BancorpSouth, Inc.
Net income for the six months ended June 30, 2002 totaled $60.3 million, a 32.4 percent increase from $45.6 million for the same period last year. Basic and diluted net income per share for the year-to-date period was $0.74 per share, compared to basic and diluted net income per share of $0.55 and $0.54 respectively, for the same period in 2001.
"Our solid results in the second quarter are further validation of our strategy of careful market expansion and constant emphasis on credit quality," said Aubrey Patterson, BancorpSouth Chairman and Chief Executive Officer. "Interest rates have remained fairly flat through the first half of 2002, and we continue to see the positive effects of repricing activity on deposits, which contributes to an enhanced net interest margin."
During the second quarter of 2002, the Company recorded a decline of $6.2 million in mortgage lending revenue when compared to the first quarter of 2001, with approximately $4.2 million of the decline due to impairment to the Company's mortgage servicing asset in the second quarter of 2002. This impairment is a non-cash valuation which generally moves in tandem with mortgage interest rates. Offsetting this decline was a $2.8 million gain in the second quarter of 2002 on the sale of securities that the Company had previously purchased. The net effect of both the mortgage servicing asset impairment charge and the gain on the sale of securities negatively impacted net income for the second quarter of 2002 by approximately $900,000, or $0.01 per basic and diluted share.
"Our ability to minimize interest rate risk through the use of financial instruments is an important factor behind the success of our mortgage business," Patterson continued. "While refinancing activity has slowed, originations remain strong, and our mortgage unit acquired in the February 2002 merger with Pinnacle Bancshares is contributing to our overall strength in mortgage activity."
Patterson noted that the results from the Pinnacle Bancshares merger are exceeding expectations, and the former Pinnacle locations were brought onto the BancorpSouth operating systems in April 2002. "Our proven integration procedures have resulted in minimal customer attrition and we are already beginning to see the benefits of this important entry into the Little Rock, Arkansas market," added Patterson.
Net Interest Revenue
Total interest revenue was $150.2 million in the second quarter of 2002, down 11.5 percent from $170.0 in the second quarter of 2001 and essentially flat from $151.0 million in the first quarter of 2002. Revenue from loans, including fees, totaled $115.1 million, a decrease of 12.6 percent versus the same quarter last year, but up slightly from the first quarter of 2002. Total interest expense for the second quarter was $54.7 million, down 38.3 percent from $88.8 million for the second quarter of 2001 and down 4.2 percent from $57.1 million for the first quarter of 2002.
The average taxable equivalent yield on earning assets was 6.69 percent in the second quarter of 2002 versus 7.99 percent in the second quarter of 2001 and 6.96 percent in the first quarter of 2002. The average rate paid on interest-bearing liabilities during the second quarter of 2002 was 2.80 percent, compared to 4.84 percent during the second quarter of 2001 and 3.03 percent during the first quarter of 2002.
Net interest revenue was $95.5 million in the second quarter of 2002, up 18.0 percent from $80.9 million in the second quarter of 2001. Net interest margin was 4.30 percent in the second quarter of 2002 compared to 3.88 percent in the second quarter of 2001 and 4.38 percent in the first quarter of 2002.
Deposit and Loan Activity
At June 30, 2002, total assets were $9.9 billion, up 6.8 percent from $9.3 billion at June 30, 2001. Total deposits at June 30, 2002 grew 6.8 percent to $8.3 billion from $7.7 billion at June 30, 2001. Total loans at June 30, 2002 were $6.3 billion, an increase of 6.2 percent over loans of $6.0 billion on the same date a year ago.
"While our CDs only grew 1.6 percent over the same date last year, we saw significant pockets of growth in our demand deposits such as money market and checking accounts, as our customers kept a larger percentage of their wealth in cash and equivalents amid continued uncertainty in the equity markets," said Patterson.
Provision for Credit Losses and Allowance for Credit Losses
The provision for credit losses for the second quarter of 2002 was $7.2 million compared to $4.8 million for the same quarter last year and $6.8 million for the first quarter of 2002. Annualized net charge-offs for the second quarter of 2002 were 0.39 percent of average loans compared to 0.29 percent of average loans for the second quarter of 2001 and 0.39 percent of average loans for the first quarter of 2002.
At June 30, 2002, non-performing assets totaled $59.9 million, or 0.94 percent of loans, compared to $48.8 million, or 0.82 percent of loans, at June 30, 2001 and $57.2 million, or 0.92 percent of loans, at March 31, 2002. The allowance for credit losses at June 30, 2002 was 1.36 percent of loans, compared to 1.35 percent of loans at June 30, 2001 and 1.37 percent of loans at March 31, 2002.
"Loan losses are running ahead of last year's pace due to the economic slowdown, but are comparable to the levels seen in the first quarter of this year," said Patterson. "Due to increasing loan volume, we increased our provision for credit losses consistent with our conservative stance regarding credit quality. We believe this vigilance sets us apart from our peer group."
Non-Interest Revenue
Total non-interest revenue for the second quarter of 2002 was $31.4 million compared to $32.0 million in the 2001 second quarter and $33.5 million for the 2002 first quarter. The most significant events in the quarter were the gain on the sale of securities and the attendant impairment from revaluation of the Company's mortgage servicing asset as discussed above.
Service charges increased 15.5 percent to $12.6 million in the second quarter of 2002 when compared to $10.9 million in the second quarter of 2001, reflecting an expansion of the Company's deposit services which began in March 2002 and which should, based on second quarter results, continue to positively impact non-interest revenue.
Non-Interest Expense
Non-interest expense for the second quarter of 2002 was $74.6 million, up 1.8 percent from $73.2 million for the 2001 second quarter and down 3.4 percent from $77.2 million for the first quarter of 2002. Salaries and employee benefits declined 5.6 percent between the first and second quarters of this year primarily due to the payment of other benefits related to employee bonuses in the first quarter and decreased stock appreciation rights expense in the second quarter.
Capital Management
During the second quarter of 2002, the Company repurchased 433,885 shares of its outstanding common stock to complete the repurchase of 4.2 million shares authorized under the repurchase program announced on March 5, 2001. In February of 2002, the Company announced a new common stock repurchase plan, which authorized the repurchase of up to an additional 4.1 million shares within a period of 18 months. Repurchase of common stock under this plan began during the second quarter of 2002 and 225,105 shares had been repurchased as of June 30, 2002.
Conference Call
BancorpSouth will conduct a conference call with stock analysts at 1:30 p.m. (Central Time) on July 19, 2002. Investors may listen via the Internet by accessing the Company's website at http://www.bancorpsouth.com/. A replay of the conference call will be available at BancorpSouth's website following the call.
BancorpSouth, Inc. is a bank holding company headquartered in Tupelo, Mississippi with approximately $9.9 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, integration of former First United Bancshares and Pinnacle Bancshares offices and related cost savings, expansion and prospects of products and services, deposits, capital management and liquidity, mortgage servicing and BancorpSouth's future growth and profitability.
We caution you not to place undue reliance on the forward-looking statements contained in this news release in that actual results could differ materially from those indicated in such forward-looking statements, due to a variety of factors. Those factors include, but are not limited to, changes in economic conditions and government fiscal and monetary policies, fluctuations in prevailing interest rates, the ability of BancorpSouth to reduce interest rates paid on deposits as interest rates decline or stabilize, ability to maintain credit quality, laws and regulations affecting financial institutions, the effects of repricing activity on deposits, 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 effectively manage its capital resources, the ability of BancorpSouth to attract, train and retain qualified personnel, the ability of BancorpSouth to effectively market its services and products, the ability of BancorpSouth to repurchase its common stock on favorable terms, the ability of BancorpSouth to identify potential acquisitions, changes in consumer preferences, other factors generally understood to affect the financial results of financial services companies, and other factors described from time to time in BancorpSouth's filings with the Securities and Exchange Commission. We undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.
Selected Financial Data
Three Months Ended Six Months Ended
June 30, June 30,
2002 2001 2002 2001
(Dollars in thousands,
except per share amounts)
Earnings Summary:
Net interest revenue $95,492 $80,924 $189,374 $162,524
Provision for credit
losses 7,215 4,769 13,975 8,866
Noninterest revenue 31,409 31,991 64,885 59,940
Noninterest expense 74,574 73,246 151,746 146,078
Income before income taxes 45,112 34,900 88,538 67,520
Income tax provision 14,185 11,654 28,214 21,955
Net income $30,927 $23,246 $60,324 $45,565
Earning per share: Basic $0.38 $0.28 $0.74 $0.55
Diluted: $0.38 $0.28 $0.74 $0.54
Balance sheet data at June
30:
Total assets $9,923,525 $9,294,145
Total earning assets 9,257,974 8,639,134
Loans and lease
receivables, net of
unearned discount 6,344,219 5,975,116
Allowance for credit
losses 86,276 80,829
Total deposits 8,255,559 7,732,642
Common shareholders'
equity 830,801 798,539
Book value per share $10.28 $9.65
Average balance sheet
data:
Total assets $9,818,001 $9,278,858 $9,706,035 $9,219,786
Total earning assets 9,187,581 8,670,155 9,078,189 8,605,052
Loans and lease
receivables, net of
unearned discount 6,276,605 5,968,176 6,209,820 5,996,800
Total deposits 8,165,640 7,694,561 8,083,731 7,653,726
Common shareholders'
equity 819,941 799,757 813,484 794,852
Non-performing assets at
June 30:
Non-accrual loans 13,202 12,929
Loans 90+ days past due 28,755 25,931
Restructured loans 22 243
Other real estate owned 17,908 9,725
Net charge-offs as a
percentage
of average loans
(annualized) 0.39% 0.29% 0.39% 0.33%
Performance ratios
(annualized)
Return on average assets 1.26% 1.00% 1.25% 1.00%
Return on common equity 15.13% 11.66% 14.95% 11.56%
Net interest margin 4.30% 3.88% 4.34% 3.95%
Average shares outstanding
- diluted 81,498,916 83,658,238 81,589,600 83,936,788
BancorpSouth, Inc.
Consolidated Balance Sheets
(dollars in thousands)
(Unaudited) June 30, 2002 June 30, 2001
Assets
Cash & due from banks 303,599 306,905
Interest bearing deposits
with
other banks 12,108 12,460
Held-to-maturity
securities 1,223,435 1,140,030
Available-for-sale
securities 1,115,762 881,202
Federal funds sold and
securities
purchased under
agreement
to resell 518,727 585,131
Loans & leases 6,344,219 5,975,116
Allowance for credit
losses (86,276) (80,829)
Net loans & leases 6,257,943 5,894,287
Mortgages held for sale 43,723 45,194
Bank premises & equipment 211,451 206,069
Accrued interest
receivable 79,524 89,298
Other real estate owned 18,295 9,650
Other assets 138,958 123,919
Total assets 9,923,525 9,294,145
Liabilities
Demand deposits:
Non-interest bearing 1,096,257 1,042,523
Interest bearing 2,306,227 1,847,738
Total demand deposits 3,402,484 2,890,261
Savings & time deposits:
Savings 851,714 905,089
Certificates of deposit 4,001,361 3,937,292
Total savings & time
deposits 4,853,075 4,842,381
Total deposits 8,255,559 7,732,642
Federal funds purchased
and securities sold under
agreement to repurchase 458,807 507,432
Short-term borrowings 4,000 0
Accrued interest payable 26,309 40,010
Long-term debt 140,357 141,503
Junior subordinated debt 125,000 0
Other liabilities 82,692 74,019
Total liabilities 9,092,724 8,495,606
Shareholders' Equity
Common stock 202,052 206,857
Capital surplus 18,115 31,886
Unrealized gain(loss) on
securities 27,080 22,551
Retained earnings 583,554 537,245
Total shareholders'
equity 830,801 798,539
Total liabilities &
shareholders' equity 9,923,525 9,294,145
BancorpSouth, Inc.
Consolidated Statements of Income
(amounts in thousands, except per share data)
(Unaudited) Quarter Ended
Jun-02 Mar-02 Dec-01 Sep-01 Jun-01
Interest Revenue:
Loans, including
fees $115,144 $114,796 $121,626 $128,049 $131,794
Held-to-maturity
securities: 16,093 16,429 16,706 17,698 16,630
Available-for-
sale
securities 15,571 16,413 14,772 14,757 14,243
Short term
investments 3,427 3,363 3,932 4,477 7,009
Total interest
revenue 150,235 151,001 157,036 164,981 169,676
Interest Expense:
Deposits 46,834 49,901 63,060 73,071 80,763
Short term
borrowings 1,186 1,034 1,571 2,700 3,082
Long term
borrowings 2,069 2,112 2,100 2,105 2,171
Junior
subordinated
debt 2,547 1,783 0 0 0
Other interest
expense 2,107 2,288 2,523 2,669 2,736
Total interest
expense 54,743 57,118 69,254 80,545 88,752
Net interest
revenue 95,492 93,883 87,782 84,436 80,924
Provision for
credit
losses 7,215 6,760 6,542 6,852 4,769
Net interest
revenue,
after credit
loss
provision 88,277 87,123 81,240 77,584 76,155
Other Revenue:
Mortgage lending 900 5,554 12,913 (1,462) 7,068
Service charges 12,595 10,210 11,041 10,469 10,906
Life insurance
premiums 1,091 1,127 1,155 1,151 1,127
Trust income 1,644 1,917 1,613 2,022 1,610
Securities gains,
net 2,888 (25) 3,770 3,943 74
Insurance
commissions 5,887 5,668 5,262 5,146 5,405
Other 6,404 9,025 6,205 5,465 5,801
Total other
revenue 31,409 33,476 41,959 26,734 31,991
Other Expense:
Salaries and
employee
benefits 40,226 42,591 41,451 37,083 38,425
Occupancy 5,422 5,254 5,132 5,263 5,005
Equipment 6,264 6,535 6,382 6,442 6,943
Telecommunication
s 2,032 1,925 2,143 2,244 2,123
Other 20,630 20,867 20,842 22,253 20,750
Total other
expense 74,574 77,172 75,950 73,285 73,246
Income before
income taxes 45,112 43,427 47,249 31,033 34,900
Income tax
expense 14,185 14,029 15,935 9,450 11,654
Net Income 30,927 29,398 31,314 21,583 23,246
Net Income Per
Share:
Basic $0.38 $0.36 $0.39 $0.26 $0.28
Diluted $0.38 $0.36 $0.38 $0.26 $0.28
BancorpSouth, Inc.
Consolidated Statements of Income
(amounts in thousands, except per share data)
(Unaudited) Year To Date
Jun-02 Jun-01
Interest Revenue:
Loans, including fees $229,941 $268,531
Held-to-maturity
securities: 32,522 32,681
Available-for-sale
securities 31,984 29,819
Short term investments 6,789 12,787
Total interest
revenue 301,236 343,818
Interest Expense:
Deposits 96,736 164,707
Short term borrowings 2,220 6,639
Long term borrowings 4,181 4,436
Junior subordinated debt 4,330 0
Other interest expense 4,395 5,512
Total interest
expense 111,862 181,294
Net interest revenue 189,374 162,524
Provision for credit
losses 13,975 8,866
Net interest
revenue,
after credit loss
provision 175,399 153,658
Other Revenue:
Mortgage lending 6,454 5,735
Service charges 22,805 21,248
Life insurance premiums 2,218 2,222
Trust income 3,561 3,294
Securities gains, net 2,863 2,958
Insurance commissions 11,554 10,013
Other 15,430 14,470
Total other revenue 64,885 59,940
Other Expense:
Salaries and employee
benefits 82,817 77,146
Occupancy 10,676 10,134
Equipment 12,799 13,975
Telecommunications 3,957 4,305
Other 41,497 40,518
Total other expense 151,746 146,078
Income before
income taxes 88,538 67,520
Income tax expense 28,214 21,955
Net Income 60,324 45,565
Net Income Per Share:
Basic $0.74 $0.55
Diluted $0.74 $0.54
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(dollars in thousands) Year To Date
Unaudited June 30, 2002
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of Unearned Income $6,262,136 $230,884 7.44%
Held-to-maturity securities:
Taxable 944,906 27,581 5.89%
Non Taxable 197,359 7,601 7.77%
Available-for-sale securities
Taxable 1,073,660 27,673 5.20%
Non Taxable 195,347 6,632 6.85%
Short term investments 404,781 6,790 3.38%
Total interest earning
assets and revenue 9,078,189 307,161 6.82%
Other assets 712,714
Less: allowance for credit losses (84,868)
Total $9,706,035
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $2,290,828 $18,129 1.60%
Savings 878,716 6,984 1.60%
Time 3,873,088 71,623 3.73%
Short-term borrowings 452,543 6,616 2.95%
Junior subordinated debt 104,282 4,330 8.15%
Long-term debt 140,160 4,181 6.02%
Total interest bearing
liabilities and expense 7,739,617 111,863 2.91%
Demand deposits -
non-interest bearing 1,041,099
Other liabilities 111,834
Total liabilities 8,892,550
Shareholders' equity $813,484
Total $9,706,035
Net interest revenue $195,298
Net interest margin 4.34%
Net interest rate spread 3.91%
Interest bearing liabilities to
interest earning assets 85.26%
Net interest tax equivalent
adjustment $5,925
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(dollars in thousands) Year To Date
Unaudited June 30, 2001
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of Unearned Income $6,043,981 $269,174 8.98%
Held-to-maturity securities:
Taxable 875,977 27,176 6.26%
Non Taxable 223,420 8,469 7.64%
Available-for-sale securities
Taxable 803,572 25,665 6.44%
Non Taxable 169,367 6,391 7.61%
Short term investments 488,735 12,787 5.28%
Total interest earning
assets and revenue 8,605,052 349,662 8.19%
Other assets 695,422
Less: allowance for credit losses (80,688)
Total $9,219,786
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $1,800,927 $27,685 3.10%
Savings 893,345 19,698 4.45%
Time 3,973,173 117,324 5.95%
Short-term borrowings 501,479 12,151 4.89%
Junior subordinated debt 0 0
Long-term debt 149,080 4,436 6.00%
Total interest bearing
liabilities and expense 7,318,004 181,294 5.00%
Demand deposits -
non-interest bearing 986,281
Other liabilities 120,649
Total liabilities 8,424,934
Shareholders' equity $794,852
Total $9,219,786
Net interest revenue $168,368
Net interest margin 3.95%
Net interest rate spread 3.20%
Interest bearing liabilities to
interest earning assets 85.04%
Net interest tax equivalent
adjustment $5,844
BancorpSouth, Inc.
Average Balances, Interest Income
and Expense,
and Average Yields and Rates
(dollars in thousands) Quarter Ended
Unaudited June 30, 2002
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of Unearned Income $6,323,983 $115,611 7.33%
Held-to-maturity securities:
Taxable 954,261 13,643 5.73%
Non Taxable 196,409 3,769 7.70%
Available-for-sale securities
Taxable 1,091,573 13,417 4.93%
Non Taxable 197,212 3,314 6.74%
Short term investments 424,143 3,427 3.24%
Total interest earning
assets and revenue 9,187,581 153,181 6.69%
Other assets 715,892
Less: allowance for credit losses (85,472)
Total $9,818,001
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $2,323,638 $9,295 1.60%
Savings 866,708 3,424 1.58%
Time 3,930,864 34,115 3.48%
Short-term borrowings 453,611 3,293 2.91%
Junior subordinated debt 125,000 2,547 8.15%
Long-term debt 140,458 2,069 5.91%
Total interest bearing
liabilities and expense 7,840,279 54,743 2.80%
Demand deposits -
non-interest bearing 1,044,430
Other liabilities 113,351
Total liabilities 8,998,060
Shareholders' equity $819,941
Total $9,818,001
Net interest revenue $98,438
Net interest margin 4.30%
Net interest rate spread 3.89%
Interest bearing liabilities to
interest earning assets 85.34%
Net interest tax equivalent
adjustment $2,946
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(dollars in thousands) Quarter Ended
Unaudited March 31, 2002
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of Unearned Income $6,199,602 $115,273 7.54%
Held-to-maturity securities:
Taxable 935,448 13,938 6.04%
Non Taxable 198,319 3,832 7.84%
Available-for-sale securities
Taxable 1,055,547 14,256 5.48%
Non Taxable 193,462 3,318 6.96%
Short term investments 385,204 3,363 3.54%
Total interest earning
assets and revenue 8,967,582 153,980 6.96%
Other assets 709,501
Less: allowance for credit losses (84,258)
Total $9,592,825
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $2,257,654 $8,834 1.59%
Savings 890,858 3,560 1.62%
Time 3,814,671 37,509 3.99%
Short-term borrowings 451,464 3,322 2.98%
Junior subordinated debt 83,333 1,783 8.15%
Long-term debt 139,859 2,112 6.12%
Total interest bearing
liabilities and expense 7,637,839 57,118 3.03%
Demand deposits -
non-interest bearing 1,037,730
Other liabilities 110,299
Total liabilities 8,785,869
Shareholders' equity $806,956
Total $9,592,825
Net interest revenue $96,862
Net interest margin 4.38%
Net interest rate spread 3.93%
Interest bearing liabilities to
interest earning assets 85.17%
Net interest tax equivalent
adjustment $2,979
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(dollars in thousands) Quarter Ended
Unaudited December 31, 2001
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of Unearned Income $6,114,950 $121,938 7.91%
Held-to-maturity securities:
Taxable 925,219 14,155 6.07%
Non Taxable 204,945 3,925 7.60%
Available-for-sale securities
Taxable 889,326 12,617 5.63%
Non Taxable 192,026 3,314 6.85%
Short term investments 416,228 3,933 3.75%
Total interest earning
assets and revenue 8,742,694 159,882 7.26%
Other assets 689,115
Less: allowance for credit losses (83,361)
Total $9,348,448
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $2,045,838 $10,089 1.96%
Savings 881,196 5,838 2.63%
Time 3,806,071 47,133 4.91%
Short-term borrowings 497,747 4,094 3.26%
Long-term debt 141,036 2,100 5.91%
Total interest bearing
liabilities and expense 7,371,888 69,254 3.73%
Demand deposits -
non-interest bearing 1,033,567
Other liabilities 135,332
Total liabilities 8,540,787
Shareholders' equity 807,661
Total $9,348,448
Net interest revenue $90,628
Net interest margin 4.11%
Net interest rate spread 3.53%
Interest bearing liabilities to
interest earning assets 84.3%
Net interest tax equivalent
adjustment $2,846
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(dollars in thousands) Quarter Ended
Unaudited September 30, 2001
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of Unearned Income $6,054,016 $128,367 8.41%
Held-to-maturity securities:
Taxable 1,005,116 15,086 5.95%
Non Taxable 207,277 4,017 7.69%
Available-for-sale securities
Taxable 831,339 12,559 5.99%
Non Taxable 190,362 3,368 7.02%
Short term investments 365,195 4,487 4.87%
Total interest earning
assets and revenue 8,653,305 167,884 7.70%
Other assets 686,603
Less: allowance for credit losses (81,651)
Total $9,258,257
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $1,921,604 $12,952 2.67%
Savings 872,486 6,303 2.87%
Time 3,899,185 53,816 5.48%
Short-term borrowings 511,342 5,370 4.17%
Long-term debt 141,323 2,105 5.91%
Total interest bearing
liabilities and expense 7,345,940 80,546 4.35%
Demand deposits -
non-interest bearing 1,006,233
Other liabilities 116,684
Total liabilities 8,468,857
Shareholders' equity 789,400
Total $9,258,257
Net interest revenue $87,338
Net interest margin 4.00%
Net interest rate spread 3.35%
Interest bearing liabilities to
interest earning assets 84.9%
Net interest tax equivalent
adjustment $2,901
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 3.15%
Interest bearing liabilities to
interest earning assets 84.78%
Net interest tax equivalent
adjustment $2,938
SOURCE: BancorpSouth, Inc.
CONTACT: L. Nash Allen, Jr., +1-662-680-2330, or Gary C. Bonds,
+1-662-680-2332, both of BancorpSouth, Inc.
Web site: http://www.bancorpsouth.com/