BancorpSouth, Inc.
Net income for the nine months ended September 30, 2002 totaled $86.4 million, a 28.7 percent increase from $67.1 million for the same period last year. Basic and diluted net income per share for the nine months ended September 30, 2002 was $1.07, compared to basic and diluted net income per share of $0.81 and $0.80 respectively, for the same period in 2001.
"Our core earnings remain strong," said Aubrey Patterson, BancorpSouth Chairman and Chief Executive Officer. At the same time, our net income for the quarter increased 21 percent despite the impact of a $9.2 million provision for the impairment of our mortgage-servicing asset. As consumers have continued to take advantage of the historically low mortgage interest rates, prepayment speeds have increased and have impaired the value of our mortgage-servicing asset. Impairment is a non-cash valuation charge that generally moves in tandem with mortgage interest rates, so we anticipate being able to recapture much of this impairment when mortgage loan interest rates rise."
Partially offsetting this impairment charge was a $2.5 million gain in the third quarter of 2002 on the sale of securities that the Company had previously purchased. The net effect of both the mortgage-servicing asset impairment provision and the gain on the sale of securities reduced net income for the third quarter of 2002 by approximately $4.1 million, or $0.05 per basic and diluted share.
Net Interest Revenue
Total interest revenue was $148.9 million in the third quarter of 2002, down 9.7 percent from $165.0 million in the third quarter of 2001 and down slightly from $150.2 million in the second quarter of 2002. Total interest expense for the third quarter was $54.9 million, down 31.9 percent from $80.5 million for the third quarter of 2001 and essentially unchanged from $54.7 million for the second quarter of 2002.
The average taxable equivalent yield on earning assets was 6.46 percent in the third quarter of 2002 versus 7.70 percent in the third quarter of 2001 and 6.69 percent in the second quarter of 2002. The average rate paid on interest-bearing liabilities during the third quarter of 2002 was 2.72 percent, compared to 4.35 percent during the third quarter of 2001 and 2.80 percent during the second quarter of 2002.
Net interest revenue was $94.0 million in the third quarter of 2002, up 11.4 percent from $84.4 million in the third quarter of 2001. Net interest margin was 4.13 percent in the third quarter of 2002 compared to 4.00 percent in the third quarter of 2001 and 4.30 percent in the second quarter of 2002.
"Interest rates have remained relatively flat during 2002," continued Patterson, "and we, like most other banks, are dealing with pressure on our net interest margin. Through careful pricing of assets and liabilities, we have been able to maintain our net interest margin at favorable levels while continuing to maintain our market share."
Deposit and Loan Activity
At September 30, 2002, total assets were $10.1 billion, up 7.8 percent from $9.4 billion at September 30, 2001. Total deposits at September 30, 2002 grew 8.7 percent to $8.5 billion from $7.8 billion at September 30, 2001. Total loans at September 30, 2002 were $6.4 billion, an increase of 5.0 percent over loans of $6.1 billion on the same date a year ago.
"We are pleased with our growth in loans and deposits and are especially pleased with our growth in non-interest bearing demand deposits, which increased 9.7% over the same date of 2001," said Patterson. "We attribute our success to the quality of our service as well as our outstanding sales effort. BancorpSouth provides the service level of traditional relationship banking while offering a sophisticated array of products that smaller banks generally cannot provide," concluded Patterson.
Provision for Credit Losses and Allowance for Credit Losses
The provision for credit losses for the third quarter of 2002 was $8.2 million, up 19.8% from $6.9 million for the same quarter last year and up 13.8% from $7.2 million for the second quarter of 2002. Annualized net charge-offs for the third quarter of 2002 were 0.44 percent of average loans compared to 0.34 percent of average loans for the third quarter of 2001 and 0.39 percent of average loans for the second quarter of 2002.
At September 30, 2002, non-performing assets totaled $55.3 million, or 0.86 percent of loans, compared to $62.6 million, or 1.03 percent of loans, at September 30, 2001 and $59.9 million, or 0.94 percent of loans, at June 30, 2002. The allowance for credit losses at September 30, 2002 was 1.37 percent of loans, compared to 1.36 percent of loans at September 30, 2001 and 1.36 percent of loans at June 30, 2002.
"Loan losses are running ahead of last year's pace due to the economic slowdown," said Patterson. "We increased our provision for credit losses consistent with our conservative stance regarding credit quality. We believe this vigilance will continue to serve us well."
Non-Interest Revenue
Total non-interest revenue for the third quarter of 2002 was $27.9 million compared to $26.7 million in the 2001 third quarter and $31.4 million for the second quarter of 2002. The most significant event affecting non-interest revenue during the quarter was the impairment charge from revaluation of BancorpSouth's mortgage-servicing asset. The impairment charge was $9.2 million in the third quarter of 2002, compared to $6.0 million in the third quarter of 2001 and $4.2 million in the second quarter of 2002. While experiencing a negative impact from impairment of BancorpSouth's mortgage- servicing asset as mortgage interest rates declined, mortgage loan originations for BancorpSouth increased by 52% to $269.1 million for the third quarter of 2002 when compared to the $177.6 million for same period of 2001. We expect this high level of new mortgage loan originations to have a strong impact on future earnings. The volume of mortgage loans being serviced totaled $2.9 billion at September 30, 2002, compared to $2.8 billion at June 30, 2002 and $2.7 billion at September 30, 2001.
Service charges increased 23.1 percent to $12.9 million in the third quarter of 2002 when compared to $10.5 million in the third quarter of 2001, reflecting an expansion of BancorpSouth's deposit services which began in March 2002 and which should continue to positively impact non-interest revenue.
Non-Interest Expense
Non-interest expense for the third quarter of 2002 was $75.8 million, up 3.4 percent from $73.3 million for the 2001 third quarter and up 1.6 percent from $74.6 million for the second quarter of 2002. Salaries and employee benefits continue to increase primarily due to commission based payments (especially commissions to mortgage loan originators), increased incentive accruals and the increased cost of employee benefits. The other components of non-interest expense generally reflect decreases as BancorpSouth continues to focus on expense control.
Capital Management
In February of 2002, BancorpSouth announced a common stock repurchase plan, which authorized the repurchase of up to 4.1 million shares within a period of 18 months. During the third quarter of 2002, BancorpSouth repurchased 2,343,403 shares of common stock under this plan, resulting in as of September 30, 2002, a total of 2,568,508 shares having been repurchased under this plan.
Conference Call
BancorpSouth will conduct a conference call with stock analysts at 1:30 p.m. (Central Time) on October 17, 2002. 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 following the call.
BancorpSouth, Inc. is a bank holding company headquartered in Tupelo, Mississippi with approximately $10.1 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," "could" or "intend." These forward-looking statements include, without limitation, those relating to interest rates, loan volume, credit quality, interest rate margin, loan losses, expansion and prospects of products and services, deposits, expenses, capital management and liquidity, 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, the ability of BancorpSouth to reduce interest rates paid on deposits as interest rates decline or stabilize, ability to maintain credit quality, laws and regulations affecting financial institutions, 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 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 effectively manage its capital resources, the ability of BancorpSouth to attract, train and retain qualified personnel, the ability of BancorpSouth to effectively market its services and products, 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.
Selected Financial Data
Three Months Ended Nine Months Ended
September 30, September 30,
2002 2001 2002 2001
(Dollars in thousands,
except per share
amounts)
Earnings Summary:
Net interest revenue $94,022 $84,436 $283,396 $246,960
Provision for credit
losses 8,208 6,852 22,183 15,718
Noninterest revenue 27,907 26,734 92,792 86,674
Noninterest expense 75,773 73,285 227,519 219,363
Income before income
taxes 37,948 31,033 126,486 98,553
Income tax provision 11,876 9,450 40,090 31,405
Net income $26,072 $21,583 $86,396 $67,148
Earning per share: Basic $0.33 $0.26 $1.07 $0.81
Diluted: $0.33 $0.26 $1.07 $0.80
Balance sheet data at
September 30:
Total assets $10,120,612 $9,388,462
Total earning assets 9,384,987 8,703,017
Loans and lease
receivables, net of
unearned discount 6,373,149 6,061,146
Allowance for credit
losses 87,497 82,605
Total deposits 8,490,860 7,810,741
Common shareholders'
equity 804,250 796,441
Book value per share 10.24 9.78
Average balance sheet
data:
Total assets $9,977,577 $9,258,257 $9,797,543 $9,232,750
Total earning assets 9,321,348 8,653,304 9,160,134 8,621,313
Loans and lease
receivables, net of
unearned discount 6,355,451 6,004,966 6,258,897 5,999,552
Total deposits 8,326,409 7,699,508 8,165,513 7,669,155
Common shareholders'
equity 813,798 789,400 813,590 793,014
Non-performing assets at
September 30:
Non-accrual loans $10,705 $13,238
Loans 90+ days past due 23,629 39,756
Restructured loans 21 46
Other real estate owned 20,959 9,528
Net charge-offs as a
percentage
of average loans
(annualized) 0.44% 0.34% 0.41% 0.33%
Performance ratios
(annualized)
Return on average assets 1.04% 0.92% 1.18% 0.97%
Return on common equity 12.71% 10.85% 14.20% 11.32%
Net interest margin 4.13% 4.00% 4.27% 3.97%
Average shares
outstanding - diluted 80,166,776 82,437,761 81,115,325 83,437,112
BancorpSouth, Inc.
Consolidated Balance Sheets
(dollars in thousands)
(Unaudited) September 30, September 30,
2002 2001 % Chg
Assets
Cash & due from banks $340,868 $332,241 2.6%
Interest bearing deposits with
other banks 23,989 17,781 34.9%
Held-to-maturity securities 1,237,916 1,207,230 2.5%
Available-for-sale securities 1,434,485 1,107,626 29.5%
Federal funds sold and securities
purchased under agreement
to resell 247,118 260,020 (5.0%)
Loans & leases 6,373,149 6,061,146 5.1%
Allowance for credit losses (87,497) (82,605) 5.9%
Net loans & leases 6,285,652 5,978,541 5.1%
Mortgages held for sale 68,329 49,215 38.8%
Bank premises & equipment 209,637 209,367 0.1%
Accrued interest receivable 75,921 91,089 (16.7%)
Other real estate owned 20,959 9,528 120.0%
Other assets 175,738 125,824 39.7%
Total assets $10,120,612 $9,388,462 7.8%
Liabilities
Demand deposits:
Non-interest bearing $1,168,087 $1,064,780 9.7%
Interest bearing 2,402,511 2,006,120 19.8%
Total demand deposits 3,570,598 3,070,900 16.3%
Savings & time deposits:
Savings 800,065 862,506 (7.2%)
Certificates of deposit 4,120,197 3,877,335 6.3%
Total savings & time deposits 4,920,262 4,739,841 3.8%
Total deposits 8,490,860 7,810,741 8.7%
Federal funds purchased and
securities sold under
agreement to repurchase 446,588 500,481 (10.8%)
Short-term borrowings 0 0
Accrued interest payable 27,665 44,147 (37.3%)
Long-term debt 140,060 141,223 (0.8%)
Junior subordinated debt 125,000 0 NA
Other liabilities 86,189 95,429 (9.7%)
Total liabilities 9,316,362 8,592,021 8.4%
Shareholders' Equity
Common stock 196,320 203,623 (3.6%)
Capital surplus 18,598 14,234 30.7%
Unrealized gain(loss) on
securities 32,556 31,043 4.9%
Retained earnings 556,776 547,541 1.7%
Total shareholders' equity 804,250 796,441 1.0%
Total liabilities &
shareholders' equity $10,120,612 $9,388,462 7.8%
BancorpSouth, Inc.
Consolidated Statements of Income
(amounts in thousands, except per share data)
(Unaudited) Quarter Ended
Sep-02 Jun-02 Mar-02
Interest Revenue:
Loans, including fees $115,322 $115,144 $114,796
Held-to-maturity
securities: 16,577 16,093 16,429
Available-for-sale
securities 14,440 15,571 16,413
Short term investments 2,569 3,427 3,363
Total interest revenue 148,908 150,235 151,001
Interest Expense:
Deposits 47,099 46,834 49,901
Short term borrowings 1,268 1,186 1,034
Long term borrowings 2,095 2,069 2,112
Junior subordinated debt 2,547 2,547 1,783
Other interest expense 1,877 2,107 2,288
Total interest expense 54,886 54,743 57,118
Net interest revenue 94,022 95,492 93,883
Provision for credit
losses 8,208 7,215 6,760
Net interest revenue,
after credit loss
provision 85,814 88,277 87,123
Other Revenue:
Mortgage lending (2,595) 900 5,554
Service charges 12,888 12,595 10,210
Life insurance premiums 1,091 1,091 1,127
Trust income 1,693 1,644 1,917
Securities gains, net 2,453 2,888 (25)
Insurance commissions 6,123 5,887 5,668
Other 6,254 6,404 9,025
Total other revenue 27,907 31,409 33,476
Other Expense:
Salaries and employee
benefits 42,301 40,226 42,591
Occupancy 5,485 5,422 5,254
Equipment 6,070 6,264 6,535
Telecommunications 1,922 2,032 1,925
Other 19,995 20,630 20,867
Total other expense 75,773 74,574 77,172
Income before
income taxes 37,948 45,112 43,427
Income tax expense 11,876 14,185 14,029
Net Income $26,072 $30,927 $29,398
Net Income Per Share:
Basic $0.33 $0.38 $0.36
Diluted $0.33 $0.38 $0.36
BancorpSouth, Inc.
Consolidated Statements of Income
(amounts in thousands, except per share data)
(Unaudited) Quarter Ended
Dec-01 Sep-01
Interest Revenue:
Loans, including fees $121,626 $128,049
Held-to-maturity
securities: 16,706 17,698
Available-for-sale
securities 14,772 14,757
Short term investments 3,932 4,477
Total interest revenue 157,036 164,981
Interest Expense:
Deposits 63,060 73,071
Short term borrowings 1,571 2,700
Long term borrowings 2,100 2,105
Junior subordinated debt 0 0
Other interest expense 2,523 2,669
Total interest expense 69,254 80,545
Net interest revenue 87,782 84,436
Provision for credit
losses 6,542 6,852
Net interest revenue,
after credit loss
provision 81,240 77,584
Other Revenue:
Mortgage lending 12,913 (1,462)
Service charges 11,041 10,469
Life insurance premiums 1,155 1,151
Trust income 1,613 2,022
Securities gains, net 3,770 3,943
Insurance commissions 5,262 5,146
Other 6,205 5,465
Total other revenue 41,959 26,734
Other Expense:
Salaries and employee
benefits 41,451 37,083
Occupancy 5,132 5,263
Equipment 6,382 6,442
Telecommunications 2,143 2,244
Other 20,842 22,253
Total other expense 75,950 73,285
Income before
income taxes 47,249 31,033
Income tax expense 15,935 9,450
Net Income $31,314 $21,583
Net Income Per Share:
Basic $0.39 $0.26
Diluted $0.38 $0.26
BancorpSouth, Inc.
Consolidated Statements of Income
(amounts in thousands, except per share data)
(Unaudited) Year To Date
Sep-02 Sep-01
Interest Revenue:
Loans, including fees $345,263 $396,580
Held-to-maturity
securities: 49,098 50,378
Available-for-sale
securities 46,425 44,576
Short term investments 9,358 17,265
Total interest revenue 450,144 508,799
Interest Expense:
Deposits 143,835 237,778
Short term borrowings 3,488 9,338
Long term borrowings 6,276 6,540
Junior subordinated debt 6,877 0
Other interest expense 6,272 8,183
Total interest expense 166,748 261,839
Net interest revenue 283,396 246,960
Provision for credit
losses 22,183 15,718
Net interest revenue,
after credit loss
provision 261,213 231,242
Other Revenue:
Mortgage lending 3,859 4,273
Service charges 35,693 31,718
Life insurance premiums 3,309 3,373
Trust income 5,253 5,316
Securities gains, net 5,316 6,901
Insurance commissions 17,676 15,160
Other 21,686 19,933
Total other revenue 92,792 86,674
Other Expense:
Salaries and employee
benefits 125,119 114,229
Occupancy 16,161 15,397
Equipment 18,869 20,417
Telecommunications 5,879 6,549
Other 61,491 62,771
Total other expense 227,519 219,363
Income before
income taxes 126,486 98,553
Income tax expense 40,090 31,405
Net Income $86,396 $67,148
Net Income Per Share:
Basic $1.07 $0.81
Diluted $1.07 $0.80
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(dollars in thousands) Year To Date
Unaudited September 30, 2002
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of Unearned Income $6,312,781 $346,673 7.34%
Held-to-maturity securities:
Taxable 993,581 41,763 5.62%
Non Taxable 196,275 11,286 7.69%
Available-for-sale securities
Taxable 1,107,887 39,947 4.82%
Non Taxable 197,409 9,965 6.75%
Short term investments 352,201 9,359 3.55%
Total interest earning
assets and revenue 9,160,134 458,993 6.70%
Other assets 722,992
Less: allowance for credit losses (85,583)
Total $9,797,543
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $2,313,168 $27,657 1.60%
Savings 859,490 9,901 1.54%
Time 3,945,818 106,277 3.60%
Short-term borrowings 456,620 9,762 2.86%
Junior subordinated debt 111,264 6,877 8.15%
Long-term debt 140,161 6,276 5.99%
Total interest bearing
liabilities and expense 7,826,521 166,750 2.85%
Demand deposits -
non-interest bearing 1,047,037
Other liabilities 110,395
Total liabilities 8,983,953
Shareholders' equity 813,590
Total $9,797,543
Net interest revenue $292,243
Net interest margin 4.27%
Net interest rate spread 3.85%
Interest bearing liabilities to
interest earning assets 85.44%
Net interest tax equivalent
adjustment $8,847
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(dollars in thousands) Year To Date
Unaudited September 30, 2001
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of Unearned Income $6,047,363 $397,541 8.79%
Held-to-maturity securities:
Taxable 919,497 42,262 6.15%
Non Taxable 217,980 12,486 7.66%
Available-for-sale securities
Taxable 813,006 38,233 6.29%
Non Taxable 176,442 9,759 7.39%
Short term investments 447,025 17,265 5.16%
Total interest earning
assets and revenue 8,621,313 517,546 8.03%
Other assets 692,449
Less: allowance for credit losses (81,012)
Total $9,232,750
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $1,841,595 $40,637 2.95%
Savings 886,316 26,001 3.92%
Time 3,948,239 171,139 5.80%
Short-term borrowings 504,803 17,522 4.64%
Junior subordinated debt 0 0
Long-term debt 146,466 6,541 5.97%
Total interest bearing
liabilities and expense 7,327,419 261,840 4.78%
Demand deposits -
non-interest bearing 993,005
Other liabilities 119,312
Total liabilities 8,439,736
Shareholders' equity 793,014
Total $9,232,750
Net interest revenue $255,706
Net interest margin 3.97%
Net interest rate spread 3.25%
Interest bearing liabilities to
interest earning assets 84.99%
Net interest tax equivalent
adjustment $8,746
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(dollars in thousands) Quarter Ended
Unaudited September 30, 2002
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of Unearned Income $6,412,420 $115,789 7.16%
Held-to-maturity securities:
Taxable 1,089,342 14,182 5.17%
Non Taxable 194,142 3,685 7.53%
Available-for-sale securities
Taxable 1,175,225 12,274 4.14%
Non Taxable 201,465 3,333 6.56%
Short term investments 248,754 2,569 4.10%
Total interest earning
assets and revenue 9,321,348 151,832 6.46%
Other assets 743,219
Less: allowance for credit losses (86,990)
Total $9,977,577
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $2,357,120 $9,528 1.60%
Savings 821,663 2,917 1.41%
Time 4,088,905 34,654 3.36%
Short-term borrowings 464,639 3,146 2.69%
Junior subordinated debt 125,000 2,547 8.15%
Long-term debt 140,162 2,095 5.93%
Total interest bearing
liabilities and expense 7,997,489 54,887 2.72%
Demand deposits -
non-interest bearing 1,058,721
Other liabilities 107,569
Total liabilities 9,163,779
Shareholders' equity 813,798
Total $9,977,577
Net interest revenue $96,945
Net interest margin 4.13%
Net interest rate spread 3.74%
Interest bearing liabilities to
interest earning assets 85.80%
Net interest tax equivalent
adjustment $2,923
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(dollars in thousands) Quarter Ended
Unaudited June 30, 2002
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of Unearned Income $6,323,983 $115,611 7.33%
Held-to-maturity securities:
Taxable 954,261 13,643 5.73%
Non Taxable 196,409 3,769 7.70%
Available-for-sale securities
Taxable 1,091,573 13,417 4.93%
Non Taxable 197,212 3,314 6.74%
Short term investments 424,143 3,427 3.24%
Total interest earning
assets and revenue 9,187,581 153,181 6.69%
Other assets 715,892
Less: allowance for credit losses (85,472)
Total $9,818,001
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $2,323,638 $9,295 1.60%
Savings 866,708 3,424 1.58%
Time 3,930,864 34,115 3.48%
Short-term borrowings 453,611 3,293 2.91%
Junior subordinated debt 125,000 2,547 8.15%
Long-term debt 140,458 2,069 5.91%
Total interest bearing
liabilities and expense 7,840,279 54,743 2.80%
Demand deposits -
non-interest bearing 1,044,430
Other liabilities 113,351
Total liabilities 8,998,060
Shareholders' equity 819,941
Total $9,818,001
Net interest revenue $98,438
Net interest margin 4.30%
Net interest rate spread 3.89%
Interest bearing liabilities to
interest earning assets 85.34%
Net interest tax equivalent
adjustment $2,946
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(dollars in thousands) Quarter Ended
Unaudited March 31, 2002
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of Unearned Income $6,199,602 $115,273 7.54%
Held-to-maturity securities:
Taxable 935,448 13,938 6.04%
Non Taxable 198,319 3,832 7.84%
Available-for-sale securities
Taxable 1,055,547 14,256 5.48%
Non Taxable 193,462 3,318 6.96%
Short term investments 385,204 3,363 3.54%
Total interest earning
assets and revenue 8,967,582 153,980 6.96%
Other assets 709,501
Less: allowance for credit losses (84,258)
Total $9,592,825
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $2,257,654 $8,834 1.59%
Savings 890,858 3,560 1.62%
Time 3,814,671 37,509 3.99%
Short-term borrowings 451,464 3,322 2.98%
Junior subordinated debt 83,333 1,783 8.15%
Long-term debt 139,859 2,112 6.12%
Total interest bearing
liabilities and expense 7,637,839 57,118 3.03%
Demand deposits -
non-interest bearing 1,037,730
Other liabilities 110,299
Total liabilities 8,785,869
Shareholders' equity 806,956
Total $9,592,825
Net interest revenue $96,862
Net interest margin 4.38%
Net interest rate spread 3.93%
Interest bearing liabilities to
interest earning assets 85.17%
Net interest tax equivalent
adjustment $2,979
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 $2,902
SOURCE: BancorpSouth, Inc.
CONTACT: financial, L. Nash Allen, Jr., +1-662-680-2330, or media,
Randy Burchfield, +1-662-620-4302, both of BancorpSouth, Inc.
Web site: http://www.bancorpsouth.com/