![]() BancorpSouth, Inc. Investor Presentation 2013 KBW Boston Bank Conference 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, fee revenue growth, improvement of asset quality, geographic expansion of mortgage originators, expansion of insurance agencies, 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, an 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. |
![]() About BancorpSouth, Inc. (NYSE:BXS) Total assets of $13.4 billion Headquartered in Tupelo, MS 292 locations with reach 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 $1.4 billion 3 Data as of December 31, 2012 |
![]() Community Bank Structure – 8 State Footprint 4 |
![]() 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 Insurance 164 Licensed Producers in 29 Locations Commercial, P&C, and Life Insurance Trust and Wealth Management $6.9 billion total Assets Under Management Mortgage 107 Originators in 72 Locations $2.0 Billion in Production in 2012 5 Equipment Finance and Leasing Territory Managers Covering 14 States Portfolio Balance of $500 Million Wide Range of Product Offerings All Information as of December 31, 2012 |
![]() Diversified Loan Portfolio Loans By Category Loans By Geography 6 Commercial & Industrial 17% Consumer Mortgages 22% Home Equity 6% Agricultural 3% Construction, Acquisition & Dev. 9% Commercial Real Estate 20% Credit Cards 1% Other 7% AL & FL Panhandle 8% AR** 13% MS** 30% MO 5% Greater Memphis 6% TN** 8% TX & LA 20% Other* 10% $8.6B Portfolio C&I Owner-Occupied 15% |
![]() Core Deposit Franchise 100% core deposits – no reliance on brokered deposits Noninterest bearing deposits have grown approximately 12% since December 31, 2011 Cost of total deposits for the quarter ended December 31, 2012 was 0.47% Approximately $802 million in CDs maturing over the next two quarters at a weighted average rate of approximately 0.73% $11.1B Total Deposit Composition 7 Non-Interest Bearing 23% Interest Bearing DDA 43% Time 24% Savings 10% As of and for the period ended December 31, 2012 (except where otherwise indicated) |
![]() Diversified Revenue Stream *Excludes net securities gains of $0.4 million and negative MSR valuation adjustment of $3.2 million Approximately 40% of Total Revenue is Derived from Noninterest Sources Total Noninterest Revenue of $282.9M* 8 Total Revenue of $697.5M* Net Interest Revenue 59% Noninterest Revenue 41% Insurance Commissions 32% Mortgage lending 21% Card and merchant fees 11% Service charges 20% Trust income 4% Other 12% Percentages and amounts based on data for the twelve months ended December 31, 2012 |
![]() 9 Insurance Commissions Dollars in millions *Pre-tax Premium Dollars Written Commission Revenue Margin* 30% 27% 21% 19% 20% 17% $71 $87 $81 $82 $87 $90 $0 $200 $400 $600 $800 $1,000 $0 $20 $40 $60 $80 $100 2007 2008 2009 2010 2011 2012 Insurance Commission Revenue Premium Dollars Written Insurance Commissions Account for Approximately 1/3 of Noninterest Revenue |
![]() 10 Mortgage Lending Revenue Dollars in millions *Excludes MSR valuation adjustments Revenue Production $10 $13 $30 $34 $31 $60 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $0 $10 $20 $30 $40 $50 $60 $70 2007 2008 2009 2010 2011 2012 Mortgage Lending Revenue* Mortgage Production Record Mortgage Production of $2.0 Billion for 2012 |
![]() 11 Financial Highlights |
![]() Fourth Quarter Financial Highlights At and for the three months ended December 31, 2012 12 Net income of $17.0 million, or $0.18 per diluted share Mortgage production of $549 million, which contributed to $17.2 million of mortgage lending revenue OREO sales of $27.9 million contributed to a 19.5% decline in OREO and a 10.3% reduction in total NPAs NPLs decreased $13.8 million, or 5.6%, and NPAs declined $38.7 million, or 10.3% Continued improvement in many other credit quality indicators including classified loans, net charge-offs, and near term delinquencies Capital ratios continue to improve |
![]() Net Income Meaningful Improvement in Profitability Levels 13 Dollars in millions $120.4 $82.7 $22.9 $37.6 $84.3 $0 $25 $50 $75 $100 $125 2008 2009 2010 2011 2012 . |
![]() 3.75% 3.77% 3.70% 3.69% 3.66% 3.65% 3.55% 3.44% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 2008 2009 2010 2011 3/31/12 6/30/12 9/30/12 12/31/12 Net Interest Margin Fiscal Year Quarter Ended Shown on a fully taxable equivalent basis 14 |
![]() NPA Improvement Total NPAs Declined Approximately $160 Million, or 32%, During 2012 15 $409 $394 $425 $380 $363 $322 $285 $267 $247 $234 $83 $133 $136 $151 $163 $174 $168 $144 $128 $103 $492 $528 $561 $531 $525 $496 $453 $411 $376 $337 $0 $125 $250 $375 $500 $625 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 12/31/12 NPLs OREO Dollars in millions NPAs include NPLs and other real estate owned NPLs include non-accrual loans, loans 90+ days past due and restructured loans |
![]() Dollars in millions Data for quarters ended as of dates shown Payments Received on Non-Accrual Loans 16 Payments of $106 million received on non-accrual loans during 2012 $15.1 $20.6 $27.1 $26.7 $31.6 $0 $5 $10 $15 $20 $25 $30 $35 12/31/11 3/31/12 6/30/12 9/30/12 12/31/12 |
![]() $0 $100 $200 $300 $400 12/31/11 3/31/12 6/30/12 9/30/12 12/31/12 Non-Accrual Lns Paying as Agreed All Other Non-Accrual Lns Non-Accrual Loans Dollars in millions “Paying as Agreed” includes loans < 30 days past due with payments occurring at least quarterly 55% 57% 56% 56% of non-accrual loans were paying as agreed as of December 31, 2012 51% 17 54% |
![]() Dollars in millions Data for quarters ended as of dates shown Positive Trend in Net Charge-Offs % Avg. Loans 18 $51 $51 $52 $33 $23 $24 $23 $12 $13 $11 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% $0 $10 $20 $30 $40 $50 $60 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 12/31/12 Net charge-offs Net charge-offs / average loans |
![]() 19 Strategic Focus |
![]() Strategic Focus Revenue Growth Opportunities Pursue quality loan growth Continue to focus on fee revenue growth Expand mortgage originators geographically Continue to seek opportunities for expansion in insurance Efficiency Opportunities Efficiency ratio of 78% in 2012 – focus on expense reduction in all areas of the bank 20 |
![]() Summary Meaningful increases in profitability levels Consistent core earnings with approximately 40% of total revenue derived from noninterest sources Record mortgage loan production Growth in other noninterest revenue sources including insurance commissions Continued progress in improving asset quality 7 th consecutive quarter of improvement in total NPLs and NPAs Revenue growth opportunities Efficiency and expense control Data as of and for the year ended December 31, 2012 21 |