BancorpSouth, Inc. (NYSE:BXS) Q4 2014 Earnings Conference Call - Final Transcript
Jan 22, 2015 • 11:00 am ET
(Operator Instructions) Catherine Mealor, KBW.
Chris, you mentioned that you don't have any direct exposure to energy companies -- does that include companies in the energy servicing sector?
No ma'am. We would have a direct exposure to some servicing companies and obviously those markets we're in and I would make the argument that many of the businesses in those markets have energy exposure at least impacted by movements in the oil prices. But we aren't an active production lender credit type lender
Or a service producer at the credit market. The markets that we're in East Texas and Louisiana we're going to have exposure to oil and gas and everything we do over there if the party is not selling more pickups and the
more lunches, everybody is impacted by the slowdown.
How do you think about I guess 20% of your growth in the past couple of years have been in the Texas and Louisiana markets -- how do you envision the lower energy prices impacting your growth moving forward?
Yes. I think that we'll still have opportunities you know when you look at what we're doing I think we're making good sound decisions on basically non-energy related product and so when you look at the markets across Texas and talk about Austin, Austin's a very vibrant market and there is not a whole lot of energy credit activity going on in Austin at all. When you look at the state of Louisiana there are pockets of the state that have big exposure to oil and gas and there are pockets that don't have as much exposure so I think our job is to make sound good decisions on credit by credit basis and market by market basis.
Your question is more forward-looking I think because it talks about where to we expect 2015 and forward to grow and I think we believe that we've got the ability to continue to grow loans at the same pace or close to the same pace as we been growing in the past and if it doesn't come from Louisiana and Texas it can come from other markets that are also doing well.
Okay. And is there a way to quantify the amount of your -- I think about $2 billion Texas, Louisiana portfolio and how much of that is specifically in the servicing sector or is that specific number available?
It's immaterial, so I said while we may have -- again, we don't have any large credits to anybody servicing any of the oil service business. If we have credits out there it's going to be little mom-and-pop somebody that has a welding shop that helps on something. It's going to be a very small immaterial amount that's of direct exposure. Our exposure is all secondary to that. Our exposure is at the doctor's office within the town, the commercial real estate within the town. It's going to be secondary exposure the hotel operator that's in the town without being able to