![]() BancorpSouth, Inc. Investor Presentation June 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, our strategic focus, revenue growth opportunities, integration of specialty lending lines of business, disposition of OREO, branch optimization, the effectiveness of our new regional management structure, 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 this disclosure as a substitute for results determined in accordance with GAAP, and it is 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 measure 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 |
![]() Footprint – 260 Bank Locations 4 Locations as of March 31, 2012 |
![]() 27 Insurance Locations With 147 Licensed Producers 5 Locations and head count as of March 31, 2012 |
![]() 72 Mortgage Locations With 95 Originators 6 Locations and head count as of March 31, 2012 |
![]() Diversified Revenue Stream Over 35% of Total Revenue is Derived from Noninterest Sources Total Noninterest Revenue of $68.6M* 7 Insurance Commissions 34% Mortgage lending 17% Card and merchant fees 11% Service charges 22% Trust income 3% Other 13% Percentages and amounts based on data for the three months ended March 31, 2012 *Excludes net securities gains of $0.1 million and positive MSR valuation adjustment of $3.7 million |
![]() $71 $87 $81 $82 $87 $23 $300 $400 $500 $600 $700 $800 $0 $20 $40 $60 $80 $100 2007 2008 2009 2010 2011 3/31/12 Insurance Commission Revenue Premium Dollars Written 8 Insurance Commissions Insurance Commissions Account for Approximately 1/3 of Noninterest Revenue Fiscal Year Quarter Ended Dollars in millions Premium Dollars Written Commission Revenue |
![]() $10 $13 $30 $34 $31 $11 $0 $500 $1,000 $1,500 $2,000 $0 $10 $20 $30 $40 2007 2008 2009 2010 2011 3/31/12 Mortgage Lending Revenue* Mortgage Production 9 Mortgage Lending Revenue Mortgage Production Volume Totaled $395 Million for the First Quarter Fiscal Year Quarter Ended Dollars in millions *Excludes MSR valuation adjustments Revenue Production |
![]() Non-Interest Bearing 20% Interest Bearing DDA 44% Time 26% Savings 10% Core Deposit Franchise Reduced reliance on public funds deposits and single service CDs Noninterest bearing deposits have grown approximately 11% since March 31, 2011 Cost of total deposits for the quarter ended March 31, 2012 was 0.60% Over $1 billion in CDs maturing over the next two quarters at a weighted average rate of approximately 1.02% As of and for the period ended March 31, 2012 (except where otherwise indicated) $11.1B Total Deposit Composition 10 |
![]() Stable Net Interest Margin Fiscal Year Quarter Ended Shown on a fully taxable equivalent basis 11 3.68% 3.75% 3.77% 3.70% 3.69% 3.66% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 2007 2008 2009 2010 2011 3/31/2012 |
![]() Strong Core Capital Base Core capital base consisting of 100% common equity Enhanced by the closing of a public common stock offering in January 2012 ,which yielded net proceeds of $109 million 12 6.95% 10.65% 11.92% 8.49% 13.13% 14.39% 4.00% 7.00% 10.00% 13.00% 16.00% TCE / TA Tier I Capital Total Capital 3/31/11 3/31/12 |
![]() 13 Financial Highlights |
![]() First Quarter Financial Highlights Net income of $22.9 million, or $0.25 per diluted share Net interest margin remained relatively stable at 3.66% Improvement in credit quality indicators including the provision for credit losses, total NPLs and NPAs, near-term past dues, and net charge-offs Mortgage production increased to $395 million, and a positive MSR market valuation adjustment of $3.7 million contributed to total mortgage lending revenue of $15.1 million for the quarter At and for the three months ended March 31, 2012 14 |
![]() Net Income Highest Level of Quarterly Earnings In Over 2 Years 15 Net Income for quarters ended as of dates shown Dollars in millions ($2.1) $8.4 ($12.6) $11.3 $15.8 ($0.5) $12.8 $11.9 $13.3 $22.9 ($20) ($10) $0 $10 $20 $30 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 |
![]() NPA Improvement Total NPAs Have Declined Over $100 Million Since the Peak at 3/31/11 $186 $236 $302 $409 $394 $425 $380 $363 $322 $285 $59 $59 $68 $83 $133 $136 $151 $163 $174 $168 $246 $295 $370 $492 $528 $561 $531 $525 $496 $453 $100 $200 $300 $400 $500 $600 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 NPLs OREO 16 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 Data for quarters ended as of dates shown Payments Received on Non-Accrual Loans 17 $20.0 $18.2 $20.2 $15.1 $20.6 $0 $5 $10 $15 $20 $25 3/31/11 6/30/11 9/30/11 12/31/11 3/31/12 Payments of over $90 million received on non-accrual loans over the past 5 quarters |
![]() 18 $0 $100 $200 $300 $400 3/31/11 6/30/11 9/30/11 12/31/11 3/31/12 Non-Accrual Lns Paying as Agreed All Other Non-Accrual Lns Non-Accrual Loans 47% 48% 51% 54% 54% of non-accrual loans were paying as agreed as of March 31, 2012 37% Dollars in millions “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 Positive Trend in Net Charge-Offs % Avg. Loans 19 $31 $31 $50 $51 $51 $52 $33 $23 $24 $23 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% $0 $10 $20 $30 $40 $50 $60 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 Net charge-offs Net charge-offs / average loans |
![]() Decreased Exposure in CAD Portfolio Dollars in millions Net loans and leases Residential A&D has declined 47% over the past 2 years 20 $606 $601 $570 $523 $456 $420 $393 $377 $342 $317 $1,460 $1,429 $1,419 $1,336 $1,175 $1,117 $1,061 $977 $908 $858 $0 $400 $800 $1,200 $1,600 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 Residential CAD All Other Construction, Acquisition and Development |
![]() 21 Strategic Focus |
![]() Revenue Growth Opportunities Pursue quality loan growth Branch expansion in certain growth markets Recent branch openings in Lufkin, TX and Alexandria, LA Continue to focus on fee revenue growth Grow insurance line business, organically and through acquisition opportunities Expand mortgage footprint into new markets through additions to mortgage origination team Integration of specialty lending lines of business into the general banking organization structure 22 |
![]() Specialty Lending Lines of Business Corporate Banking Commitment to growing lending group Small Business Lending Equipment Leasing 10 commercial territory managers covering 14 states Leasing portfolio totals almost $500 million as of March 31, 2012 Production volume in 2011 of over $235 million Centralized Consumer Lending Outreach 23 |
![]() Efficiency Opportunities 24 Focus on disposition of other real estate owned Branch optimization Closed 22 branches during 2011 Continue to evaluate the performance and potential of all branches Monitoring of headcount Total head count down approximately 220, or 5%, over the past 3 years despite hiring of additional mortgage originators and credit support staff as well as new branch openings in certain markets Geographic reorganization of general bank from 10 regions to 4 regions |
![]() New Regional Management Structure to be Effective 6/30/12 25 |
![]() Summary Consistent core earnings with over 35% of total revenue derived from noninterest sources Nation’s 26 largest insurance agency / brokerage operation Continued progress in improving asset quality Measurable increases in profitability levels Strategic focus on revenue growth opportunities Efficiency and expense control initiatives Data as of and for the quarter ended March 31, 2012 Insurance ranking from Business Insurance Magazine as of December 31, 2010 26 th |
![]() Appendix |
![]() Non-GAAP Financial Reconciliation 28 Tangible Common Equity / Tangible Assets (TCE/TA) As of As of 3/31/2012 3/31/2011 (Dollars In Thousands) Common Equity --> A $1,392,199 $1,211,061 Assets --> B 13,307,572 13,547,238 Intangibles --> C 287,147 290,141 Tangible Common Equity --> D=A-C 1,105,052 920,920 Tangible Assets --> E=B-C 13,020,425 13,257,097 TCE/TA --> D/E 8.49% 6.95% |