BancorpSouth, Inc.
Net income increased 13.8 percent in full-year 2002 to $112.0 million from $98.5 million in 2001. Basic earnings per share rose 17.6 percent in 2002 to $1.40 from $1.19 in 2001, and diluted earnings per share increased 16.8 percent to $1.39 from $1.19 in 2001.
Commenting on the announcement, Aubrey Patterson, BancorpSouth's Chairman and Chief Executive Officer, said, "We are generally pleased with BancorpSouth's financial and operating performance for the fourth quarter of 2002 in what has remained a difficult economic environment. As in previous quarters this year, our results for the fourth quarter include the effect of a provision for the impairment of our mortgage-servicing asset, which is a non- cash charge related to the decline in the asset's value as a result of declining mortgage interest rates. While we anticipate the value of this asset to increase when mortgage interest rates rise, the impairment charge of $3.2 million in the fourth quarter reduced earnings by $0.03 per basic and diluted share. In addition, during the fourth quarter we reserved $3.2 million, or $0.03 per basic and diluted share, to settle litigation against certain of our subsidiaries."
Net Interest Revenue
Interest revenue was $144.5 million in the fourth quarter of 2002, a 7.2 percent decrease from $155.7 million in the fourth quarter of 2001 and 2.0 percent below $147.5 million in the third quarter of 2002. Interest expense fell 24.7 percent in the fourth quarter of 2002 to $52.1 million from $69.3 million in the prior-year fourth quarter and declined 5.0 percent from $54.9 million in the third quarter of 2002.
The average taxable equivalent yield on earning assets in the fourth quarter of 2002 was 6.19 percent compared to 7.19 percent in the fourth quarter of 2001 and 6.40 percent in the third quarter of 2002. The average rate paid on interest-bearing liabilities during the fourth quarter of 2002 decreased to 2.55 percent from 3.73 percent in the fourth quarter of 2001 and 2.72 percent in the third quarter of 2002.
Net interest revenue increased 6.9 percent to $92.4 million in the fourth quarter of 2002 from $86.4 million in the comparable quarter in 2001, while decreasing 0.2 percent from $92.6 million in the third quarter of 2002. Net interest margin was 4.00 percent in the fourth quarter of 2002 compared with 4.05 percent in the fourth quarter of 2001 and 4.07 percent in the third quarter of 2002. Interest revenue, net interest revenue and net interest margins for all periods presented have been adjusted to reflect the reclassification of certain credit card related fees to non-interest revenue.
Patterson added, "We continue to face the constant challenge of managing and balancing our exposure to the changing interest rate environment. Despite the action of the Federal Reserve to lower interest rates in the fourth quarter of 2002, our net interest margin was virtually unchanged from the third quarter of 2002. We continually strive to position the Company to deal with, and limit our exposure to, future changes in interest rates."
Deposit and Loan Activity
Total assets grew 8.4 percent to $10.2 billion at December 31, 2002, from $9.4 billion at December 31, 2001. Total deposits also increased 8.8 percent to $8.5 billion at December 31, 2002 from $7.9 billion at December 31, 2001, while gross loans increased 5.2 percent to $6.4 billion at December 31, 2002 from $6.1 billion at December 31, 2001.
"The comparable-quarter growth rate in total deposits increased in each sequential quarter throughout the year," Patterson said, "reflecting our ongoing effort to increase market share in a tough environment. Because we are primarily a deposit-funded institution, the growth rate of our deposit base is managed to correspond to demand in loans. The growth in total loans in the quarter reflects the uncertain economic environment, as well as our strategic decision to reduce our exposure to indirect automobile sales financing by allowing that portfolio to decline to $65.5 million at the end of 2002 from $146.4 million at the same time in 2001."
Provision for Credit Losses and Allowance for Credit Losses
The provision for credit losses in the fourth quarter of 2002 was $7.2 million, a 10.5 percent increase from $6.5 million in the fourth quarter of the prior year and an 11.9 percent decrease from $8.2 million in the third quarter of 2002. Annualized charge-offs for the fourth quarter of 2002 were 0.43 percent of average loans compared with 0.40 percent for the fourth quarter of 2001 and 0.44 percent for the third quarter of 2002.
For full-year 2002, the provision for credit losses was $29.4 million compared to $22.3 million for 2001. Net charge-offs in 2002 were 0.41 percent of average loans compared with 0.35 percent in 2001.
At December 31, 2002, non-performing assets totaled $52.2 million, or 0.82 percent of net loans, compared to $60.0 million, or 0.99 percent of net loans, at the same time in 2001 and $55.3 million, or 0.87 percent of net loans, at September 30, 2002. The allowance for credit losses at year-end was 1.38 percent of loans compared to 1.37 percent at both December 31, 2001, and September 30, 2002.
Patterson continued, "We are proud of the substantial reduction in non- performing assets at year-end, in spite of increasing loan volume for the year. This reduction accounts for the decline in our provision for credit losses for the fourth quarter from the third quarter of 2002 and reflects the quality of our lending and credit procedures. We intend to maintain our conservative posture regarding credit quality with a goal of improving our credit quality metrics in a strengthening economy."
Non-Interest Revenue
Non-interest revenue in the fourth quarter of 2002 was $35.2 million compared to $43.3 million in the fourth quarter of 2001 and $29.3 million in the third quarter of 2002. For 2002, non-interest revenue totaled $132.2 million, a decrease of 1.3 percent when compared to 2001. BancorpSouth's non- interest revenue continued to be substantially affected by the impact of interest rate movements on the valuation of its mortgage-servicing asset. In the fourth quarter of 2002, mortgage lending revenue was $6.1 million, which included an impairment charge of $3.2 million, compared to $12.9 million in the fourth quarter of 2001, which included a $4.5 million reversal of previously recorded impairment charges. In the third quarter of 2002, mortgage lending revenue was a negative $2.6 million, including an impairment charge of $9.2 million. As a result of the Company' strategy of making short- term investments in intermediate-term securities to offset anticipated impairment charges, BancorpSouth's non-interest revenue benefited from gains on the sale of securities of $3.8 million in the fourth quarter of 2001 and $2.5 million in the third quarter of 2002. In the fourth quarter of 2002, the Company did not employ this technique and gains resulting from the sale of securities declined to $170,000.
The fourth-quarter 2002 impairment charge masks the positive impact of new mortgage loan originations as a result of the lower interest rate environment. Mortgage loan originations increased 13.2 percent in the fourth quarter of 2002 to $365.6 million from $322.9 million for the fourth quarter last year, contributing to an increase in the Company's volume of mortgage loans being serviced to $2.8 billion at year-end 2002 from $2.5 billion at the end of 2001.
Non-interest revenue in the fourth quarter also included the benefit of a 22.8 percent increase in service charges to $13.6 million from $11.0 million in the prior-year fourth quarter, and a 5.2 percent increase from $12.9 million in the third quarter of 2002. In addition, insurance commissions increased to $5.9 million in the fourth quarter, up 12.6 percent from $5.3 million in the fourth quarter of 2001 and down slightly from $6.1 million for the third quarter of 2002.
"We are very pleased with the growth of our mortgage-servicing portfolio in a low interest-rate environment, which we expect to lower our mortgage- servicing asset's prepayment risk," said Patterson. "This growth is an important component of our long-term strategy to increase the relative contribution of non-interest revenue to our earnings. In this regard, we will also continue our efforts to leverage our strong retail and small to medium business banking relationships to sell various non-interest bearing products and services, including a variety of deposit, insurance, cash management and investment brokerage services."
Non-Interest Expense
Non-interest expense in the fourth quarter of 2002 was $84.9 million, an increase of 11.8 percent from $76.0 million in the same period in 2001 and a 12.0 percent increase from $75.8 million in the third quarter of 2002. Salaries and employee benefits rose primarily because of increases in commission-based payments, including mortgage loan origination commissions, incentive accruals and the cost of employee benefits. The growth in other expenses reflects the $3.2 million reserved to settle litigation against certain of our subsidiaries.
Income Tax Rate
BancorpSouth benefited from a significant reduction in its income tax rate for the fourth quarter of 2002 to 27.8 percent from 33.7 percent for the fourth quarter of 2001 and 31.3 percent for the third quarter of 2002. This reduction was primarily driven by a revision to the Company's 401(k) plan that enables BancorpSouth to deduct for tax purposes the dividends it pays to the plan for shares of BancorpSouth common stock held in the plan. This change was retroactive to January 1, 2002, which permitted BancorpSouth to deduct all such dividends for 2002 in the fourth quarter. These dividends will be deducted in the future on a quarterly basis.
Capital Management
During the fourth quarter of 2002, the Company repurchased an additional 904,100 shares of its common stock under a common stock repurchase plan authorized in February 2002. The repurchase plan authorized BancorpSouth to repurchase up to 4.1 million shares of its common stock. As of December 31, 2002, BancorpSouth has repurchased a total of 3,472,608 shares under this plan, having completed the repurchase of all the shares authorized in March 2001 under a separate 4.2 million share repurchase plan. As a result, BancorpSouth has repurchased an aggregate of approximately 7.7 million shares of its common stock since March 2001, or 9.1 percent of its outstanding common stock at that time. BancorpSouth will continue to evaluate additional share repurchases under the February 2002 plan, which authorizes these repurchases during the 18-month period following authorization of the plan.
Summary
"The stock repurchases in the past two years reflect our confidence in BancorpSouth's potential for further profitable growth," concluded Patterson. "We have a strong franchise in a growing six-state market that is based on a unique blend of traditional community bank customer service supported by a sophisticated array of products and services normally available only through much larger financial institutions. We support our objectives for steady growth through a demonstrated ability to expand organically and through acquisition. We continue to maintain high credit quality through a conservative lending posture, even as we implement strategies to leverage our banking business to expand non-interest revenue. As a result, we believe BancorpSouth is well positioned to produce consistent long-term growth."
Conference Call
BancorpSouth will conduct a conference call with analysts at 1:30 p.m. (Central Time) on January 21, 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 a least two weeks following the call.
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, 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, market share, deductibility of dividend payments on shares of BancorpSouth common stock held in its 401(k) plan, expansion and prospects of products and services, deposits, expenses, common stock repurchase plan, 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, the ability to maintain credit quality, changes in laws and regulations affecting financial institutions in general or relating to taxes, 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.
Selected Financial Data
Three Months Ended Twelve Months Ended
December 31, December 31,
2002 2001 2002 2001
(Dollars in thousands,
except per share
amounts)
Earnings Summary:
Net interest revenue $92,394 $86,417 $371,526 $329,382
Provision for credit
losses 7,228 6,542 29,411 22,259
Noninterest revenue 35,182 43,324 132,239 133,993
Noninterest expense 84,879 75,950 312,398 295,313
Income before income
taxes 35,469 47,249 161,956 145,803
Income tax provision 9,848 15,935 49,938 47,340
Net income $25,621 $31,314 $112,018 $98,463
Earning per share:
Basic $0.33 $0.39 $1.40 $1.19
Diluted: $0.33 $0.38 $1.39 $1.19
Balance sheet data at
December 31:
Total assets $10,189,247 $9,395,429
Total earning assets 9,427,250 8,693,932
Loans and lease
receivables, net of
unearned discount 6,389,385 6,073,200
Allowance for credit
losses 87,875 83,150
Total deposits 8,548,918 7,856,840
Common shareholders'
equity 807,823 805,403
Book value per share 10.40 9.92
Average balance sheet
data:
Total assets $10,133,283 $9,348,448 $9,882,168 $9,261,912
Total earning assets 9,447,700 8,742,695 9,232,615 8,651,908
Loans and lease
receivables, net of
unearned discount 6,357,688 6,044,338 6,283,798 6,010,840
Total deposits 8,490,567 7,766,672 8,247,444 7,693,734
Common shareholders'
equity 802,890 807,661 810,893 796,706
Non-performing assets at
December 31:
Non-accrual loans $10,514 $10,825
Loans 90+ days past due 23,629 33,012
Restructured loans 20 40
Other real estate owned 18,048 16,140
Net charge-offs as a
percentage
of average loans
(annualized) 0.43% 0.40% 0.41% 0.35%
Performance ratios
(annualized)
Return on average assets 1.00% 1.33% 1.13% 1.06%
Return on common equity 12.66% 15.38% 13.81% 12.36%
Net interest margin 4.00% 4.05% 4.15% 3.94%
Average shares
outstanding - diluted 78,576,536 81,605,806 80,480,627 82,979,286
BancorpSouth, Inc.
Consolidated Balance Sheets
(dollars in thousands)
(Unaudited) December 31, December 31,
2002 2001 % Chg
Assets
Cash & due from banks $356,976 $341,513 4.5%
Interest bearing deposits with
other banks 5,007 18,030 (72.2%)
Held-to-maturity securities 1,193,375 1,110,463 7.5%
Available-for-sale securities 1,642,172 1,083,191 51.6%
Federal funds sold and securities
purchased under agreement
to resell 139,508 343,511 (59.4%)
Loans & leases 6,389,385 6,073,200 5.2%
Allowance for credit losses (87,875) (83,150) 5.7%
Net loans & leases 6,301,510 5,990,050 5.2%
Mortgages held for sale 57,804 65,537 (11.8%)
Bank premises & equipment 210,183 211,576 (0.7%)
Accrued interest receivable 83,614 85,359 (2.0%)
Other real estate owned 18,048 16,140 11.8%
Other assets 181,050 130,059 39.2%
Total assets $10,189,247 $9,395,429 8.4%
Liabilities
Demand deposits:
Non-interest bearing $1,183,127 $1,108,499 6.7%
Interest bearing 2,455,821 2,158,698 13.8%
Total demand deposits 3,638,948 3,267,197 11.4%
Savings & time deposits:
Savings 824,902 910,682 (9.4%)
Certificates of deposit 4,085,068 3,678,961 11.0%
Total savings & time deposits 4,909,970 4,589,643 7.0%
Total deposits 8,548,918 7,856,840 8.8%
Federal funds purchased and
securities sold under
agreement to repurchase 457,389 473,912 (3.5%)
Short-term borrowings 0 0 ---
Accrued interest payable 23,306 31,124 (25.1%)
Long-term debt 139,757 140,939 (0.8%)
Junior subordinated debt 125,000 0 NA
Other liabilities 87,054 87,211 (0.2%)
Total liabilities 9,381,424 8,590,026 9.2%
Shareholders' Equity
Common stock 194,202 203,064 (4.4%)
Capital surplus 20,773 11,457 81.3%
Unrealized gain(loss) on
securities 37,744 24,243 55.7%
Retained earnings 555,103 566,639 (2.0%)
Total shareholders' equity 807,823 805,403 0.3%
Total liabilities &
shareholders' equity $10,189,247 $9,395,429 8.4%
BancorpSouth, Inc.
Consolidated Statements of Income
(amounts in thousands, except per share data)
(Unaudited) Quarter Ended
Dec-02 Sep-02 Jun-02 Mar-02 Dec-01
Interest Revenue:
Loans, including fees $110,129 $113,922 $113,735 $113,342 $120,261
Held-to-maturity
securities: 15,681 16,577 16,093 16,429 16,706
Available-for-sale
securities 16,277 14,440 15,571 16,413 14,772
Short term investments 2,451 2,569 3,427 3,363 3,932
Total interest
revenue 144,538 147,508 148,825 149,547 155,671
Interest Expense:
Deposits 44,695 47,099 46,834 49,901 63,060
Short term borrowings 1,132 1,268 1,186 1,034 1,571
Long term borrowings 2,090 2,095 2,069 2,112 2,100
Junior subordinated debt 2,547 2,547 2,547 1,783 0
Other interest expense 1,680 1,877 2,107 2,288 2,523
Total interest
expense 52,144 54,886 54,743 57,118 69,254
Net interest revenue 92,394 92,622 94,083 92,429 86,417
Provision for credit
losses 7,228 8,208 7,215 6,760 6,542
Net interest
revenue,
after credit loss
provision 85,166 84,414 86,868 85,669 79,875
Other Revenue:
Mortgage lending 6,069 (2,595) 900 5,554 12,913
Service charges 13,557 12,888 12,595 10,210 11,041
Life insurance premiums 1,031 1,091 1,091 1,127 1,155
Trust income 1,767 1,693 1,644 1,917 1,613
Securities gains, net 170 2,453 2,888 (25) 3,770
Insurance commissions 5,927 6,123 5,887 5,668 5,262
Other 6,661 7,654 7,814 10,479 7,570
Total other revenue 35,182 29,307 32,819 34,930 43,324
Other Expense:
Salaries and employee
benefits 45,985 42,301 40,226 42,591 41,451
Occupancy 5,497 5,485 5,422 5,254 5,132
Equipment 6,093 6,070 6,264 6,535 6,382
Telecommunications 1,948 1,922 2,032 1,925 2,143
Other 25,356 19,995 20,630 20,867 20,842
Total other expense 84,879 75,773 74,574 77,172 75,950
Income before
income taxes 35,469 37,948 45,112 43,427 47,249
Income tax expense 9,848 11,876 14,185 14,029 15,935
Net Income $25,621 $26,072 $30,927 $29,398 $31,314
Net Income Per Share:
Basic $0.33 $0.33 $0.38 $0.36 $0.39
Diluted $0.33 $0.33 $0.38 $0.36 $0.38
BancorpSouth, Inc.
Consolidated Statements of Income
(amounts in thousands, except per share data)
(Unaudited) Year To Date
Dec-02 Dec-01
Interest Revenue:
Loans, including fees $451,127 $512,846
Held-to-maturity
securities: 64,779 67,084
Available-for-sale
securities 62,702 59,348
Short term investments 11,810 21,198
Total interest revenue 590,418 660,475
Interest Expense:
Deposits 188,530 300,838
Short term borrowings 4,621 10,909
Long term borrowings 8,365 8,640
Junior subordinated debt 9,423 0
Other interest expense 7,953 10,706
Total interest expense 218,892 331,093
Net interest revenue 371,526 329,382
Provision for credit
losses 29,411 22,259
Net interest revenue,
after credit loss
provision 342,115 307,123
Other Revenue:
Mortgage lending 9,928 17,186
Service charges 49,249 42,759
Life insurance premiums 4,340 4,528
Trust income 7,021 6,929
Securities gains, net 5,486 10,671
Insurance commissions 23,604 20,422
Other 32,611 31,498
Total other revenue 132,239 133,993
Other Expense:
Salaries and employee
benefits 171,104 155,680
Occupancy 21,658 20,529
Equipment 24,962 26,799
Telecommunications 7,827 8,693
Other 86,847 83,612
Total other expense 312,398 295,313
Income before
income taxes 161,956 145,803
Income tax expense 49,938 47,340
Net Income $112,018 $98,463
Net Income Per Share:
Basic $1.40 $1.19
Diluted $1.39 $1.19
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(dollars in thousands) Year To Date
Unaudited December 31, 2002
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of Unearned Income $6,342,682 $452,982 7.14%
Held-to-maturity securities:
Taxable 998,800 55,091 5.52%
Non Taxable 194,089 14,905 7.68%
Available-for-sale securities
Taxable 1,160,733 54,065 4.66%
Non Taxable 199,218 13,287 6.67%
Short term investments 337,093 11,810 3.50%
Total interest earning
assets and revenue 9,232,615 602,140 6.52%
Other assets 735,800
Less: allowance for credit losses (86,247)
Total $9,882,168
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $2,338,775 $35,756 1.53%
Savings 852,694 12,689 1.49%
Time 3,991,757 140,085 3.51%
Short-term borrowings 457,347 12,574 2.75%
Junior subordinated debt 114,726 9,423 8.15%
Long-term debt 140,085 8,366 5.97%
Total interest bearing
liabilities and expense 7,895,384 218,893 2.77%
Demand deposits -
non-interest bearing 1,064,218
Other liabilities 111,673
Total liabilities 9,071,275
Shareholders' equity 810,893
Total $9,882,168
Net interest revenue $383,247
Net interest margin 4.15%
Net interest rate spread 3.75%
Interest bearing liabilities to
interest earning assets 85.52%
Net interest tax equivalent
adjustment $11,721
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(dollars in thousands) Year To Date
Unaudited December 31, 2001
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of Unearned Income $6,064,399 $514,119 8.48%
Held-to-maturity securities:
Taxable 920,939 56,417 6.13%
Non Taxable 214,694 16,411 7.64%
Available-for-sale securities
Taxable 832,368 50,851 6.11%
Non Taxable 180,370 13,073 7.25%
Short term investments 439,138 21,197 4.83%
Total interest earning
assets and revenue 8,651,908 672,068 7.77%
Other assets 691,608
Less: allowance for credit losses (81,604)
Total $9,261,912
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $1,893,075 $50,726 2.68%
Savings 885,025 31,839 3.60%
Time 3,912,405 218,272 5.58%
Short-term borrowings 503,024 21,616 4.30%
Junior subordinated debt 0 0
Long-term debt 145,097 8,641 5.96%
Total interest bearing
liabilities and expense 7,338,626 331,094 4.51%
Demand deposits -
non-interest bearing 1,003,229
Other liabilities 123,351
Total liabilities 8,465,206
Shareholders' equity 796,706
Total $9,261,913
Net interest revenue $340,974
Net interest margin 3.94%
Net interest rate spread 3.26%
Interest bearing liabilities to
interest earning assets 84.82%
Net interest tax equivalent
adjustment $11,592
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(dollars in thousands) Quarter Ended
Unaudited December 31, 2002
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of Unearned Income $6,431,410 $110,573 6.82%
Held-to-maturity securities:
Taxable 1,014,286 13,328 5.21%
Non Taxable 187,603 3,619 7.65%
Available-for-sale securities
Taxable 1,317,550 14,118 4.25%
Non Taxable 204,586 3,322 6.44%
Short term investments 292,265 2,451 3.33%
Total interest earning
assets and revenue 9,447,700 147,411 6.19%
Other assets 773,798
Less: allowance for credit losses (88,215)
Total $10,133,283
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $2,414,759 $8,099 1.33%
Savings 832,530 2,788 1.33%
Time 4,128,077 33,808 3.25%
Short-term borrowings 459,505 2,812 2.43%
Junior subordinated debt 125,000 2,547 8.15%
Long-term debt 139,859 2,090 5.93%
Total interest bearing
liabilities and expense 8,099,730 52,144 2.55%
Demand deposits -
non-interest bearing 1,115,201
Other liabilities 115,462
Total liabilities 9,330,394
Shareholders' equity 802,890
Total $10,133,284
Net interest revenue $95,267
Net interest margin 4.00%
Net interest rate spread 3.64%
Interest bearing liabilities to
interest earning assets 85.73%
Net interest tax equivalent
adjustment $2,873
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 $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 $2,924
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 $114,202 7.24%
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 9,187,581 151,772 6.63%
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 3,294 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 54,744 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 $97,028
Net interest margin 4.24%
Net interest rate spread 3.83%
Interest bearing liabilities to
interest earning assets 85.34%
Net interest tax equivalent
adjustment $2,947
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 $113,818 7.45%
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 8,967,582 152,525 6.90%
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 37,508 3.99%
Short-term borrowings 451,464 3,322 2.98%
Junior subordinated debt 83,333 1,783 8.56%
Long-term debt 139,859 2,112 6.12%
Total interest bearing
liabilities and expense 7,637,839 57,119 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 $95,406
Net interest margin 4.31%
Net interest rate spread 3.86%
Interest bearing liabilities to
interest earning assets 85.17%
Net interest tax equivalent
adjustment $2,978
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 $120,573 7.82%
Held-to-maturity securities:
Taxable 925,219 14,155 6.07%
Non Taxable 204,945 3,925 7.60%
Available-for-sale securities
Taxable 889,822 12,618 5.63%
Non Taxable 192,026 3,314 6.85%
Short term investments 415,733 3,932 3.75%
Total interest earning
assets and revenue 8,742,695 158,517 7.19%
Other assets 689,114
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 0 0
Total interest bearing 141,036 2,100 5.91%
liabilities and expense
Demand deposits - 7,371,888 69,254 3.73%
non-interest bearing
Other liabilities 1,033,567
Total liabilities 135,332
Shareholders' equity 8,540,787
Total $807,661
Net interest revenue $9,348,448
Net interest margin 89,263
Net interest rate spread 4.05%
Interest bearing liabilities to 3.47%
interest earning assets
84.32%
Net interest tax equivalent
adjustment
$2,845
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/