BancorpSouth, Inc.
Net income for the nine months ended September 30, 2001, was $67.1 million, or $0.81 per share basic and $0.80 per share diluted, compared to net income of $62.1 million, or $0.73 per share (basic and diluted) for the first nine months of 2000. The impairment of the mortgage servicing asset in the first nine months of 2001 resulted in a $9.4 million pre-tax, non-cash charge to earnings, or $0.07 per share after tax. Excluding the impact of impairment, net income was $0.88 cents per share basic and $0.87 cents per share diluted in the first nine months of 2001.
Aubrey Patterson, Chairman and Chief Executive Officer of BancorpSouth, commented, "We are pleased to report improved third quarter earnings despite the unprecedented drop of 400 basis points in the Federal Reserve's key interest rates since the beginning of the year. We achieved these results despite a non-cash, pre-tax charge of $6.0 million, or $0.05 per share after tax, related to the impairment of our mortgage servicing asset. Our net interest margin increased to 4.00% for the third quarter of 2001 compared to 3.88% for the second quarter of 2001, and our interest rate spread also increased to 3.35% for the third quarter of 2001 compared to 3.14% for the second quarter of 2001.
"In the third quarter of 2001, we completed the conversion of the former First United Bancshares offices to BancorpSouth systems as planned," continued Patterson. "When we began that process, our two primary goals were to have a seamless conversion from our customers point of view and to maintain market share. We have accomplished each of those goals, in fact increasing our share in some of those markets during the conversion process. All products have been standardized and all processes are uniform throughout the merged company. We now look forward to expanding the number of products and services we offer these customers while recognizing the cost benefits of the conversions, as we will no longer be running duplicate systems at the former First United offices. We are currently closing the operations center formerly used by First United and liquidating the equipment at the operations center.
"Looking forward, we believe that we will be somewhat insulated from the current economic slowdown because of the breadth and diversity of our markets," concluded Patterson. "However, we do expect to see some slowdown in loan growth in the fourth quarter of 2001. The hallmark of BancorpSouth has always been our conservative credit culture, and we will maintain that focus during this period of economic uncertainty. This company has traditionally outperformed its peers in economic downturns because of our strong credit quality. In addition, we see opportunities for growth in our fee-based services despite the uncertain outlook for the economy."
Net Interest Revenue
Interest revenue was $165.0 million in the third quarter of 2001, down 4.8% from $173.3 million in the corresponding period of 2000, and down 2.8% from $169.7 million in the second quarter of 2001. Interest expense for the 2001 third quarter was $80.5 million, a 13.3% decrease from interest expense of $92.8 million in the same period of 2000, and a decline of 9.3% from interest expense of $88.8 million in the second quarter of 2001.
Net interest margin in the third quarter of 2001 was 4.00%, compared to 3.99% for the third quarter of 2000 and 3.88% in the second quarter of 2001. The average rate paid on interest-bearing liabilities was 4.35% in the third quarter of 2001, compared to 5.21% in the same quarter of 2000 and 4.84% in the second quarter of 2001. The average taxable equivalent yield on earning assets was 7.70% in the third quarter of 2001 versus 8.40% in the same period of 2000 and 7.99% in the second quarter of 2001.
"We were able to improve both our interest rate margin and spread compared to the second quarter of 2001 by careful pricing of assets and liabilities," commented Patterson. "Because approximately 79% of our deposits reprice in twelve months or less, we have been able to compensate for the decline in interest rates. However, given the 100 basis point drop in the Federal Funds rate over the past 45 days, maintaining our interest rate margin will be more challenging over the next few quarters."
Deposit and Loan Activity
As of September 30, 2001, total assets were $9.4 billion, up 0.93% since September 30, 2000, and up 1.01% since June 30, 2001. Total deposits at September 30, 2001, were $7.8 billion, up 5.72% from September 30, 2000, and up 1.01% since June 30, 2001. Total loans as of September 30, 2001, were $6.1 billion, up 2.3% since September 30, 2000, and up 1.43% since June 30, 2001.
Part of the slowdown in net loan growth is due to management's strategic decision to reduce our exposure to indirect automobile sales financing by allowing BancorpSouth's portfolio of such loans to decline. This portfolio has decreased $116.6 million since September 30, 2000, and $27.8 million since June 30, 2001, reaching $173.8 million as of September 30, 2001. Excluding the impact of this portfolio reduction, total loans would have increased 1.91% between June 30, 2001, and September 30, 2001.
"While we are seeing some slackening in loan demand as a result of the slowdown in the general economy, our deposits have shown greater growth than we projected," said Patterson. "Deposits are the core of a retail-based bank like ours, and they have remained strong even in periods of economic weakness. While loan growth has softened, we benefit from diverse industries, including manufacturing, service industries and tourism, and our geographic reach over a number of strong markets. In addition, some of the slowdown is the result of intentional actions on the part of management, as we have been more conservative in our pursuit of lending opportunities at current rates. We expect a further slowdown in loan growth in the fourth quarter of 2001, but we anticipate a return to a more normal growth rate, reflective of the vibrancy of the markets we serve, by mid-2002."
Credit Losses
The provision for credit losses in the third quarter of 2001 was $6.9 million, versus $10.7 million in the same quarter of 2000, in which the provision was unusually high because of the merger with First United Bancshares, and $4.8 million in the second quarter of 2001. Annualized net charge-offs for the third quarter of 2001 were 0.34% of average loans, versus 0.70% in the third quarter of 2000 and 0.29% in the second quarter of 2001.
For the nine months ended September 30, 2001, the provision for credit losses was $15.7 million, down from $20.7 million in the same period of 2000. Annualized net charge-offs were 0.33% of average loans in the first nine months of 2001, compared to 0.39% for the same period in 2000.
Non-performing assets totaled $62.2 million (1.03% of net loans) as of September 30, 2001, compared to $46.9 million (0.79% of net loans) as of September 30, 2000, and $48.8 million (0.82% of net loans) at June 30, 2001. The allowance for credit losses amounted to 1.36% of total net loans at September 30, 2001.
"BancorpSouth has a reputation for strict quality standards, both at the time of origination and throughout the life of the loan," Patterson commented. "The allowance for loan losses as a percent of non-performing assets is a key ratio to demonstrate the health of a bank in a period of economic weakness. In this important metric, BancorpSouth has always maintained a high level of coverage of its non-performing assets. Looking forward, we anticipate that we will experience a moderate increase in delinquencies and foreclosures because of general economic conditions, but we believe that we have adequately provided for these situations."
Non-interest Revenue
Non-interest revenue totaled $26.7 million in the third quarter of 2001, up 13.4% from $23.6 million in the third quarter of 2000, but down 16.4% from $32.0 million in the second quarter of 2001. For the first nine months of 2001, non-interest revenue totaled $86.7 million, an increase of 14.8% over the first nine months of 2000.
"Non-interest revenue in the third quarter of 2001 was negatively impacted by a $6.0 million pre-tax, non-cash charge for impairment of the value of BancorpSouth's mortgage servicing asset," Patterson stated. "This asset represents the present value of the future stream of servicing revenue to be earned on BancorpSouth's mortgage servicing portfolio. For the first nine months of 2001, the net impact of this impairment reduced pre-tax income by $9.4 million. As interest rates decline, refinancing of home mortgages typically accelerates and the present value of the future stream of servicing fees typically declines as the expected lives of those mortgages shorten. BancorpSouth must recognize the decline in future revenue with a non-cash charge against income that is primarily influenced by changes in interest rates. To some extent, this charge is offset by higher loan origination fees as lower interest rates stimulate loan growth. As BancorpSouth expects to retain the mortgage servicing rights, the charge should reverse itself if interest rates rise, refinancing slows and the expected lives of the mortgages lengthen.
"Despite the impact of these non-cash charges on income, the mortgage servicing business is a potentially profitable business for BancorpSouth," Patterson added, "and we have increased our mortgage servicing portfolio to $2.5 billion at September 30, 2001, from $2.0 billion at September 30, 2000. We were able to offset the impact of the impairment in the third quarter of 2001 somewhat by making a short-term investment in intermediate term securities in anticipation of further reduction in interest rates during the third quarter of 2001. We purchased $200 million of securities in July 2001 and sold them at the end of September 2001, recognizing a $3.8 million gain that offset part of the $6.0 million impairment charge. An additional benefit of this strategy was to increase our interest rate margin, as these securities carried a higher interest rate than the short-term assets used for the purchase of the securities."
Insurance commissions were $5.1 million for the third quarter of 2001, an increase of 38.0% over the same period in 2000 but a decline of 4.8% from the second quarter of 2001. The gain is largely attributable to a significant increase in the sale of annuities, driven by an aggressive sales campaign, as well as the inclusion of the results of the Pittman, Seay and Turner Insurance Agency that we acquired in October 2000.
Non-interest Expense
Non-interest expenses for the third quarter of 2001 were $73.3 million, compared to $76.6 million for the third quarter of 2000 and $73.2 million in the second quarter of 2001. The higher expense level in the third quarter of 2000 reflects costs associated with the merger with First United Bancshares.
"We expect to see expense savings now that we have completed the integration of First United Bancshares," explained Jim Kelley, President and Chief Operating Officer of BancorpSouth. "Even with the duplicate systems we have been running for the past year, our ratio of expenses to assets has been below that of our peer group. With those duplicate costs eliminated, expenses as a percent of revenue should improve in the fourth quarter of 2001 as we approach a normal rate of expenses after a slight expense overlap in October of 2001."
Capital Management
During the third quarter of 2001, the company repurchased a total of 1,319,200 shares of its outstanding common stock under a repurchase program announced on March 5, 2001, that authorizes the company to acquire up to 4.2 million shares or approximately 5% of the shares outstanding at the time of the announcement. As of September 30, 2001, a total of 2,729,815 shares had been repurchased under that program.
BancorpSouth will conduct a conference call with stock analysts at 1:30 p.m. (Central Time) on Thursday, October 18, 2001. Investors may listen via the internet by accessing the 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. The company operates approximately 250 commercial banking, insurance, trust, broker/dealer and consumer finance locations in Alabama, Arkansas, Louisiana, Mississippi, Tennessee and Texas.
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, loan volume, credit quality, fee-based services, interest rate margin, integration of former First United Bancshares offices and related cost savings, expansion and prospects of products and services, deposits, loan losses, 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.
BancorpSouth, Inc.
Selected Financial Data
Three Months Ended Nine Months Ended
September 30, September 30,
2001 2000 2001 2000
(Dollars in thousands,
except per share amounts)
Earnings Summary:
Net interest revenue $84,436 $80,568 $246,960 $244,353
Provision for credit losses 6,852 10,656 15,718 20,669
Non-interest revenue 26,734 23,566 86,674 75,526
Non-interest expense 73,285 76,607 219,363 204,561
Income before income taxes 31,033 16,871 98,553 94,649
Income tax provision 9,450 7,379 31,405 32,528
Net income 21,583 9,492 67,148 62,121
Earnings per share:
Basic $0.26 $0.11 $0.81 $0.73
Diluted $0.26 $0.11 $0.80 $0.73
Balance sheet data at September 30:
Total assets $9,388,462 $9,301,602
Total earning assets 8,703,017 8,719,705
Loans and lease receivables, net of
unearned discount 6,061,146 5,922,564
Allowance for credit losses 82,605 78,100
Total deposits 7,810,741 7,388,073
Common shareholders' equity 796,441 766,827
Book value per share 9.78 9.12
Average balance sheet data:
Total assets $9,258,257 $8,919,186 $9,232,750 $8,653,681
Total earning assets 8,653,305 8,350,814 8,621,313 8,090,793
Loans and lease
receivables, net of
unearned discount 6,004,966 5,854,839 5,999,552 5,707,257
Total deposits 7,699,507 7,311,159 7,669,154 7,215,438
Common shareholders'
equity 789,400 762,114 793,014 758,044
Non-performing assets at
September 30:
Non-accrual loans $13,238 $21,171
Loans 90+ days past due 39,756 18,318
Restructured loans 46 913
Other real estate owned 9,143 6,452
Net charge-offs as a
percentage of average
loans (annualized) 0.34% 0.70% 0.33% 0.39%
Performance ratios
(annualized)
Return on average assets 0.92% 0.43% 0.97% 0.96%
Return on common equity 10.85% 4.98% 11.32% 10.93%
Net interest margin 4.00% 3.99% 3.97% 4.18%
Average shares outstanding
- diluted 82,437,761 84,397,588 83,437,112 84,993,344
BancorpSouth, Inc.
Consolidated Balance Sheets
(dollars in thousands) September 30,
(Unaudited) 2001 2000
Assets
Cash & due from banks $332,241 $260,218
Interest bearing deposits
with other banks 17,781 13,089
Held-to-maturity
securities 1,207,230 1,169,634
Federal funds sold and
securities purchased under
agreement to resell 260,020 75,000
Loans & leases 6,061,146 5,922,564
Allowance for credit losses (82,605) (78,100)
Net loans & leases 5,978,541 5,844,464
Available-for-sale securities 1,107,626 1,505,312
Mortgages held for sale 49,215 34,105
Bank premises & equipment 209,367 186,577
Accrued interest
receivable 91,089 90,430
Other real estate owned 9,528 7,303
Other assets 125,824 115,470
Total assets $9,388,462 $9,301,602
Liabilities
Demand deposits:
Non-interest bearing $1,064,780 $1,007,326
Interest bearing 2,006,120 1,671,883
Total demand deposits 3,070,900 2,679,209
Savings & time deposits:
Savings 427,436 441,992
Premium access 435,070 441,483
Certificates of deposit 3,877,335 3,825,389
Total savings & time
deposits 4,739,841 4,708,866
Total deposits 7,810,741 7,388,073
Federal funds purchased
and securities sold under
agreement to repurchase 500,481 298,035
Short-term borrowings 0 570,000
Accrued interest payable 44,147 45,930
Long-term debt 141,223 165,803
Other liabilities 95,426 66,932
Total liabilities 8,592,020 8,534,776
Shareholders' Equity
Common stock 214,484 214,484
Capital surplus 70,095 70,464
Unrealized gain(loss) on
securities 31,043 (7,055)
Retained earnings 547,541 515,087
Less: Cost of treasury
stock (66,722) (26,153)
Total shareholders'
equity 796,441 766,827
Total liabilities &
shareholders' equity $9,388,462 $9,301,602
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(dollars in thousands) Quarter Ended
Unaudited Sept. 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) Quarter Ended
Unaudited Sept. 30, 2000
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of Unearned Income $5,888,736 $135,311 9.14%
Held-to-maturity securities:
Taxable 760,409 11,951 6.25%
Non Taxable 325,687 6,074 7.42%
Available-for-sale securities
Taxable 1,242,043 20,519 6.57%
Non Taxable 75,530 1,591 8.38%
Short term investments 58,408 962 6.55%
Total interest earning
assets and revenue 8,350,813 176,408 8.40%
Other assets 645,252
Less: allowance for credit losses (76,879)
Total $8,919,186
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $1,659,533 $13,842 3.32%
Savings 877,041 9,956 4.52%
Time 3,801,938 57,233 5.99%
Short-term borrowings 579,725 9,168 6.29%
Long-term debt 169,573 2,559 6.00%
Total interest bearing
liabilities and expense 7,087,810 92,758 5.21%
Demand deposits -
non-interest bearing 972,647
Other liabilities 96,615
Total liabilities 8,157,072
Shareholders' equity 762,114
Total $8,919,186
Net interest revenue $83,650
Net interest margin 3.99%
Net interest rate spread 3.20%
Interest bearing liabilities to
interest earning assets 84.88%
Net interest tax equivalent
adjustment $3,083
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(dollars in thousands) Year to Date
Unaudited Sept. 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 812,528 38,231 6.29%
Non Taxable 176,442 9,759 7.39%
Short term investments 447,504 17,267 5.16%
Total interest earning
assets and revenue 8,621,314 517,546 8.03%
Other assets 692,448
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%
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 793,015
Total $9,232,751
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) Year to Date
Unaudited Sept. 30, 2000
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of Unearned Income $5,749,580 $389,435 9.05%
Held-to-maturity securities:
Taxable 764,823 34,972 6.11%
Non Taxable 324,138 17,913 7.38%
Available-for-sale securities
Taxable 1,082,386 53,310 6.58%
Non Taxable 75,356 4,760 8.44%
Short term investments 94,508 4,320 6.11%
Total interest earning
assets and revenue 8,090,791 504,710 8.33%
Other assets 639,062
Less: allowance for credit losses (76,172)
Total $8,653,681
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $1,673,935 $40,266 3.21%
Savings 864,631 27,059 4.18%
Time 3,715,704 158,330 5.69%
Short-term borrowings 416,155 18,233 5.85%
Long-term debt 166,996 7,398 5.92%
Total interest bearing
liabilities and expense 6,837,421 251,286 4.91%
Demand deposits -
non-interest bearing 961,168
Other liabilities 97,048
Total liabilities 7,895,637
Shareholders' equity 758,044
Total $8,653,681
Net interest revenue $253,424
Net interest margin 4.18%
Net interest rate spread 3.42%
Interest bearing liabilities to
interest earning assets 84.51%
Net interest tax equivalent
adjustment $9,071
BancorpSouth, Inc.
Consolidated Statements of Income
(amounts in thousands, except per share data)
(Unaudited) Quarter Ended
Sep-01 Jun-01 Mar-01 Dec-00 Sep-00
Interest Revenue:
Loans, including
fees $128,049 $131,794 $136,737 $140,892 $134,910
Held-to-maturity
securities: 17,697 16,630 16,051 18,141 15,899
Available-for-
sale securities 14,749 14,240 15,586 16,177 21,554
Short term
investments 4,487 7,013 5,767 3,185 962
Total interest
revenue 164,982 169,677 174,140 178,395 173,325
Interest Expense:
Deposits 73,071 80,763 83,944 84,709 81,031
Short term
borrowings 2,700 3,082 3,557 7,007 9,058
Long term
borrowings 2,105 2,171 2,265 2,378 2,559
Other interest
expense 2,670 2,737 2,776 1,503 110
Total interest
expense 80,545 88,754 92,542 95,596 92,758
Net interest
revenue 84,437 80,924 81,598 82,799 80,567
Provision for
credit losses 6,852 4,769 4,097 5,497 10,656
Net interest
revenue,
after credit
loss provision 77,584 76,155 77,502 77,302 69,911
Other Revenue:
Mortgage lending (1,462) 7,068 (1,333) 1,900 2,493
Service charges 10,469 10,906 10,342 10,927 10,213
Life insurance
premiums 1,151 1,127 1,094 1,116 1,107
Trust income 2,022 1,610 1,684 1,625 1,794
Securities gains,
net 3,943 74 2,884 (15,549) (254)
Insurance
commissions 5,146 5,405 4,608 4,845 3,717
Other 5,464 5,801 8,669 5,189 4,496
Total other
revenue 26,734 31,991 27,948 10,052 23,567
Other Expense:
Salaries and
employee benefits 37,084 38,425 38,721 33,845 34,070
Occupancy 5,263 5,005 5,129 4,838 4,647
Equipment 6,442 6,943 7,032 6,960 6,124
Telecommunications 2,244 2,123 2,182 2,041 1,868
Other 22,253 20,751 19,767 21,982 29,900
Total other
expense 73,285 73,246 72,832 69,665 76,607
Income before
income taxes 31,033 34,899 32,619 17,689 16,870
Income tax expense 9,450 11,654 10,300 5,413 7,379
Net Income $21,583 $23,246 $22,319 $12,275 $9,492
Net Income Per Share:
Basic $0.26 $0.28 $0.27 $0.15 $0.11
Diluted $0.26 $0.28 $0.27 $0.15 $0.11
BancorpSouth, Inc.
Consolidated Statements of Income
(amounts in thousands, except per share data)
(Unaudited) Year To Date
Sep-01 Sep-00
Interest Revenue:
Loans, including fees $396,580 $388,299
Held-to-maturity securities: 50,378 46,615
Available-for-sale securities 44,575 56,405
Short term investments 17,266 4,320
Total interest revenue 508,799 495,640
Interest Expense:
Deposits 237,778 225,656
Short term borrowings 9,338 17,748
Long term borrowings 6,540 7,398
Other interest expense 8,183 486
Total interest expense 261,839 251,287
Net interest revenue 246,960 244,353
Provision for credit losses 15,718 20,669
Net interest revenue,
after credit loss provision 231,242 223,684
Other Revenue:
Mortgage lending 4,273 8,973
Service charges 31,718 29,545
Life insurance premiums 3,373 3,184
Trust income 5,316 5,075
Securities gains, net 6,901 (83)
Insurance commissions 15,160 11,189
Other 19,934 17,642
Total other revenue 86,674 75,526
Other Expense:
Salaries and employee benefits 114,230 100,011
Occupancy 15,397 13,504
Equipment 20,417 17,174
Telecommunications 6,549 5,193
Other 62,771 68,680
Total other expense 219,363 204,562
Income before income taxes 98,553 94,648
Income tax expense 31,405 32,528
Net Income $67,148 $62,121
Net Income Per Share:
Basic $0.81 $0.73
Diluted $0.80 $0.73
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/