BancorpSouth, Inc.
For the first six months of 2004, net income was $58.4 million, or $0.76 and $0.75 per basic and diluted share, respectively. Net income for the first six months of 2003 was $68.4 million, or $0.88 per basic and diluted share.
Aubrey Patterson, Chairman and Chief Executive Officer of BancorpSouth, commented, "We are pleased to report improved earnings for the latest quarter, compared with both the comparable second quarter of 2003 and the immediately preceding first quarter of 2004. We again attribute our growth for the quarter to a significant increase in noninterest revenue, including a 59.2 percent gain in insurance commissions as a result of our two acquisitions last year and substantial growth in the value of our mortgage servicing asset as a result of increasing mortgage interest rates. We were also pleased to see growing loan activity across our markets, which produced the first comparable- quarter increase in total loans in over a year. We believe that this is an early indicator of improvement in the economy of the region. In addition, while unusually low interest rates have continued to compress our net interest margin, we achieved a sequential-quarter increase in interest revenue for the first time since the fourth quarter of 2000.
"We are encouraged by these improvements during the second quarter, although we do not underestimate the ongoing challenges posed by the continued low interest rate environment. However, BancorpSouth's credit quality and liquidity remain strong, we have significant loan and deposit growth opportunities in a number of attractive markets throughout our six-state franchise, our investment portfolio is positioned for a rising interest rate environment and we are continuing to grow our noninterest revenue. We are, therefore, optimistic about BancorpSouth's growth prospects and the correctness of our long-term strategic direction."
Net Interest Revenue
Interest revenue was $123.7 million for the second quarter of 2004, a decrease of 7.1 percent from $133.2 for the second quarter of 2003 but an increase of 0.4 percent from $123.2 million for the first quarter of 2004. Interest expense was $40.0 million for the second quarter of 2004, a decrease of 13.3 percent from $46.1 million for the second quarter of 2003 and an increase of 0.7 percent from $39.7 million for the first quarter of 2004.
The average taxable equivalent yield on earning assets was 5.15 percent for the second quarter of 2004, a decline from 5.68 percent for the second quarter of 2003 and 5.22 percent for the first quarter of 2004. The average rate paid on interest bearing liabilities for the second quarter of 2004 was 1.93 percent, down from 2.26 percent for the second quarter of 2003 and 1.94 percent for the first quarter of 2004.
Net interest revenue for the second quarter of 2004 was $83.7 million, a decrease of 3.9 percent from $87.1 million for the second quarter of 2003 but an increase of 0.2 percent from $83.5 million for the first quarter of 2004. Net interest margin declined to 3.52 percent for the second quarter of 2004 from 3.75 percent for the second quarter of 2003 and 3.57 percent for the first quarter of 2004.
"Although the comparable-quarter percentage decline in our second quarter net interest revenue was the lowest in over a year, the further compression of our net interest margin for the quarter indicates the continued difficulty in managing our assets and liabilities to limit our exposure to changing interest rates," said Patterson. "As we experienced in the first quarter, the low absolute level of interest rates affected our ability in the second quarter to match the decline in average taxable equivalent yield on earning assets with lower rates paid on interest-bearing liabilities. We expect the discipline with which we have maintained a conservative stance in the average maturity of our investment assets to enhance our ability to manage in a rising interest rate environment, partially mitigating our liability-sensitivity to interest rate increases."
Deposit and Loan Activity
Total assets of $10.7 billion at June 30, 2004, increased 0.9 percent from $10.6 billion at June 30, 2003. Total deposits of $8.8 billion at June 30, 2004, increased 0.9 percent from $8.7 billion at June 30, 2003. Loans, net of unearned discount, totaled $6.42 billion at June 30, 2004, an increase of 1.9 percent from $6.30 billion at June 30, 2003.
Patterson remarked, "Increasing economic momentum in our markets produced an increase in net loans at the end of the second quarter and a number of new commercial loan relationships. We achieved this growth despite the continued reduction of our exposure to indirect automobile sales financing and certain higher risk consumer loans, which fell, in total, to $26.9 million at June 30, 2004, from $81.4 million at June 30, 2003. The comparable-quarter growth in our total deposits represents the third consecutive quarter in which total deposits have increased entirely because of growth in low-cost demand deposits while total savings and time deposits declined as a result of our overt pricing actions to reduce our interest rate exposure. We continue to believe that the steady growth in demand deposits reflects increased household market share, which will enhance both our lending and noninterest revenue opportunities in a strengthening economy."
Provision for Credit Losses and Allowance for Credit Losses
The provision for credit losses for the second quarter of 2004 was $4.8 million, down 25.3 percent from $6.5 million for the second quarter of 2003 and up 20.4 percent from $4.0 million for the first quarter of 2004. Annualized net charge-offs were 0.36 percent of average loans for the second quarter of 2004 compared with 0.31 percent for both the second quarter of 2003 and the first quarter of 2004.
Non-performing loans at June 30, 2004, were $37.1 million, or 0.58 percent of loans, down 17.8 percent from $45.2 million, or 0.72 percent of loans, at June 30, 2003, and down 6.6 percent from $39.8 million, or 0.64 percent of loans, at March 31, 2004. The allowance for credit losses was 1.41 percent of loans at June 30, 2004, compared with 1.45 percent of loans at June 30, 2003, and 1.46 percent of loans at March 31, 2004.
Patterson added, "For the second consecutive quarter, we significantly reduced the provision for credit losses on a comparable-quarter basis because of improvement in our credit quality, again demonstrating the strength of our lending and credit practices. We increased the provision for credit losses on a sequential-quarter basis, primarily because of increased loan activity during the second quarter. Consistent with our core operating philosophies, we remain fully committed to maintaining an adequate allowance for credit losses calculated in a manner consistent with prior periods. Reserve coverage of non-performing loans was 2.44 at June 30, 2004 versus 2.02 at June 30, 2003."
Noninterest Revenue
Noninterest revenue was $51.4 million for the second quarter of 2004, a 28.9 percent increase from $39.9 million for the second quarter of 2003 and an 11.7 percent increase from $46.0 million for the first quarter of 2004. Among other factors, the increase in noninterest revenue reflected a 59.2 percent increase in insurance commissions to $13.2 million for the second quarter of 2004 from $8.3 million for the second quarter of 2003. This growth is primarily the result of the acquisition of Wright & Percy Insurance, Baton Rouge, Louisiana, in the second quarter of 2003 and the acquisition of Ramsey, Krug, Farrell & Lensing Insurance, Little Rock, Arkansas, in the third quarter of 2003.
This growth also offset the impact of the anticipated decline in mortgage originations to $172.3 million for the second quarter of 2004 from $392.8 million for the second quarter of 2003. Total mortgage lending revenue for the second quarter of 2004 was $11.4 million, which included a $9.4 million reversal of previously recorded impairment charges against the Company's mortgage servicing asset. Total mortgage lending revenue for the second quarter of 2003 was $1.6 million, which included a $4.7 million non-cash charge for impairment of the Company's mortgage servicing asset.
"We remain pleased with the performance of our noninterest revenue products and services and the diversification of our revenue streams that they provide. We expect a strengthening economy to enhance our opportunities to expand noninterest revenue, as we continue to roll out products and services across our existing markets and as we evaluate additional opportunities to expand our products and services and our markets through internal growth and acquisitions. We also expect mortgage originations will continue below the record levels of last year because of increased mortgage interest rates."
Noninterest Expense
Noninterest expense was $84.0 million for the second quarter of 2004, a 7.3 percent increase from $78.3 million for the second quarter of 2003 and a 2.3 percent decline from $86.0 million for the first quarter of 2004. The increase for the second quarter of 2004 compared with the second quarter of the prior year primarily reflected salaries, employee benefits and other expenses related to the two insurance agencies acquired in the second and third quarters of 2003.
Capital Management
BancorpSouth repurchased 598,300 shares of its common stock during the second quarter of 2004 under a stock repurchase plan authorized in April 2003 for the repurchase of up to 3.9 million shares. A total of 1,630,708 shares had been purchased under this plan at the end of the second quarter of 2004. Combined with the 8.3 million shares repurchased under earlier plans, BancorpSouth had repurchased approximately 9.9 million shares of its common stock as of June 30, 2004, or 11.8 percent of its outstanding shares at March 5, 2001, when the first of these plans was authorized. BancorpSouth will continue to evaluate additional share repurchases under the April 2003 plan, which authorizes these repurchases during a two-year period.
Summary
Patterson concluded, "Our second-quarter results reflect the impact of an unprecedented constriction in our net interest margin due to the multi-year decline in interest rates. While we are confident of our ability to expand our net interest margin over time as the interest rate cycle progresses -- and thereby produce results more in line with our historical trends -- we expect our net interest margin will continue to pose a challenge for the immediate future.
"Our second quarter results also provided evidence of an improving business environment, including increased loan activity and deposit growth, a sequential-quarter increase in net interest revenue, improved non-performing loans and the further significant growth of our noninterest revenue. We remain uniquely positioned in our six-state franchise as a customer service- driven organization offering a comprehensive array of financial products and services. We are fully committed to building on these strengths and on our foundation of strong credit quality and conservative operating philosophies."
Conference Call
BancorpSouth will conduct a conference call with analysts at 1:30 p.m. (Central Time) on July 20, 2004. Investors may listen via the Internet by accessing BancorpSouth's website at http://www.bancorpsouth.com/ . A replay of the conference call will be available at BancorpSouth's website for at least two weeks following the call.
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," "could" or "intend." These forward-looking statements include, without limitation, those relating to interest rates, liquidity, loan and deposit growth opportunities, our investment portfolio, demand deposits, allowance for credit losses, net interest margin, market share, credit quality, mortgage originations, noninterest revenue, expansion of products and services, expansion of markets through internal growth and acquisitions, common stock repurchase plan, operating philosophies, long-term growth prospects 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. These factors include, but are not limited to, changes in economic conditions and government fiscal and monetary policies, fluctuations in prevailing interest rates, the ability of BancorpSouth to maintain credit quality, the ability of BancorpSouth to effectively integrate acquisitions, changes in laws and regulations affecting financial institutions in general, possible adverse rulings, judgments, settlements and other outcomes of pending litigation, the ability of BancorpSouth to compete with other financial services companies, the ability of BancorpSouth to provide and market 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 manage its growth and effectively serve an expanding customer and market base, the ability of BancorpSouth to attract, train and retain qualified personnel, the ability of BancorpSouth to repurchase its common stock on favorable terms, the ability of BancorpSouth to identify potential acquisitions, 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.
BancorpSouth, Inc. is a financial holding company headquartered in Tupelo, Mississippi with approximately $10.7 billion in assets. BancorpSouth operates approximately 250 commercial banking, insurance, trust and broker/dealer locations in Alabama, Arkansas, Louisiana, Mississippi, Tennessee and Texas.
BancorpSouth, Inc.
Selected Financial Data
Three Months Ended Six Months Ended
June 30, June 30,
2004 2003 2004 2003
(Dollars in thousands,
except per share amounts)
Earnings Summary:
Net interest revenue $83,684 $87,069 $167,166 $177,213
Provision for credit
losses 4,835 6,472 8,851 12,994
Noninterest revenue 51,416 39,882 97,456 92,192
Noninterest expense 84,031 78,300 170,036 155,216
Income before income taxes 46,234 42,179 85,735 101,195
Income tax provision 14,961 12,938 27,297 32,806
Net income $31,273 $29,241 $58,438 $68,389
Earning per share: Basic $0.41 $0.38 $0.76 $0.88
Diluted $0.40 $0.37 $0.75 $0.88
Balance sheet data at June 30:
Total assets $10,670,323 $10,576,453
Total earning assets 9,797,631 9,763,679
Loans and lease
receivables, net of
unearned discount 6,422,864 6,301,110
Allowance for credit losses 90,537 91,210
Total deposits 8,789,246 8,714,072
Common shareholders' equity 852,910 857,868
Book value per share 11.10 11.00
Average balance sheet data:
Total assets $10,614,248 $10,287,130 $10,533,989 $10,239,601
Total earning assets 9,831,843 9,592,723 9,753,243 9,543,975
Loans and lease
receivables, net of
unearned discount 6,333,868 6,289,079 6,280,566 6,318,286
Total deposits 8,801,737 8,628,134 8,794,229 8,594,256
Common shareholders'
equity 886,197 832,443 877,096 824,221
Non-performing assets at June 30:
Non-accrual loans $13,611 $18,230
Loans 90+ days past due 19,462 26,954
Restructured loans 4,072 14
Other real estate owned 20,440 15,065
Net charge-offs as a
percentage of average
loans (annualized) 0.36% 0.31% 0.33% 0.31%
Performance ratios
(annualized)
Return on average assets 1.18% 1.14% 1.12% 1.35%
Return on common equity 14.19% 14.09% 13.40% 16.73%
Net interest margin 3.52% 3.75% 3.54% 3.86%
Average shares
outstanding - diluted 77,444,302 78,013,329 77,783,687 77,935,346
BancorpSouth, Inc.
Consolidated Statement of Condition
June 30, %
2004 2003 Change
(In thousands)
Assets
Cash and due from banks $333,697 $393,390 (15.17%)
Interest bearing deposits with other
banks 18,024 5,059 256.28%
Held-to-maturity securities, at
amortized cost 1,510,209 1,552,070 (2.70%)
Available-for-sale securities, at fair
market value 1,793,134 1,723,766 4.02%
Federal funds sold and securities
purchased under agreement to resell 10,488 94,999
Loans 6,452,602 6,339,538 1.78%
Less: Unearned discount (29,738) (38,428) (22.61%)
Allowance for credit losses (90,537) (91,210) (0.74%)
Net loans 6,332,327 6,209,900 1.97%
Loans held for sale 42,913 86,676 (50.49%)
Premises and equipment, net 218,456 209,746 4.15%
Accrued interest receivable 68,690 76,015 (9.64%)
Goodwill 61,445 42,535 44.46%
Other assets 280,940 182,297 54.11%
Total Assets $10,670,323 $10,576,453 0.89%
Liabilities
Deposits:
Demand: Noninterest bearing $1,311,477 $1,287,846 1.83%
Interest bearing 2,607,141 2,463,010 5.85%
Savings 786,235 797,880 (1.46%)
Other time 4,084,393 4,165,336 (1.94%)
Total deposits 8,789,246 8,714,072 0.86%
Federal funds purchased and
securities sold under agreement
to repurchase 458,116 576,727 (20.57%)
Short term borrowings 185,000 50,000 270.00%
Accrued interest payable 17,590 21,101 (16.64%)
Junior Subordinated Debt Securities 128,866 125,000 3.09%
Long-term debt 137,838 139,137 (0.93%)
Other liabilities 100,757 92,548 8.87%
Total Liabilities 9,817,413 9,718,585 1.02%
Shareholders' Equity
Common stock 192,086 195,017 (1.50%)
Capital surplus 44,445 31,031 43.23%
Other comprehensive income (8,276) 39,368 (121.02%)
Retained earnings 624,655 592,452 5.44%
Total Shareholders' Equity 852,910 857,868 (0.58%)
Total Liabilities & Shareholders'
Equity $10,670,323 $10,576,453 0.89%
BancorpSouth, Inc.
Consolidated Statements of Income
(Dollars in thousands, except per share data)
(Unaudited)
Quarter Ended
Jun 2004 Mar 2004 Dec 2003 Sept 2003
INTEREST REVENUE:
Loans $91,358 $92,250 $94,822 $98,292
Deposits with other banks 288 128 96 67
Federal funds sold and
securities purchased
under agreement to resell 115 697 772 1,295
Held-to-maturity securities:
Taxable 12,791 10,112 9,831 10,258
Tax-exempt 1,694 1,796 1,860 1,941
Available-for-sale
securities:
Taxable 15,309 15,688 16,108 15,160
Tax-exempt 1,650 1,759 1,878 1,903
Loans held for sale 478 756 856 896
Total interest
revenue 123,683 123,186 126,223 129,812
INTEREST EXPENSE:
Deposits 33,915 33,918 33,929 35,260
Federal funds purchased
and securities sold
under agreement to
repurchase 1,101 1,063 1,551 2,018
Other 4,983 4,723 4,658 4,726
Total interest
expense 39,999 39,704 40,138 42,004
Net interest
revenue 83,684 83,482 86,085 87,808
Provision for credit
losses 4,835 4,015 7,472 4,664
Net interest
revenue, after
provision for
credit losses 78,849 79,467 78,613 83,144
NONINTEREST REVENUE:
Mortgage lending 11,365 (1,141) 6,441 10,323
Service charges 16,057 14,318 15,882 16,131
Life insurance premiums 478 562 657 760
Trust income 1,842 1,686 2,138 1,905
Security gains, net 59 618 40 60
Insurance commissions 13,232 14,458 13,101 11,946
Other 8,383 15,539 9,815 8,695
Total noninterest
revenue 51,416 46,040 48,074 49,820
NONINTEREST EXPENSE:
Salaries and employee
benefits 48,628 50,036 47,633 46,449
Occupancy, net of rental
income 6,084 5,956 5,853 5,932
Equipment 5,636 5,460 5,569 6,063
Telecommunications 1,825 1,838 1,874 1,915
Other 21,858 22,716 23,898 22,192
Total noninterest
expenses 84,031 86,006 84,827 82,551
Income before
income taxes 46,234 39,501 41,860 50,413
Income tax expense 14,961 12,336 12,990 16,539
Net income $31,273 $27,165 $28,870 $33,874
Net income per share: Basic $0.41 $0.35 $0.37 $0.43
Diluted $0.40 $0.35 $0.37 $0.43
BancorpSouth, Inc.
Consolidated Statements of Income
(Dollars in thousands, except per share data)
(Unaudited)
Quarter Ended Year To Date
Jun 2003 Jun 2004 Jun 2003
INTEREST REVENUE:
Loans $102,369 $183,608 $206,915
Deposits with other banks 100 416 184
Federal funds sold and securities
purchased under agreement to resell 2,215 811 4,522
Held-to-maturity securities:
Taxable 12,628 22,903 26,230
Tax-exempt 2,079 3,490 4,295
Available-for-sale securities:
Taxable 11,031 30,997 23,159
Tax-exempt 1,995 3,409 4,089
Loans held for sale 777 1,234 1,482
Total interest revenue 133,194 246,868 270,876
INTEREST EXPENSE:
Deposits 39,289 67,832 79,833
Federal funds purchased and
securities sold under agreement
to repurchase 2,191 2,163 4,546
Other 4,645 9,707 9,284
Total interest expense 46,125 79,702 93,663
Net interest revenue 87,069 167,166 177,213
Provision for credit losses 6,472 8,851 12,994
Net interest revenue, after
provision for credit losses 80,597 158,315 164,219
NONINTEREST REVENUE:
Mortgage lending 1,634 10,224 6,488
Service charges 16,232 30,375 29,886
Life insurance premiums 876 1,040 1,838
Trust income 1,684 3,528 3,170
Security gains, net 180 677 13,737
Insurance commissions 8,314 27,690 14,702
Other 10,962 23,922 22,371
Total noninterest revenue 39,882 97,456 92,192
NONINTEREST EXPENSE:
Salaries and employee benefits 44,974 98,663 87,728
Occupancy, net of rental income 5,609 12,040 11,188
Equipment 5,776 11,096 11,779
Telecommunications 1,828 3,663 3,688
Other 20,113 44,574 40,833
Total noninterest expenses 78,300 170,036 155,216
Income before income taxes 42,179 85,735 101,195
Income tax expense 12,938 27,297 32,806
Net income $29,241 $58,438 $68,389
Net income per share: Basic $0.38 $0.76 $0.88
Diluted $0.37 $0.75 $0.88
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended
June 30, 2004
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of unearned income $6,374,578 $92,361 5.83%
Held-to-maturity securities:
Taxable 1,343,048 12,791 3.83%
Tax-exempt 148,345 2,606 7.06%
Available-for-sale securities:
Taxable 1,718,434 15,307 3.58%
Tax-exempt 152,756 2,538 6.68%
Short-term investments 94,682 402 1.71%
Total interest earning
assets and revenue 9,831,843 126,005 5.15%
Other assets 874,186
Less: allowance for credit losses (91,781)
Total $10,614,248
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $2,669,270 $5,765 0.87%
Savings 790,000 1,353 0.69%
Other time 4,059,635 26,798 2.65%
Short-term borrowings 531,398 1,400 1.06%
Junior subordinated debt 128,866 2,625 8.19%
Long-term debt 137,952 2,058 6.00%
Total interest bearing
liabilities and expense 8,317,122 39,999 1.93%
Demand deposits -
noninterest bearing 1,282,832
Other liabilities 128,097
Total liabilities 9,728,051
Shareholders' equity 886,197
Total $10,614,248
Net interest revenue $86,006
Net interest margin 3.52%
Net interest rate spread 3.22%
Interest bearing liabilities to
interest earning assets 84.59%
Net interest tax equivalent
adjustment $2,322
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended
June 30, 2003
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of unearned income $6,355,052 $103,521 6.53%
Held-to-maturity securities:
Taxable 1,437,348 12,628 3.52%
Tax-exempt 166,218 3,198 7.72%
Available-for-sale securities:
Taxable 1,028,778 11,031 4.30%
Tax-exempt 194,543 3,069 6.33%
Short-term investments 410,784 2,315 2.26%
Total interest earning
assets and revenue 9,592,723 135,762 5.68%
Other assets 785,412
Less: allowance for credit losses (91,005)
Total $10,287,130
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $2,473,411 $6,664 1.08%
Savings 802,359 2,079 1.04%
Other time 4,181,442 30,546 2.93%
Short-term borrowings 448,519 2,211 1.98%
Junior subordinated debt 125,000 2,547 8.15%
Long-term debt 139,243 2,079 5.99%
Total interest bearing
liabilities and expense 8,169,974 46,126 2.26%
Demand deposits -
noninterest bearing 1,170,922
Other liabilities 113,791
Total liabilities 9,454,687
Shareholders' equity 832,443
Total $10,287,130
Net interest revenue $89,636
Net interest margin 3.75%
Net interest rate spread 3.41%
Interest bearing liabilities to
interest earning assets 85.17%
Net interest tax equivalent
adjustment $2,567
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Year To Date
June 30, 2004
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of unearned income $6,344,678 $185,883 5.89%
Held-to-maturity securities:
Taxable 1,170,951 22,903 3.93%
Tax-exempt 148,805 5,368 7.25%
Available-for-sale securities:
Taxable 1,730,460 30,994 3.60%
Tax-exempt 158,982 5,244 6.63%
Short-term investments 199,367 1,227 1.24%
Total interest earning
assets and revenue 9,753,243 251,619 5.19%
Other assets 872,802
Less: allowance for credit losses (92,056)
Total $10,533,989
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $2,685,161 $11,459 0.86%
Savings 787,081 2,715 0.69%
Other time 4,062,137 53,659 2.66%
Short-term borrowings 471,545 2,497 1.06%
Junior subordinated debt 128,866 5,251 8.19%
Long-term debt 138,117 4,122 6.00%
Total interest bearing
liabilities and expense 8,272,907 79,702 1.94%
Demand deposits -
noninterest bearing 1,259,850
Other liabilities 124,136
Total liabilities 9,656,893
Shareholders' equity 876,096
Total $10,533,989
Net interest revenue $171,917
Net interest margin 3.54%
Net interest rate spread 3.25%
Interest bearing liabilities to
interest earning assets 84.82%
Net interest tax equivalent
adjustment $4,751
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Year To Date
June 30, 2003
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of unearned income $6,376,722 $209,181 6.62%
Held-to-maturity securities:
Taxable 1,356,177 26,230 3.90%
Tax-exempt 172,573 6,607 7.72%
Available-for-sale securities:
Taxable 1,042,471 23,158 4.48%
Tax-exempt 198,125 6,291 6.40%
Short-term investments 397,907 4,705 2.38%
Total interest earning
assets and revenue 9,543,975 276,172 5.84%
Other assets 785,494
Less: allowance for credit losses (89,868)
Total $10,239,601
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $2,486,782 $13,798 1.12%
Savings 811,544 4,238 1.05%
Other time 4,157,274 61,798 3.00%
Short-term borrowings 447,172 4,575 2.06%
Junior subordinated debt 125,000 5,094 8.15%
Long-term debt 139,400 4,161 6.02%
Total interest bearing
liabilities and expense 8,167,172 93,664 2.31%
Demand deposits -
noninterest bearing 1,138,656
Other liabilities 109,553
Total liabilities 9,415,381
Shareholders' equity 824,221
Total $10,239,601
Net interest revenue $182,508
Net interest margin 3.86%
Net interest rate spread 3.52%
Interest bearing liabilities to
interest earning assets 85.57%
Net interest tax equivalent
adjustment $5,295
SOURCE: BancorpSouth, Inc.
CONTACT: L. Nash Allen, Jr., Treasurer and Chief Financial Officer,
+1-662-680-2330, or Gary C. Bonds, Senior Vice President and Controller,
+1-662-680-2332, both of BancorpSouth, Inc.
Web site: http://www.bancorpsouth.com/