BancorpSouth, Inc.
The magnitude of the increase in net income and earnings per share during the fourth quarter of 2001 over the fourth quarter of 2000 was impacted by the $10.6 million reduction in net income ($0.13 per share) in the fourth quarter of 2000 related to restructuring and other merger-related charges incurred as a result of the merger with First United Bancshares in 2000. Excluding these charges from fourth quarter 2000 results, diluted earnings per share increased 35.7% in the fourth quarter of 2001 compared to the fourth quarter of 2000. Net income for the year ended December 31, 2001, was $98.5 million, or $1.19 per share (basic and diluted), compared to net income of $74.4 million, or $0.88 per share (basic and diluted) for 2000. Excluding merger-related items, net income in 2000 was $96.9 million or $1.14 per diluted share. Compared to these adjusted results for 2000, net income per diluted share increased 4.4% in 2001.
Aubrey Patterson, Chairman and Chief Executive Officer of BancorpSouth commented, "After 11 rate reductions in the Federal Reserve's key interest rates over the course of 2001, totaling 475 basis points, retail banking institutions are feeling considerable pressure on interest margins. In this environment, we are pleased to report that our net interest margin increased to 4.11% in the recent quarter, from 4.00% for the third quarter of 2001. Our interest rate spread also increased to 3.53% for the fourth quarter of 2001, compared to 3.35% for the third quarter of 2001. We expect to continue to see the benefit from declining deposit costs on our net interest margin and interest rate spread. However, while many of our loans repriced immediately as key interest rates dropped during 2001, many of our deposits reprice over a longer term. Thus it will take time to realize the benefit of repricing these deposits on our net interest margin and interest rate spread.
"Our mortgage business had a remarkable quarter, both in new mortgage loans originated and in the refinancing of mortgages by existing customers who took advantage of the decline in interest rates for mortgage loans. In addition to contributing current income, the high level of new mortgage loan originations contributes to future earnings by building our mortgage servicing portfolio. This business does, however, add volatility to our earnings because of non-cash charges or credits associated with revaluing our mortgage servicing asset as interest rates change. In the fourth quarter of 2001, revenue from mortgage activities reflected the combined impact of increased mortgage loan originations and the increased value of our mortgage servicing asset. We believe that this business adds value for our shareholders in the long term, despite the short-term earnings volatility it creates.
"A major goal for the BancorpSouth in 2001 was to complete the conversion of the former First United Bancshares offices to BancorpSouth systems in a process that would be seamless from our customers point of view and to accomplish it without loss of market share," continued Patterson, "and we were successful. We have completed the product realignment and data processing conversion, which will enhance the efficiency of the combined operation. We have introduced the full BancorpSouth product line at the former First United offices, broadening the products and services offered at those locations, and we will be implementing the BancorpSouth sales management system in those offices throughout the first quarter of 2002 as we focus on increasing sales."
In November 2001, BancorpSouth announced a merger agreement with Pinnacle Bancshares, which operates two full-service banking locations in the Little Rock, Arkansas market. The transaction is expected to close in February 2002. "This merger will be a significant addition to our Arkansas operation," Patterson added, "and we look forward to expanding the BancorpSouth product line to these offices."
"Looking forward, we do not expect to see the percentage gain in net income in future quarters that we recorded in the most recent quarter, but we do expect to realize an increase in net interest rate spread as we are able to reprice our deposits. Our market share has increased as we have moved aggressively to expand our market share in growth markets and increase our dominance where we already have a significant market share. We attribute our success to the quality of our service, as well as superior sales effort and sales management. BancorpSouth provides the service level of traditional relationship banking, neglected by many larger banks, while offering a sophisticated array of products that smaller banks cannot provide," concluded Patterson.
Net Interest Revenue
Interest revenue was $157.0 million in the fourth quarter of 2001, down 12.0% from $178.4 million in the corresponding period of 2000, and down 4.9% from $165.0 million in the third quarter of 2001. Interest expense for the 2001 fourth quarter was $69.3 million, a 27.5% decrease from interest expense of $95.6 million in the same period of 2000, and a decline of 13.9% from interest expense of $80.5 million in the third quarter of 2001.
Net interest margin in the fourth quarter of 2001 was 4.11%, compared to 4.03% for the fourth quarter of 2000 and 4.00% in the third quarter of 2001. The average rate paid on interest-bearing liabilities was 3.73% in the fourth quarter of 2001, compared to 5.30% in the same quarter of 2000 and 4.35% in the third quarter of 2001. The average taxable equivalent yield on earning assets was 7.26% in the fourth quarter of 2001 versus 8.52% in the same period of 2000 and 7.70% in the third quarter of 2001.
"Through careful pricing of assets and liabilities, we were able to improve both our interest rate margin and spread compared to the third quarter of 2001 despite the unprecedented decline in short-term rates in 2001," commented Patterson. "Because a large volume of our deposits reprice in twelve months or less, we expect to see continued improvement in the interest rate spread."
Deposit and Loan Activity
As of December 31, 2001, total assets were $9.4 billion, up 3.9% since December 31, 2000, and relatively unchanged from the level at September 30, 2001. Total deposits at December 31, 2001, were $7.9 billion, up 5.0% from December 31, 2000, and increased marginally from September 30, 2001. Net loans as of December 31, 2001, were $6.1 billion, essentially the same as the levels at December 31, 2000, and September 30, 2001.
Deposit growth in the fourth quarter was restricted through less aggressive pricing as loan demand slowed. BancorpSouth is a deposit-funded bank, operating in markets that continue to provide funding for loans as needed, and the growth of deposits is managed to correspond with demand for loans. Slower loan growth reflects general weakness in the economy of many of the markets served by BancorpSouth. In addition, part of the slowdown in loan growth is due to management's strategic decision to reduce BancorpSouth's exposure to indirect automobile sales financing by allowing its portfolio of such loans to decline. This portfolio has decreased $113.9 million since December 31, 2000, and $27.4 million since September 30, 2001, reaching $146.4 million as of December 31, 2001. Excluding the impact of this portfolio reduction, total loans would have increased 2.6% on an annualized basis between September 30, 2001 and December 31, 2001.
Credit Losses
The provision for credit losses in the fourth quarter of 2001 was $6.5 million, versus $5.5 million in the same quarter of 2000, and $6.9 million in the third quarter of 2001. Annualized net charge-offs for the fourth quarter of 2001 were 0.40% of average loans, versus 0.19% in the fourth quarter of 2000 and 0.34% in the third quarter of 2001.
For the twelve months ended December 31, 2001, the provision for credit losses was $22.3 million, down from $26.2 million in the same period of 2000. Net charge-offs were 0.35% of average loans in 2001, compared to 0.34% of average loans in 2000.
Non-performing assets totaled $59.6 million (0.98% of net loans) as of December 31, 2001, compared to $50.1 million (0.82% of net loans) as of December 31, 2000, and $62.2 million (1.03% of net loans) at September 30, 2001. The allowance for credit losses amounted to 1.37% of net loans at December 31, 2001, compared to 1.34% of net loans at December 31, 2000.
"We continue to adhere to our traditional high standards for credit quality, which we apply both at the time of origination and throughout the life of the loan," Patterson commented. "In addition, BancorpSouth is buffered somewhat from the impact of an economic downturn by the diversity of markets and businesses we serve, operating in six states and serving a variety of industries including manufacturing, distribution and tourism. While we see a little softening in some markets, our credit quality remains extremely strong overall."
Non-interest Revenue
Non-interest revenue totaled $42.0 million in the fourth quarter of 2001, up 317.4% from $10.1 million in the fourth quarter of 2000 and up 56.9% from $26.7 million in the third quarter of 2001. For 2001, non-interest revenue totaled $128.6 million, an increase of 50.3% over 2000. Excluding net securities gains (losses), non-interest income increased 49.2% in the fourth quarter of 2001 compared to the same period in 2000, and increased 16.6% for the year 2001 compared to 2000.
"Non-interest revenue in the fourth quarter of 2001 reflects the strength of our mortgage business," Patterson stated. "With mortgage rates low, we saw a high level of new mortgage loan originations as well as significant increases in refinancing of existing mortgage loans. At the same time, as mortgage rates began to increase during the fourth quarter of 2001, part of the charge for impairment of our mortgage servicing asset recognized in previous periods was reversed. In the fourth quarter of 2001, we had continued the strategy used in the third quarter of 2001 of making a short- term investment in intermediate-term securities to offset the anticipated impairment charge. Because of the timing of these events, we recognized a gain of $3.6 million on the sale of the short-term investment in the fourth quarter of 2001, and benefited from the reversal during the fourth quarter of 2001 of $4.5 million in previously recorded impairment charges to our mortgage servicing asset as mortgage rates increased, profiting on both sides."
Insurance commissions were $5.3 million for the fourth quarter of 2001, an increase of 8.6% over the same period in 2000 and an increase of 2.3% from the third quarter of 2001. For 2001, insurance commissions totaled $20.4 million, a gain of 27.4% over the 2000 level. The gain is largely attributable to a significant increase in the sale of annuities, which was driven by an aggressive sales campaign, as well as the inclusion of the results of the Pittman, Seay and Turner Insurance Agency for the full year of 2001. BancorpSouth acquired this agency in October 2000 in a transaction accounted for as a purchase.
Non-interest Expense
Non-interest expenses for the fourth quarter of 2001 were $76.0 million, compared to $69.7 million for the fourth quarter of 2000 and $73.3 million in the third quarter of 2001. The modest increase in expense for the fourth quarter of 2001 over the third quarter of 2001 reflects management's continued effort to reduce non-interest expense. This effort will be intensified now that the integration of First United Bancshares has been completed.
Capital Management
During the fourth quarter of 2001, BancorpSouth repurchased a total of 235,300 shares of its outstanding common stock under a repurchase program announced on March 5, 2001. The repurchase program authorizes BancorpSouth to acquire up to 4.2 million shares or approximately 5% of the shares outstanding at the time of the announcement. As of December 31, 2001, a total of 2,965,115 shares had been repurchased under the repurchase program.
Conference Call
BancorpSouth will conduct a conference call with analysts at 1:30 p.m. (Central Time) on January 18, 2002. Investors may listen via the internet by accessing our website at http://www.bancorpsouth.com/. A replay of the conference call will be available at BancorpSouth's website following the call.
BancorpSouth, Inc. is a bank holding company headquartered in Tupelo, Mississippi with $9.4 billion in assets. BancorpSouth operates approximately 250 commercial banking, insurance, trust, broker/dealer and consumer finance locations in Alabama, Arkansas, Louisiana, Mississippi, Tennessee and Texas. Forward-Looking Statements
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," "estimate," "expect," "may," "might," "will," "would" or "intend." These forward-looking statements include, without limitation, those relating to interest rates, net income, loan volume, credit quality, interest rate margin, interest rate spread, market share, the transaction with Pinnacle Bancshares, expansion and prospects of products and services, deposits, credit losses, non-interest expense, liquidity, prospects for 2001 and 2002, mortgage servicing and BancorpSouth's future growth and profitability.
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, due to a variety of factors. Those factors include, but are not limited to, changes in economic conditions and government fiscal and monetary policies, fluctuations in prevailing interest rates, ability to reduce interest rates paid on deposits as interest rates decline, laws and regulations affecting financial institutions, the ability of BancorpSouth to compete with other financial services companies, the ability of BancorpSouth to effectively integrate acquisitions, the ability of BancorpSouth to operate and integrate new technology, the ability of BancorpSouth to manage its growth and effectively serve an expanding customer and market base, the ability of BancorpSouth to provide competitive services and products, changes in BancorpSouth's operating or expansion strategy, geographic concentration of BancorpSouth's assets, availability of and costs associated with obtaining adequate and timely sources of liquidity, the ability of BancorpSouth to attract, train and retain qualified personnel, the ability of BancorpSouth to effectively market its services and products, changes in consumer preferences, 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.
Selected Financial Data
Three Months Ended Twelve Months Ended
December 31, December 31,
2001 2000 2001 2000
(Dollars in thousands,
except per share amounts)
Earnings Summary:
Net interest revenue $87,782 $82,799 $334,742 $327,152
Provision for credit
losses 6,542 5,497 22,259 26,166
Noninterest revenue 41,959 10,052 128,633 85,578
Noninterest expense 75,950 69,665 295,313 274,227
Income before income taxes 47,249 17,689 145,803 112,337
Income tax provision 15,935 5,414 47,340 37,941
Net income 31,314 12,275 98,463 74,396
Earning per share: Basic $0.39 $0.15 $1.19 $0.88
Diluted $0.38 $0.15 $1.19 $0.88
Balance sheet data at December 31:
Total assets $9,395,429 $9,044,034
Total earning assets 8,693,932 8,394,276
Loans and lease receivables, net of
unearned discount 6,073,200 6,095,315
Allowance for credit losses 83,150 81,730
Total deposits 7,856,840 7,480,920
Common shareholders' equity 805,403 789,576
Book value per share 9.92 9.39
Average balance sheet data:
Total assets $9,348,448 $9,062,617 $9,261,912 $8,756,474
Total earning assets 8,742,695 8,472,086 8,651,908 8,186,637
Loans and lease receivables,
net of unearned discount 6,044,338 6,042,673 6,010,840 5,791,569
Total deposits 7,766,672 7,444,430 7,693,734 7,272,999
Common shareholders'
equity 807,661 773,323 796,706 761,884
Non-performing assets at December 31:
Non-accrual loans $10,825 $15,572
Loans 90+ days past due 33,012 25,732
Restructured loans 40 879
Other real estate owned 15,755 7,893
Net charge-offs as a
percentage of average loans
(annualized) 0.40% 0.19% 0.35% 0.34%
Performance ratios
(annualized)
Return on average assets 1.33% 0.54% 1.06% 0.85%
Return on common equity 15.38% 6.35% 12.36% 9.76%
Net interest margin 4.11% 4.03% 4.00% 4.14%
Average shares outstanding
- diluted 81,605,806 84,264,285 82,979,286 84,811,079
BancorpSouth, Inc.
Consolidated Balance Sheets
(dollars in thousands)
(Unaudited) December 31, 2001 December 31, 2000
Assets
Cash & due from banks $341,513 $314,888
Interest bearing deposits
with other banks 18,030 11,687
Held-to-maturity securities 1,110,463 1,189,129
Federal funds sold and securities
purchased under agreement
to resell 343,511 212,925
Loans & leases 6,073,200 6,095,315
Allowance for credit losses (83,150) (81,730)
Net loans & leases 5,990,050 6,013,585
Available-for-sale securities 1,083,191 857,400
Mortgages held for sale 65,537 27,820
Bank premises & equipment 211,576 197,898
Accrued interest receivable 85,359 89,605
Other real estate owned 16,140 7,892
Other assets 130,059 121,205
Total assets $9,395,429 $9,044,034
Liabilities
Demand deposits:
Non-interest bearing $1,108,499 $1,009,808
Interest bearing 2,158,698 1,682,278
Total demand deposits 3,267,197 2,692,086
Savings & time deposits:
Savings 910,682 924,591
Certificates of deposit 3,678,961 3,864,243
Total savings & time deposits 4,589,644 4,788,835
Total deposits 7,856,840 7,480,920
Federal funds purchased and
securities sold under
agreement to repurchase 473,912 503,427
Accrued interest payable 31,124 40,611
Long-term debt 140,939 152,049
Other liabilities 87,211 77,451
Total liabilities 8,590,026 8,254,458
Shareholders' Equity
Common stock 214,484 214,484
Capital surplus 70,329 70,841
Unrealized gain (loss) on
securities 24,243 15,202
Retained earnings 566,639 515,599
Less: Cost of treasury stock (70,292) (26,550)
Total shareholders' equity 805,403 789,576
Total liabilities &
shareholders' equity $9,395,429 $9,044,034
BancorpSouth, Inc.
Consolidated Statements of Income
(amounts in thousands, except per share data)
(Unaudited) Year To Date
Dec-01 Dec-00
Interest Revenue:
Loans, including fees $518,206 $529,192
Held-to-maturity securities: 67,084 64,756
Available-for-sale securities 59,346 72,582
Short term investments 21,199 7,505
Total interest revenue 665,835 674,035
Interest Expense:
Deposits 300,838 310,365
Short term borrowings 10,909 24,754
Long term borrowings 8,640 9,775
Other interest expense 10,706 1,989
Total interest expense 331,093 346,883
Net interest revenue 334,742 327,152
Provision for credit losses 22,259 26,166
Net interest revenue,
after credit loss provision 312,483 300,986
Other Revenue:
Mortgage lending 17,186 10,874
Service charges 42,759 40,472
Life insurance premiums 4,528 4,300
Trust income 6,929 6,700
Securities gains, net 10,671 (15,632)
Insurance commissions 20,422 16,034
Other 26,138 22,830
Total other revenue 128,633 85,578
Other Expense:
Salaries and employee benefits 155,680 133,855
Occupancy 20,529 18,343
Equipment 26,799 24,137
Telecommunications 8,693 7,234
Other 83,612 90,658
Total other expense 295,313 274,227
Income before income taxes 145,803 112,337
Income tax expense 47,340 37,941
Net Income $98,463 $74,396
Net Income Per Share:
Basic $1.19 $0.88
Diluted $1.19 $0.88
BancorpSouth, Inc.
Consolidated Statements of Income
(amounts in thousands, except per share data)
(Unaudited) Quarter Ended
Dec-01 Sep-01 Jun-01 Mar-01 Dec-00
Interest Revenue:
Loans, including
fees $121,626 $128,049 $131,794 $136,737 $140,892
Held-to-maturity
securities: 16,706 17,697 16,630 16,051 18,141
Available-for-sale
securities 14,771 14,749 14,240 15,586 16,177
Short term
investments 3,933 4,487 7,013 5,767 3,185
Total interest
revenue 157,036 164,982 169,677 174,140 178,395
Interest Expense:
Deposits 63,060 73,071 80,763 83,944 84,709
Short term
borrowings 1,571 2,700 3,082 3,557 7,007
Long term
borrowings 2,100 2,105 2,171 2,265 2,378
Other interest
expense 2,523 2,671 2,737 2,776 1,502
Total interest
expense 69,254 80,545 88,754 92,541 95,596
Net interest
revenue 87,782 84,436 80,924 81,599 82,799
Provision for
credit losses 6,542 6,852 4,769 4,096 5,497
Net interest
revenue, after
credit loss
provision 81,240 77,584 76,155 77,503 77,300
Other Revenue:
Mortgage lending 12,913 (1,462) 7,068 (1,333) 1,900
Service charges 11,041 10,469 10,906 10,342 10,927
Life insurance
premiums 1,155 1,151 1,127 1,094 1,116
Trust income 1,613 2,022 1,610 1,684 1,625
Securities gains,
net 3,770 3,943 74 2,884 (15,549)
Insurance
commissions 5,262 5,146 5,405 4,608 4,845
Other 6,205 5,464 5,800 8,670 5,188
Total other
revenue 41,959 26,734 31,991 27,949 10,052
Other Expense:
Salaries and
employee
benefits 41,451 37,084 38,425 38,721 33,845
Occupancy 5,132 5,263 5,005 5,129 4,838
Equipment 6,382 6,442 6,943 7,032 6,960
Telecommunications 2,143 2,244 2,123 2,182 2,041
Other 20,842 22,253 20,751 19,767 21,981
Total other
expense 75,950 73,285 73,246 72,832 69,665
Income before
income taxes 47,249 31,033 34,899 32,620 17,689
Income tax expense 15,935 9,450 11,654 10,300 5,414
Net Income $31,314 $21,583 $23,246 $22,319 $12,275
Net Income Per
Share:
Basic $0.39 $0.26 $0.28 $0.27 $0.15
Diluted $0.38 $0.26 $0.28 $0.27 $0.15
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(dollars in thousands) Quarter Ended
Unaudited December 31, 2001
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of Unearned Income $6,114,950 $121,938 7.91%
Held-to-maturity securities:
Taxable 925,219 14,155 6.07%
Non Taxable 204,945 3,925 7.60%
Available-for-sale securities
Taxable 889,326 12,617 5.63%
Non Taxable 192,026 3,314 6.85%
Short term investments 416,228 3,933 3.75%
Total interest earning
assets and revenue 8,742,694 159,882 7.26%
Other assets 689,115
Less: allowance for credit losses (83,361)
Total $9,348,448
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $2,045,838 $10,089 1.96%
Savings 881,196 5,838 2.63%
Time 3,806,071 47,133 4.91%
Short-term borrowings 497,747 4,094 3.26%
Long-term debt 141,036 2,100 5.91%
Total interest bearing
liabilities and expense 7,371,888 69,254 3.73%
Demand deposits -
non-interest bearing 1,033,567
Other liabilities 135,332
Total liabilities 8,540,787
Shareholders' equity 807,661
Total $9,348,448
Net interest revenue $90,628
Net interest margin 4.11%
Net interest rate spread 3.53%
Interest bearing liabilities to
interest earning assets 84.3%
Net interest tax equivalent
adjustment $2,846
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(dollars in thousands) Quarter Ended
Unaudited September 30, 2001
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of Unearned Income $6,054,016 $128,367 8.41%
Held-to-maturity securities:
Taxable 1,005,116 15,086 5.95%
Non Taxable 207,277 4,017 7.69%
Available-for-sale securities
Taxable 831,339 12,559 5.99%
Non Taxable 190,362 3,368 7.02%
Short term investments 365,195 4,487 4.87%
Total interest earning
assets and revenue 8,653,305 167,884 7.70%
Other assets 686,603
Less: allowance for credit losses (81,651)
Total $9,258,257
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $1,921,604 $12,952 2.67%
Savings 872,486 6,303 2.87%
Time 3,899,185 53,816 5.48%
Short-term borrowings 511,342 5,370 4.17%
Long-term debt 141,323 2,105 5.91%
Total interest bearing
liabilities and expense 7,345,940 80,546 4.35%
Demand deposits -
non-interest bearing 1,006,233
Other liabilities 116,684
Total liabilities 8,468,857
Shareholders' equity 789,400
Total $9,258,257
Net interest revenue $87,338
Net interest margin 4.00%
Net interest rate spread 3.35%
Interest bearing liabilities to
interest earning assets 84.9%
Net interest tax equivalent
adjustment $2,901
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(dollars in thousands) Quarter Ended
Unaudited June 30, 2001
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of Unearned Income $6,024,236 $132,119 8.80%
Held-to-maturity securities:
Taxable 908,896 13,964 6.16%
Non Taxable 214,305 4,103 7.68%
Available-for-sale securities
Taxable 767,913 12,056 6.30%
Non Taxable 182,598 3,360 7.38%
Short term investments 572,207 7,013 4.92%
Total interest earning
assets and revenue 8,670,155 172,615 7.99%
Other assets 689,128
Less: allowance for credit losses (80,425)
Total $9,278,858
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $1,830,983 $13,345 2.92%
Savings 889,841 9,013 4.06%
Time 3,971,149 58,405 5.90%
Short-term borrowings 512,104 5,819 4.56%
Long-term debt 146,321 2,171 5.95%
Total interest bearing
liabilities and expense 7,350,398 88,753 4.84%
Demand deposits -
non-interest bearing 1,002,588
Other liabilities 126,115
Total liabilities 8,479,101
Shareholders' equity 799,757
Total $9,278,858
Net interest revenue $83,862
Net interest margin 3.88%
Net interest rate spread 3.14%
Interest bearing liabilities to
interest earning assets 84.78%
Net interest tax equivalent
adjustment $2,938
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(dollars in thousands) Quarter Ended
Unaudited March 31, 2001
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of Unearned Income $6,063,946 $137,055 9.17%
Held-to-maturity securities:
Taxable 842,693 13,212 6.36%
Non Taxable 232,636 4,366 7.61%
Available-for-sale securities
Taxable 838,410 13,616 6.59%
Non Taxable 155,988 3,031 7.88%
Short term investments 405,553 5,767 5.77%
Total interest earning
assets and revenue 8,539,226 177,047 8.41%
Other assets 701,784
Less: allowance for credit losses (80,953)
Total $9,160,057
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $1,770,537 $14,340 3.28%
Savings 896,888 10,685 4.83%
Time 3,975,219 58,918 6.01%
Short-term borrowings 490,736 6,333 5.23%
Long-term debt 151,870 2,265 6.05%
Total interest bearing
liabilities and expense 7,285,250 92,541 5.15%
Demand deposits -
non-interest bearing 969,793
Other liabilities 115,122
Total liabilities 8,370,165
Shareholders' equity 789,892
Total $9,160,057
Net interest revenue $84,506
Net interest margin 4.01%
Net interest rate spread 3.26%
Interest bearing liabilities to
interest earning assets 85.32%
Net interest tax equivalent
adjustment $2,907
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(dollars in thousands) Quarter Ended
Unaudited December 31, 2000
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of Unearned Income $6,073,609 $141,295 9.25%
Held-to-maturity securities:
Taxable 889,349 14,114 6.31%
Non Taxable 327,673 6,195 7.52%
Available-for-sale securities
Taxable 913,866 15,271 6.65%
Non Taxable 69,280 1,394 8.00%
Short term investments 198,310 3,185 6.39%
Total interest earning
assets and revenue 8,472,087 181,454 8.52%
Other assets 670,163
Less: allowance for credit losses (79,633)
Total $9,062,617
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $1,668,090 $13,960 3.33%
Savings 904,717 11,888 5.23%
Time 3,883,979 58,861 6.03%
Short-term borrowings 567,066 8,509 5.97%
Long-term debt 157,786 2,378 6.00%
Total interest bearing
liabilities and expense 7,181,638 95,596 5.30%
Demand deposits -
non-interest bearing 987,644
Other liabilities 120,012
Total liabilities 8,289,294
Shareholders' equity 773,323
Total $9,062,617
Net interest revenue $85,858
Net interest margin 4.03%
Net interest rate spread 3.23%
Interest bearing liabilities to
interest earning assets 84.77%
Net interest tax equivalent
adjustment $3,060
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(dollars in thousands) Year to Date
Unaudited December 31, 2001
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of Unearned Income $6,064,399 $519,479 8.57%
Held-to-maturity securities:
Taxable 920,939 56,417 6.13%
Non Taxable 214,694 16,411 7.64%
Available-for-sale securities
Taxable 831,885 50,848 6.11%
Non Taxable 180,370 13,073 7.25%
Short term investments 439,621 21,200 4.82%
Total interest earning
assets and revenue 8,651,908 677,428 7.83%
Other assets 691,608
Less: allowance for credit losses (81,604)
Total $9,261,912
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $1,893,075 $50,726 2.68%
Savings 885,025 31,839 3.60%
Time 3,912,405 218,272 5.58%
Short-term borrowings 503,024 21,616 4.30%
Long-term debt 145,097 8,641 5.96%
Total interest bearing
liabilities and expense 7,338,626 331,094 4.51%
Demand deposits -
non-interest bearing 1,003,229
Other liabilities 123,351
Total liabilities 8,465,206
Shareholders' equity 796,706
Total $9,261,912
Net interest revenue $346,334
Net interest margin 4.00%
Net interest rate spread 3.32%
Interest bearing liabilities to
interest earning assets 84.82%
Net interest tax equivalent
adjustment $11,592
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(dollars in thousands) Year to Date
Unaudited December 31, 2000
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of Unearned Income $5,831,030 $530,730 9.10%
Held-to-maturity securities:
Taxable 796,125 49,086 6.17%
Non Taxable 325,027 24,108 7.42%
Available-for-sale securities
Taxable 1,040,026 68,581 6.59%
Non Taxable 73,829 6,154 8.34%
Short term investments 120,601 7,505 6.22%
Total interest earning
assets and revenue 8,186,637 686,164 8.38%
Other assets 646,879
Less: allowance for credit losses (77,042)
Total $8,756,474
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $1,672,466 $54,226 3.24%
Savings 874,707 38,947 4.45%
Time 3,758,002 217,191 5.78%
Short-term borrowings 454,089 26,742 5.89%
Long-term debt 164,681 9,776 5.94%
Total interest bearing
liabilities and expense 6,923,945 346,882 5.01%
Demand deposits -
non-interest bearing 967,823
Other liabilities 102,821
Total liabilities 7,994,589
Shareholders' equity 761,884
Total $8,756,474
Net interest revenue $339,282
Net interest margin 4.14%
Net interest rate spread 3.37%
Interest bearing liabilities to
interest earning assets 84.58%
Net interest tax equivalent
adjustment $12,131
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SOURCE: BancorpSouth, Inc.
Contact: L. Nash Allen, Jr., +1-662-680-2330, or Gary C. Bonds,
+1-662-680-2332, both of BancorpSouth, Inc.
Website: http://www.bancorpsouth.com/