BancorpSouth Bank

Robust loan credit quality over the last several years Regulatory and risk-adjusted capital ratios are strong Sizeable contribution to revenues from noninterest income High lending exposure to construction and development lending Increased returns of capital to equity shareholders Acquisitive business strategy, with three mergers closed this year S&P Global Ratings' stable outlook on BancorpSouth Bank reflects our view that the rating is unlikely to change over the next two years. We expect that the company's capital ratios will remain relatively stable and that asset quality will not deteriorate substantially during this period. Specifically, we expect that over the next two years, the bank's RAC ratio will remain within the 10%-15% range, which we typically deem as "strong." We also expect

...S&P Global Ratings' stable outlook on BancorpSouth Bank reflects our view that the rating is unlikely to change over the next two years. We expect that the company's capital ratios will remain relatively stable and that asset quality will not deteriorate substantially during this period. Specifically, we expect that over the next two years, the bank's RAC ratio will remain within the 10%-15% range, which we typically deem as "strong." We also expect the bank to limit the growth of its construction portfolio, and successfully integrate the three closed mergers. We could revise the outlook to negative or lower the ratings in the next two years if the bank is subject to further regulatory actions, if loan performance deteriorates significantly, if there is outsize growth in its construction portfolio, if we project that the RAC ratio will fall and stay below 10%, or if the company has difficulties integrating its recent acquisitions. We do not expect to raise the ratings in the next two years...

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