BancorpSouth, Inc.
Net income increased 13.4 percent for the first six months of 2003, to $68.4 million from $60.3 million for the first half of 2002. Net income per basic and diluted share rose 18.9 percent for the first six months of 2003 to $0.88 from $0.74 for the comparable period in 2002.
Aubrey Patterson, BancorpSouth's Chairman and Chief Executive Officer, commented, "BancorpSouth's second quarter results clearly demonstrate the strategic importance of its successful multi-year effort to build its non- interest revenue streams. Strong growth in mortgage lending fees for the quarter combined with substantial increases in service charges, insurance commissions and other fee income to drive a 30.8 percent increase in non- interest revenue, essentially offsetting the effect of an anticipated decline in net interest revenue that resulted from lower interest rates and reduced loan activity in a difficult economic environment. Our commitment to this strategy to diversify our revenue streams was again evident in the second quarter with the announcement of our acquisition of Wright & Percy Insurance of Baton Rouge, Louisiana's oldest and largest independent insurance agency, which is our fourth insurance-company acquisition in four years. Earlier this week, on July 14, we reinforced our commitment to this strategy with the announcement of our agreement to merge with Ramsey, Krug, Farrell & Lensing, Inc. of Little Rock, Arkansas, one of Arkansas' leading insurance agencies. The continued implementation of this strategy has not only reduced the impact of interest rate volatility on BancorpSouth's financial results, but it has also enabled the Company to develop a much more comprehensive array of financial services with which to serve its growing retail and small-to-mid- sized business customer base.
"As in previous quarters, our non-interest revenue results reflect the impact of interest rate movements on our mortgage servicing asset. For the second quarter of 2003, our results include a provision for the impairment of the mortgage servicing asset, which is a non-cash charge related to the decline in mortgage interest rates, of $4.7 million, or $0.04 per diluted share after tax. Net securities gains for the second quarter of 2003 totaled $180,000. For the second quarter of 2002, the results include a provision for the impairment of the mortgage servicing asset of $4.2 million, or $0.03 per diluted share after tax, and net securities gains of $2.9 million, or $0.02 per diluted share after tax."
Net Interest Revenue
Interest revenue was $133.2 million for the second quarter of 2003, down 10.5 percent from $148.8 million for the second quarter of 2002 and 3.3 percent from $137.7 million for the first quarter of 2003. Interest expense declined 15.7 percent to $46.1 million for the second quarter from $54.7 million for the second quarter last year and 3.0 percent from $47.5 million for the first quarter of 2003.
The average taxable equivalent yield on earning assets for the second quarter of 2003 decreased to 5.68 percent from 6.63 percent for the comparable quarter in 2002 and 6.00 percent for the first quarter of 2003. The average rate paid on interest-bearing liabilities for the second quarter of 2003 fell to 2.26 percent from 2.80 percent for the second quarter of 2002 and 2.36 percent for the first quarter of 2003.
Net interest revenue was $87.1 million for the second quarter of 2003, a decrease of 7.5 percent from $94.1 million for the second quarter of 2002 and 3.4 percent from $90.1 million for the first quarter of 2003. Net interest margin was 3.75 percent for the second quarter of 2003, compared with 4.24 percent for the second quarter of 2002 and 3.97 percent for the first quarter of the current year.
Patterson added, "Declining interest rates in the second quarter continued to contribute to the reduction of BancorpSouth's net interest margin. In addition, as discussed in our first-quarter earnings release, the securities sale undertaken in the first quarter to narrow the interest sensitivity gap between maturing assets and liabilities also produced pressure on the net interest margin, as anticipated in a declining rate environment. While we constantly manage our assets and liabilities to limit our exposure to changing interest rates, we have actively sought to better position the Company to take advantage of rising interest rates when they occur, in spite of the short-term impact on the net interest margin. Having experienced the impact of many interest rate cycles, we stand by this more conservative posture, which we believe is consistent with our goals for long-term growth in shareholder value."
Deposit and Loan Activity
Total assets at June 30, 2003 increased 6.6 percent to $10.6 billion from $9.9 billion at June 30, 2002. Total deposits were $8.7 billion at June 30, 2003, a 5.6 percent increase from $8.3 billion at the end of the second quarter of 2002. Total loans of $6.3 billion at June 30, 2003 fell 0.7 percent from $6.3 billion at June 30, 2002.
"Like the banking industry as a whole, our loan activity for the second quarter reflects the continued listless economic environment in both our regional and the national markets," said Patterson. "Because of the geographic and business mix diversification we enjoy throughout our six-state market, we are confident that we remain well positioned to participate in improved loan activity that we would expect to accompany an improvement in the economic environment. We also continue to be encouraged by the growth in market share evidenced by the 5.6 percent expansion of our total deposits. Within this total, non-interest bearing deposits grew 17.5 percent for the second quarter, which represents the second consecutive quarter of double-digit percentage growth for this low-cost source of funds."
Provision for Credit Losses and Allowance for Credit Losses
The provision for credit losses for the second quarter of 2003 declined on both a comparable-quarter and sequential-quarter basis for the second consecutive quarter. For the latest quarter, the provision of $6.5 million fell 10.3 percent from $7.2 million for the second quarter of 2002 and 0.8 percent from $6.5 million for the first quarter of 2003. Annualized net charge-offs were 0.31 percent of average loans for the latest quarter, versus 0.39 percent for the comparable quarter in 2002 and 0.30 percent for the first quarter of 2003.
Non-performing loans at June 30, 2003 totaled $45.2 million, or 0.72 percent of loans, compared with $40.9 million, or 0.65 percent of loans, at June 30, 2002, and $40.2 million, or 0.64 percent of loans at the end of the first quarter of 2003. The allowance for credit losses at June 30, 2003, was 1.45 percent of loans, up from 1.36 percent at June 30, 2002 and 1.43 percent at March 31, 2003.
Patterson stated, "We remain pleased with BancorpSouth's credit quality as we enter the second half of 2003. As expected, the lack of material growth in the economy is a significant factor in the increase in our non-performing loans during the second quarter. However, through diligent efforts to salvage these assets, we reduced annualized charge-offs for the quarter compared with the second quarter of last year. This reduction, in turn, strengthened our allowance for credit losses compared with both the second quarter of 2002 and the first quarter of 2003, even as we reduced our provision for credit losses for the third consecutive quarter.
"We attribute BancorpSouth's strong credit quality to a conservative lending and credit philosophy that is an essential part of the foundation of this organization. Because the traditional banking industry is affected so directly by the economic cycle, we firmly believe that a key to long-term prosperity is a fully engaged loan review function that implements this conservative philosophy aggressively. While confident that adherence to this policy costs us some incremental business in the stronger part of the economic cycle, we are equally confident that, after two years of economic softness, it is accountable for our continued strong credit quality."
Non-Interest Revenue
Non-interest revenue increased 30.8 percent to $42.9 million for the second quarter of 2003 from $32.8 million for the second quarter of 2002 and decreased 22.0 percent from $55.0 million for the first quarter of 2003. In addition to the net securities gains and impairment provisions discussed above for the second quarter of 2003 and 2002, these results include net securities gains for the first quarter of 2003 of $13.6 million, as well as a reversal of previously recorded impairment charges for the first quarter of 2003 of $0.8 million.
The strong growth in revenue from mortgage loan originations for the second quarter of 2003 resulted from the continued low mortgage interest rates during the quarter. Because of this environment, BancorpSouth's mortgage loan originations for the second quarter of 2003 grew 120.8 percent to $392.8 million from $177.9 million for the second quarter of 2002, and its mortgage servicing portfolio expanded to $2.8 billion at June 30, 2003, from $2.6 billion at June 30, 2002.
Non-interest revenue for the second quarter of 2003 also reflected 28.9 percent growth in service charges, to $16.2 million for the latest quarter from $12.6 million for the second quarter last year, as well as 41.2 percent growth in insurance commissions, to $8.3 million from $5.9 million, and 40.3 percent growth in other non-interest revenue, to $11.0 million from $7.8 million.
"The growth in non-interest revenue to nearly half the size of net interest revenue for the second quarter of 2003, up from 34.9 percent of net interest revenue for the second quarter of 2002, has contributed substantially to the profitability of BancorpSouth," continued Patterson. "We expect the expansion of our mortgage servicing portfolio at historically low interest rates will create future benefits as well, not only through the reduction of pre-payment risk for mortgages within the portfolio, but also through the new and expanded customer relationships the growth in mortgage originations has produced. We intend to market a full array of traditional banking products to these customers, as well as our growing portfolio of non-interest revenue products, such as deposit, insurance, cash management and investment brokerage products and services."
Non-Interest Expense
Non-interest expense increased 9.1 percent for the second quarter of 2003 to $81.3 million from $74.6 million for the second quarter of 2002. The substantial majority of this increase occurred in salaries and employee benefits, primarily due to commissions related to increased mortgage loan originations. Equipment, telecommunications and other expenses declined on a comparable-quarter and sequential-quarter basis with the completion of initiatives to improve operating efficiency.
Capital Management
During the second quarter of 2003, BancorpSouth did not repurchase any shares of its common stock under any of its stock repurchase plans. At the end of the second quarter of 2003, approximately 231,000 shares of common stock remained available for repurchase under the plan authorized in February 2002 for the repurchase of up to 4.1 million shares. Additionally, in April 2003, the Company's Board of Directors authorized a new plan, under which the Company may repurchase up to an additional 3.9 million shares. No shares have been repurchased under this recently adopted plan. Combined with the shares repurchased under a separate 4.2 million share plan authorized in March 2001 that was completed in 2002, the Company has repurchased approximately 8.1 million shares of its common stock as of June 30, 2003, or 9.6 percent of its outstanding shares at March 31, 2001. BancorpSouth will continue to evaluate additional share repurchases under the February 2002 and April 2003 plans, which authorize these repurchases during an eighteen-month and two-year period, respectively.
Summary
Mr. Patterson concluded, "The latest stock repurchase plan authorized by the Board of Directors is a clear indication of its confidence in the growth potential of BancorpSouth. This confidence is based on the continuing efforts of a highly experienced management team and employees throughout BancorpSouth, who have demonstrated their ability to produce long-term growth in shareholder value. Through these efforts, BancorpSouth occupies a unique competitive position in its six-state market, which is based on its commitment to provide "community bank" customer service supported by the product and systems sophistication of one of the country's 50 largest banking organizations. In addition to traditional banking services, we have decisively positioned BancorpSouth to pursue a growing non-interest revenue opportunity, and we have enhanced our ability to scale our operations profitably through a substantial level of back office centralization. We have consistently proven our ability to expand market share through both internal growth and accretive acquisitions, even as we maintain a conservative lending posture and strong credit quality. As a result, we believe BancorpSouth is well positioned to weather the current economic uncertainty and, through the consistent implementation of its long-term growth strategies, produce further gains in shareholder value."
Conference Call
BancorpSouth will conduct a conference call with analysts at 2:30 p.m. (Central Time) on July 17, 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 $10.6 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 the acquisition of Ramsey, Krug, Farrell & Lensing, interest rates, loan volume, credit quality, expansion of mortgage servicing portfolio and resulting benefits, net interest margin, non-interest revenue, ability to scale operations profitably through back office centralization, market share, expansion and prospects of products and services, internal growth and acquisitions, common stock repurchase plan, shareholder value 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, the inability to complete the acquisition of Ramsey, Krug, Farrell & Lensing, changes in economic conditions and government fiscal and monetary policies, fluctuations in prevailing interest rates, the ability to maintain credit quality, the ability of BancorpSouth to reduce interest rates paid on deposits as interest rates decline or stabilize, changes in laws and regulations affecting financial institutions in general, possible adverse rulings, judgments, settlements and other outcomes of pending litigation, the ability of BancorpSouth to compete with other financial services companies, the ability of BancorpSouth to provide competitive services and products, changes in BancorpSouth's operating or expansion strategy, geographic concentration of BancorpSouth's assets, availability of and costs associated with obtaining adequate and timely sources of liquidity, the ability of BancorpSouth to attract, train and retain qualified personnel, the ability of BancorpSouth to effectively market its services and products, the ability of BancorpSouth to repurchase its common stock on favorable terms, the ability of BancorpSouth to identify potential acquisitions, changes in consumer preferences, other factors generally understood to affect the financial results of financial services companies, and other factors described from time to time in BancorpSouth's filings with the Securities and Exchange Commission. We undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.
Selected Financial Data
Three Months Ended Six Months Ended
June 30, June 30,
2003 2002 2003 2002
(Dollars in thousands,
except per share
amounts)
Earnings Summary:
Net interest revenue $87,069 $94,083 $177,213 $186,510
Provision for credit
losses 6,472 7,215 12,994 13,975
Non-interest revenue 42,915 32,818 97,932 67,749
Non-interest expense 81,333 74,574 160,956 151,746
Income before income
taxes 42,179 45,112 101,195 88,538
Income tax provision 12,938 14,185 32,806 28,214
Net income $29,241 $30,927 $68,389 $60,324
Earnings per share:
Basic $0.38 $0.38 $0.88 $0.74
Diluted $0.37 $0.38 $0.88 $0.74
Balance sheet data at
June 30:
Total assets $10,576,453 $9,923,525
Total earning assets 9,763,679 9,257,974
Loans and lease
receivables, net of
unearned discount 6,301,110 6,344,219
Allowance for credit
losses 91,210 86,276
Total deposits 8,714,072 8,255,559
Common shareholders'
equity 857,868 830,801
Book value per share 11.00 10.28
Average balance sheet
data:
Total assets $10,287,130 $9,818,001 $10,239,601 $9,706,035
Total earning assets 9,592,723 9,187,581 9,543,975 9,078,189
Loans and lease
receivables, net of
unearned discount 6,289,079 6,276,605 6,318,286 6,209,820
Total deposits 8,628,134 8,165,640 8,594,256 8,083,731
Common shareholders'
equity 832,443 819,941 824,221 813,484
Non-performing assets at
June 30:
Non-accrual loans $18,230 $12,166
Loans 90+ days past due 26,954 28,755
Restructured loans 14 22
Other real estate owned 15,065 18,798
Net charge-offs as a
percentage
of average loans
(annualized) 0.31% 0.39% 0.31% 0.39%
Performance ratios
(annualized)
Return on average assets 1.14% 1.26% 1.35% 1.25%
Return on common equity 14.09% 15.13% 16.73% 14.95%
Net interest margin 3.75% 4.24% 3.86% 4.27%
Average shares
outstanding - diluted 78,013,329 81,498,916 77,935,346 81,589,600
BancorpSouth, Inc.
Consolidated Balance Sheets
(dollars in thousands)
(Unaudited)
June 30, June 30,
2003 2002 % Chg
Assets
Cash & due from banks $393,390 $303,599 29.6%
Interest bearing deposits with
other banks 5,059 12,108 (58.2%)
Held-to-maturity securities 1,552,070 1,223,435 26.9%
Available-for-sale securities 1,723,766 1,115,762 54.5%
Federal funds sold and securities
purchased under agreement
to resell 94,999 518,727 (81.7%)
Loans & leases 6,301,110 6,344,219 (0.7%)
Allowance for credit losses (91,210) (86,276) 5.7%
Net loans & leases 6,209,900 6,257,943 (0.8%)
Mortgages held for sale 86,676 43,723 98.2%
Bank premises & equipment 209,746 211,451 (0.8%)
Accrued interest receivable 76,015 79,524 (4.4%)
Other real estate owned 15,065 18,295 (17.7%)
Other assets 209,767 138,958 51.0%
Total assets $10,576,453 $9,923,525 6.6%
Liabilities
Demand deposits:
Non-interest bearing $1,287,846 $1,096,257 17.5%
Interest bearing 2,463,010 2,306,227 6.8%
Total demand deposits 3,750,856 3,402,484 10.2%
Savings & time deposits:
Savings 797,880 851,714 (6.3%)
Certificates of deposit 4,165,336 4,001,361 4.1%
Total savings & time deposits 4,963,216 4,853,075 2.3%
Total deposits 8,714,072 8,255,559 5.6%
Federal funds purchased and
securities sold under
agreement to repurchase 576,727 458,807 25.7%
Short-term borrowings 50,000 4,000
Accrued interest payable 21,101 26,309 (19.8%)
Junior subordinated debt 125,000 125,000 ---
Long-term debt 139,137 140,357 (0.9%)
Other liabilities 92,548 82,692 11.9%
Total liabilities 9,718,585 9,092,724 6.9%
Shareholders' Equity
Common stock 195,017 202,052 (3.5%)
Capital surplus 31,031 18,115 71.3%
Unrealized gain (loss) on
securities 39,368 27,080 45.4%
Retained earnings 592,452 583,554 1.5%
Total shareholders' equity 857,868 830,801 3.3%
Total liabilities &
shareholders' equity $10,576,453 $9,923,525 6.6%
Consolidated Statements of Income
(amounts in thousands, except per share data)
(Unaudited)
Quarter Ended
Jun-03 Mar-03 Dec-02 Sep-02 Jun-02
Interest Revenue:
Loans, including fees $103,146 $105,252 $110,129 $113,922 $113,735
Held-to-maturity
securities: 14,707 15,818 15,681 16,577 16,093
Available-for-sale
securities 13,026 14,221 16,277 14,440 15,571
Short term investments 2,315 2,391 2,451 2,569 3,427
Total interest
revenue 133,194 137,682 144,538 147,508 148,826
Interest Expense:
Deposits 39,289 40,544 44,695 47,099 46,834
Short term borrowings 987 904 1,132 1,268 1,186
Long term borrowings 2,079 2,082 2,090 2,095 2,069
Junior subordinated debt 2,547 2,547 2,547 2,547 2,547
Other interest expense 1,223 1,461 1,680 1,877 2,107
Total interest
expense 46,125 47,538 52,144 54,886 54,743
Net interest revenue 87,069 90,144 92,394 92,622 94,083
Provision for credit
losses 6,472 6,522 7,228 8,208 7,215
Net interest
revenue,
after credit loss
provision 80,597 83,622 85,166 84,414 86,868
Other Revenue:
Mortgage lending 4,667 7,561 6,069 (2,595) 900
Service charges 16,232 13,654 13,557 12,888 12,595
Life insurance premiums 876 961 1,031 1,091 1,091
Trust income 1,684 1,486 1,767 1,693 1,644
Securities gains, net 180 13,556 170 2,453 2,888
Insurance commissions 8,314 6,387 5,927 6,123 5,887
Other 10,962 11,411 6,661 7,654 7,813
Total other revenue 42,915 55,016 35,182 29,307 32,818
Other Expense:
Salaries and employee
benefits 48,007 45,461 45,985 42,301 40,226
Occupancy 5,609 5,580 5,497 5,485 5,422
Equipment 5,776 6,003 6,093 6,070 6,264
Telecommunications 1,828 1,860 1,948 1,922 2,032
Other 20,113 20,719 25,356 19,995 20,630
Total other expense 81,333 79,623 84,879 75,773 74,574
Income before
income taxes 42,179 59,015 35,469 37,948 45,112
Income tax expense 12,938 19,867 9,848 11,876 14,185
Net Income $29,241 $39,148 $25,621 $26,072 $30,927
Net Income Per Share:
Basic $0.38 $0.51 $0.33 $0.33 $0.38
Diluted $0.37 $0.50 $0.33 $0.33 $0.38
Consolidated Statements of Income
(amounts in thousands, except per share data)
(Unaudited)
Year To Date
Jun-03 Jun-02
Interest Revenue:
Loans, including fees $208,397 $227,077
Held-to-maturity
securities: 30,525 32,522
Available-for-sale
securities 27,248 31,984
Short term investments 4,706 6,789
Total interest revenue 270,876 298,372
Interest Expense:
Deposits 79,833 96,736
Short term borrowings 1,891 2,220
Long term borrowings 4,161 4,181
Junior subordinated debt 5,094 4,330
Other interest expense 2,684 4,395
Total interest expense 93,663 111,862
Net interest revenue 177,213 186,510
Provision for credit
losses 12,994 13,975
Net interest revenue,
after credit loss
provision 164,219 172,535
Other Revenue:
Mortgage lending 12,228 6,454
Service charges 29,886 22,805
Life insurance premiums 1,838 2,218
Trust income 3,170 3,561
Securities gains, net 13,737 2,863
Insurance commissions 14,702 11,554
Other 22,371 18,294
Total other revenue 97,932 67,749
Other Expense:
Salaries and employee
benefits 93,468 82,817
Occupancy 11,188 10,676
Equipment 11,779 12,799
Telecommunications 3,688 3,957
Other 40,833 41,497
Total other expense 160,956 151,746
Income before
income taxes 101,195 88,538
Income tax expense 32,806 28,214
Net Income $68,389 $60,324
Net Income Per Share:
Basic $0.88 $0.74
Diluted $0.88 $0.74
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(dollars in thousands)
(Unaudited)
Quarter Ended
June 30, 2003
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of Unearned Income $6,355,052 $103,521 6.53%
Held-to-maturity securities:
Taxable 1,437,348 12,628 3.52%
Non Taxable 166,218 3,198 7.72%
Available-for-sale securities:
Taxable 1,028,778 11,031 4.30%
Non Taxable 194,543 3,069 6.33%
Short term investments 410,784 2,315 2.26%
Total interest earning
assets and revenue 9,592,723 135,762 5.68%
Other assets 785,412
Less: allowance for credit losses (91,005)
Total $10,287,130
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $2,473,411 $6,664 1.08%
Savings 802,359 2,079 1.04%
Time 4,181,442 30,546 2.93%
Short-term borrowings 448,519 2,211 1.98%
Junior subordinated debt 125,000 2,547 8.15%
Long-term debt 139,243 2,079 5.99%
Total interest bearing
liabilities and expense 8,169,974 46,126 2.26%
Demand deposits -
non-interest bearing 1,170,922
Other liabilities 113,791
Total liabilities 9,454,687
Shareholders' equity 832,443
Total $10,287,130
Net interest revenue $89,636
Net interest margin 3.75%
Net interest rate spread 3.41%
Interest bearing liabilities to
interest earning assets 85.17%
Net interest tax equivalent
adjustment $2,567
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(dollars in thousands)
(Unaudited)
Quarter Ended
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 $2,945
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(dollars in thousands)
(Unaudited)
Year to Date
June 30, 2003
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of Unearned Income $6,376,722 $209,181 6.62%
Held-to-maturity securities:
Taxable 1,356,177 26,230 3.90%
Non Taxable 172,573 6,607 7.72%
Available-for-sale securities:
Taxable 1,042,471 23,158 4.48%
Non Taxable 198,125 6,291 6.40%
Short term investments 397,907 4,705 2.38%
Total interest earning
assets and revenue 9,543,975 276,172 5.84%
Other assets 785,494
Less: allowance for credit losses (89,868)
Total $10,239,601
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $2,486,782 $13,798 1.12%
Savings 811,544 4,238 1.05%
Time 4,157,274 61,798 3.00%
Short-term borrowings 447,172 4,575 2.06%
Junior subordinated debt 125,000 5,094 8.15%
Long-term debt 139,400 4,161 6.02%
Total interest bearing
liabilities and expense 8,167,172 93,664 2.31%
Demand deposits -
non-interest bearing 1,138,656
Other liabilities 109,553
Total liabilities 9,415,381
Shareholders' equity 824,221
Total $10,239,601
Net interest revenue $182,508
Net interest margin 3.86%
Net interest rate spread 3.52%
Interest bearing liabilities to
interest earning assets 85.57%
Net interest tax equivalent
adjustment $5,295
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(dollars in thousands)
(Unaudited)
Year to Date
June 30, 2002
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of Unearned Income $6,262,136 $228,020 7.34%
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 9,078,189 304,297 6.76%
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
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 $192,434
Net interest margin 4.27%
Net interest rate spread 3.84%
Interest bearing liabilities to
interest earning assets 85.26%
Net interest tax equivalent
adjustment $5,924
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
Web site: http://www.bancorpsouth.com/