BancorpSouth Bank

Sizable contribution to revenues from noninterest income Large base of low-cost and non-interest-bearing deposits Improved loan performance in recent years High percentage of construction and development loans Meaningful exposure to businesses affected by the COVID-19 pandemic Substantial returns of capital to equity shareholders in recent quarters The stable outlook on BancorpSouth Bank reflects S&P Global Ratings' expectation that the bank will maintain adequate capital levels and will manage earnings pressure caused by low interest rates and higher provision expenses. Though we expect the bank's nonperforming assets (NPAs) and net-charge offs (NCOs) to increase this year and next, we also expect that careful loan underwriting, lending diversification, and the numerous government support programs, will keep losses manageable. We could lower the

...Substantial returns of capital to equity shareholders in recent quarters Outlook: Stable The stable outlook on BancorpSouth Bank reflects S&P Global Ratings' expectation that the bank will maintain adequate capital levels and will manage earnings pressure caused by low interest rates and higher provision expenses. Though we expect the bank's nonperforming assets (NPAs) and net-charge offs (NCOs) to increase this year and next, we also expect that careful loan underwriting, lending diversification, and the numerous government support programs, will keep losses manageable. We could lower the ratings over the next two years if loan performance deteriorates meaningfully, or if the bank adopts what we view as less conservative business or financial policies. We could raise the ratings if we believe the bank would increase its S&P Global Ratings risk-adjusted capital ratio sustainably above 10%....

Full Report