![]() BancorpSouth, Inc. Investor Presentation November 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 maturities of our CDs, our strategic focus, revenue growth opportunities, branch expansion, fee revenue growth, integration of specialty lending lines of business, improvement of asset quality, branch optimization, the effectiveness of our new regional management structure, geographic expansion of mortgage originators, expansion of insurance agencies, marketing of foreclosed properties, our ability to exit non-performing and criticized relationships, 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 short- term and long-term impact of changes to banking capital standards on the Company’s regulatory capital and liquidity, 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. |
![]() 3 Locations as of September 30, 2012 Footprint – 260 Bank Locations |
![]() 30 Insurance Locations With 164 Licensed Producers 4 Locations and head count as of September 30, 2012 |
![]() 72 Mortgage Locations With 104 Originators 5 Locations and head count as of September 30, 2012 |
![]() Diversified Revenue Stream Percentages and amounts based on data for the nine months ended September 30, 2012 *Excludes net securities gains of $0.3 million and negative MSR valuation adjustment of $3.3 million Almost 40% of Total Revenue is Derived from Noninterest Sources Total Noninterest Revenue of $212.3M* 6 Insurance Commissions 33% Mortgage lending 20% Card and merchant fees 11% Service charges 20% Trust income 4% Other 12% |
![]() $71 $87 $81 $82 $87 $69 $0 $200 $400 $600 $800 $1,000 $0 $20 $40 $60 $80 $100 2007 2008 2009 2010 2011 9/30/12 Insurance Commission Revenue Premium Dollars Written 7 Insurance Commissions Insurance Commissions Account for Approximately 1/3 of Noninterest Revenue Fiscal Year Year-to-Date Dollars in millions Premium Dollars Written Commission Revenue |
![]() $10 $13 $30 $34 $31 $43 $0 $500 $1,000 $1,500 $2,000 $2,500 $0 $10 $20 $30 $40 $50 2007 2008 2009 2010 2011 9/30/12 Mortgage Lending Revenue* Mortgage Production 8 Mortgage Lending Revenue Record Mortgage Production of $608 Million for the Third Quarter Fiscal Year Year-to-Date Dollars in millions *Excludes MSR valuation adjustments Revenue Production |
![]() Non-Interest Bearing 23% Interest Bearing DDA 43% Time 24% Savings 10% Core Deposit Franchise Reduced reliance on public funds deposits and single service CDs Noninterest bearing deposits have grown approximately 13% since September 30, 2011 Cost of total deposits for the quarter ended September 30, 2012 was 0.52% Approximately $938 million in CDs maturing over the next two quarters at a weighted average rate of approximately 0.77% As of and for the period ended September 30, 2012 (except where otherwise indicated) $11.0B Total Deposit Composition 9 |
![]() 3.68% 3.75% 3.77% 3.70% 3.69% 3.66% 3.65% 3.55% 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 3/31/12 6/30/12 9/30/12 Net Interest Margin Fiscal Year Quarter Ended Shown on a fully taxable equivalent basis 10 |
![]() Strong Core Capital Base Core capital base consisting of 100% common equity Continued improvement in capital levels, internally generated and through common stock offering in January 2012 11 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 9/30/11 12/31/11 3/31/12 6/30/12 9/30/12 Total capital Tier I capital Tier I leverage capital 14.81% 13.55% 10.22% 12.62% 11.36% 8.66% |
![]() 12 Financial Highlights |
![]() Third Quarter Financial Highlights At and for the three months ended September 30, 2012 13 Net income of $23.8 million, or $0.25 per diluted share Record mortgage production of $608 million, which contributed to $16.8 million of mortgage lending revenue excluding a negative MSR valuation adjustment of $3.2 million Sequential quarter growth in other noninterest revenue sources including credit and debit card fees, service charges, and insurance commissions Continued improvement in many credit quality indicators including total NPLs and NPAs, classified loans, and nonaccrual loan formation and stabilization in other such indicators including the provision for credit losses and net charge-offs Capital ratios continue to improve |
![]() Net Income Meaningful Improvement in Profitability Levels 14 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 $20.6 $23.8 ($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 6/30/12 9/30/12 |
![]() NPA Improvement Dollars in millions NPLs include non-accrual loans, loans 90+ days past due and restructured loans NPAs include NPLs and other real estate owned Total NPAs Have Declined $185 Million Since the Peak at 3/31/11 15 $302 $409 $394 $425 $380 $363 $322 $285 $267 $247 $68 $83 $133 $136 $151 $163 $174 $168 $144 $128 $370 $492 $528 $561 $531 $525 $496 $453 $411 $376 $100 $200 $300 $400 $500 $600 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 NPLs OREO |
![]() Dollars in millions Data for quarters ended as of dates shown Payments Received on Non-Accrual Loans 16 Payments of $110 million received on non-accrual loans over the past 5 quarters $20.2 $15.1 $20.6 $27.1 $26.7 $0 $5 $10 $15 $20 $25 $30 9/30/11 12/31/11 3/31/12 6/30/12 9/30/12 |
![]() $0 $100 $200 $300 $400 9/30/11 12/31/11 3/31/12 6/30/12 9/30/12 Non-Accrual Lns Paying as Agreed All Other Non-Accrual Lns Non-Accrual Loans 51% 54% 55% 57% 57% of non-accrual loans were paying as agreed as of September 30, 2012 48% 17 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 18 $50 $51 $51 $52 $33 $23 $24 $23 $12 $13 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% $0 $10 $20 $30 $40 $50 $60 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 Net charge-offs Net charge-offs / average loans |
![]() Decreased Exposure in CAD Portfolio Dollars in millions Net loans and leases Residential CAD has declined almost 50% over the past 2 years 19 $570 $523 $456 $420 $393 $377 $342 $317 $288 $263 $1,419 $1,336 $1,175 $1,117 $1,061 $977 $908 $858 $835 $824 $0 $400 $800 $1,200 $1,600 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 Residential CAD All Other Construction, Acquisition and Development |
![]() 20 Strategic Focus |
![]() Strategic Focus Revenue Growth Opportunities Pursue quality loan growth Branch expansion in certain growth markets Continue to focus on fee revenue growth Expand mortgage originators geographically Continue to seek opportunities for expansion in insurance Integration of specialty lending lines of business into general banking structure Efficiency Opportunities Continue progress in improving asset quality Aggressively market foreclosed properties Directed exits of non-performing and criticized relationships Branch optimization Monitoring of headcount Geographic reorganization of general bank from 10 regions to 4 regions 21 |
![]() Summary Measurable increases in profitability levels Consistent core earnings with almost 40% of total revenue derived from noninterest sources Record mortgage loan production Growth in other noninterest revenue sources including credit and debit card fees, service charges, and insurance commissions Continued progress in improving asset quality 6 th consecutive quarter of improvement in total NPLs and NPAs Stabilization of provision and net charge-off levels Revenue growth opportunities Efficiency and expense control initiatives Data as of and for the quarter ended September 30, 2012 22 |