TUPELO, Miss., May 10, 2011 /PRNewswire/ -- BancorpSouth, Inc.
(NYSE: BXS) today announced a branch optimization plan, which
includes the planned closing or consolidation, upon final
regulatory approval, of 23 bank branches located in six states of
BancorpSouth's eight-state footprint. The branches are
located in Alabama, Arkansas, Mississippi, Missouri, Tennessee and Texas.
The planned closings and consolidations are a result of a
comprehensive internal study that, among a range of activities,
measured branch performance by comparing financial and
non-financial indicators to growth opportunities. The volume
of business conducted at these locations has been limited, and
there has not been sustained growth sufficient to support the
normal and routine expenses required to continue operating the
branches designated for closure or consolidation. Other
considerations in the company's decision to close the branches
included the Bank's ability to continue serving clients' financial
needs at nearby BancorpSouth locations.
Management believes this initiative is an important first step
to streamline BancorpSouth's branch banking operations, and to
provide enhanced efficiency and production capabilities, with
minimal impact to customer and community service. Once fully
implemented, management expects annual expense savings of
approximately $4.4 million.
These savings will begin to be realized during the fourth
quarter of 2011.
BancorpSouth Chairman and CEO, Aubrey
Patterson said, "In the last five years, our bank has opened
39 new full-service branches. We have also gained branch
banking locations through years of regional merger and acquisition
activity. This growth, along with ever-changing market
dynamics, created the need to conduct a comprehensive evaluation of
BancorpSouth's branch delivery system across our eight-state
footprint. The resulting branch consolidation and closure
plan will help ensure that we are utilizing an efficient and
productive branch delivery platform, without detracting from the
service and access we provide our clients and communities."
"While 23 branch locations are designated for consolidation or
closure, our valued associates will continue to be available to
serve their clients' banking needs through other nearby
BancorpSouth locations," added Patterson.
BancorpSouth plans to provide affected customers with details of
the closings, along with information regarding other BancorpSouth
offices conveniently located to serve them. The closings will take
place on a schedule beginning in August.
BancorpSouth, Inc. is a financial holding company headquartered
in Tupelo, Mississippi, with
approximately $13.5 billion in
assets. BancorpSouth Bank, a wholly-owned subsidiary of
BancorpSouth, Inc., operates commercial banking, mortgage,
insurance, trust and broker/dealer locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas. BancorpSouth Bank
also operates an insurance location in Illinois. BancorpSouth's common stock is
traded on the New York Stock Exchange under the symbol BXS.
FORWARD LOOKING STATEMENT
Certain statements contained in this news release 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 their reference to a future period or periods or by the use of
forward-looking terminology such as "anticipate," "believe,"
"expect," "will," "would," "could," "plan" or "intend." These
forward-looking statements include, without limitation, statements
relating to the closing or consolidation of branches, the timing of
such closings or consolidations, the savings related to such
closures or consolidations, the impact of such closures or
consolidations and the impact on employees at such closed or
consolidated branches.
We caution you not to place undue reliance on the
forward-looking statements contained in this news release in that
actual results could differ materially from those indicated in such
forward-looking statements because of a variety of factors.
These factors may include, but are not limited to, conditions
in the financial markets and economic conditions generally, the
soundness of other financial institutions, the availability of
capital on favorable terms if and when needed, liquidity risk, the
credit risk associated with real estate construction, acquisition
and development loans, estimates of costs and values associated
with real estate construction, acquisition and development loans in
the Company's loan portfolio, the adequacy of the Company's
allowance for credit losses to cover actual credit losses,
governmental regulation and supervision of the Company's
operations, the susceptibility of our business to local economic
conditions, the impact of recent legislation and regulations on
service charges for core deposit accounts, 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, the impact of hurricanes, tornados,
flooding or other adverse weather events, risks in connection with
completed or potential acquisitions, dilution caused by the
Company's issuance of any additional shares of its common stock to
acquire other banks, bank holding companies, financial holding
companies and insurance agencies, restrictions on the Company's
ability to declare and pay dividends, the Company's growth
strategy, diversification in the types of financial services the
Company offers, competition with other financial services
companies, interruptions or breaches in security of the Company's
information systems, the failure of certain third-party vendors to
perform, the Company's ability to improve its internal controls
adequately, any requirement that the Company write down goodwill or
other intangible assets, other factors generally understood to
affect the financial results of financial services companies, and
other factors described from time to time in BancorpSouth's filings
with the Securities and Exchange Commission. We undertake no
obligation to update these forward-looking statements to reflect
events or circumstances that occur after the date on which such
statements were made.
SOURCE BancorpSouth, Inc.