BANKING WITH BANCORPSOUTH

6/22/12

Banking with BancorpSouth

Prepared for:
Ms. Joyce Stroud
Business Communica-on
Management 3380


Prepared by:
KenDrell D. Collins
University of Arkansas at Li1le Rock

Banking with BancorpSouth

University of Arkansas at Little Rock

College of Business, 2801 S. University Avenue, Li;le Rock, AR 72204-0990

Phone: (555) 234-2343, Fax: (555) 166-1282, Email: kdcollins@ualr.edu

June 22,2012

Ms. Joyce Stroud
University of Arkansas at Li1le Rock
2801 S. University Avenue
Li#le Rock, AR 72204

As you requested, I have completed research on an Arkansas corpora+on. I selected BancorpSouth as
my research topic. Focus is placed on the companys primary subsidiary, BancorpSouth Bank. This
report provides background informa4on on the bank and the services that it oers.
Upon review of the banks quality, it appears rela!vely safe and reliable. The Federal Deposit Insurance
Organiza'on backs BancorpSouth. The bank has opera.ons in nine states across the southern region of
the United States. It has a rich history that traces back to humble beginnings in the quiet town of
Verona, Mississippi. The company, now worth nearly $13.3 billion in assets, is listed as BXS on the New
York Stock Exchange.
BancorpSouth oers a plethora of services for both individuals and businesses. Accounts are available
for students and re,rees. The bank is also merited as being one of the top providers of loans to small
businesses.
Thank you for allowing the class the freedom to select a corpora'on of our choice. This research was
an opportunity to learn more about the bank to which I lend money.
Sincerely,

KenDrell Collins
Business Communica-on Student

Page 1

Banking with BancorpSouth

TABLE OF CONTENTS

INTRODUCTION

OBJECTIVE OF REPORT

QUALITY

HISTORY

STOCK

FIGURE 1

INDIVIDUAL BANKING

GENERAL SERVICES

CONSUMER LOANS

COMMERCIAL BANKING

GENERAL SERVICES

BUSINESS LOANS

CONCLUSION

Page 2

Banking with BancorpSouth

Banking with BancorpSouth

INTRODUCTION
Objec&ve of the Report

BancorpSouth, Incorporated is classied as a nancial holding company. BancorpSouth Bank is the

companys primary bank subsidiary. The company also oers a separate insurance service. Thousands
of individuals and businesses across the southern region choose to bank with BancorpSouth. It is vital
that those currently banking with BancorpSouth and prospec+ve investors acquire a general
understanding of the bank. This report presents an informa/ve descrip/on of the banks quality,
history, stock, and services.

QUALITY

The Federal Deposit Insurance Corpora5on (FDIC) insures BancorpSouth. Each depositor who places his
or her money in the bank is guaranteed up to $250,000 in the event of liquida/on. The insurance
provided by the FDIC makes banking with BancorpSouth a secure op-on. Addi&onally, BancorpSouth
employed 4,222 (full-!me equivalent) workers as of December 31, 2011. Bancorp prides itself on being
accessible to its customers. In fact, the banks mo/o is Right Where You Are. The opening sentence
of the banks mission statement is quoted below:

To be the leading nancial services company in our markets, close to the

customer and focused on the communi,es we serve.
HISTORY
BancorpSouth Bank currently spans across nine southern states: Alabama, Arkansas, Florida, Illinois,
Louisiana, Mississippi, Missouri, Tennessee and Texas. The corporate headquarters is in Tupelo,
Mississippi. Nearly 290 banks and mortgages sites are sca/ered across these states. However,
BancorpSouth was not always the mul.-billion dollar corpora,on that it is today. It actually began as
three separate banks in three dierent loca2ons. The following is a list of the ci2es where those banks
were located: Tupelo, Mississippi; Jackson, Tennessee; and Ha8esburg, Mississippi.

In 1876, Raymond, Trice and Company began what would later develop into BancorpSouth. The rst
loca%on was in the corner of a store in Verona, Mississippi. Verona is the oldest town in Lee County,
Mississippi. Almost ten years a)er the bank moved to a loca3on close to Tupelo, Mississippi, the name
Page 3

Banking with BancorpSouth

was changed to Bank of Lee County and eventually Bank of Tupelo. Also during this .me Ray, Trice and
Company met with several entrepreneurs in Jackson, Tennessee. Jackson was a small town with nearly
8,000 inhabitants during this period. These businesspeople formed Second Na)onal Bank. The name
was revised several !mes before it was ,tled Volunteer Bank. Finally, the third bank in Ha-esburg was
rst charted around 1896. It grew into the First Na6onal Bank of Mississippi.

A"er each bank underwent its respec3ve evolu3on, the three banks combined. The united banks
ourished mainly due to their shared goal of developing economically and crea(ng (es in their
corresponding communi'es. During the year 2000, BancorpSouth expanded into Arkansas, Louisiana,
and Texas. According to BancorpSouth, the merge served as the catalyst that brought it among the 100
best banks in the na(on. Ramsey, King, Farrell and Lensing of Li3le Rock, a large independent agency,
partnered with the bank in 2003. Arkansas was par$cularly important in the ascent, thanks to the
companys acquisi'on of the American State Bank of Jonesboro in 2005. The purchase resulted in the
addi$on of 11 new branches in Northeast Arkansas. Eventually, BancorpSouth developed into the 13
billion dollar-asset corpora*on it is known as today.

STOCK
BancorpSouth, Incorporated is listed on the New York Stock Exchange (NYSE). The lis(ng date for the
company is May 15, 1997. The trading symbol for the corpora5on is BXS. BXSs issue type is common
stock. According to NASDAQ, the current market value of the corpora1ons stock is $1,299,439,360.
Figure 1 below shows the progression of BXS stock value over the course of the last decade. The stock
was deeply aected by the 2009 recession. Nevertheless, the stock value is now steadily increasing.
Fig. 1 - BXS stock from June 2002 to June 2012. Chart generated on MSN money:

Source: http://investing.money.msn.com/investments/equity-charts?symbol=us:BXS

Page 4

Banking with BancorpSouth

INDIVIDUAL BANKING

General Services

BancorpSouth oers an array of personal banking op/ons. An individual can opt for a checking account
and/or savings account. Cer$cates of deposit (CDs), Individual Re$rement Accounts (IRAs), Credit
Cards, and Debit Cards are also available. Keeping with technological advancements, BancorpSouth
allows its users to access and manage accounts via Internet Banking and Mobile Banking. It now oers
Iden%ca%on Safeguard to prevent iden%ty the6.

Checking is an op.on allowed by virtually all banks. BancorpSouth permits an individual to customize
his or her account with My Way Checking. This single checking account feature can manage ve debit
transac'ons at a $me. The account holder is required to keep a balance of $100 in the account. For
younger account holders, the bank oers Student Checking. The account does not require a minimum
balance. It is available for students who are under 24 years of age. Individuals who are 60 years of age
or older can open a Heritage Checking account which accumulates interest.

There are mul*ple ways to save ones money with BancorpSouth. My Goal Savings, similar to My Way
Checking, allow individuals to save towards a specic goal. The minimum daily balance requirement is
$50. My Goal Savings permits up to six debit transac'ons within the course of one month. Bancorp
Souths premium account for savings, Select Savings, accumulates a higher interest rate. It requires a
minimum balance of $1,000. Cer$cates of Deposit are long-term op(ons for commi%ed investors
seeking a high rate of interest. Also, Individual re#rement accounts are available for clients under
seventy.

Consumer Loans

BancorpSouth lends to residen-al consumers. The bank oers xed and adjustable rate residen*al
mortgage loans, construc/on loans, and second mortgage loans. Home equity line of credit is another
loan service available to customers. Fi#een-year mortgage loans are sold to the secondary market.
This procedure gives BancorpSouth the ability to manage its interest risks. The bank simply func2ons
as servicing mediator once a loan is sold.

COMMERCIAL BANKING

General Services
As with personal banking, Bancorp South provides various banking op9ons for businesses. Checking
accounts, saving accounts, and credits cards are available for commercial banking as well. In addi6on
to these op(ons, the bank oers services such as Payroll and Human Resource Management, Treasury
Management, and Merchant Services to its commercial clients. Equipment nancing and leasing is
oered too.

Page 5

Banking with BancorpSouth

Payroll and Human Resource Management is a processing system that enables companies to track
payroll on a single database. This tool also calculates annual pay and bonuses.
The Treasury Management sector of BancorpSouth makes managing funds easier for businesses. This
op#on allows for direct deposit, direct billing, and tax payments.
According to BancorpSouth, its business model for Equipment Financing is based on strength,
experience and know-how. The Equipment and nancing department oers nancing on the following
types of commercial equipment:

Construc)on
Marine
Petroleum
Transporta)on

Business Loans
A May 22, 2012 ar#cle of the Hungton Post states that BancorpSouth ranked "h for small business
loans among banks that hold over $10 billion in deposits. The bank oers agricultural loans and term
loans. Other loaning services include line of credit, equipment nancing, and receivable nancing.
BancorpSouth provides loans based on a businesss ability to meet its expenses and maintain its debt
responsibili*es.

CONCLUSION
BancorpSouth, Incorporated is a highly compe77ve company. The community-oriented culture of
Bancorp south makes it par0cularly unique. Instead of aiming to become a big bank, it remains a
southern depository as the name suggests. Despite humble beginnings, BancorpSouth now maintains a
market value of over $1 billion. The corpora*on provides services for individual of all ages. Likewise, it
oers ameni&es for business both small and large.

Page 6

Banking with BancorpSouth

Bibliography
Account Informa-on Sheet. BancorpSouth Bank. Retrieved June 17, 2012, from
h"p://www.bancorpsouthonline.com/home/Files/sta7c/documents/BXS_AIS_Oct2011.pdf
BancorpSouth Bank. BancorpSouth Bank. Retrieved June 17, 2012, from
h"p://www.bancorpsouthonline.com/home/contact/media/bancorpsouth
BancorpSouth, Inc. Form: 10-K. Retrieved June 17, 2012, from
h"p://seclings.nasdaq.com/edgar_conv_html%2f2012%2f02%2f27%2f0000701853-12-
000003.html#FIS_BUSINESS
BANCORPSOUTH INC (BXS: New York): Stock Quote & Company Prole - BusinessWeek. Inves&ng &
Stock Research by Company and Industry - BusinessWeek. Retrieved June 22, 2012, from
h"p://inves+ng.businessweek.com/research/stocks/snapshot/snapshot.asp?1cker=BXS:US
Best Banks For Small-Business Loans. Breaking News and Opinion on The Hungton Post. Retrieved
June 19, 2012, from h"p://www.hungtonpost.com/2012/05/22/best-banks-small-business-
loans_n_1522535.html
Business Banking. BancorpSouth Online. Retrieved June 17, 2012, from
h"ps://www.bancorpsouthonline.com/home/business
Business Banking. Treasury Management Overview. Retrieved June 17, 2012 from
h"p://www.bancorpsouthonline.com/home/business/treasury/overview
BancorpSouth Insurance services Inc. Payroll/HR Management. Retrieved on June 17, 2012 from
h"p://www.bancorpsouthinsurance.com/employersolu6ons/payrollmanagement
BXS Equipment Finance. BXS Equipment Finance. Retrieved June 22, 2012, from
h"p://www.bxsequipmen1inance.com/
City Of Verona, Mississippi. City Of Verona, Mississippi. Retrieved June 19, 2012, from
h"p://www.cityofverona.org/
NYSE, New York Stock Exchange > Lis7ngs > Lis7ngs Directory BancorpSouth Inc. NYSE, New York Stock
Exchange. Retrieved June 19, 2012, from h"p://www.nyse.com/listed/bxs.html
Personal Banking. Personal Checking. Retrieved June 17, 2012, from
h"p://www.bancorpsouthonline.com/home/personal/savings
Personal Banking. Personal Savings. Retrieve on June 17, 2012 from
h"p://www.bancorpsouthonline.com/home/personal/savings

Page 7