BXS - BancorpSouth Announces Second Quarter 2020 Financial Results

TUPELO, Miss., July 20, 2020 /PRNewswire/ -- BancorpSouth Bank (NYSE: BXS) (the "Company") today announced financial results for the quarter ended June 30, 2020.

Highlights for the second quarter of 2020 included:

• Achieved quarterly net income available to common shareholders of $58.8 million, or $0.57 per diluted common share, and net operating income available to common shareholders – excluding MSR – of $60.9 million, or $0.59 per diluted common share.
   
• Recorded provision for credit losses of $20.0 million primarily as a result of the continued deterioration in certain economic factors included in the Company's allowance for credit losses methodology resulting from the coronavirus ("COVID-19") pandemic.
   
• Generated $102.1 million in pre-tax pre-provision net revenue, or 1.81 percent of average assets on an annualized basis, which represents an increase from 1.73 percent for the second quarter of 2019 and an increase from 1.74 percent for the first quarter of 2020.
   
• Originated and funded approximately 14,500 loans totaling approximately $1.2 billion under the U.S. Small Business Association ("SBA") Paycheck Protection Program (the "PPP").
     
• Generated total deposit growth of $2.3 billion for the quarter; excluding the estimated impact of additional customer liquidity associated with the PPP loans and government stimulus payments,  deposit growth totaled approximately $1.0 billion, or 24 percent on an annualized basis.
   
• Record mortgage production volume of $989.0 million contributed to mortgage production and servicing revenue of $31.9 million; earnings were negatively impacted by a pre-tax mortgage servicing rights ("MSR") valuation adjustment of $2.4 million.
   
• Maintained strong regulatory capital metrics; estimated total risk-based capital of 13.79 percent at June 30, 2020 compared to 11.28 percent at June 30, 2019.

"We are very pleased with our second quarter financial results, particularly in light of the economic and industry headwinds associated with the continuation of the COVID-19 pandemic," remarked Dan Rollins, Chairman and Chief Executive Officer.  "We had hoped to be taking steps toward a return to normal operations by now but COVID-19 case counts have continued to rise across our footprint.  Protecting the health of both our teammates and customers has been, and will continue to be, our top priority.  While we have not yet seen increases in charge-offs or significant deterioration in other credit quality metrics, we did record a provision for credit losses of $20.0 million as a result of the deterioration of certain economic data points within our reserve methodology compared to March 31, 2020.  Outside of the additional provisioning, our Company continues to perform at a very high level.   We generated $102.1 million in pre-tax pre-provision net revenue for the quarter, or 1.81 percent of average assets on an annualized basis." 

"As we look more specifically at our second quarter performance, our efforts were largely focused on assisting our customers with the SBA's Paycheck Protection Program.   A tremendous effort was required of all of our teammates to originate and fund approximately 14,500 loans totaling $1.2 billion in a very short period of time.  The additional customer liquidity created as a result of the PPP and other government stimulus programs contributed to tremendous deposit growth this quarter.  Excluding the estimated impact of these programs, deposit growth was very strong totaling approximately $1.0 billion, or 24 percent on an annualized basis. Finally, our mortgage operation had a record quarter.  Production volume totaled almost $1 billion, which contributed to total production and servicing revenue of $31.9 million.  While elevated refinance activity has certainly benefitted our mortgage production, new purchase money volume continues to hold strong."

Earnings Summary

The Company reported net income available to common shareholders of $58.8 million, or $0.57 per diluted common share, for the second quarter of 2020, compared with net income available to common shareholders of $53.1 million, or $0.53 per diluted common share, for the second quarter of 2019 and net income available to common shareholders of $21.9 million, or $0.21 per diluted common share, for the first quarter of 2020.  The Company reported net operating income available to common shareholders – excluding MSR – of $60.9 million, or $0.59 per diluted common share, for the second quarter of 2020, compared with $62.0 million, or $0.61 per diluted common share, for the second quarter of 2019 and $34.4 million, or $0.33 per diluted common share, for the first quarter of 2020. 

The Company reported pre-tax pre-provision net revenue of $102.1 million, or 1.81 percent of average assets on an annualized basis, compared to $80.6 million, or 1.73 percent of average assets on an annualized basis, for the second quarter of 2019 and $91.7 million, or 1.74 percent of average assets, for the first quarter of 2020.

Net Interest Revenue

Net interest revenue was $170.6 million for the second quarter of 2020, an increase of 6.6 percent from $160.0 million for the second quarter of 2019 and an increase of 1.8 percent from $167.5 million for the first quarter of 2020.  The fully taxable equivalent net interest margin was 3.35 percent for the second quarter of 2020, compared with 3.87 percent for the second quarter of 2019 and 3.54 percent for the first quarter of 2020.  Yields on net loans and leases were 4.59 percent for the second quarter of 2020, compared with 5.12 percent for the second quarter of 2019 and 5.00 percent for the first quarter of 2020, while yields on total interest earning assets were 3.87 percent for the second quarter of 2020, compared with 4.61 percent for the second quarter of 2019 and 4.27 percent for the first quarter of 2020.  The net interest margin, excluding accretable yield, was 3.30 percent for the second quarter of 2020, compared with 3.79 percent for the second quarter of 2019 and 3.48 percent for the first quarter of 2020, while yields on net loans and leases, excluding accretable yield, were 4.53 percent for the second quarter of 2020, compared with 5.02 percent for the second quarter of 2019 and 4.93 percent for the first quarter of 2020. 

The $1.2 billion in PPP loans that closed during the quarter had an adverse impact of approximately 14 basis points on the yield on net loans and leases, excluding accretable yield, and 5 basis points on the net interest margin, excluding accretable yield, for the second quarter of 2020.  In addition, the earning asset mix shift resulting from the deposit growth above and beyond the PPP loan growth was responsible for approximately 10 basis points of margin decline compared to the first quarter.  The average cost of deposits was 0.50 percent for the second quarter of 2020, compared with 0.68 percent for the second quarter of 2019 and 0.67 percent for the first quarter of 2020.

Balance Sheet Activity

Loans and leases, net of unearned income, increased $1.2 billion during the second quarter of 2020.  Deposits increased $2.3 billion during the second quarter of 2020.  There were no acquisitions during the second quarter of 2020.  The loan growth for the quarter was primarily attributable to the closing of $1.2 billion in PPP loans.  Otherwise, loans and leases were essentially flat on an organic basis for the quarter.  The additional customer liquidity created by the PPP and other government stimulus programs, also aided in the deposit growth total for the quarter.  Excluding the impact of these programs, organic deposit growth for the quarter totaled approximately $1.0 billion, or 24.0 percent on an annualized basis. The elevated deposit growth resulted in an increase of approximately $800 million in additional securities and lower yielding assets for the quarter.

Provision for Credit Losses and Allowance for Credit Losses

Earnings for the second quarter of 2020 reflect a provision for credit losses of $20.0 million, compared with a provision of $0.5 million for the second quarter of 2019 and a provision of $46.0 million for the first quarter of 2020.  Net charge-offs for the second quarter of 2020 were $1.2 million, compared with net charge-offs of $1.3 million for the second quarter of 2019 and net charge-offs of $13.7 million for the first quarter of 2020.  Net charge-offs for the second quarter of 2020 consisted primarily of acquired loans.  Of the $13.7 million in net charge-offs for the first quarter of 2020, $12.7 million were acquired loans that were previously recorded as purchased credit impaired prior to the adoption of the Current Expected Credit Losses Methodology ("CECL") and were subsequently classified as purchased credit deteriorated loans.  The allowance for credit losses was $237.0 million, or 1.54 percent of net loans and leases, at June 30, 2020, compared with $115.7 million, or 0.85 percent of net loans and leases, at June 30, 2019, and $218.2 million, or 1.53 percent of net loans and leases, at March 31, 2020.   The allowance for credit losses coverage, excluding the impact of PPP loans, was 1.67 percent at June 30, 2020.   

The Company implemented CECL effective January 1, 2020.  The increase in the allowance for credit losses resulting from this implementation was $62.6 million.  Of this increase, $22.6 million was a result of the reclassification of non-accretable difference on previously purchased credit impaired loans that are now considered purchased credit deteriorated loans, while $40.0 million was the result primarily of the requirement of estimating credits losses over the life of the loan portfolio.  The adoption of this standard impacted the comparability of credit quality and coverage metrics to all periods preceding January 1, 2020.

Total non-performing assets were $155.4 million, or 1.01 percent of net loans and leases, at June 30, 2020, compared with $96.0 million, or 0.70 percent of net loans and leases, at June 30, 2019, and $137.8 million, or 0.97 percent of net loans and leases, at March 31, 2020.  Other real estate owned was $7.2 million at June 30, 2020, compared with $6.2 million at June 30, 2019 and $9.2 million at March 31, 2020.

Noninterest Revenue

Noninterest revenue was $91.3 million for the second quarter of 2020, compared with $66.3 million for the second quarter of 2019 and $76.5 million for the first quarter of 2020.  These results include a negative MSR valuation adjustment of $2.4 million for the second quarter of 2020, compared with a negative MSR valuation adjustment of $8.8 million for the second quarter of 2019 and a negative MSR valuation adjustment of $11.1 million for the first quarter of 2020.  Valuation adjustments in the MSR asset are driven primarily by fluctuations in interest rates period over period.   

Mortgage production and servicing revenue was $31.9 million for the second quarter of 2020, compared with $9.2 million for the second quarter of 2019 and $20.6 million for the first quarter of 2020.  Mortgage origination volume for the second quarter of 2020 was $989.0 million, compared with $495.5 million for the second quarter of 2019 and $477.1 million for the first quarter of 2020.  Home purchase money volume was $522.6 million for the first quarter of 2020, compared with $285.3 million for the second quarter of 2019 and $397.9 million for the first quarter of 2020.  Of the total mortgage origination volume for the second quarter of 2020, $251.7 million was portfolio loans, compared with $153.7 million for the second quarter of 2019 and $85.6 million for the first quarter of 2020.

Credit card, debit card, and merchant fee revenue was $9.1 million for the second quarter of 2020, compared with $10.2 million for the second quarter of 2019 and $9.2 million for the first quarter of 2020.  Deposit service charge revenue, was $7.6 million for the second quarter of 2020, compared with $11.1 million for the second quarter of 2019 and $11.7 million for the first quarter of 2020.  Credit card, debit card, and merchant fee revenue as well as deposit service charge revenue for the second quarter of 2020 were adversely impacted by the COVID-19 pandemic.  Wealth management revenue was $6.4 million for the second quarter of 2020, compared with $5.9 million for the second quarter of 2019 and $6.6 million for the first quarter of 2020.  Insurance commission revenue was $33.1 million for the second quarter of 2020, compared with $34.0 million for the second quarter of 2019 and $29.6 million for the first quarter of 2020.  Other noninterest revenue was $5.4 million for the second quarter of 2020, compared with $4.8 million for the second quarter of 2019 and $10.1 million for the first quarter of 2020.  Other noninterest revenue for the first quarter of 2020 included a $4.2 million gain associated with the sale of a book of business within the Company's insurance agency.

Noninterest Expense

Noninterest expense for the second quarter of 2020 was $162.5 million, compared with $157.7 million for the second quarter of 2019 and $168.0 million for the first quarter of 2020.  Salaries and employee benefits expense was $108.1 million for the second quarter of 2020, compared with $101.0 million for the second quarter of 2019 and $108.3 million for the first quarter of 2020.  Occupancy expense was $12.9 million for the second quarter of 2020, compared with $12.0 million for the second quarter of 2019 and $12.7 million for the first quarter of 2020.  Other noninterest expense was $34.8 million for the second quarter of 2020, compared with $38.1 million for the second quarter of 2019 and $40.8 million for the first quarter of 2020.  Additionally, merger-related expense for the second quarter of 2020 was $0.5 million, compared with merger-related expense of $3.1 million for the second quarter of 2019 and $4.5 million for the first quarter of 2020. 

Capital Management

The Company's ratio of shareholders' equity to assets was 11.76 percent at June 30, 2020, compared with 12.29 percent at June 30, 2019 and 12.75 percent at March 31, 2020.  The ratio of tangible common shareholders' equity to tangible assets was 7.44 percent at June 30, 2020, compared with 8.42 percent at June 30, 2019 and 7.99 percent at March 31, 2020.  The $1.2 billion in PPP loans had an adverse impact of approximately 44 basis points on tangible common shareholders' equity to tangible assets at June 30, 2020.

In November 2019, the Company completed an underwritten public offering of $300.0 million aggregate principal amount of its 4.125 percent Fixed-to-Floating Rate Subordinated Notes due November 20, 2029 (the "Notes") and an underwritten public offering of $172.5 million  of its 5.50 percent Series A Non-Cumulative Perpetual Preferred Stock, par value $0.01 per share (the "Series A Preferred Stock"). For additional details regarding the terms of the Notes, including those related to interest rates and interest payment dates, redemption, seniority, and maturity, and the terms of the Series A Preferred Stock, including those related to dividends and dividend payment dates, redemption, seniority, and maturity, please refer to the offering circulars related to each offering that the Company filed with the Federal Deposit Insurance Corporation ("FDIC") on November 15, 2019.

During the second quarter of 2020, the Company did not repurchase any shares of its common stock pursuant to its share repurchase program.  As of June 30, 2020, the Company had 4,700,000 remaining shares available for repurchase under its current share repurchase authorization which expires on December 31, 2020.

Estimated regulatory capital ratios at June 30, 2020 were calculated in accordance with the Basel III capital framework as well as the interagency interim final rule published on March 31, 2020 entitled "Revised Transition of the Current Expected Credit Losses Methodology for Allowances".  The Company is a "well capitalized" bank, as defined by federal regulations, at June 30, 2020, with Tier 1 risk-based capital of 11.22 percent and total risk-based capital of 13.79 percent, compared with required minimum levels of 8 percent and 10 percent, respectively, in order to qualify for "well capitalized" classification. 

Summary

Rollins concluded, "As we move into the second half of the year, our management team will continue to prioritize the health and wellbeing of our teammates and customers while at the same time ensuring the resources are available to meet each and every customer need.  Our relationship managers and credit administrators are working diligently to monitor the impact of the pandemic on our customers and on our loan portfolio.  While we expect there will be challenges along the way, we remain optimistic about the strength and position of our Company and our ability to weather the resulting credit cycle.  Despite elevated provision levels, our capital metrics have continued to improve, which better positions our Company for any potential stressed scenarios."

TRANSACTIONS

Texas First Bancshares, Inc.

On January 1, 2020, the Company completed the merger with Texas First Bancshares, Inc., the parent company of Texas First State Bank, (collectively referred to as "Texas First"), pursuant to which Texas First was merged with and into the Company.  Texas First operated 6 full-service banking offices in the Waco, Texas and Killeen-Temple, Texas metropolitan statistical areas ("MSA").  As of January 1, 2020, Texas First collectively reported total assets of $396.9 million, total loans of $185.7 million and total deposits of $369.3 million.  Under the terms of the definitive merger agreement, the Company issued approximately 1,040,000 shares of the Company's common stock plus $13.0 million in cash for all outstanding shares of Texas First.  For more information regarding this transaction, see our Current Report on Form 8-K that was filed with the FDIC on January 2, 2020.  The purchase accounting for this transaction is considered provisional as management continues to identify and assess information regarding the nature of the acquired assets and liabilities and reviews the associated valuation assumptions and methodologies.

Van Alstyne Financial Corporation & Summit Financial Enterprises, Inc.

On September 1, 2019, the Company completed the mergers with Van Alstyne Financial Corporation and its wholly owned subsidiary, Texas Star Bank (collectively referred to as "Texas Star"), pursuant to which Texas Star was merged with and into the Company, and with Summit Financial Enterprises, Inc. and its wholly owned subsidiary, Summit Bank (collectively referred to as "Summit"), pursuant to which Summit was merged with and into the Company.  Texas Star operated 7 full-service banking offices in Collin and Grayson counties in Texas, and one loan production office in Durant, Oklahoma, while Summit operated 4 offices located in Panama City, Panama City Beach, Fort Walton Beach, and Pensacola, Florida.  As of September 1, 2019, Texas Star and Summit collectively reported total assets of $805.2 million, total loans of $610.2 million and total deposits of $794.2 million.  Under the terms of the definitive merger agreements, the Company issued approximately 4,600,000 shares of the Company's common stock plus $48.2 million in cash for all outstanding shares of both institutions.  For more information regarding these transactions, see our Current Report on Form 8-K that was filed with the FDIC on September 3, 2019.  The purchase accounting for these transactions is considered provisional as management continues to identify and assess information regarding the nature of the acquired assets and liabilities and reviews the associated valuation assumptions and methodologies.

Non-GAAP Measures and Ratios

This news release presents certain financial measures and ratios that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP").  A discussion regarding these non-GAAP measures and ratios, including reconciliations of non-GAAP measures to the most directly comparable GAAP measures and definitions for non-GAAP ratios, appears under the caption "Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions"  beginning on page 24 of this news release.

Statement Regarding Impact of COVID-19 Pandemic

The Company prioritizes the health and safety of its teammates and customers, and it will continue to do so throughout the duration of the pandemic.  At the same time, the Company remains focused on improving shareholder value, managing credit exposure, challenging expenses, enhancing the customer experience and supporting the communities it serves. Lastly, as an SBA Preferred Lender, the Company is actively participating in the SBA's PPP for the betterment of its customers and the communities that it serves.

In the presentation that accompanies this news release and in its earnings conference call, the Company has sought and will seek to describe the historical and future impact of the COVID-19 pandemic on the Company's assets, business, cash flows, financial condition, liquidity, prospects and results of operations, including the information and discussions regarding the increases in its provision and allowance for credit losses and the discussion regarding negative pressure to its net interest revenue and net interest margin.  Although the Company believes that the statements that pertain to future events, results and trends and their impact on the Company's business are reasonable at the present time, those statements are not historical facts and are based upon current assumptions, expectations, estimates and projections, many of which, by their nature, are beyond the Company's control.  Accordingly, all discussions regarding future events, results and trends and their impact on the Company's business, even in the near term, are necessarily uncertain given the fluid and evolving nature of the pandemic.

If the health, logistical or economic effects of the pandemic worsen, or if the assumptions, expectations, estimates or projections that underlie the Company's statements regarding future effects or trends prove to be incorrect, then the Company's actual assets, business, cash flows, financial condition, liquidity, prospects and results of operations may be materially and adversely impacted in ways that the Company cannot reasonably forecast.

Accordingly, when reading this news release and the accompanying presentation and when listening to the earnings conference call, undue reliance should not be placed upon any statement pertaining to future events, results and trends and their impact on the Company's business in future periods.

Conference Call and Webcast

The Company will conduct a conference call to discuss its second quarter 2020 financial results on July 21, 2020, at 10:00 a.m. (Central Time).  This conference call will be an interactive session between management and analysts. Interested parties may listen to this live conference call via Internet webcast by accessing www.bancorpsouth.investorroom.com/webcasts. The webcast will also be available in archived format at the same address.

About BancorpSouth Bank

BancorpSouth Bank (NYSE: BXS) is headquartered in Tupelo, Mississippi, with approximately $23 billion in assets.  BancorpSouth operates approximately 310 full service branch locations as well as additional mortgage, insurance, and loan production offices in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas, including an insurance location in Illinois.  BancorpSouth is committed to a culture of respect, diversity, and inclusion in both its workplace and communities. To learn more, visit our Community Commitment page at www.bancorpsouth.com.  Like us on Facebook; follow us on Twitter: @MyBXS; or connect with us through LinkedIn.

Forward-Looking Statements

Certain statements made in this news release are not statements of historical fact and constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created under the Private Securities Litigation Reform Act of 1995.  These statements are often, but not always, made through the use of words or phrases such as "may," "should," "could," "predict," "potential," "believe," "will likely result," "expect," "continue," "will," "anticipate," "seek," "aspire," "roadmap," "achieve," "estimate," "intend," "plan," "project," "projection," "forecast," "goal," "target," "would," and "outlook," or the negative version of those words or other comparable words of a future or forward-looking nature. These forward-looking statements include, without limitation, those relating to the impact of the COVID-19 pandemic on the Company's assets, business, cash flows, financial condition, liquidity, prospects and results of operations, the opportunities to enhance market share in certain markets and market acceptance of the Company generally in new markets, the Company's ability to operate its regulatory compliance programs consistent with federal, state and local laws, including its Bank Secrecy Act ("BSA") and anti-money laundering ("AML") compliance program and its fair lending compliance program, the Company's ability to pay dividends or coupons on Series A Preferred Stock or the Notes or its ability to ultimately repay the Notes or otherwise comply with the terms of such instruments, amortization expense for intangible assets, goodwill impairments, loan impairments, utilization of appraisals and inspections for real estate loans, maturity, renewal or extension of construction, acquisition and development loans, net interest revenue and net interest margin, fair value determinations, the amount of the Company's non-performing loans and leases, credit quality, credit losses, liquidity, off-balance sheet commitments and arrangements, valuation of mortgage servicing rights, allowance and provision for credit losses, early identification and resolution of credit issues, utilization of non-GAAP financial measures, the ability of the Company to collect all amounts due according to the contractual terms of loan agreements, the Company's reserve for losses from representation and warranty obligations, the Company's foreclosure process related to mortgage loans, the resolution of non-performing loans that are collaterally dependent, real estate values, fully-indexed interest rates, interest rate risk, interest rate sensitivity, the impact of interest rates on loan yields, calculation of economic value of equity, impaired loan charge-offs, diversification of the Company's revenue stream, the growth of the Company's insurance business and commission revenue, the growth of the Company's customer base and loan, deposit and fee revenue sources, liquidity needs and strategies, the ability of the Company to access successfully the capital and credit markets when needed or as desired, sources of funding, declaration and payment of dividends, the utilization of the Company's share repurchase program, the implementation and execution of cost saving initiatives, improvement in the Company's efficiencies, operating expense trends, and the impact of certain claims and ongoing, pending or threatened litigation, administrative and investigatory matters.

These forward-looking statements are not historical facts, and are based upon current expectations, estimates and projections about the Company's industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain, involve risk and are beyond the Company's control. The inclusion of these forward-looking statements should not be regarded as a representation by the Company or any other person that such expectations, estimates and projections will be achieved. Accordingly, the Company cautions that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict and that are beyond the Company's control. These risks, assumptions and uncertainties may include, but are not limited to, the impact of the COVID-19 pandemic on the Company's assets, business, cash flows, financial condition, liquidity, prospects and results of operations, increases in the provision and allowance for credit losses and interest rate pressure on net interest revenue and net interest margin, the Company's ability to operate its regulatory compliance programs consistent with federal, state and local laws, including its BSA/AML compliance program and its fair lending compliance program, the lack of availability of the Company's filings mandated by the Exchange Act from the Securities and Exchange Commission's publicly available website after November 1, 2017, the impact of any ongoing pending or threatened litigation, administrative and investigatory matters involving the Company, 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, limitations on the Company's ability to declare and pay dividends, the availability of capital on favorable terms if and when needed, liquidity risk, governmental regulation, including the Dodd-Frank Wall Street Reform, Consumer Protection Act, and the Coronavirus Aid, Relief and Economic Security Act established in response to the COVID-19 pandemic and any similar or related rules and regulations, 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 and 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 the loss of any key Company personnel, 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 growth of the Company's insurance business and commission revenue, the growth of the Company's loan, deposit and fee revenue sources, 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, dispositions and other strategic growth opportunities and initiatives, 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 capital stock to raise capital or acquire other banks, bank holding companies, financial holding companies and insurance agencies, the utilization of the Company's share repurchase program, the implementation and execution of cost saving initiatives, other factors generally understood to affect the assets, business, cash flows, financial condition, liquidity, prospects and/or results of operations of financial services companies, and other factors detailed from time to time in the Company's press and news releases, reports and other filings with the FDIC.

The foregoing factors should not be construed as exhaustive and should be read in conjunction with those factors that are set forth from time to time in our periodic and current reports filed with the FDIC, including those factors included in our Annual Report on Form 10-K for the year ended December 31, 2019 under the heading "Item 1A. Risk Factors," in our Quarterly Reports on Form 10-Q and in our Current Reports on Form 8-K.

Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date of this news release, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. If one or more events related to these or other risks or uncertainties materialize, or if the Company's underlying assumptions prove to be incorrect, actual results may differ materially from the Company's forward-looking statements.  Accordingly, undue reliance should not be placed on any such forward-looking statements. Any forward-looking statement speaks only as of the date of this news release, and the Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.  New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence or how they will affect the Company.