BancorpSouth, Inc.
For the fourth quarter of 2000, net income, which includes merger-related items, was $12.3 million or 15 cents per diluted share, compared to $26.4 million or 31 cents per diluted share in the same period of 1999. Net operating income, excluding merger-related items, for the fourth quarter of 2000 was $22.8 million or 27 cents per diluted share, versus $26.5 million or 31 cents per diluted share for the same quarter of 1999.
Fourth quarter results include the effect of restructuring the investment portfolio acquired on August 31, 2000 in the merger with First United Bancshares, Inc. The sale of investment securities resulted in a $9.7 million, 12 cents per diluted share, after-tax loss in the fourth quarter. Other merger-related expenses in the fourth quarter of 2000 totaled $900,000, net of tax, or one cent per diluted share.
BancorpSouth continued to experience growth in total assets, net loans and leases and total deposits in the fourth quarter. At the end of 2000, total assets were $9.0 billion, up 7.2 percent from year-end 1999; net loans and leases were $6.0 billion, up 10.0 percent since the end of 1999; while total deposits were $7.5 billion, up 5.9 percent from year-end 1999.
Aubrey Patterson, Chairman and Chief Executive Officer, commented, "We are well on our way to creating a premier Mid-South regional financial services company. We have the products and services in place to play a major role in assisting our customers to create and to preserve wealth. While we expect that the company will experience increased levels of expenses for the next three quarters until the merger of First United Bancshares is fully integrated with BancorpSouth's operating systems, we believe that our most significant costs relating to the merger and investment security portfolio restructuring are behind us.
By the fourth quarter of 2001, we will begin to realize major cost savings associated with our acquisition of First United Bancshares. Realizing these cost savings as well as generating increased revenue by providing additional financial products and services to existing customers is the formula for increasing shareholder value in 2001 and beyond."
Taxable equivalent net interest earnings were $85.9 million in the fourth quarter of 2000, compared to $86.1 million for the corresponding period in 1999, a .2 percent decrease. The fourth quarter net interest margin was 4.03 percent, compared to 4.36 percent for fourth quarter 1999 and 3.98 percent in third quarter 2000. The cost of interest-bearing liabilities increased to 5.35 percent in the fourth quarter of 2000 from 4.57 percent in fourth quarter 1999, while the taxable equivalent yield on earning assets increased to 8.61 percent from 8.26 percent.
Excluding securities gains and losses, non-interest income totaled $25.6 million for the fourth quarter 2000 versus $24.0 million for fourth quarter 1999, an increase of 6.7 percent. Increases were experienced in deposit service charges, insurance service fees and broker/dealer revenues.
Non-interest expenses for the fourth quarter 2000, before merger-related items were $68.3 million, compared to $65.1 million in 1999, an increase of 5.0 percent. Excluding merger-related charges, the company's efficiency ratio, the ratio on non-interest expenses to net revenues, was 61.2 percent for the quarter and 59.6 percent for the year 2000.
The provision for loan losses in the fourth quarter of 2000 was $5.5 million, compared to $5.2 million for the fourth quarter 1999. Annualized net charge-offs for the fourth quarter of 2000 were .19 percent of average loans, compared to .35 percent of average loans in the year-ago quarter and .70 percent in the third quarter of 2000.
Non-performing assets totaled $51.5 million (.85 percent of net loans) at December 31, 2000, compared to $45.3 million at December 31, 1999 (.82 percent of net loans) and $46.9 million at September 30, 2000 (.79 percent of net loans). The allowance for possible loan losses amounts to 1.34 percent of total net loans at December 31, 2000.
BancorpSouth, Inc. is a financial services company with $9 billion in assets, headquartered in Tupelo, Mississippi. The Company operates approximately 250 commercial banking, insurance, trust, broker/dealer and consumer finance locations in Alabama, Arkansas, Louisiana, Mississippi, Tennessee and Texas.
Certain statements contained in this news release may not be based on historical facts and are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology, such as "anticipate," "believe," "estimate," "expect," "may," "might," "will," "would," or "intend." These forward-looking statements include without limitation, those relating to earnings and shareholder value for 2001 and beyond.
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, changes in BancorpSouth's investment strategy, BancorpSouth's ability to realize anticipated returns on its investment portfolio 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,
2000 1999 2000 1999
(Dollars in thousands except per share amounts)
Earnings summary
(excluding merger-
related costs):
Net interest revenue $82,799 $83,087 $327,152 $316,520
Provision for credit
losses 5,497 5,169 20,059 17,812
Noninterest revenue 25,698 24,099 101,224 100,321
Noninterest expense 68,315 65,090 262,376 250,664
Income before income
taxes 34,685 36,927 145,941 148,365
Income tax provision 11,846 10,436 49,040 45,202
Net income $22,839 $26,491 $96,901 $103,163
Earnings per
share: Basic $0.27 $0.31 $1.15 $1.21
Diluted $0.27 $0.31 $1.14 $1.20
Earnings summary (as
reported):
Net interest revenue $82,799 $83,087 $327,152 $316,520
Provision for credit
losses 5,497 5,169 26,166 17,812
Noninterest revenue 10,014 24,099 85,540 100,321
Noninterest expense 69,628 65,206 274,189 251,882
Income before income
taxes 17,688 36,811 112,337 147,147
Income tax provision 5,413 10,392 37,941 44,736
Net income $12,275 $26,419 $74,396 $102,411
Earnings per
share: Basic $0.15 $0.31 $0.88 $1.20
Diluted $0.15 $0.31 $0.88 $1.19
Balance sheet data at
December 31:
Total assets $9,044,505 $8,441,697
Total earning assets 8,394,275 7,814,004
Loans and lease
receivables,
net of unearned
discount 6,095,314 5,541,961
Allowance for credit
losses 81,730 74,232
Total deposits 7,480,920 7,066,645
Common shareholders'
equity 790,086 757,111
Book value per share 9.40 8.84
Average balance sheet
data:
Total assets $9,062,776 $8,402,617 $8,756,554 $8,139,506
Total earning assets 8,472,087 7,836,941 8,186,639 7,608,176
Loans and lease
receivables,
net of unearned
discount 6,073,609 5,506,297 5,831,030 5,263,492
Total deposits 7,444,430 7,015,409 7,272,998 6,852,868
Common shareholders'
equity 773,495 753,017 761,841 737,543
Non-performing assets at
December 31:
Non-accrual loans $15,572 $16,501
Loans 90+ days past due 25,731 17,311
Restructured loans 2,789 1,179
Other real estate owned 7,432 10,332
Net charge-off as a
percentage of
average loans
(annualized) 0.19% 0.35% 0.34% 0.25%
Performance ratios
(annualized) (excluding
merger-related costs)
Return on average
assets 1.01% 1.26% 1.11% 1.27%
Return on common
equity 11.81% 14.07% 12.72% 13.99%
Performance ratios
(annualized) (as
reported):
Return on average
assets 0.54% 1.26% 0.85% 1.26%
Return on common
equity 6.35% 14.03% 9.77% 13.89%
Net interest margin 4.03% 4.36% 4.14% 4.32%
Average shares
outstanding-diluted 84,264,285 85,983,977 84,811,079 86,007,740
BancorpSouth, Inc.
Consolidated Balance Sheets
(dollars in thousands)
(Unaudited)
December 31, December 31,
2000 1999
Assets
Cash & due from banks $314,888 $329,553
Interest bearing deposits with
other banks 11,687 12,058
Held-to-maturity securities 1,189,129 1,031,062
Federal funds sold and securities
purchased under agreement to
resell 212,925 110,875
Loans & leases 6,095,315 5,541,962
Allowance for credit
losses (81,730) (74,232)
Net loans & leases 6,013,585 5,467,730
Available-for-sale securities 857,205 1,080,063
Mortgages held for sale 27,820 37,513
Bank premises & equipment 197,898 171,867
Accrued interest receivable 89,605 73,076
Other real estate owned 7,892 11,182
Other assets 121,871 116,718
Total assets $9,044,505 $8,441,697
Liabilities
Demand deposits:
Non-interest bearing $1,009,808 $966,491
Interest bearing 1,682,278 1,589,155
Total demand deposits 2,692,086 2,555,646
Savings & time deposits:
Savings 487,035 269,786
Premium access 437,556 667,722
Certificates of deposit 3,864,243 3,573,492
Total savings & time deposits 4,788,834 4,511,000
Total deposits 7,480,920 7,066,646
Federal funds purchased and
securities
sold under agreement to
repurchase 304,502 257,427
Short-term borrowings 0 89,000
Accrued interest payable 40,611 30,929
Long-term debt 152,049 166,247
Other liabilities 276,337 74,337
Total liabilities 8,254,419 7,684,586
Shareholders' Equity
Common stock 214,484 214,405
Capital surplus 71,351 71,777
Unrealized gain(loss) on
securities 15,202 (14,149)
Retained earnings 515,599 486,541
Less: Cost of treasury stock (26,550) (1,463)
Total shareholders' equity 790,086 757,111
Total liabilities &
shareholders' equity $9,044,505 $8,441,697
BancorpSouth, Inc.
Consolidated Statements of Income
(amounts in thousands, except per share data)
(Unaudited)
Quarter Ended
Dec-00 Sep-00 Jun-00 Mar-00 Dec-99
Interest Revenue:
Loans, including fees $140,892 $134,910 $129,030 $124,360 $123,471
Held-to-maturity
securities: 18,141 15,899 15,307 15,408 14,176
Available-for-sale
securities 16,177 21,554 17,696 17,155 18,134
Short term investments 3,185 962 1,553 1,805 2,210
Total interest
revenue 178,395 173,325 163,586 158,729 157,991
Interest Expense:
Deposits 84,709 81,031 74,088 70,536 68,036
Short term borrowings 7,007 9,058 4,416 4,274 4,183
Long term borrowings 2,378 2,559 2,442 2,397 2,498
Other interest expense 1,503 110 182 193 187
Total interest
expense 95,596 92,757 81,128 77,400 74,904
Net interest revenue 82,799 80,567 82,458 81,328 83,087
Provision for credit
losses 5,497 10,656 5,398 4,615 5,169
Net interest
revenue, after
credit loss
provision 77,301 69,912 77,059 76,713 77,918
Other Revenue:
Mortgage lending 1,900 2,493 3,059 3,422 3,466
Service charges 10,927 10,213 10,234 9,098 10,006
Life insurance premiums 1,116 1,107 1,058 1,020 1,015
Trust income 1,625 1,794 1,637 1,644 1,793
Securities gains, net (15,549) (254) (7) 177 83
Insurance commissions 4,845 3,717 3,972 3,499 3,281
Other 5,151 4,496 5,333 7,814 4,455
Total other revenue 10,014 23,567 25,286 26,674 24,099
Other Expense:
Salaries and employee
benefits 33,794 34,070 32,008 33,933 33,068
Occupancy net of rental
income 4,838 4,647 4,409 4,449 4,543
Equipment 6,960 6,124 5,506 5,544 5,479
Telecommunications 2,041 1,868 1,751 1,574 2,019
Other 21,994 29,900 20,161 18,619 20,098
Total other expense 69,628 76,607 63,835 64,120 65,206
Income before income
taxes 14,688 16,871 38,510 39,267 36,811
Income tax expense 5,413 7,379 12,527 12,622 10,392
Net Income $12,275 $9,492 $25,983 $26,645 $26,419
Net Income Per Share:
Basic $0.15 $0.11 $0.31 $0.31 $0.31
Diluted $0.15 $0.11 $0.31 $0.31 $0.31
BancorpSouth, Inc.
Consolidated
Statements of Income
(amounts in thousands, except per share data)
(Unaudited)
Year To Date
Dec-00 Dec-99
Interest Revenue:
Loans, including fees $529,192 $461,938
Held-to-maturity securities: 64,756 54,004
Available-for-sale securities 72,582 72,590
Short term investments 7,505 8,141
Total interest revenue 674,034 596,674
Interest Expense:
Deposits 310,365 256,755
Short term borrowings 24,754 11,518
Long term borrowings 9,775 10,616
Other interest expense 1,988 1,265
Total interest expense 346,883 280,154
Net interest revenue 327,152 316,520
Provision for credit losses 26,166 17,812
Net interest revenue, after
credit loss provision 300,986 298,708
Other Revenue:
Mortgage lending 10,874 18,289
Service charges 40,472 36,503
Life insurance premiums 4,300 3,975
Trust income 6,700 6,400
Securities gains, net (15,632) 4,420
Insurance commissions 16,034 13,573
Other 22,793 17,161
Total other revenue 85,540 100,321
Other Expense:
Salaries and employee benefits 133,805 124,750
Occupancy net of rental income 18,343 16,918
Equipment 24,134 21,611
Telecommunications 7,234 7,096
Other 90,673 81,508
Total other expense 274,189 251,882
Income before income taxes 112,337 147,147
Income tax expense 37,941 44,736
Net Income $74,396 $102,411
Net Income Per Share: Basic $0.88 $1.20
Diluted $0.88 $1.19
FIRST AND FINAL ADD -- ADDITIONAL TABLES -- TO FOLLOW
SOURCE: BancorpSouth, Inc.
Contact: L. Nash Allen, Jr., 662-680-2330, or Gary C. Bonds,
662-680-2332, both of BancorpSouth
Website: http://www.bancorpsouth.com/