![]() BancorpSouth, Inc. Investor Presentation March 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 the use of non-GAAP financial measures, maturities of our CDs, pro forma capital ratios, our strategic focus, 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. |
![]() This presentation contains financial information determined by methods other than those prescribed by accounting principles generally accepted in the United States ("GAAP'). Management uses this "non-GAAP" financial measure in its analysis of the Company's capital. Management believes that the ratio of tangible shareholders’ equity to tangible assets is important to investors who are interested in evaluating the adequacy of the Company's capital levels. You should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP measures used by other companies. The limitations associated with this measure are the risks that persons might disagree as to the appropriateness of items comprising this measure and that different companies might calculate this measures differently. Information provided in the Appendix of this presentation reconciles this non-GAAP measure with comparable measures calculated in accordance with GAAP. Non-GAAP Financial Disclaimer 3 |
![]() Strong core capital base Overview of BancorpSouth, Inc. Data as of and for the year ended December 31, 2011 Insurance ranking from Business Insurance Magazine as of December 31, 2010 $13.0 billion in assets 287 locations with reach throughout a 9-state footprint Customer-focused business model with comprehensive line of financial products and banking services for individuals and small to mid-size businesses Nation’s 26 th largest insurance agency / brokerage operation Strong mortgage operations with production totaling $1.2 billion for 2011 Consistent core earnings with over 35% of total revenue derived from noninterest sources 4 |
![]() 5 Regional Management Structure |
![]() 6 Fourth Quarter Financial Highlights Net income of $13.3 million, or $0.16 per diluted share Improvement in credit quality indicators including the provision for credit losses, total NPLs and NPAs, nonaccrual loan formation and near-term past dues Net interest margin remained stable at 3.69% Mortgage production increased to $390 million, although a negative MSR market valuation adjustment reduced mortgage revenue by $1 million Capital levels improved: 12/31/11 9/30/11 12/31/10 Tangible Common Equity / Tangible Assets 7.67% 7.58% 7.00% Tier I Capital 11.77% 11.36% 10.61% Total Capital 13.03% 12.62% 11.87% At and for the three months ended December 31, 2011 |
![]() Common Stock Offering Pro forma capital ratios assume $109 million of net proceeds. Closed $115 million common stock offering on January 24, 2012 Improves capitalization at the Holding Company and maintains flexibility at the Bank Increases Holding Company liquidity Enhances strategic flexibility Positioned for recovery Ability to invest Opportunistic M&A Holding Company Capital Ratios 7 7.67% 10.15% 11.77% 13.03% 8.46% 11.28% 12.90% 14.16% 6.00% 9.00% 12.00% 15.00% TCE / TA Tier 1 Common Ratio Tier 1 Ratio Total Capital Ratio 12/31/11 12/31/11 Pro Forma |
![]() Stable Net Interest Margin Fiscal Year Quarter Ended Shown on a fully taxable equivalent basis 8 3.68% 3.75% 3.77% 3.70% 3.69% 3.71% 3.66% 3.69% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 2007 2008 2009 2010 3/31/11 6/30/11 9/30/11 12/31/11 |
![]() Mortgage lending 11% Card and merchant fees 16% Service charges 25% Trust income 4% Insurance commissions 32% Other 12% Diversified Revenue Stream Percentages and amounts based on data for the twelve months ended December 31, 2011 *Excludes net securities gains of $12.1 million and MSR impairment of $13.7 million Noninterest Revenue Composition Insurance and mortgage businesses provide significant sources of noninterest revenue Historically, over 35% of total revenue has been derived from noninterest sources Insurance commissions were up 6% for 2011 compared to 2010 Mortgage production volume totaled $1.2 billion for 2011 Total Noninterest Revenue of $272.4M* 9 |
![]() Core Deposit Franchise Reduced reliance on public funds deposits and single service CDs Noninterest bearing deposits have grown approximately 10% since December 31, 2010 Cost of total deposits for the quarter ended December 31, 2011 was 0.67% Over $1 billion in CDs are maturing over the next two quarters at a weighted average rate of approximately 1.26% As of and for the periods ended December 31, 2011 $11.0B Total Deposit Composition 10 Non-Interest Bearing 21% Interest Bearing DDA 43% Time 27% Savings 9% |
![]() 11 Lending and Credit |
![]() Credit Quality Improvement Non-performing loans decreased 11.2% from the previous quarter Non-performing assets decreased 5.6% from the previous quarter Both NPLs and NPAs have declined for three consecutive quarters Provision for credit losses declined $5.9 million, or 23.3%, compared to the previous quarter and $73.9 million, or 36.2%, for the year ended 12/31/11 compared to the prior year 51% of non-accrual loans paying as agreed 85% of non-accrual loans were impaired and carried at 68% of unpaid principal balance (“UPB”) 12 Sales of OREO properties during the quarter totaled $16.7 million, resulting in no material net gain/loss. OREO is carried at 54% of aggregate loan balances at time of foreclosure At and for the three months ended December 31, 2011 includes loans < 30days past due with payments occurring at least quarterly “Paying as agreed” |
![]() Commercial & Industrial 16% Consumer Mortgages 22% Home Equity 6% Agricultural 3% C&I Owner-Occupied 15% Construction, Acquisition & Dev. 10% Commercial Real Estate 20% Credit Cards 1% Other 7% Loans / NPLs By Category Net loans and leases as of December 31, 2011 NPLs include nonaccrual loans, loans 90+ days past due and restructured loans $8.9B Portfolio Loans By Category NPLs By Category 13 Commercial & Industrial 4% Consumer Mortgages 16% Home Equity 1% Agricultural 1% C&I Owner- Occupied 13% Construction, Acquisition & Development 42% Commercial Real Estate 19% Credit Cards 1% Other 2% |
![]() Loans / NPLs By Geography Loans By Geography NPLs By Geography 14 AL & FL Panhandle 16% AR** 8% MS** 17% MO 15% Greater Memphis 13% TN** 9% TX & LA 18% Other* 4% AL & FL Panhandle 8% AR** 14% MS** 29% MO 6% Greater Memphis 6% TN** 8% TX & LA 19% Other* 10% Net loans and leases as of December 31, 2011 NPLs include nonaccrual loans, loans 90+ days past due and restructured loans *”Other” includes all other geographic regions and lines of business not managed by a geographic region **Excludes the Greater Memphis Area |
![]() Decreased Exposure in CAD Portfolio 15 Dollars in millions Net loans and leases $601 $570 $523 $456 $420 $393 $377 $342 3/31/10 6/30/10 9/30/10 12/31/10 3/31/11 6/30/11 9/30/11 12/31/11 $1,429 $1,419 $1,336 $1,117 $977 $908 $1,061 $1,175 Residential CAD All Other Construction, Acquisition and Development $0 $300 $600 $900 $1,200 $1,500 |
![]() NPL Improvement 16 Dollars in millions NPLs include nonaccrual loans, loans 90+ days past due and restructured loans $394 $425 $380 $363 $322 $200 $250 $300 $350 $400 $450 12/31/10 3/31/11 6/30/11 9/30/11 12/31/11 Total NPLs Have Declined Over $100 Million Since the Peak at 3/31/11 |
![]() 17 Newly Identified Non-Accrual Loans Dollars in millions Newly identified non-accrual loans for quarters ended as of dates shown Q4 11 Non-Accrual Loan Formation Represents the Lowest Level in Ten Quarters $83 $136 $166 $131 $111 $50 $61 $39 $143 $131 $74 $60 $52 $48 $54 $38 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 3/31/10 6/30/10 9/30/10 12/31/10 3/31/11 6/30/11 9/30/11 12/31/11 Newly Identified Non-Accrual Loans Loans 30-89 Days Past Due, Still Accruing |
![]() Non-Accrual Loans 18 Dollars in millions includes loans < 30 days past due with payments occurring at least quarterly 51% of non-accrual loans were paying as agreed as of December 31, 2011 $0 $100 $200 $300 $400 12/31/10 3/31/11 6/30/11 9/30/11 12/31/11 Non-Accrual Lns Paying as Agreed All Other Non-Accrual Lns “Paying as Agreed” 36% 37% 47% 48% 51% |
![]() Data for quarters ended as of dates shown Positive Trends in Net Charge-Offs % Avg. Loans 19 $51 $52 $33 $23 $24 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% $0 $10 $20 $30 $40 $50 $60 12/31/10 3/31/11 6/30/11 9/30/11 12/31/11 Net Charge-Offs Net Charge-offs / Average loans Dollars in millions |
![]() Strategic Focus Preserve strong capital and position the Company for growth Focus on continuing improvement in asset quality Pursue quality loan growth Grow core earnings through loan growth and noninterest revenue growth Expense control and reduction 20 |
![]() Appendix |
![]() 22 Non-GAAP Financial Reconciliation Tangible Common Equity / Tangible Assets (TCE/TA) Pro Forma As of As of As of 12/31/2011* 12/31/2011 9/30/2011 12/31/2010 (In Thousands, Except Percentages) Common Equity --> A $1,371,912 $1,262,912 $1,266,753 $1,222,244 Assets --> B 13,104,851 12,995,851 13,198,518 13,615,010 Intangibles --> C 287,910 287,910 288,723 289,720 Tangible Common Equity --> D=A-C 1,084,002 975,002 978,030 932,524 Tangible Assets --> E=B-C 12,816,941 12,707,941 12,909,795 13,325,290 *Assumes $109 million of net proceeds from common stock offering 8.46% 7.67% 7.58% 7.00% Tangible Common Equity / Tangible Assets (%) -- > F=D/E |