BancorpSouth, Inc.
BancorpSouth officials credited the successful merger integration of the former First United Bancshares and continued emphasis on local market management for the company's strong performance.
Aubrey Patterson, Chairman and Chief Executive Officer of BancorpSouth, commented, "we are focused on growing our business by increasing market share in our six-state region while continuing to stress credit quality and profitability. By concentrating on these fundamentals, we have been able to sustain earnings growth and enhance long-term shareholder value."
Patterson also commented, "Earnings benefited from the relative stability of interest rates during the quarter, a welcome change after four quarters of declining rates. Our net interest margin expanded as the average yield on deposits continued to decline while loan pricing remained relatively flat. Because we are not able to reprice deposits immediately in a period of falling rates, interest rates on deposits continue to decline for a number of months after any cuts by the Federal Reserve, while loan rates generally react to changes in market rates more rapidly.
"Our mortgage business, which has been a strong contributor to earnings over the past few quarters, continues to be active, although the pace has slowed somewhat as mortgage rates have begun to move up. Refinancings now represent a smaller proportion of total underwritings as the bubble of homeowners eager to take advantage of low rates has somewhat subsided.
"A highlight of the quarter was the completion of our merger with Pinnacle Bancshares, Inc. on February 28, 2002. This strategically important acquisition gives BancorpSouth two locations in Little Rock, the largest market in Arkansas but one where we have not had a presence. Pinnacle was not a large bank, $130 million in assets, but it had a sophisticated professional staff and a clientele of top-tier small businesses and high net worth individuals. In addition, Pinnacle had a strong mortgage subsidiary, that was the second largest mortgage producer in Little Rock, and it will continue to operate under our mortgage department. We expect to convert the former Pinnacle offices to our systems in April 2002 at minimal cost."
Net Interest Revenue
Total interest revenue was $151.0 million in the first quarter of 2002, down 13.3 percent from $174.1 million in the corresponding period in 2001 and down 3.8 percent from $157.0 reported in the fourth quarter of 2001. Total interest expense for the first quarter of 2002 was $57.1 million, down 38.3 percent from total interest expense of $92.5 million in the same period in 2001 and 17.6 percent from total interest expense of $69.3 million reported in the fourth quarter of 2001. Net interest revenue is the difference between interest revenue and interest expense. Net interest revenue for the first quarter of 2002 was $93.9 million, an increase of $12.3 million, or 15.1 percent, from net interest revenue of $81.6 million in the same period of the prior year and increased 6.9 percent over net interest revenue reported in the fourth quarter of 2001. Net interest margin improved to 4.38 percent, compared to 4.01 percent in the first quarter of 2001 and 4.11 percent in the fourth quarter of 2001. The cost of interest-bearing liabilities was 3.03 percent in the first quarter of 2002, compared to 5.15 percent in the first quarter of 2001 and 3.73 percent in the fourth quarter of 2001, while the taxable equivalent yield on earning assets was 6.96 percent in the first quarter of 2002 versus 8.41 percent in the same period in 2001 and 7.26 percent in the fourth quarter of 2001.
Deposit and Loan Activity
BancorpSouth reported growth in total assets and total deposits compared to both the end of the first quarter of 2001 and year-end 2001. As of March 31, 2002, total assets were $9.8 billion, up 4.6 percent from total assets of $9.4 billion as of both March 31, 2001 and December 31, 2001. Total deposits were $8.2 billion, up 5.0 percent from March 31, 2001, and up 4.0 percent since December 31, 2001. Total loans as of March 31, 2001, were $6.2 billion, 4.1 percent higher than the level as of March 31, 2001, and 2.2 percent greater than the balance as of December 31, 2001.
Continuing a practice begun in the first quarter of 2000, the company sold its accumulated inventory of insured student loans in the first quarter of 2002. The sale of the $80.1 million loan portfolio created a pretax gain of $2.1 million. In addition, management continued to reduce the company's exposure to indirect automobile sales financing by allowing our portfolio of such loans to decline. The portfolio declined $23.4 million in the first quarter of 2002, reaching a balance of $123.0 million at March 31, 2002 and has decreased $107.1 million since the first quarter of 2001. Excluding the impact of these two items and the Pinnacle Bancshares merger, total loan volume would have increased 5.7 percent on an annualized basis from December 31, 2001 to March 31, 2002.
"As loan growth slowed in response to the weaker economy, we have focused on improving our interest rate spread through careful pricing of deposits," Patterson stated. "The growth in deposits stems from a 'flight to quality,' as customers are moving more of their assets to demand deposits while they wait for the financial markets to stabilize.
"Recently we have begun to see encouraging signals from economic indicators, not signals of robust growth, but solidly positive, and we look for both loan demand and deposit growth to increase in the second half of this year. We suffered less than many others during the recent economic slowdown because of the diverse economic sectors represented in our markets. Our Jackson, Mississippi and Gulf Coast markets continue to be relatively insulated from the economic slowdown, but our manufacturing-dependent markets felt the impact. In these markets, orders are beginning to pick up and employment is rising. In some of our urban markets, lending for real estate development slowed, particularly for housing development, because of oversupply in the market. However, now that we are entering the home building season, we expect to see a positive trend in home construction financing."
Provision for Credit Losses and Allowance for Credit Losses
The provision for credit losses in the first quarter of 2002 was $6.8 million, versus $4.1 million in the same quarter of 2001 and $6.5 million in the fourth quarter of 2001. Annualized net charge-offs for the first quarter of 2002 were 0.39 percent of average loans, while they were 0.36 percent of average loans in the same quarter of 2001 and 0.40 percent of average loans in the fourth quarter of 2001.
Non-performing assets totaled $57.2 (0.92 percent of loans) as of March 31, 2002, compared to $43.6 (0.73 percent of loans) as of March 31, 2001, and $59.6 million (0.98 percent of loans) at December 31, 2001. The allowance for credit losses amounted to 1.37 percent of loans at March 31, 2002, compared to 1.34 percent of loans at March 31, 2001 and 1.37 percent of loans at December 31, 2001.
"Measures of credit quality typically lag the economy, as successive quarters of economic weakness have a cumulative effect on borrowers," Patterson explained. "Therefore, while we continue to adhere to our strict credit standards, we were not surprised to see some slippage in our credit quality indicators in the first quarter. We expect to see improvement in these indicators as the economic recovery continues."
Non-interest Revenue
Non-interest revenue totaled $33.5 million in the first quarter of 2002, up 19.8 percent from the $27.9 million reported in the first quarter of 2001, but 20.2 percent lower than $42.0 million reported in the fourth quarter of 2001.
These comparisons were impacted by several significant items. Much of the variance was caused by swings in the revenue from mortgage lending, due in part to changes in the value of our mortgage servicing asset, which represents the present value of the future stream of servicing revenue. Mortgage lending contributed $5.6 million in the first quarter of 2002, which includes a $0.5 million recovery of previously recorded impairment charges to the mortgage servicing asset. This compares to a loss of $1.3 million in the first quarter of 2001 as falling interest rates caused a $4.3 million impairment in the value of our mortgage servicing asset. In the fourth quarter of 2001, mortgage revenue was $12.9 million as low interest rates generated high volumes of both new originations and mortgage refinancings, and the company benefited from the reversal during the fourth quarter of 2001 of $4.5 million in previously recorded impairment charges to the mortgage servicing asset as mortgage rates moved up. Net gains on the sale of securities also had a substantial impact. The company showed a loss of $25,000 in the first quarter of 2002, compared to gains of $2.9 million in the first quarter of 2001 and $3.8 million in the fourth quarter of 2001.
"Fee-based services are contributing a revenue stream that is not impacted by changes in interest rates, thus adding stable growth," Patterson stated. "In the recent quarter, trust fees increased 13.8 percent while insurance commissions gained 23.0 percent, with strong annuity sales more than offsetting some weakness in the commercial market. We will be introducing our products to the customers of Pinnacle Bank, as well as continuing their penetration in former First United markets."
Non-interest Expense
Non-interest expense for the first quarter of 2002 was $77.2 million, up 6.0 percent from $72.9 million for the first quarter of 2001 and up 1.6 percent from $76.0 million in the fourth quarter of 2001.
"We continue to see the positive impact of cost reductions resulting from the integration of First United, particularly in terms of data processing costs," explained Jim Kelley, President and Chief Operating Officer of BancorpSouth. "We are continuing to make progress as we gradually implement our loan file centralization process, which is our other major cost-saving initiative. This project currently generates some incremental cost because we are operating some redundant systems through the implementation phase, but we expect it to generate cost savings in the future."
As of January 1, 2002, the company adopted Statement of Financial Accounting Standards No. 142, "Goodwill and Other Intangible Assets," which changes the accounting treatment of goodwill and other intangible assets. Under SFAS 142, companies will no longer record the amortization of goodwill as an expense for financial reporting purposes. Instead, companies must test their intangible assets annually for impairment of the assets' value and write off any impairment. We expect to complete the initial impairment test under SFAS 142 in the second quarter of 2002. In the first quarter of 2002, this accounting change reduced goodwill amortization by $768,000 compared to the same quarter of 2001.
Capital Management
We issued $125 million of 8.15 percent Trust Preferred Securities in January 2002. This new long-term regulatory capital will be used for general corporate purposes, which may include repurchasing common stock and financing acquisitions.
"We went to market with this issue at the optimum time," said Patterson, "catching the low point of interest rates. At the time these securities were issued, the 8.15 percent distribution rate was the lowest rate received by a regional bank holding company for a similar security offering with a similar credit rating. This additional funding enables us to take advantage of any potential investment opportunities that will enhance our growth, including strategic acquisitions."
During the first quarter of 2002, we repurchased a total of 801,000 shares of our outstanding common stock under a repurchase program announced on March 5, 2001, which authorized us to acquire up to 4.2 million shares, or approximately 5% of the shares outstanding at the time of the announcement. As of March 31, 2002, a total of 3,766,000 shares have been repurchased under this program and there are 434,000 shares remaining under this authorization. In addition, in February 2002 we announced a new common stock repurchase program, which authorized the repurchase of up to an additional 4.1 million shares within a period of 18 months, of which no shares have been repurchased as of March 31, 2002.
Conference Call
BancorpSouth will conduct a conference call with stock analysts at 1:30 p.m. (Central Time) on April 19, 2002. Investors may listen via the internet by accessing our 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 $9.8 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, fee-based services, 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, the exposure to indirect automobile sales financing, home construction financing, capital management and liquidity, prospects for 2002, accounting treatment of intangible assets, use of proceeds from the Trust Preferred Securities, 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 or stabilize, ability to maintain credit quality, 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 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
March 31,
2002 2001
(Dollars in thousands, except per
share amounts)
Earnings Summary:
Net interest revenue $93,883 $81,599
Provision for credit losses 6,760 4,097
Noninterest revenue 33,476 27,949
Noninterest expense 77,172 72,832
Income before income taxes 43,427 32,619
Income tax provision 14,029 10,300
Net income $29,398 $22,319
Earning per share: Basic $0.36 $0.27
Diluted: $0.36 $0.27
Balance sheet data at March 31:
Total assets $9,816,856 $9,384,078
Total earning assets 9,156,724 8,738,930
Loans and lease receivables, net of
unearned discount 6,206,910 5,960,862
Allowance for credit losses 85,140 80,461
Total deposits 8,175,131 7,785,627
Common shareholders' equity 810,667 804,085
Book value per share 9.98 9.59
Average balance sheet data:
Total assets $9,592,825 $9,160,057
Total earning assets 8,967,582 8,539,226
Loans and lease receivables, net of
unearned discount 6,142,294 6,025,742
Total deposits 8,000,913 7,612,436
Common shareholders' equity 806,956 789,892
Non-performing assets at March 31:
Non-accrual loans $9,714 $12,116
Loans 90+ days past due 30,789 22,338
Restructured loans 38 1,542
Other real estate owned 16,640 7,643
Net charge-offs as a percentage
of average loans (annualized) 0.39% 0.36%
Performance ratios (annualized)
Return on average assets 1.24% 0.99%
Return on common equity 14.77% 11.46%
Net interest margin 4.38% 4.01%
Average shares outstanding - diluted 81,680,282 84,215,338
BancorpSouth, Inc.
Consolidated Balance Sheets
(dollars in thousands)
(Unaudited) March 31, 2002 March 31, 2001
Assets
Cash & due from banks 288,797 298,663
Interest bearing deposits
with other banks 13,608 7,871
Held-to-maturity securities 1,180,333 1,224,997
Available-for-sale securities 1,420,635 973,847
Federal funds sold and
securities purchased under
agreement to resell 278,053 520,399
Loans & leases 6,206,910 5,960,862
Allowance for credit losses (85,140) (80,461)
Net loans & leases 6,121,770 5,880,401
Mortgages held for sale 57,185 50,953
Bank premises & equipment 213,329 202,539
Accrued interest receivable 85,555 90,827
Other real estate owned 17,047 7,568
Other assets 140,544 126,013
Total assets 9,816,856 9,384,078
Liabilities
Demand deposits:
Non-interest bearing 1,084,148 1,032,551
Interest bearing 2,320,449 1,828,324
Total demand deposits 3,404,597 2,860,875
Savings & time deposits:
Savings 893,693 895,771
Certificates of deposit 3,876,841 4,028,981
Total savings & time
deposits 4,770,534 4,924,752
Total deposits 8,175,131 7,785,627
Federal funds purchased
and securities sold under
agreement to repurchase 444,137 502,749
Short-term borrowings 4,000 0
Accrued interest payable 31,956 52,466
Long-term debt 140,651 151,778
Junior subordinated debt 125,000 0
Other liabilities 85,314 87,373
Total liabilities 9,006,189 8,579,993
Shareholders' Equity
Common stock 203,078 209,615
Capital surplus 15,112 46,153
Unrealized gain (loss) on
securities 15,790 22,933
Retained earnings 576,687 525,384
Total shareholders' equity 810,667 804,085
Total liabilities &
shareholders' equity 9,816,856 9,384,078
BancorpSouth, Inc.
Consolidated Statements of Income
(amounts in thousands, except per share data)
(Unaudited) Quarter Ended
Mar-02 Dec-01 Sep-01 Jun-01 Mar-01
Interest Revenue:
Loans, including
fees $114,796 $121,626 $128,049 $131,794 $136,737
Held-to-maturity
securities: 16,429 16,706 17,698 16,630 16,050
Available-for-
sale securities 16,413 14,772 14,757 14,243 15,576
Short term
investments 3,363 3,932 4,477 7,009 5,777
Total interest
revenue 151,001 157,036 164,981 169,676 174,140
Interest Expense:
Deposits 49,901 63,060 73,071 80,763 83,944
Short term
borrowings 1,034 1,571 2,700 3,082 3,557
Long term
borrowings 2,112 2,100 2,105 2,171 2,265
Other interest
expense 4,071 2,523 2,669 2,736 2,775
Total interest
expense 57,118 69,254 80,545 88,752 92,541
Net interest
revenue 93,883 87,782 84,436 80,924 81,599
Provision for
credit losses 6,760 6,542 6,852 4,769 4,097
Net interest
revenue,
after credit
loss provision 87,123 81,240 77,584 76,155 77,502
Other Revenue:
Mortgage lending 5,554 12,913 (1,462) 7,068 (1,333)
Service charges 10,210 11,041 10,469 10,906 10,342
Life insurance
premiums 1,127 1,155 1,151 1,127 1,094
Trust income 1,917 1,613 2,022 1,610 1,684
Securities gains,
net (25) 3,770 3,943 74 2,884
Insurance
commissions 5,668 5,262 5,146 5,405 4,608
Other 9,025 6,205 5,465 5,801 8,670
Total other
revenue 33,476 41,959 26,734 31,991 27,949
Other Expense:
Salaries and
employee benefits 42,591 41,451 37,083 38,425 38,721
Occupancy 5,254 5,132 5,263 5,005 5,129
Equipment 6,535 6,382 6,442 6,943 7,032
Telecommunications 1,925 2,143 2,244 2,123 2,182
Other 20,867 20,842 22,253 20,750 19,768
Total other
expense 77,172 75,950 73,285 73,246 72,832
Income before
income taxes 43,427 47,249 31,033 34,900 32,619
Income tax expense 14,029 15,935 9,450 11,654 10,300
Net Income $29,398 $31,314 $21,583 $23,246 $22,319
Net Income Per
Share:
Basic $0.36 $0.39 $0.26 $0.28 $0.27
Diluted $0.36 $0.38 $0.26 $0.28 $0.27
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
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
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/