BancorpSouth, Inc.
Net income for the six months ended June 30, 2001, excluding the impact of impairment of the company's mortgage servicing asset, was $47.6 million or $0.57 per common share, basic and diluted. Declining interest rates, both mortgage and short-term, resulted in a $3.3 million pre-tax, non-cash charge to earnings to record impairment to the Company's mortgage servicing asset in the first half of 2001, which reduced net income to $45.6 million, or $0.55 per share basic and $0.54 diluted, compared to net income of $52.6 million, or $0.62 per share (basic and diluted) for the first six months of 2000.
Aubrey Patterson, Chairman and Chief Executive Officer of BancorpSouth commented, "Since January, the Federal Reserve has dropped key interest rates 275 basis points, which has had a short-term impact on our profits. The most obvious result is the temporary narrowing of our interest rate margin, as interest rates earned on some of our outstanding loans reacted to the changes more rapidly than interest rates we paid on some of our deposits. However, while we are asset-sensitive over the short term, the impact should lessen after about six months as the decline in loan rates is offset by reductions in deposit rates. We anticipate that the low point of the current interest rate cycle will be reached before the end of 2001. Under that scenario, we expect an improvement in our net interest margin in the second half of 2001 as we see more opportunities to reprice deposits while short-term loan rates remain relatively stable.
"In the second half of the year, we also expect to begin seeing cost savings from the integration of the former First United Bancshares' banks, which is expected to be completed late in the third quarter of 2001," continued Patterson. "That process continues as planned. Five more banks were recently converted to BancorpSouth systems, leaving only 3 more banks to convert. We designed the transition process to minimize customer attrition, and we have accomplished that objective. Now we will turn our attention to expanding the number of products and services we offer these customers."
Net Interest Income
Interest revenue was $169.7 million in the second quarter of 2001, up 3.7% from the $163.6 million reported for corresponding period in 2000. Total interest expense for the 2001 second quarter was $88.8 million, a 9.4% increase from total interest expense of $81.1 million in the same period of 2000.
The net interest margin in the second quarter of 2001 was 3.88%, compared to 4.30% for the second quarter of 2000. The average rate paid on interest- bearing liabilities was 4.84% in the second quarter of 2001, unchanged from the same quarter of 2000. The taxable equivalent yield on earning assets was 7.99% in the second quarter of 2001 versus 8.38% in the same period of 2000.
"We expect to see improved net interest margin in the second half of the year," commented Patterson. "Approximately 63% of our deposits are subject to being repriced in six months or less. Therefore, we should be able to reduce the interest rates paid on deposits as they mature, while the rates earned on loans are not expected to decrease at the same pace. In fact, we are seeing an increase in the slope of the yield curve as some long-term rates are moving up."
Deposit and Loan Activity
Growth in total assets and total deposits slowed in the second quarter of 2001. As of June 30, 2001, total assets were $9.3 billion, up 6.6% since June 30, 2000, but down 1.0% since March 31, 2001. Total deposits at June 30, 2001, were $7.7 billion, up 5.7% from June 30, 2000, but down 0.7% since March 31, 2001. Total loans as of June 30, 2001 were $6.0 billion, 2.9% higher than the total as of June 30, 2000, but essentially unchanged since the end of the first quarter of 2001.
Management has made a strategic decision to reduce the company's exposure to indirect automobile sales financing and is allowing BancorpSouth's portfolio of such loans to decline. The portfolio has decreased $119.6 million since June 30, 2000 and $28.4 million in the second quarter of 2001, to $201.6 million as of June 30, 2001. Excluding the impact of this portfolio reduction, total loan volume would have increased 0.7 percent from March 31, 2001 to June 30, 2001.
"We are seeing some slackening in loan demand as a result of the slowdown in the general economy," said Patterson, "but it is not a dramatic shift. An advantage of operating over a broad geographic area is that we service markets that are engaged in diverse industries. Thus, while traditional manufacturing may be experiencing some demand-driven layoffs, the service economy in the Memphis area and the tourist economies along the Gulf Coast are less impacted. Unemployment is up slightly in Arkansas but flat in Mississippi. Businesses are being conservative in their investment spending and developers are downscaling their activities in a responsible effort to avoid overbuilding in some markets.
"Despite the slower economy, we continue to generate deposits which we anticipate will be adequate to meet our needs for funds even as we have reduced the interest rates we pay on deposits," added Patterson. "We continue to expect modest growth in loan volume for the year and our overall liquidity should preclude the necessity for outside funding because of our solid base of deposits."
Loan Losses
The provision for loan losses in the second quarter of 2001 was $4.8 million, versus $5.4 million in the same quarter of 2000 and $4.1 million in the first quarter of 2001. Annualized net charge-offs for the second quarter of 2001 were 0.29% of average loans, equal to the percentage in the second quarter of 2000 and down from 0.36% in the first quarter of 2001.
For the six months ended June 30, 2001, the provision for loan losses was $8.9 million, down from $10.0 million in the first half of 2000. Annualized net charge-offs were 0.33% of average loans in the first half of 2001, compared to 0.23% for the same period in 2000.
Non-performing assets totaled $48.8 million (0.82% of net loans) as of June 30, 2001, compared to $51.2 million (0.88% of net loans) as of June 30, 2000, and $43.6 million (0.73% of net loans) at March 31, 2001.
The reduced provision for loan losses in the second quarter and first six months of 2001 when compared to the same periods of 2000 reflects the decline in the rate of growth of the Company's loan portfolio and the reduced exposure to losses from indirect automobile sales financing as that portfolio of loans continues to decrease. The allowance for credit losses remained at 1.35% of net loans outstanding June 30, 2001, unchanged from the end of the first quarter of 2001.
"In the current economic environment, our attention is focused on loan quality," Patterson commented. "BancorpSouth has a reputation for strict quality standards, both at the time of origination and throughout the life of the loan. In the second quarter of 2001, measures of loan quality improved
over the first quarter despite some weakening in the economies in some of our markets. Based on current trends, we anticipate that loan losses for the balance of the year will remain close to the level experienced in the second quarter."
Non-interest Revenue
Non-interest revenue totaled $32.0 million in the second quarter of 2001, up 26.5% from the $25.3 million in the second quarter of 2000 and up 14.5% from $27.9 million in the first quarter of 2001.
"Revenue from mortgage banking in the second quarter of 2001 increased 131% from the second quarter of 2000 and was the leading contributor to the strong growth in non-interest revenue," Patterson stated. "We saw a slight up-tick in long-term interest rates in the second quarter, which suggested that long-term rates may have stabilized. As homeowners decided that it was time to lock-in the current rates, mortgage lending fees benefited from the increase in refinancings."
In addition, in the second quarter of 2001 BancorpSouth benefited from a net recovery of value in the mortgage servicing asset totaling $1.0 million, which partially reversed a $4.3 million impairment of the company's mortgage servicing asset that was recorded in the first quarter of 2001. As interest rates decline, refinancing of home mortgages typically accelerates and the present value of the future stream of servicing fees typically declines as the expected lives of the underlying mortgages shorten. The company must recognize the decline in expected future revenue with a non-cash charge against income. This charge reverses itself if interest rates rise, refinancing slows and the expected lives of the mortgages lengthen.
Insurance commissions increased to $5.4 million for the second quarter of 2001, an increase of 36.0% compared to the same period in 2000 and an increase of 17.3% compared to the first quarter of 2001. The gain is attributable to a significant increase in the sales of annuities, driven by an aggressive sales campaign, as well as the inclusion of the results of the Pittman, Seay and Turner Insurance Agency, which was acquired in October 2000 in a transaction accounted for as a purchase.
For the first six months of 2001, non-interest revenue totaled $59.9 million, an increase of 15.4% over the first half of 2000. Non-interest revenue for the first six months of 2001 included a pre-tax gain of $2.2 million that resulted from the sale of certain investment securities out of the available-for-sale portfolio in the first quarter of 2001.
Non-interest Expense
Non-interest expenses for the second quarter of 2001 were $73.2 million, compared to $63.8 million for the second quarter of 2000 and $72.8 million in the first quarter of 2001. Salaries and employee benefits expense increased 20% during the second quarter of 2001 compared to the second quarter of 2000, which reflected the inclusion of the Pittman, Seay and Turner Insurance Agency, and Texarkana First Financial Corporation, a Texas savings and loan company, both acquired in October 2000 in transactions accounted for as purchases. In addition, included in salaries and employee benefits expense was a $1.0 million charge for stock appreciation rights for the second quarter of 2001 compared to a reduction of expense of $1.2 million in the second quarter of 2000. When the market price of the Company's common stock increases or decreases, there is a corresponding change in the value of the outstanding stock appreciation rights, and this change in value is recorded as a expense, for an increase in market price, or a reduction of expense, for a decrease in market price.
"Non-interest expense continued to run ahead of last year's level as we complete the integration of the former First United banks," explained Jim Kelley, President and Chief Operating Officer of BancorpSouth. "The benefits of retaining customers through the transition more than compensates for the cost of operating redundant systems to ensure a smooth process. In the second quarter of 2001, we completed the transition of an additional 7 former First United banks to BancorpSouth systems, and now have a total of 8 banks completed to date. We are on schedule to complete the transition of the
remaining 3 banks by the end of the third quarter and expect to see cost savings in the fourth quarter."
Capital Management
During the second quarter of 2001, the company repurchased a total of 1,155,915 shares of its outstanding common stock under a repurchase program announced on March 5, 2001, that authorizes the company to acquire up to 4.2 million shares or approximately 5% of the shares outstanding at the time of the announcement. As of June 30, 2001, a total of 1,410,615 shares had been repurchased under that program.
BancorpSouth, Inc. is a bank holding company headquartered in Tupelo, Mississippi with $9.3 billion in assets. 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 interest rates, net interest margin, integration of former First United Bancshare's banks and related cost savings, deposits, loan volume, loan losses, liquidity, prospects for 2001, mortgage servicing and the Company'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, 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 attract, train and retain qualified personnel, the ability of BancorpSouth to effectively market its services and products, 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,
2001 2000 2001 2000
(Dollars in thousands,
except per share amounts)
Earnings Summary:
Net interest revenue $80,924 $82,458 $162,524 $163,786
Provision for credit
losses 4,769 5,398 8,866 10,013
Noninterest revenue 31,991 25,285 59,940 51,959
Noninterest expense 73,246 63,835 146,078 127,955
Income before income taxes 34,900 38,510 67,520 77,777
Income tax provision 11,654 12,527 21,955 25,148
Net income 23,246 25,983 45,565 52,629
Earning per share: Basic $0.28 $0.31 $0.55 $0.62
Diluted: $0.28 $0.31 $0.54 $0.62
Balance sheet data at June 30:
Total assets $9,294,145 $8,716,594
Total earning assets 8,639,134 8,123,828
Loans and lease
receivables, net of
unearned discount 5,975,116 5,804,781
Allowance for credit
losses 80,829 77,685
Total deposits 7,732,642 7,317,468
Common shareholders'
equity 798,539 759,723
Book value per share 9.65 9.03
Average balance sheet data:
Total assets $9,278,858 $8,559,373 $9,219,786 $8,519,470
Total earning assets 8,670,155 7,999,532 8,605,052 7,959,354
Loans and lease
receivables, net of
unearned discount 5,968,176 5,705,366 5,996,800 5,632,654
Total deposits 7,694,561 7,208,261 7,653,725 7,167,052
Common shareholders'
equity 799,757 756,957 794,852 755,986
Non-performing assets at June 30:
Non-accrual loans $12,929 $20,510
Loans 90+ days past due 25,931 19,123
Restructured loans 243 1,038
Other real estate owned 9,725 10,546
Net charge-offs as a percentage
of average loans
(annualized) 0.29% 0.29% 0.33% 0.23%
Performance ratios
(annualized)
Return on average assets 1.00% 1.22% 1.00% 1.24%
Return on common equity 11.66% 13.81% 11.56% 13.96%
Net interest margin 3.88% 4.30% 3.95% 4.29%
Average shares outstanding
- diluted 83,658,238 84,878,228 83,936,788 85,291,221
BancorpSouth, Inc.
Consolidated Balance Sheets
(dollars in thousands)
(Unaudited) June 30, 2001 June 30, 2000
Assets
Cash & due from banks $306,905 $278,835
Interest bearing deposits
with
other banks 12,460 17,523
Held-to-maturity
securities 1,140,030 1,065,866
Federal funds sold and
securities
purchased under
agreement
to resell 585,131 19,793
Loans & leases 5,975,116 5,804,781
Allowance for credit
losses (80,829) (77,685)
Net loans & leases 5,894,287 5,727,096
Available-for-sale
securities 881,202 1,187,157
Mortgages held for sale 45,194 28,708
Bank premises & equipment 206,069 177,816
Accrued interest
receivable 89,298 80,757
Other real estate owned 9,650 10,546
Other assets 123,919 122,497
Total assets $9,294,145 $8,716,594
Liabilities
Demand deposits:
Non-interest bearing $1,042,523 $984,253
Interest bearing 1,847,738 1,687,006
Total demand deposits 2,890,261 2,671,259
Savings & time deposits:
Savings 462,469 350,473
Premium access 442,620 502,952
Certificates of deposit 3,937,292 3,792,784
Total savings & time
deposits 4,842,382 4,646,209
Total deposits 7,732,643 7,317,468
Federal funds purchased
and
securities sold under
agreement to
repurchase 507,432 295,085
Short-term borrowings 0 75,000
Accrued interest payable 40,010 33,534
Long-term debt 141,503 171,321
Other liabilities 74,019 64,463
Total liabilities 8,495,606 7,956,871
Shareholders' Equity
Common stock 214,484 214,410
Capital surplus 70,231 70,359
Unrealized gain(loss) on
securities 22,551 (18,487)
Retained earnings 537,245 517,998
Less: Cost of treasury
stock (45,972) (24,557)
Total shareholders'
equity 798,539 759,723
Total liabilities &
shareholders' equity $9,294,145 $8,716,594
BancorpSouth, Inc.
Consolidated Statements of Income
(amounts in thousands, except per share data)
(Unaudited) Quarter Ended
Jun-01 Mar-01 Dec-00 Sep-00 Jun-00
Interest Revenue:
Loans, including
fees $131,794 $136,737 $140,892 $134,910 $129,030
Held-to-maturity
securities: 16,630 16,051 18,141 15,899 15,307
Available-for-
sale
securities 14,240 15,586 16,177 21,554 17,696
Short term
investments 7,012 5,767 3,185 962 1,554
Total interest
revenue 169,677 174,140 178,395 173,325 163,586
Interest Expense:
Deposits 80,763 83,944 84,709 81,031 74,088
Short term
borrowings 3,082 3,557 7,007 9,058 4,416
Long term
borrowings 2,171 2,265 2,378 2,559 2,442
Other interest
expense 2,736 2,776 1,503 110 182
Total interest
expense 88,752 92,542 95,597 92,757 81,128
Net interest
revenue 80,924 81,598 82,798 80,567 82,458
Provision for
credit
losses 4,769 4,097 5,497 10,655 5,398
Net interest
revenue,
after credit
loss
provision 76,155 77,502 77,301 69,912 77,060
Other Revenue:
Mortgage lending 7,068 (1,333) 1,900 2,493 3,059
Service charges 10,906 10,342 10,927 10,213 10,234
Life insurance
premiums 1,127 1,094 1,116 1,107 1,058
Trust income 1,610 1,684 1,625 1,794 1,637
Securities gains,
net 74 2,884 (15,549) (254) (7)
Insurance
commissions 5,405 4,608 4,845 3,717 3,972
Other 5,801 8,669 5,189 4,496 5,332
Total other
revenue 31,991 27,949 10,052 23,567 25,285
Other Expense:
Salaries and
employee
benefits 38,425 38,721 33,845 34,070 32,008
Occupancy 5,005 5,129 4,838 4,647 4,409
Equipment 6,943 7,032 6,960 6,124 5,506
Telecommunications
2,123 2,182 2,041 1,868 1,751
Other 20,752 19,767 21,980 29,900 20,161
Total other
expense 73,246 72,832 69,664 76,607 63,835
Income before
income taxes 34,900 32,619 17,688 16,871 38,510
Income tax
expense 11,654 10,300 5,413 7,379 12,527
Net Income $23,246 $22,319 $12,275 $9,492 $25,983
Net Income Per
Share:
Basic $0.28 $0.27 $0.15 $0.11 $0.31
Diluted $0.28 $0.27 $0.15 $0.11 $0.31
BancorpSouth, Inc.
Consolidated Statements of Income
(amounts in thousands, except per share data)
(Unaudited) Year To Date
Jun-01 Jun-00
Interest Revenue:
Loans, including fees $268,531 $253,390
Held-to-maturity
securities: 32,681 30,715
Available-for-sale
securities 29,826 34,852
Short term investments 12,779 3,359
Total interest revenue 343,818 322,315
Interest Expense:
Deposits 164,707 144,625
Short term borrowings 6,639 8,689
Long term borrowings 4,436 4,839
Other interest expense 5,512 376
Total interest expense 181,294 158,529
Net interest revenue 162,524 163,786
Provision for credit
losses 8,866 10,013
Net interest revenue,
after credit loss
provision 153,658 153,773
Other Revenue:
Mortgage lending 5,735 6,480
Service charges 21,248 19,331
Life insurance premiums 2,222 2,077
Trust income 3,294 3,281
Securities gains, net 2,958 171
Insurance commissions 10,014 7,472
Other 14,470 13,147
Total other revenue 59,940 51,959
Other Expense:
Salaries and employee
benefits 77,146 65,941
Occupancy 10,134 8,857
Equipment 13,975 11,053
Telecommunications 4,305 3,326
Other 40,518 38,778
Total other expense 146,078 127,955
Income before
income taxes 67,520 77,777
Income tax expense 21,955 25,148
Net Income $45,565 $52,629
Net Income Per Share:
Basic $0.55 $0.62
Diluted $0.54 $0.62
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 3.14%
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
BancorpSouth, Inc.
Average Balances, Interest Income
and Expense,
and Average Yields and Rates
(dollars in thousands) Quarter Ended
Unaudited December 31, 2000
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of Unearned Income $6,073,609 $141,295 9.25%
Held-to-maturity securities:
Taxable 889,349 14,114 6.31%
Non Taxable 327,673 6,195 7.52%
Available-for-sale securities
Taxable 913,866 15,271 6.65%
Non Taxable 69,280 1,394 8.00%
Short term investments 198,310 3,185 6.39%
Total interest earning
assets and revenue 8,472,087 181,454 8.52%
Other assets 670,163
Less: allowance for credit losses (79,633)
Total $9,062,617
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $1,668,090 $13,960 3.33%
Savings 904,717 11,888 5.23%
Time 3,883,979 58,861 6.03%
Short-term borrowings 567,066 8,509 5.97%
Long-term debt 157,786 2,378 6.00%
Total interest bearing
liabilities and expense 7,181,638 95,596 5.30%
Demand deposits -
non-interest bearing 987,644
Other liabilities 120,012
Total liabilities 8,289,294
Shareholders' equity 773,323
Total $9,062,617
Net interest revenue $85,858
Net interest margin 4.03%
Net interest rate spread 3.23%
Interest bearing liabilities to
interest earning assets 84.77%
Net interest tax equivalent
adjustment $3,060
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(dollars in thousands) Quarter Ended
Unaudited September 30, 2000
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of Unearned Income $5,888,736 $135,311 9.14%
Held-to-maturity securities:
Taxable 760,409 11,951 6.25%
Non Taxable 325,687 6,074 7.42%
Available-for-sale securities
Taxable 1,242,043 20,519 6.57%
Non Taxable 75,530 1,591 8.38%
Short term investments 58,408 962 6.55%
Total interest earning
assets and revenue 8,350,813 176,408 8.40%
Other assets 645,252
Less: allowance for credit losses (76,879)
Total $8,919,186
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $1,659,533 $13,842 3.32%
Savings 877,041 9,956 4.52%
Time 3,801,938 57,233 5.99%
Short-term borrowings 579,725 9,168 6.29%
Long-term debt 169,573 2,559 6.00%
Total interest bearing
liabilities and expense 7,087,810 92,758 5.21%
Demand deposits -
non-interest bearing 972,647
Other liabilities 96,615
Total liabilities 8,157,072
Shareholders' equity 762,114
Total $8,919,186
Net interest revenue $83,650
Net interest margin 3.99%
Net interest rate spread 3.20%
Interest bearing liabilities to
interest earning assets 84.88%
Net interest tax equivalent
adjustment $3,083
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(dollars in thousands) Quarter Ended
Unaudited June 30, 2000
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of Unearned Income $5,750,197 $129,411 9.05%
Held-to-maturity securities:
Taxable 753,072 11,446 6.11%
Non Taxable 324,755 5,941 7.36%
Available-for-sale securities
Taxable 996,124 16,685 6.74%
Non Taxable 76,029 1,555 8.23%
Short term investments 99,355 1,553 6.29%
Total interest earning
assets and revenue 7,999,532 166,591 8.38%
Other assets 636,386
Less: allowance for credit losses (76,545)
Total $8,559,373
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $1,707,641 $13,758 3.24%
Savings 826,070 8,206 4.00%
Time 3,708,808 52,124 5.65%
Short-term borrowings 328,870 4,598 5.62%
Long-term debt 165,584 2,442 5.93%
Total interest bearing
liabilities and expense 6,736,973 81,128 4.84%
Demand deposits -
non-interest bearing 965,742
Other liabilities 99,701
Total liabilities 7,802,416
Shareholders' equity 756,957
Total $8,559,373
Net interest revenue $85,463
Net interest margin 4.30%
Net interest rate spread 3.53%
Interest bearing liabilities to
interest earning assets 84.22%
Net interest tax equivalent
adjustment $4,896
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 802,967 25,672 6.45%
Non Taxable 169,367 6,391 7.61%
Short term investments 489,340 12,780 5.27%
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 3,973,173 117,323 5.95%
Short-term borrowings 501,479 12,152 4.89%
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 $5,845
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(dollars in thousands) Year to Date
Unaudited June 30, 2000
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of Unearned Income $5,679,237 $254,124 9.00%
Held-to-maturity securities:
Taxable 767,055 23,021 6.04%
Non Taxable 323,356 11,839 7.36%
Available-for-sale securities
Taxable 1,001,681 32,791 6.58%
Non Taxable 75,268 3,169 8.47%
Short term investments 112,757 3,358 5.99%
Total interest earning
assets and revenue 7,959,354 328,302 8.29%
Other assets 635,931
Less: allowance for credit losses (75,815)
Total $8,519,470
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $1,681,215 $26,424 3.16%
Savings 858,358 17,103 4.01%
Time 3,672,113 101,097 5.54%
Short-term borrowings 333,471 9,065 5.47%
Long-term debt 165,693 4,839 5.87%
Total interest bearing
liabilities and expense 6,710,850 158,528 4.75%
Demand deposits -
non-interest bearing 955,366
Other liabilities 97,268
Total liabilities 7,763,484
Shareholders' equity 755,986
Total $8,519,470
Net interest revenue $169,774
Net interest margin 4.29%
Net interest rate spread 3.54%
Interest bearing liabilities to
interest earning assets 84.31%
Net interest tax equivalent
adjustment $5,989
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/