![]() BancorpSouth, Inc. Financial Information As of September 30, 2013 Exhibit 99.2 |
![]() 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 interest expense reduction related to the redemption of the trust preferred securities, long-term prospects for shareholder value, the results of our operations and our 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 may include, but are not limited to, conditions in the financial markets and economic conditions generally, 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 short-term and long-term impact of changes to banking capital standards on the Company’s regulatory capital and liquidity, the impact of regulations on service charges on the Company’s core deposit accounts, the susceptibility of the Company’s business to local economic or environmental 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, the Company’s ability to adapt its products and services to evolving industry standards and consumer preferences, 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, unfavorable ratings by rating agencies, 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, 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. |
![]() Q3 Highlights At and for the three months ended September 30, 2013 Net income of $24.9 million, or $0.26 per diluted share Generated net loan growth of $94.4 million, or 4.3% annualized Net interest margin increased to 3.45% from 3.36% for the second quarter of 2013 Meaningful progress in reducing non-interest expense Salaries and benefits declined $4.8 million, or 6.1%, on a sequential quarter basis Continued progress in improving credit quality metrics Completed redemption of $125 million of 8.15% Trust Preferred Securities, which is expected to result in annual reduction of interest expense of $9.1 million, or $0.06 per share net of tax Non-operating items Pre-tax charge of $2.9 million to write-off unamortized TRUPS issuance costs Increase in accrual for potential losses associated with ongoing legal matters, $1.8 million of which we consider to be related to matters outside the normal course of business Tax expense benefit of $1.3 million associated with the resolution of an uncertain tax position 3 |
![]() Recent Quarterly Results Dollars in millions, except per share data 4 9/30/13 6/30/13 9/30/12 vs 6/30/13 Net interest revenue 100.2 $ 98.2 $ 103.4 $ 2.1 % (3.0) % Provision for credit losses 0.5 3.0 6.0 (83.3) (91.7) Noninterest revenue 62.5 76.1 70.4 (17.9) (11.2) Noninterest expense 129.4 142.3 133.8 (9.0) (3.3) Income before income taxes 32.9 29.1 34.0 13.0 (3.4) Income tax provision 8.0 8.3 10.2 (3.8) (21.5) Net income 24.9 $ 20.8 $ 23.8 $ 19.8 % 4.3 % Net income per share: diluted 0.26 $ 0.22 $ 0.25 $ 18.2 % 4.0 % Three Months Ended % Change vs 9/30/12 |
![]() Noninterest Revenue Dollars in thousands NM – Not Meaningful 5 9/30/13 6/30/13 9/30/12 vs 6/30/13 Mortgage lending revenue 5,134 17,892 13,549 (71.3) (62.1) Credit card, debit card and merchant fees 8,834 8,324 8,270 6.1 6.8 Deposit service charges 13,679 12,824 14,189 6.7 (3.6) Trust income 3,332 3,192 3,101 4.4 7.4 Security gains, net (5) 3 39 NM NM Insurance commissions 23,800 25,862 23,519 (8.0) 1.2 Other 7,740 8,012 7,753 (3.4) (0.2) Total noninterest revenue 62,514 $ 76,109 $ 70,420 $ (17.9) % (11.2) % % of total revenue 38.4% 43.7% 40.5% Three Months Ended % Change vs 9/30/12 |
![]() Mortgage and Insurance Revenue Dollars in thousands 6 Mortgage Lending Revenue 9/30/13 6/30/13 3/31/13 12/31/12 9/30/12 Origination revenue 2,862 $ 10,471 $ 9,187 $ 15,131 $ 15,326 $ Servicing revenue 4,072 3,908 3,827 3,879 3,610 MSR payoffs/paydowns (1,560) (1,739) (1,705) (2,005) (2,181) MSR valuation adjustment (240) 5,252 1,037 183 (3,206) Total mortgage lending revenue 5,134 $ 17,892 $ 12,346 $ 17,188 $ 13,549 $ Production volume 341,854 $ 434,966 $ 425,882 $ 549,392 $ 607,887 $ Purchase money production 229,042 $ 226,182 $ 161,835 $ 175,805 $ 212,760 $ Margin on total production 0.84% 2.41% 2.16% 2.75% 2.52% Insurance Commission Revenue Property and casualty commissions 18,372 $ 18,762 $ 16,878 $ 14,968 $ 17,704 $ Life and health commissions 4,061 5,093 4,688 4,376 4,651 Risk management income 628 573 650 581 698 Other 739 1,434 4,425 577 466 Total insurance commissions 23,800 $ 25,862 $ 26,641 $ 20,502 $ 23,519 $ Three Months Ended |
![]() Loan Portfolio Dollars in millions Net loans and leases 7 As of 9/30/13 6/30/13 9/30/12 Commercial and industrial 1,504 $ 1,553 $ 1,463 $ (12.5) % 2.8 % Real estate: Consumer mortgages 1,931 1,880 1,889 10.7 2.2 Home equity 490 482 493 6.8 (0.5) Agricultural 235 238 258 (5.6) (9.0) Commercial and industrial-owner occupied 1,422 1,376 1,310 13.4 8.6 Construction, acquisition and development 724 709 824 7.9 (12.2) Commercial 1,795 1,755 1,739 9.2 3.3 Credit Cards 105 103 101 7.2 3.7 Other 567 582 605 (10.4) (6.2) Total 8,773 $ 8,679 $ 8,680 $ 4.3 % 1.1 % vs 9/30/12 % Change vs 6/30/13 Annualized |
![]() Provision for credit losses of $0.5 million declined from $3.0 million for the second quarter of 2013 and $6.0 million for the third quarter of 2012 NPLs decreased $23.6 million, or 14.1%, and NPAs declined $35.2 million, or 13.7% OREO decreased $11.6 million, or 13.1% 51% of non-accrual loans were paying as agreed Near-term delinquencies modestly increased to $28.9 million Substandard classified loans declined $45.8 million, or 11.0% Credit Quality Highlights 8 At and for the three months ended September 30, 2013 “Paying as agreed” includes loans < 30 days past due with payments occurring at least quarterly |
![]() Non-Performing Loans Dollars in millions Net loans and leases 9 As of 9/30/13 6/30/13 9/30/12 Commercial and industrial 6.6 $ 6.5 $ 9.1 $ 1.7 % (27.3) % Real estate: Consumer mortgages 34.2 37.6 39.6 (9.0) (13.8) Home equity 3.3 3.9 3.5 (14.9) (5.3) Agricultural 4.5 5.4 7.6 (16.9) (40.9) Commercial and industrial-owner occupied 23.1 21.1 33.6 9.4 (31.3) Construction, acquisition and development 32.7 46.0 97.4 (29.0) (66.5) Commercial 34.8 42.6 48.0 (18.3) (27.5) Credit Cards 2.0 2.3 2.7 (12.4) (24.5) Other 3.1 2.5 5.7 25.4 (45.4) Total 144.3 $ 167.9 $ 247.3 $ (14.1) % (41.6) % NPL's to net loans and leases 1.65% 1.94% 2.85% % Change vs 6/30/13 vs 9/30/12 |
![]() NPA Improvement 10 Total NPAs Have Declined Over 50% in the Last 18 Months Dollars in millions NPLs consist of nonaccrual loans, loans 90+ days past due and restructured loans NPAs consist of NPLs and other real estate owned |
![]() Dollars in millions Net charge-offs for the quarters ended as of the dates shown Net Charge-offs % Avg. Loans 11 $33 $23 $24 $23 $12 $13 $11 $6 $5 $8 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% $0 $5 $10 $15 $20 $25 $30 $35 $40 6/30/11 9/30/11 12/31/11 3/31/12 6/30/12 9/30/12 12/31/12 3/31/13 6/30/13 9/30/13 Net charge-offs Net charge-offs / average loans |