Market readiness for mobile banking |
New customer acquisition & retention |
Customer convenience Increased share of wallet Transaction revenue |
![()](https://capedge.com/proxy/8-K/0000950144-08-000858/g11706g11706z0011.gif)
Commercial Banking and Treasury Management |
12/31/07 as compared to 12/31/06 |
· Over $1.11 billion in Commercial Checking balances |
· 16.5% increase in Treasury Management customers |
· 24.1% increase in Treasury Management sweep product balances |
· 30.4% increase in total fee revenue for Treasury Management |
![()](https://capedge.com/proxy/8-K/0000950144-08-000858/g11706g11706z0012.gif)
Deposits |
Total Deposits as of December 31 ($ in billions) |
$12.0 $9.7 $10.1 $11.0 $9.6 $9.1 $10.0 $8.5 $8.6 $9.0 $8.0 $7.0 $6.0 $5.0 2002 2003 2004 2005 2006 2007 |
6% 6% |
AL 19% 11% TX |
TN AR 5% MO |
LA 6% |
MS |
as of December 31, 2007 |
47% 13 |
13 |
![()](https://capedge.com/proxy/8-K/0000950144-08-000858/g11706g11706z0013.gif)
A Strong Credit Culture 2001 2002 2003 2004 2005 2006 2007 |
Non Performing Loans / Net Loans 0.72% 0.62% 0.83% 0.50% 0.39% 0.30% 0.32% Net Charge-Offs (annualized) 0.35% 0.41% 0.33% 0.31% 0.23% 0.15% 0.14% Reserve Coverage of Non Performing Loans 1.9x 2.2x 1.8x 2.7x 3.5x 4.2x 3.9x |
14 |
14 |
![()](https://capedge.com/proxy/8-K/0000950144-08-000858/g11706g11706z0014.gif)
Loans |
Loans Net of Unearned Income as of December 31 ($ in billions) $9.2 $10.0 $7.9 $9.0 $7.4 $8.0 $6.8 $6.4 $6.2 $7.0 $6.0 $5.0 $4.0 $3.0 2002 2003 2004 2005 2006 2007 |
6% 8% 13% |
TX AL 14% TN AR |
9% MO |
LA |
8% MS |
as of December 31, 2007 |
42% 15 |
15 |
![()](https://capedge.com/proxy/8-K/0000950144-08-000858/g11706g11706z0015.gif)
New Market Loan Growth |
From January 1, 2004 – December 31, 2007, new loan markets have added $449 million to BancorpSouth’s loan portfolio |
New Loan Markets |
Longview, TX (2004) Lufkin, TX (2005) Gulf Shores, AL (2005) Fayetteville, AR (2005) Tyler, TX (2006) Huntsville, AL (2006) Lafayette, LA (2006) Destin, FL (2006) Franklin, TN (2006) |
16 |
Mobile, AL (2007) |
16 |
![()](https://capedge.com/proxy/8-K/0000950144-08-000858/g11706g11706z0016.gif)
Operating Results |
Twelve Months Ended December 31, |
2007 2006 % Change |
Net interest revenue $ 422,899 $ 385,799 9.62 Provision for credit losses 22,696 8,577 164.61 Noninterest revenue 231,799 206,094 12.47 Noninterest expense 428,058 393,154 8.88 Income before income taxes 203,944 190,162 7.25 Income tax provision 66,001 64,968 1.59 Net income 137,943 125,194 10.18 Net income per share: diluted 1.69 1.57 7.64 |
Dollars in thousands, except per share amounts |
17 |
![()](https://capedge.com/proxy/8-K/0000950144-08-000858/g11706g11706z0017.gif)
Performance Ratios |
Twelve Months Ended December 31, |
2007 2006 % Change |
Return on average assets 1.07% 1.06% 0.94 Return on tangible equity 16.00% 14.99% 6.74 Return on common equity 12.31% 12.52% -1.68 Net interest margin 3.68% 3.70% -0.54 Average shares outstanding - - diluted 81,844,343 79,542,734 2.89 |
18 |
![()](https://capedge.com/proxy/8-K/0000950144-08-000858/g11706g11706z0018.gif)
Net Interest Margin |
4.00% |
3.73% 3.75% 3.72% 3.69% 3.75% 3.64% 3.66% 3.64% 3.66% 3.66% 3.61% 3.64% 3.66% |
3.50% 3.25% 3.00% |
Q1-05 Q2-05 Q3-05 Q4-05 Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Q2-07 Q3-07 Q4-07 |
19 |
19 |
![()](https://capedge.com/proxy/8-K/0000950144-08-000858/g11706g11706z0019.gif)
Balance Sheet Information |
Twelve Months Ended December 31, |
2007 2006 % Change |
Total assets $ 13,189,841 $ 12,040,521 9.55 Total earning assets 11,948,038 10,879,587 9.82 Loans, net of unearned discount 9,179,684 7,871,471 16.62 Allowance for credit losses 115,197 98,834 16.56 Total deposits 10,064,099 9,710,578 3.64 Common shareholders’ equity 1,196,626 1,026,585 16.56 Book value per share 14.54 12.98 12.02 |
Dollars in thousands, except per share amounts |
20 |
![()](https://capedge.com/proxy/8-K/0000950144-08-000858/g11706g11706z0020.gif)
Performance Metrics |
Assets |
($ in billions) |
$12.0 $13.2 $14.0 $11.8 $10.3 $10.8 $12.0 $10.2 $10.0 $8.0 $6.0 $4.0 $2.0 $0.0 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 |
21 |
21 |
![()](https://capedge.com/proxy/8-K/0000950144-08-000858/g11706g11706z0021.gif)
Performance Metrics Return on Average Assets 1.50% 1.28% 1.13% 1.05% |
1.25% 1.05% 1.06% 1.07% 1.00% 0.75% 0.50% 0.25% 0.00% |
2002 2003 2004 2005 2006 2007 |
22 |
22 |
![()](https://capedge.com/proxy/8-K/0000950144-08-000858/g11706g11706z0022.gif)
Performance Metrics |
Return on Average Tangible Equity |
20.00% 16.80% 16.00% 14.99% 14.60% 14.04% 14.41% 16.00% |
12.00% 8.00% 4.00% |
0.00% 2002 2003 2004 2005 2006 2007 |
23 |
23 |
![()](https://capedge.com/proxy/8-K/0000950144-08-000858/g11706g11706z0023.gif)
Earnings Per Share History |
1.68 1.69 $1.80 1.57 $1.60 1.43 1.47 1.39 $1.40 1.19 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 2001 2002 2003 2004 2005 2006 2007 |
24 |
![()](https://capedge.com/proxy/8-K/0000950144-08-000858/g11706g11706z0024.gif)
Dividend Growth |
$0.85 $0.80 $0.75 $0.70 $0.65 $0.60 $0.55 $0.50 $0.45 $0.40 $0.35 $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $0.00 |
1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 |
Cash dividend per share of common stock |
25 |
![()](https://capedge.com/proxy/8-K/0000950144-08-000858/g11706g11706z0025.gif)
Strategic Initiatives Continue to pursue new market entries |
Create new initiatives for organic growth of deposits and loans |
Maintain our net interest margin Increase share of client wallet |
Continue to implement and promote a consistent BancorpSouth brand Continue to leverage industry-leading position in electronic payment technology Diversify and grow non-interest revenue |
26 |
26 |
![()](https://capedge.com/proxy/8-K/0000950144-08-000858/g11706g11706z0026.gif)
Key Investment Considerations |
Unique market presence and growth opportunity Focused on retail customers and small- to mid-size business High degree of local management authority |
Size leveraged to support local offices Superior technological infrastructure Solid capital position Focused on shareholder value |
27 |
27 |
![()](https://capedge.com/proxy/8-K/0000950144-08-000858/g11706g11706z0027.gif)
![()](https://capedge.com/proxy/8-K/0000950144-08-000858/g11706g11706z0028.gif)
Total Shareholder Return |
including dividends |
Periods ending 12/31/07 |
18.0% |
12.8% |
11.4% 12.0% 10.5% 10.1% |
7.4% |
5.9% |
6.0% |
3.1% 3.2% 2.3% |
0.0% 5 Year 10 Year15 Year |
S&P 500 Index S&P Banks Composite Index CBOE BXS |
Source: Bloomberg 29 |
29 |
![()](https://capedge.com/proxy/8-K/0000950144-08-000858/g11706g11706z0029.gif)
BancorpSouth’s common stock is traded on the New York Stock Exchange under the symbol BXS. Additional information can be found at www.bancorpsouth.com . |
![()](https://capedge.com/proxy/8-K/0000950144-08-000858/g11706g11706z0030.gif)
The Emerging Regional Bank of the Mid-South |
![()](https://capedge.com/proxy/8-K/0000950144-08-000858/g11706g11706z0031.gif)
APPENDIX Unaudited Reconciliation of Non-GAAP Financial Measure |
Return on average tangible equity should not be considered an alternative to return on average shareholders’ equity or other financial statement data, but rather as a non-GAAP measure of financial performance. Return on average tangible equity is computed by dividing the annualized net earnings available to common shareholders by the average tangible shareholders’ equity. |
Average tangible shareholders’ equity equals average shareholders’ equity less goodwill and identifiable intangible assets. Management believes that return on average tangible equity is a meaningful measure because it reflects the equity deployed in BancorpSouth’s businesses. Because return on average tangible equity is not a measurement determined in accordance with GAAP and is susceptible to varying calculations, return on average tangible equity as presented may not be comparable to other similarly titled measures of other companies. The following table sets forth a reconciliation of return on average shareholders’ equity to return on average tangible equity: |
(Average Balances, Dollars in thousands) |
Year Ended December 31, 2002 December 31, 2003 December 31, 2004 December 31, 2005 December 31, 2006 December 31, 2007 |
Shareholders’ Equity $810,893 $845,874 $873,264 $934,563 $1,000,351 $1,121,000 |
Deduct: Goodwill and identifiable i ntangible assets 43,644 65,287 85,324 135,086 165,192 258,774 |
Tangible Shareholders’ Equity 767,249 780,587 787,940 799,477 835,159 862,226 |
Return on Average Shareholders’ Equity 13.81% 15.50% 12.67% 12.33% 12.52% 12.31% |
Return on Average Tangible Equity 14.60% 16.80% 14.04% 14.41% 14.99% 16.00% |
![()](https://capedge.com/proxy/8-K/0000950144-08-000858/g11706g11706z0032.gif)