BancorpSouth, Inc.
Net income increased 18.4 percent for the first nine months of 2003, to $102.3 million from $86.4 million for the first nine months of 2002. Net income per basic share rose 23.4 percent for the first nine months of 2003 to $1.32 from $1.07 for the first nine months of 2002, and net income per diluted share increased 22.4 percent to $1.31 from $1.07.
"BancorpSouth produced another solid financial performance for the third quarter of 2003, which we again attribute to the substantial growth of non- interest revenue," remarked Aubrey Patterson, Chairman and Chief Executive Officer of BancorpSouth. "Although interest rates exhibited more upward pressure in the third quarter of 2003 than they have in several quarters, our mortgage volume remained heavy, generating 33.8 percent greater origination volume for the third quarter of 2003 than the third quarter of 2002. In fact, through just the first nine months of 2003, we have originated mortgages of over $1.06 billion, more than we have ever originated in any previous full fiscal year. In addition, we continued to benefit from substantial growth in service charges, and, primarily as a result of the August 1, 2003 consummation of the Ramsey, Krug, Farrell & Lensing acquisition following the second- quarter acquisition of Wright & Percy Insurance, our insurance commission revenue nearly doubled for the third quarter of 2003 versus the third quarter last year.
"The upward bias in interest rates during the third quarter is reflected in their impact on the valuation of our mortgage servicing asset at the quarter's end. Our third-quarter 2003 financial results benefited from a non- cash $5.8 million reversal of a previously recorded impairment charge against the asset, compared with a non-cash provision for the impairment of the asset of $9.2 million recorded for the third quarter of 2002. In addition, our non- interest revenue includes the relatively insignificant effect of net securities gains of $60,000 for the third quarter of 2003 versus net securities gains of $2.5 million for the third quarter of 2002. The net after-tax effect of the valuation change in the mortgage servicing asset combined with the net securities gain for each quarter was a $0.05 per diluted share increase in earnings for the third quarter of 2003 and a $0.05 per diluted share decrease in earnings for the third quarter of 2002.
"The significant growth in our non-interest revenue in the third quarter highlights the strategic importance of our multi-year effort to diversify our revenue stream. In an economic environment that has provided little opportunity for loan growth, the comparable-quarter growth in our third- quarter non-interest revenue, excluding the items discussed above, essentially offset the decline in net interest revenue for the third quarter of 2003 from the third quarter of 2002."
Net Interest Revenue
For the third quarter of 2003, interest revenue was $129.8 million, a decrease of 12.0 percent from $147.5 million for the third quarter of 2002 and a 2.5 percent decrease from $133.2 million for the second quarter of 2003. Interest expense declined 23.5 percent to $42.0 million for the third quarter from $54.9 million for the third quarter of 2002 and 8.9 percent from $46.1 million for the second quarter of 2003.
The average taxable equivalent yield on earning assets was 5.52 percent for the third quarter of 2003, down from 6.40 percent for the comparable quarter in 2002 and 5.68 percent for the second quarter of 2003. The average rate paid on interest bearing liabilities declined to 2.07 percent for the third quarter of 2003 from 2.72 percent for the third quarter last year and from 2.26 percent for the second quarter this year.
Net interest revenue for the third quarter of 2003 was $87.8 million, a 5.2 percent decline from $92.6 million for the third quarter of 2002 and up 0.8 percent from $87.1 million for the second quarter of 2003. Net interest margin was 3.76 percent for the third quarter of 2003, down from 4.07 percent for the same quarter of 2002 and up from 3.75 percent for the second quarter of 2003.
"We are pleased that in a more stable interest rate environment, we produced a sequential-quarter gain in net interest revenue for the third quarter from the second quarter, after a decline over the four previous consecutive quarters, and a sequential-quarter increase in net interest margin, after a decline over the five previous consecutive quarters," said Patterson. "However, the decline in these metrics in the third quarter of 2003 versus the third quarter of 2002 is evidence of both our national and regional economic climate and the significant decline in interest rates during the past year. Although we must constantly manage our assets and liabilities to limit our exposure to changing interest rates, we are working to position BancorpSouth for a rising interest rate environment, which we believe is the appropriate and conservative position at this time in the interest rate cycle."
Deposit and Loan Activity
Total assets were $10.2 billion at September 30, 2003, a 0.6 percent increase from $10.1 billion at September 30, 2002. Total deposits at the end of the third quarter of 2003 were $8.4 billion, a decline of 0.8 percent from $8.5 billion at the same time in 2002. Total loans at September 30, 2003 were $6.3 billion, down 1.9 percent from $6.4 billion at September 30, 2002. Patterson commented, "An important aspect of managing our asset and liability mix is responding to ebbs and flows in loan demand. We have continued to experience weak loan demand. As a result, we less aggressively sought interest bearing deposits during the third quarter. While total savings and time deposits declined 3.6 percent for the quarter from the third quarter last year, we continued to expand our market share of low-cost funds with a 6.8 percent increase in non-interest bearing deposits and a 1.3 percent increase in interest bearing demand deposits for the quarter compared with the third quarter of 2002. We believe these increases demonstrate our continued penetration of our markets, which will support our ability to expand our lending activities in an improving economic environment."
Provision for Credit Losses and Allowance for Credit Losses
The Company reduced its provision for credit losses for the fourth consecutive quarter to $4.7 million for the third quarter of 2003, down 43.2 percent from $8.2 million for the third quarter of 2002 and 27.9 percent from the second quarter of 2003. Annualized net charges-offs declined to 0.34 percent of average loans for the third quarter from 0.44 percent for the third quarter last year, and increased from 0.31 percent for the second quarter of 2003.
Non-performing loans were $46.3 million at September 30, 2003, or 0.74 percent of loans, up from $34.4 million, or 0.54 percent of loans, at September 30, 2002, and up slightly from $45.2 million, or 0.72 percent of loans, at June 30, 2003. The allowance for credit losses also increased to 1.45 percent of loans at the end of the third quarter from 1.37 percent at the same time in 2002, while remaining unchanged from 1.45 percent at the end of the second quarter of 2003.
"BancorpSouth's conservative lending and credit philosophy has continued to produce strong credit quality in an extended and challenging period of economic weakness," added Patterson. "Although non-performing loans increased during the past year, our charge-offs declined significantly for the third quarter compared with the third quarter last year. This decline in charge- offs, along with the decline in loans outstanding at September 30, 2003 when compared to September 30, 2002, enabled us to maintain an allowance for credit losses at 1.45 percent of loans. This is a significant improvement from the third quarter last year, in spite of a substantial reduction in our provision for credit losses. We remain fundamentally committed to conservative lending practices as an essential element of our strategies to achieve consistent long-term growth."
Non-Interest Revenue
BancorpSouth's non-interest revenue increased 81.3 percent for the third quarter of 2003 to $53.1 million from $29.3 million for the third quarter of 2002 and 23.8 percent from $42.9 million for the second quarter of 2003. Although these growth rates include the impact of the changes in the valuation of our mortgage servicing asset and the net securities gains that are discussed above, non-interest revenue, excluding this impact, still increased more than 30 percent for the third quarter compared with the third quarter last year.
The greatest portion of this growth resulted from a 95.1 percent increase in insurance commissions for the third quarter of 2003 to $11.9 million from $6.1 million for the third quarter last year. In addition, service charges for the latest quarter were $16.1 million, up 25.2 percent from $12.9 million for the third quarter of 2002. BancorpSouth further benefited from a 33.8 percent increase in mortgage loan originations for the third quarter of 2003 to $360.1 million from $269.1 million for the comparable quarter in 2002. Revenue from these mortgage originations totaled $8.3 million for the third quarter of 2003, up 33.9% from $6.2 million for the third quarter of 2002.
Patterson said, "We are very pleased with the overall performance of our non-interest revenue generating activities, the growth of which is the result of our strategy to meet the demand for more comprehensive financial services within our customer base. We will continue to evaluate additional opportunities to expand the number of products and services we provide each customer through both accretive acquisitions, such as the Ramsey, Krug, Farrell & Lensing acquisition completed during the third quarter, and internal growth, such as the ongoing growth of our mortgage originations.
"We also remain committed to the mortgage servicing business and to the expansion of our mortgage servicing portfolio, which totaled $2.8 billion at the end of the third quarter. Through our origination of more than $1 billion of relatively low-interest rate mortgages during the first nine months of 2003, we believe the mortgage servicing portfolio's prepayment risk has declined significantly, enhancing its prospects of providing BancorpSouth a consistent, long-term contribution to earnings."
Non-Interest Expense
Non-interest expense totaled $85.9 million for the third quarter of 2003, a 13.3 percent increase over $75.8 million for the third quarter of 2002. The majority of the increase in non-interest expenses resulted from a 17.6 percent increase in salaries and employee benefits. The acquisition of a major insurance agency in each of the second and third quarters of 2003 contributed to this increase, as well as commissions earned by BancorpSouth's mortgage personnel as a result of the significant increase in mortgage loan originations. The addition of the two insurance agencies in 2003 also contributed to the 11.0 percent increase in other expenses for the third quarter of 2003 versus the third quarter last year.
Capital Management
During the third quarter of 2003, BancorpSouth repurchased the 230,892 shares of its common stock that remained available under the plan authorized in February 2002 for the repurchase of up to 4.1 million shares. In addition, BancorpSouth also repurchased approximately 327,000 shares during the third quarter of 2003 under another stock repurchase plan authorized in April 2003 for the repurchase of up to 3.9 million shares. Combined with the shares repurchased under a separate 4.2 million share stock repurchase plan authorized in March 2001 and completed in 2002, BancorpSouth had repurchased 8.6 million shares of its common stock as of September 30, 2003, or 10.3 percent of its outstanding shares at March 31, 2001. BancorpSouth will continue to evaluate additional share repurchases under the April 2003 plan, which authorizes these repurchases during a two-year period.
Summary
Mr. Patterson concluded, "As our repurchase of over 10% of the Company's shares during the past 18 months indicates, not only do we believe that an investment in BancorpSouth's stock will provide an attractive long-term return for the Company, but we are also very focused on our goal of increasing BancorpSouth's shareholder value. We further support this goal through a cash dividend policy that has provided increasing annual dividends to our shareholders for 20 consecutive years.
"More importantly, however, we are fully committed to the continuing refinement and implementation of growth strategies to achieve consistent profitable growth over the long-term. These strategies are based both on our ability to create strong customer relationships through high quality customer service and on a conservative banking philosophy that stresses strong credit quality. In achieving these core values, we have moved aggressively and innovatively to create a unique market position across our six-state region, with substantial prospects for additional growth. As a result, we have continued to expand our business and market share throughout a multi-year period of economic weakness, and we are confident that BancorpSouth is well positioned to achieve further profitable growth in an improving economic environment."
Conference Call
BancorpSouth will conduct a conference call with analysts at 1:30 p.m. (Central Time) on October 20, 2003. 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 the acquisition of Ramsey, Krug, Farrell & Lensing, interest rates, loan demand and lending activities, credit quality, expansion of mortgage servicing portfolio and resulting benefits, non-interest revenue, expansion of products and services, internal growth and acquisitions, common stock repurchase plan, shareholder value, strategies to achieve consistent long-term growth 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 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 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, 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 bank holding company headquartered in Tupelo, Mississippi with approximately $10.2 billion in assets. BancorpSouth operates approximately 250 commercial banking, insurance, trust and broker/dealer locations in Alabama, Arkansas, Louisiana, Mississippi, Tennessee and Texas.
Selected Financial Data
Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
(Dollars in thousands,
except per share
amounts)
Earnings Summary:
Net interest revenue $87,808 $92,622 $265,021 $279,132
Provision for credit
losses 4,664 8,208 17,658 22,183
Non-interest revenue 53,120 29,307 151,052 97,056
Non-interest expense 85,851 75,773 246,807 227,519
Income before income
taxes 50,413 37,948 151,608 126,486
Income tax provision 16,539 11,876 49,345 40,090
Net income $33,874 $26,072 $102,263 $86,396
Earning per share:
Basic $0.43 $0.33 $1.32 $1.07
Diluted: $0.43 $0.33 $1.31 $1.07
Balance sheet data at
September 30:
Total assets $10,185,547 $10,120,612
Total earning assets 9,440,660 9,384,987
Loans and lease
receivables, net of
unearned discount 6,251,791 6,373,149
Allowance for credit
losses 90,505 87,497
Total deposits 8,424,422 8,490,860
Common shareholders'
equity 854,441 804,250
Book value per share 10.96 10.24
Average balance sheet
data:
Total assets $10,254,503 $9,977,577 $10,244,623 $9,797,543
Total earning assets 9,509,599 9,321,348 9,532,390 9,160,134
Loans and lease
receivables, net of
unearned discount 6,271,633 6,355,451 6,302,564 6,258,897
Total deposits 8,450,937 8,326,409 8,545,959 8,165,513
Common shareholders'
equity 874,626 813,798 841,207 813,590
Non-performing assets
at September 30:
Non-accrual loans $18,655 $10,705
Loans 90+ days past due 25,773 23,629
Restructured loans 1,870 21
Other real estate owned 14,049 21,724
Net charge-offs as a
percentage of average loans
(annualized) 0.34% 0.44% 0.32% 0.41%
Performance ratios
(annualized)
Return on average
assets 1.31% 1.04% 1.33% 1.18%
Return on common equity 15.37% 12.71% 16.25% 14.20%
Net interest margin 3.76% 4.07% 3.83% 4.20%
Average shares
outstanding - diluted 78,415,306 80,166,776 78,095,332 81,115,325
BancorpSouth, Inc.
Consolidated Balance Sheets
(dollars in thousands)
(Unaudited)
September 30, September 30,
2003 2002 % Chg
Assets
Cash & due from banks $302,520 $340,868 (11.3%)
Interest bearing deposits with
other banks 19,157 23,989 (20.1%)
Held-to-maturity securities 990,112 1,237,916 (20.0%)
Available-for-sale securities 1,997,318 1,434,485 39.2%
Federal funds sold and securities
purchased under agreement
to resell 139,872 247,118 (43.4%)
Loans & leases 6,251,791 6,373,149 (1.9%)
Allowance for credit losses (90,505) (87,497) 3.4%
Net loans & leases 6,161,286 6,285,652 (2.0%)
Mortgages held for sale 42,412 68,329 (37.9%)
Bank premises & equipment 212,282 209,637 1.3%
Accrued interest receivable 72,721 75,921 (4.2%)
Other real estate owned 14,049 21,724 (35.3%)
Other assets 233,818 174,973 33.6%
Total assets $10,185,547 $10,120,612 0.6%
Liabilities
Demand deposits:
Non-interest bearing $1,246,955 $1,168,087 6.8%
Interest bearing 2,434,498 2,402,511 1.3%
Total demand deposits 3,681,453 3,570,598 3.1%
Savings & time deposits:
Savings 786,080 800,065 (1.7%)
Certificates of deposit 3,956,889 4,120,197 (4.0%)
Total savings & time deposits 4,742,969 4,920,262 (3.6%)
Total deposits 8,424,422 8,490,860 (0.8%)
Federal funds purchased and
securities sold under
agreement to repurchase 517,420 446,588 15.9%
Accrued interest payable 20,371 27,665 (26.4%)
Junior subordinated debt 125,000 125,000 NA
Long-term debt 138,820 140,060 (0.9%)
Other liabilities 105,073 86,189 21.9%
Total liabilities 9,331,106 9,316,362 0.2%
Shareholders' Equity
Common stock 194,900 196,320 (0.7%)
Capital surplus 40,770 18,598 119.2%
Unrealized gain on
securities 15,419 32,556 (52.6%)
Retained earnings 603,352 556,776 8.4%
Total shareholders' equity 854,441 804,250 6.2%
Total liabitities &
shareholders' equity $10,185,547 $10,120,612 0.6%
BancorpSouth, Inc.
Consolidated Statements of Income
(amounts in thousands, except per share data)
(Unaudited)
Quarter Ended
Sep-03 Jun-03 Mar-03 Dec-02 Sep-02
Interest Revenue:
Loans, including fees $99,188 $103,146 $105,252 $110,129 $113,922
Held-to-maturity
securities: 12,199 14,707 15,818 15,681 16,577
Available-for-sale
securities 17,063 13,026 14,221 16,277 14,440
Short term investments 1,362 2,315 2,391 2,451 2,569
Total interest revenue 129,812 133,194 137,682 144,538 147,508
Interest Expense:
Deposits 35,260 39,289 40,544 44,695 47,099
Short term borrowings 1,055 987 904 1,132 1,268
Long term borrowings 2,075 2,079 2,082 2,090 2,095
Junior subordinated debt 2,547 2,547 2,547 2,547 2,547
Other interest expense 1,067 1,223 1,461 1,680 1,877
Total interest expense 42,004 46,125 47,538 52,144 54,886
Net interest revenue 87,808 87,069 90,144 92,394 92,622
Provision for credit
losses 4,664 6,472 6,522 7,228 8,208
Net interest revenue,
after credit loss
provision 83,144 80,597 83,622 85,166 84,414
Other Revenue:
Mortgage lending 13,623 4,667 7,561 6,069 (2,595)
Service charges 16,131 16,232 13,654 13,557 12,888
Life insurance premiums 760 876 961 1,031 1,091
Trust income 1,905 1,684 1,486 1,767 1,693
Securities gains, net 60 180 13,556 170 2,453
Insurance commissions 11,946 8,314 6,387 5,927 6,123
Other 8,695 10,962 11,411 6,661 7,654
Total other revenue 53,120 42,915 55,016 35,182 29,307
Other Expense:
Salaries and employee
benefits 49,749 48,007 45,461 45,985 42,301
Occupancy 5,932 5,609 5,580 5,497 5,485
Equipment 6,063 5,776 6,003 6,093 6,070
Telecommunications 1,915 1,828 1,860 1,948 1,922
Other 22,192 20,113 20,719 25,356 19,995
Total other expense 85,851 81,333 79,623 84,879 75,773
Income before
income taxes 50,413 42,179 59,015 35,469 37,948
Income tax expense 16,539 12,938 19,867 9,848 11,876
Net Income $33,874 $29,241 $39,148 $25,621 $26,072
Net Income Per Share:
Basic $0.43 $0.38 $0.51 $0.33 $0.33
Diluted $0.43 $0.37 $0.50 $0.33 $0.33
BancorpSouth, Inc.
Consolidated Statements of Income
(amounts in thousands, except per share data)
(Unaudited)
Year To Date
Sep-03 Sep-02
Interest Revenue:
Loans, including fees $307,585 $340,999
Held-to-maturity
securities: 42,725 49,098
Available-for-sale
securities 44,311 46,425
Short term investments 6,067 9,358
Total interest revenue 400,688 445,880
Interest Expense:
Deposits 115,093 143,835
Short term borrowings 2,946 3,488
Long term borrowings 6,236 6,276
Junior subordinated debt 7,641 6,877
Other interest expense 3,751 6,272
Total interest expense 135,667 166,748
Net interest revenue 265,021 279,132
Provision for credit
losses 17,658 22,183
Net interest revenue,
after credit loss
provision 247,363 256,949
Other Revenue:
Mortgage lending 25,851 3,859
Service charges 46,017 35,693
Life insurance premiums 2,598 3,309
Trust income 5,075 5,253
Securities gains, net 13,796 5,316
Insurance commissions 26,647 17,676
Other 31,068 25,950
Total other revenue 151,052 97,056
Other Expense:
Salaries and employee
benefits 143,217 125,119
Occupancy 17,120 16,161
Equipment 17,842 18,869
Telecommunications 5,603 5,879
Other 63,025 61,491
Total other expense 246,807 227,519
Income before
income taxes 151,608 126,486
Income tax expense 49,345 40,090
Net Income $102,263 $86,396
Net Income Per Share:
Basic $1.32 $1.07
Diluted $1.31 $1.07
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(dollar in thousands)
(Unaudited)
Quarter Ended
September 30, 2003
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of Unearned Income $6,344,679 $99,535 6.22%
Held-to-maturity securities:
Taxable 928,655 10,258 4.38%
Non Taxable 159,698 2,987 7.42%
Available-for-sale securities:
Taxable 1,738,380 15,160 3.46%
Non Taxable 184,639 2,928 6.29%
Short term investments 153,548 1,362 3.52%
Total interest earning
assets and revenue 9,509,599 132,230 5.52%
Other assets 836,643
Less: allowance for credit losses (91,739)
Total $10,254,503
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $2,462,312 $5,220 0.84%
Savings 791,963 1,431 0.72%
Time 3,982,951 28,608 2.85%
Short-term borrowings 533,933 2,123 1.58%
Junior subordinated debt 125,000 2,547 8.15%
Long-term debt 138,929 2,075 5.93%
Total interest bearing
liabilities and expense 8,035,088 42,004 2.07%
Demand deposits -
non-interest bearing 1,213,711
Other liabilities 131,078
Total liabilities 9,379,877
Shareholders' equity 874,626
Total $10,254,503
Net interest revenue $90,226
Net interest margin 3.76%
Net interest rate spread 3.44%
Interest bearing liabilities to
interest earning assets 84.49%
Net interest tax equivalent
adjustment $2,418
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(dollars in thousands)
(Unaudited)
Quarter Ended
September 30, 2002
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of Unearned Income $6,412,420 $114,389 7.08%
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 9,321,348 150,432 6.40%
Other assets 743,218
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 $95,545
Net interest margin 4.07%
Net interest rate spread 3.68%
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)
(Unaudited)
Year to Date
September 30, 2003
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of Unearned Income $6,365,923 $308,716 6.48%
Held-to-maturity securities:
Taxable 1,212,104 36,488 4.02%
Non Taxable 168,234 9,594 7.62%
Available-for-sale securities:
Taxable 1,276,990 38,318 4.01%
Non Taxable 193,580 9,219 6.37%
Short term investments 315,559 6,067 2.57%
Total interest earning
assets and revenue 9,532,390 408,402 5.73%
Other assets 802,732
Less: allowance for credit losses (90,499)
Total $10,244,623
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $2,478,536 $19,018 1.03%
Savings 804,946 5,669 0.94%
Time 4,098,528 90,406 2.95%
Short-term borrowings 476,410 6,698 1.88%
Junior subordinated debt 125,000 7,641 8.15%
Long-term debt 139,241 6,236 5.99%
Total interest bearing
liabilities and expense 8,122,661 135,668 2.23%
Demand deposits -
non-interest bearing 1,163,949
Other liabilities 116,806
Total liabilities 9,403,416
Shareholders' equity 841,207
Total $10,244,623
Net interest revenue $272,734
Net interest margin 3.83%
Net interest rate spread 3.50%
Interest bearing liabilities to
interest earning assets 85.21%
Net interest tax equivalent
adjustment $7,713
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(dollars in thousands)
(Unaudited)
Year to Date
September 30, 2002
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of Unearned Income $6,312,781 $342,409 7.25%
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 9,160,134 454,729 6.64%
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 8.26%
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 110,396
Total liabilities 8,983,954
Shareholders' equity 813,590
Total $9,797,544
Net interest revenue $287,979
Net interest margin 4.20%
Net interest rate spread 3.79%
Interest bearing liabilities to
interest earning assets 85.44%
Net interest tax equivalent
adjustment $8,847
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/