BancorpSouth, Inc.
Highlights of the Quarter:
* The third consecutive sequential-quarter increase in loans net of
unearned discounts and the second consecutive comparable-quarter
increase.
* The first sequential-quarter increase in loan interest revenue since
the third quarter of 2002.
* Improved credit quality resulted in reduced provision for possible
credit losses.
* The growth in insurance commissions, up 20.3 percent for the third
quarter compared with the third quarter of 2003.
* The signing of definitive agreements to acquire Premier Bancorp, Inc.
the holding company for Premier Bank of Brentwood, Tennessee, and
Business Holding Corporation, the holding company for The Business
Bank of Baton Rouge, Louisiana, which are expected to significantly
expand BancorpSouth's presence in the growing Nashville and Baton
Rouge markets.
Net income for the third quarter of 2004 was $27.6 million, or $0.36 per basic share and diluted share. Included in the results for the third quarter of 2004 is the net negative impact of $0.02 per diluted share from a $2.2 million non-cash charge for impairment of the Company's mortgage servicing asset related to a decline in mortgage interest rates and $146,000 in net securities gains. Net income for the third quarter of 2003 was $33.9 million, or $0.43 per basic and diluted share. Included in the results for the third quarter of 2003 is the net positive impact of $0.05 per diluted share from a $5.8 million reversal of previously recorded impairment charges against the Company's mortgage servicing asset and $60,000 in net securities gains.
For the first nine months of 2004, net income was $86.0 million, or $1.12 and $1.11 per basic and diluted share, respectively. Included in the results for the first nine months of 2004 is the net positive impact of $0.05 per diluted share from a $4.8 million reversal of previously recorded impairment charges against the Company's mortgage servicing asset and $822,000 in net securities gains. Net income for the first nine months of 2003 was $102.3 million, or $1.32 and $1.31 per basic and diluted share, respectively. Included in the results for the first nine months of 2003 is the net positive impact of $0.12 per diluted share from a $1.9 million reversal of previously recorded impairment charges against the Company's mortgage servicing asset and $13.8 million in net securities gains.
"We are pleased to have achieved continued expansion of our loan portfolio for the third quarter of 2004 and to have reversed the steady decline in loan interest revenue that has affected our results for the past two years," said Aubrey Patterson, Chairman and Chief Executive Officer of BancorpSouth. "While we are encouraged by these trends and by the strengthening economic activity that underlies them, we continue to face the challenge of short-term liability sensitivity in a rising interest rate environment.
"We are also encouraged by the further growth in insurance commissions, reflecting our two insurance agency acquisitions in 2003, which offset much of the impact of the anticipated decline in mortgage originations from the levels produced by historically low interest rates last year. These acquisitions illustrate the continuing potential of both our strategy to lower our dependence on interest-rate spreads by increasing our noninterest revenue and our ability to complement our organic growth through strategic acquisitions.
"In the third quarter, we again acted decisively to seize strategic opportunities through signing definitive agreements to acquire Premier Bank of Brentwood and The Business Bank of Baton Rouge. The acquisition of Premier Bank of Brentwood will significantly expand our presence in the rapidly growing suburban-Nashville market. The acquisition of The Business Bank of Baton Rouge will provide our initial banking assets in the dynamic Baton Rouge metropolitan market and enable us to leverage the significant market presence we created through last year's acquisition of Louisiana's oldest and largest insurance company, Wright and Percy Insurance, which is headquartered in Baton Rouge."
Net Interest Revenue
Interest revenue for the third quarter of 2004 was $124.5 million, a 4.1 percent decrease from $129.8 million for the third quarter of 2003 and an increase of 0.7 percent from $123.7 million for the second quarter of 2004. Interest expense for the third quarter of 2004 was $41.5 million, a 1.1 percent decrease from $42.0 million for the third quarter of 2003 and an increase of 3.9 percent from $40.0 million for the second quarter of 2004.
The average taxable equivalent yield on earning assets was 5.17 percent for the third quarter of 2004, a decline from 5.52 percent for the third quarter of 2003 and an increase from 5.15 percent for the second quarter of 2004. The average rate paid on interest bearing liabilities was 1.99 percent for the third quarter of 2004, down from 2.07 percent for the third quarter of 2003 and up from 1.93 percent for the second quarter of 2004.
Net interest revenue was $83.0 million for the third quarter of 2004, a decrease of 5.5 percent from $87.8 million for the third quarter of 2003 and a decrease of 0.9 percent from $83.7 million for the second quarter of 2004. Net interest margin declined to 3.48 percent for the third quarter of 2004 from 3.76 percent for the third quarter of 2003 and from 3.52 percent for the second quarter of 2004.
Patterson remarked, "As expected, net interest revenue and the pressure on net interest margin for the quarter reflected the impact of our short-term liability sensitivity in a rising interest rate environment. In spite of the compression in net interest margin for the quarter, the increase in interest rates away from their low absolute level during the first half of the year enhances our ability to manage our assets and liabilities to limit our exposure to changing interest rates. The conservative posture in the average maturity of our investment assets will provide an opportunity to reduce pressure on net interest margin should loan demand continue to increase. This opportunity will reduce our appetite for higher priced deposits, thereby positively impacting net interest margin."
Deposit and Loan Activity
Total assets increased 4.1 percent to $10.6 billion at September 30, 2004, from $10.2 billion at September 30, 2003. Total deposits rose 5.0 percent to $8.8 billion at September 30, 2004, from $8.4 billion at September 30, 2003. Loans, net of unearned discount, increased 4.2 percent to $6.5 billion at September 30, 2004, from $6.3 billion at September 30, 2003.
"The solid growth in loans and deposits for the third quarter provides additional evidence that the economy is strengthening in our markets," said Patterson. "We added over $90 million in loans during the latest quarter alone. We are also pleased with the continued growth in low-cost demand deposits, up 8.6% at the end of the third quarter of 2004 from the end of the third quarter last year, which indicated an increased share of the household market. In contrast, total time deposits only increased 3.0% on a comparable- quarter basis as a result of our ongoing actions to reduce our interest-rate exposure."
Provision for Credit Losses and Allowance for Credit Losses
The provision for credit losses decreased 24.3 percent to $3.5 million for the third quarter of 2004 from $4.7 million for the third quarter of 2003 and decreased 27.0 percent from $4.8 million for the second quarter of 2004. Annualized net charge-offs were 0.25 percent of average loans for the third quarter of 2004, down from 0.34 percent for third quarter of 2003 and 0.36 percent for the second quarter of 2004.
Non-performing loans decreased 20.8 percent to $36.7 million, or 0.56 percent of loans, at September 30, 2004, from $46.3 million, or 0.74 percent of loans, at September 30, 2003, and decreased 1.2 percent from $37.1 million, or 0.58 percent of loans, at June 30, 2004. The allowance for credit losses was 1.38 percent of loans at September 30, 2004, compared with 1.45 percent of loans at September 30, 2003 and 1.41 percent of loans at June 30, 2004.
Patterson continued, "We significantly reduced our third-quarter provision for credit losses on a sequential-quarter basis and for the third consecutive comparable-quarter because of further improvement in our credit quality. For the third quarter, this improvement included a substantial reduction in annualized net charge-offs and non-performing loans. As a result, our reserve coverage of non-performing loans improved to 2.5 at September 30, 2004, from 2.0 and 2.4 at the end of the third quarter of 2003 and the second quarter of 2004, respectively, in spite of the lower allowance for credit losses as a percent of loans."
Noninterest Revenue
Noninterest revenue was $42.3 million for the third quarter of 2004, a 15.0 percent decrease from $49.8 million for the third quarter of 2003 and a 17.7 percent decrease from $51.4 million for the second quarter of 2004. As discussed above, these results reflect the impact of the $2.2 million non-cash charge for impairment of the Company's mortgage servicing asset for the third quarter of 2004 compared with the reversal of previously recorded impairment charges against the Company's mortgage servicing asset of $5.8 million and $9.4 million for the third quarter of 2003 and the second quarter of 2004, respectively. In addition, mortgage lending results for the latest quarter reflected the anticipated decline in mortgage originations to $128.6 million from $360.1 million for the third quarter of 2003.
Insurance commissions rose 20.3 percent to $14.4 million for the third quarter of 2004 from $11.9 million for the third quarter of 2003, primarily driven by the acquisition of Wright & Percy Insurance, Baton Rouge, Louisiana, in the second quarter of 2003 and the acquisition of Ramsey, Krug, Farrell & Lensing Insurance, Little Rock, Arkansas, in the third quarter of 2003.
"Demonstrating our commitment to diversifying our revenue streams, our third-quarter noninterest revenue equaled more than half of our net interest revenue, even with the impairment charge to our mortgage servicing asset. We are confident of continuing opportunities to increase noninterest revenue as we expand these products and services within our existing markets and enter new markets, through both organic growth and acquisition. Through the ongoing successful implementation of our noninterest revenue strategy, we expect to achieve both further reductions in our interest-rate spread dependence and stronger customer relationships as we serve more of our customers' financial needs."
Noninterest Expense
Noninterest expense was $85.0 million for the third quarter of 2004, a 2.9 percent increase from $82.6 million for the third quarter of 2003 and a 1.1 percent increase from $84.0 million for the second quarter of 2004. The increases primarily reflected salaries, employee benefits and other expenses related to the growth in insurance commissions, as well as to the acquisition of Ramsey, Krug, Farrell & Lensing Insurance in the third quarter of 2003.
Capital Management
BancorpSouth repurchased 374,400 shares of its common stock during the third quarter of 2004 under a stock repurchase plan authorized in April 2003 for the repurchase of up to 3.9 million shares. A total of 2,005,108 shares had been purchased under this plan at the end of the third quarter of 2004. Combined with the 8.3 million shares repurchased under earlier plans, BancorpSouth had repurchased approximately 10.3 million shares of its common stock as of September 30, 2004, or 12.3 percent of its outstanding shares at March 5, 2001, when the first of these plans was authorized. BancorpSouth will continue to evaluate additional share repurchases under the April 2003 plan, which authorizes these repurchases during a two-year period.
Summary
Patterson concluded, "Although our third-quarter results were clearly affected by the constriction in our net interest margin, we believe the strengthening economy and the initial movements toward more sustainable levels of interest rates are beginning to create a foundation for future profitable growth. We expect our net interest margin will continue to pose a challenge for the immediate future. However, we are also confident that through our strong competitive position in our six-state franchise, proven organic growth and acquisition strategies, high credit quality and conservative capitalization, we are positioned to produce long-term growth consistent with our historical results."
Conference Call
BancorpSouth will conduct a conference call with analysts at 1:30 p.m. (Central Time) on October 19, 2004. 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 at least two weeks following the call.
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 demand, loan and deposit growth insurance commissions, demand deposits, allowance for credit losses, net interest margin, customer relationships, credit quality, noninterest revenue, expansion of products and services, proposed acquisitions of Premier Bancorp and Business Holding Corporation, expansion of markets and entry into new markets through growth and acquisitions, common stock repurchase plan, competitive position, long- term growth prospects 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. These factors include, but are not limited to, changes in economic conditions and government fiscal and monetary policies, fluctuations in prevailing interest rates, the ability of BancorpSouth to maintain credit quality, the ability of BancorpSouth to effectively integrate acquisitions, the ability of BancorpSouth to manage its assets and liabilities to limit exposure to changing interest rates, 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 and market 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 manage its growth and effectively serve an expanding customer and market base, the ability of BancorpSouth to attract, train and retain qualified personnel, 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.
BancorpSouth, Inc. is a financial holding company headquartered in Tupelo, Mississippi with approximately $10.6 billion in assets. BancorpSouth operates approximately 250 commercial banking, insurance, trust and broker/dealer locations in Alabama, Arkansas, Louisiana, Mississippi, Tennessee and Texas.
BancorpSouth, Inc.
Selected Financial Data
Three Months Ended Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
(Dollars in thousands,
except per share
amounts)
Earnings Summary:
Net interest revenue $82,958 $87,808 $250,124 $265,021
Provision for credit
losses 3,530 4,664 12,381 17,658
Noninterest revenue 42,327 49,820 139,784 142,012
Noninterest expense 84,980 82,551 255,016 237,767
Income before income
taxes 36,775 50,413 122,511 151,608
Income tax provision 9,187 16,539 36,484 49,345
Net income $27,588 $33,874 $86,027 $102,263
Earning per share:
Basic $0.36 $0.43 $1.12 $1.32
Diluted: $0.36 $0.43 $1.11 $1.31
Balance sheet data at
September 30:
Total assets $10,608,150 $10,185,547
Total earning assets 9,767,438 9,440,660
Loans and lease
receivables, net of
unearned discount 6,512,969 6,251,791
Allowance for credit
losses 90,100 90,505
Total deposits 8,843,239 8,424,422
Common shareholders'
equity 875,142 854,441
Book value per share 11.44 10.96
Average balance sheet
data:
Total assets $10,582,191 $10,254,503 $10,550,174 $10,244,623
Total earning assets 9,751,609 9,509,599 9,752,694 9,532,390
Loans and lease
receivables, net of
unearned discount 6,460,163 6,271,633 6,340,868 6,302,564
Total deposits 8,825,726 8,450,937 8,804,805 8,545,959
Common shareholders'
equity 859,514 874,626 871,192 841,207
Non-performing assets
at September 30:
Non-accrual loans $13,843 $18,655
Loans 90+ days past
due 20,675 25,773
Restructured loans 2,164 1,870
Other real estate
owned 19,413 14,049
Net charge-offs as a
percentage of average
loans (annualized) 0.25% 0.34% 0.30% 0.32%
Performance ratios
(annualized)
Return on average
assets 1.04% 1.31% 1.09% 1.33%
Return on common
equity 12.77% 15.37% 13.19% 16.25%
Net interest margin 3.48% 3.76% 3.52% 3.83%
Average shares
outstanding - diluted 76,978,834 78,415,306 77,515,403 78,095,332
BancorpSouth, Inc.
Consolidated Statement of Condition
(Unaudited)
September 30, %
2004 2003 Change
(In thousands)
Assets
Cash and due from banks $304,389 $302,520 0.62%
Interest bearing deposits
with other banks 35,090 19,157 83.17%
Held-to-maturity securities,
at amortized cost 1,384,061 990,112 39.79%
Available-for-sale securities,
at fair market value 1,758,945 1,997,318 (11.93%)
Federal funds sold and securities
purchased under agreement to resell 7,180 139,872 (94.87%)
Loans 6,543,720 6,287,265 4.08%
Less: Unearned discount (30,751) (35,474) (13.31%)
Allowance for credit losses (90,100) (90,505) (0.45%)
Net loans 6,422,869 6,161,286 4.25%
Loans held for sale 69,194 42,412 63.15%
Premises and equipment, net 224,685 212,282 5.84%
Accrued interest receivable 67,849 72,721 (6.70%)
Goodwill 64,164 55,906 14.77%
Other assets 269,724 191,961 40.51%
Total Assets $10,608,150 $10,185,547 4.15%
Liabilities
Deposits:
Demand: Noninterest bearing $1,343,698 $1,246,955 7.76%
Interest bearing 2,653,386 2,434,498 8.99%
Savings 772,159 786,080 (1.77%)
Other time 4,073,996 3,956,889 2.96%
Total deposits 8,843,239 8,424,422 4.97%
Federal funds purchased and securities
sold under agreement to repurchase 496,647 517,420 (4.01%)
Accrued interest payable 19,330 20,371 (5.11%)
Junior Subordinated Debt Securities 128,866 125,000 3.09%
Long-term debt 137,500 138,820 (0.95%)
Other liabilities 107,426 105,073 2.24%
Total Liabilities 9,733,008 9,331,106 4.31%
Shareholders' Equity
Common stock 191,278 194,900 (1.86%)
Capital surplus 45,440 40,770 11.45%
Other comprehensive income 6,724 15,419 (56.39%)
Retained earnings 631,700 603,352 4.70%
Total Shareholders' Equity 875,142 854,441 2.42%
Total Liabilities &
Shareholders' Equity $10,608,150 $10,185,547 4.15%
BancorpSouth, Inc.
Consolidated Statements of Income
(Dollars in thousands, except per share data)
(Unaudited)
Quarter Ended
Sep 2004 Jun 2004 Mar 2004
INTEREST REVENUE:
Loans $93,759 $91,358 $92,250
Deposits with other banks 102 288 128
Federal funds sold and securities
purchased under agreement to resell 111 115 697
Held-to-maturity securities:
Taxable 12,020 12,791 10,112
Tax-exempt 1,693 1,694 1,796
Available-for-sale securities:
Taxable 14,691 15,309 15,688
Tax-exempt 1,613 1,650 1,759
Loans held for sale 517 478 756
Total interest revenue 124,506 123,683 123,186
INTEREST EXPENSE:
Deposits 35,198 33,915 33,918
Fed funds purchased and securities
sold under agreement to repurchase 1,336 1,101 1,063
Other 5,014 4,983 4,723
Total interest expense 41,548 39,999 39,704
Net interest revenue 82,958 83,684 83,482
Provision for credit losses 3,530 4,835 4,015
Net interest revenue, after
provision for credit losses 79,428 78,849 79,467
NONINTEREST REVENUE:
Mortgage lending (672) 11,365 (1,141)
Service charges 15,965 16,057 14,318
Life insurance premiums 397 478 562
Trust income 2,059 1,842 1,686
Security gains, net 146 59 618
Insurance commissions 14,366 13,232 14,458
Other 10,066 8,383 15,539
Total noninterest revenue 42,327 51,416 46,040
NONINTEREST EXPENSES:
Salaries and employee benefits 49,176 48,628 50,036
Occupancy, net of rental income 6,264 6,084 5,956
Equipment 5,390 5,636 5,460
Telecommunications 1,667 1,825 1,838
Other 22,483 21,858 22,716
Total noninterest expenses 84,980 84,031 86,006
Income before income taxes 36,775 46,234 39,501
Income tax expense 9,187 14,961 12,336
Net income $27,588 $31,273 $27,165
Net income per share: Basic $0.36 $0.41 $0.35
Diluted $0.36 $0.40 $0.35
BancorpSouth, Inc.
Consolidated Statements of Income
(Dollars in thousands, except per share data)
(Unaudited)
Dec 2003 Sep 2003
INTEREST REVENUE:
Loans $94,822 $98,292
Deposits with other banks 96 67
Federal funds sold and securities
purchased under agreement to resell 772 1,295
Held-to-maturity securities:
Taxable 9,831 10,258
Tax-exempt 1,860 1,941
Available-for-sale securities:
Taxable 16,108 15,160
Tax-exempt 1,878 1,903
Loans held for sale 856 896
Total interest revenue 126,223 129,812
INTEREST EXPENSE:
Deposits 33,929 35,260
Fed funds purchased and securities
sold under agreement to repurchase 1,551 2,018
Other 4,658 4,726
Total interest expense 40,138 42,004
Net interest revenue 86,085 87,808
Provision for credit losses 7,472 4,664
Net interest revenue, after
provision for credit losses 78,613 83,144
NONINTEREST REVENUE:
Mortgage lending 6,441 10,323
Service charges 15,882 16,131
Life insurance premiums 657 760
Trust income 2,138 1,905
Security gains, net 40 60
Insurance commissions 13,101 11,946
Other 9,815 8,695
Total noninterest revenue 48,074 49,820
NONINTEREST EXPENSES:
Salaries and employee benefits 47,633 46,449
Occupancy, net of rental income 5,853 5,932
Equipment 5,569 6,063
Telecommunications 1,874 1,915
Other 23,898 22,192
Total noninterest expenses 84,827 82,551
Income before income taxes 41,860 50,413
Income tax expense 12,990 16,539
Net income $28,870 $33,874
Net income per share: Basic $0.37 $0.43
Diluted $0.37 $0.43
BancorpSouth, Inc.
Consolidated Statements of Income
(Dollars in thousands, except per share data)
(Unaudited)
Year To Date
Sep 2004 Sep 2003
INTEREST REVENUE:
Loans $277,367 $305,207
Deposits with other banks 518 251
Federal funds sold and securities
purchased under agreement to resell 922 5,816
Held-to-maturity securities:
Taxable 34,922 36,489
Tax-exempt 5,183 6,236
Available-for-sale securities:
Taxable 45,688 38,319
Tax-exempt 5,022 5,992
Loans held for sale 1,752 2,378
Total interest revenue 371,374 400,688
INTEREST EXPENSE:
Deposits 103,031 115,093
Fed funds purchased and securities
sold under agreement to repurchase 3,499 6,563
Other 14,720 14,011
Total interest expense 121,250 135,667
Net interest revenue 250,124 265,021
Provision for credit losses 12,381 17,658
Net interest revenue, after
provision for credit losses 237,743 247,363
NONINTEREST REVENUE:
Mortgage lending 9,552 16,811
Service charges 46,340 46,017
Life insurance premiums 1,437 2,598
Trust income 5,587 5,075
Security gains, net 822 13,796
Insurance commissions 42,056 26,647
Other 33,990 31,068
Total noninterest revenue 139,784 142,012
NONINTEREST EXPENSES:
Salaries and employee benefits 147,840 134,177
Occupancy, net of rental income 18,303 17,120
Equipment 16,486 17,842
Telecommunications 5,330 5,603
Other 67,057 63,025
Total noninterest expenses 255,016 237,767
Income before income taxes 122,511 151,608
Income tax expense 36,484 49,345
Net income $86,027 $102,263
Net income per share: Basic $1.12 $1.32
Diluted $1.11 $1.31
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended
September 30, 2004
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of unearned income $6,509,800 $94,804 5.79%
Held-to-maturity securities:
Taxable 1,301,470 12,020 3.67%
Tax-exempt 144,936 2,604 7.15%
Available-for-sale securities:
Taxable 1,616,975 14,691 3.61%
Tax-exempt 145,919 2,482 6.77%
Short-term investments 32,509 213 2.61%
Total interest earning
assets and revenue 9,751,609 126,814 5.17%
Other assets 921,768
Less: Allowance for credit losses (91,186)
Total $10,582,191
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $2,661,627 $6,171 0.92%
Savings 780,567 1,479 0.75%
Other time 4,078,551 27,549 2.69%
Short-term borrowings 524,659 1,670 1.27%
Junior subordinated debt 128,866 2,626 8.11%
Long-term debt 137,614 2,054 5.94%
Total interest bearing
liabilities and expense 8,311,884 41,548 1.99%
Demand deposits -
noninterest bearing 1,304,983
Other liabilities 105,810
Total liabilities 9,722,677
Shareholders' equity 859,514
Total $10,582,191
Net interest revenue $85,266
Net interest margin 3.48%
Net interest rate spread 3.18%
Interest bearing liabilities to
interest earning assets 85.24%
Net interest tax equivalent
adjustment $2,308
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended
September 30, 2003
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of unearned income $6,344,679 $99,535 6.22%
Held-to-maturity securities:
Taxable 928,655 10,258 4.38%
Tax-exempt 159,698 2,987 7.42%
Available-for-sale securities:
Taxable 1,738,380 15,160 3.46%
Tax-exempt 184,639 2,928 6.29%
Short-term investments 153,548 1,362 3.52%
Total interest earning
assets and revenue 9,509,599 132,230 5.52%
Other assets 836,643
Less: Allowance for credit losses (91,739)
Total $10,254,503
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $2,462,312 $5,220 0.84%
Savings 791,963 1,431 0.72%
Other time 3,982,951 28,608 2.85%
Short-term borrowings 533,933 2,123 1.58%
Junior subordinated debt 125,000 2,547 8.15%
Long-term debt 138,929 2,075 5.93%
Total interest bearing
liabilities and expense 8,035,088 42,004 2.07%
Demand deposits -
noninterest bearing 1,213,711
Other liabilities 131,078
Total liabilities 9,379,877
Shareholders' equity 874,626
Total $10,254,503
Net interest revenue $90,226
Net interest margin 3.76%
Net interest rate spread 3.44%
Interest bearing liabilities to
interest earning assets 84.49%
Net interest tax equivalent
adjustment $2,418
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Year To Date
September 30, 2004
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of unearned income $6,400,120 $280,687 5.86%
Held-to-maturity securities:
Taxable 1,214,775 34,923 3.84%
Tax-exempt 147,506 7,972 7.22%
Available-for-sale securities:
Taxable 1,692,356 45,684 3.61%
Tax-exempt 154,596 7,726 6.68%
Short-term investments 143,341 1,441 1.34%
Total interest earning
assets and revenue 9,752,694 378,433 5.18%
Other assets 889,244
Less: Allowance for credit losses (91,764)
Total $10,550,174
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $2,677,259 $17,629 0.88%
Savings 784,894 4,194 0.71%
Other time 4,067,648 81,208 2.67%
Short-term borrowings 489,379 4,167 1.14%
Junior subordinated debt 128,866 7,877 8.16%
Long-term debt 137,949 6,175 5.98%
Total interest bearing
liabilities and expense 8,285,995 121,250 1.95%
Demand deposits -
noninterest bearing 1,275,004
Other liabilities 117,983
Total liabilities 9,678,982
Shareholders' equity 871,192
Total $10,550,174
Net interest revenue $257,183
Net interest margin 3.52%
Net interest rate spread 3.23%
Interest bearing liabilities to
interest earning assets 84.96%
Net interest tax equivalent
adjustment $7,059
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Year To Date
September 30, 2003
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans net of unearned income $6,365,923 $308,716 6.48%
Held-to-maturity securities:
Taxable 1,212,104 36,488 4.02%
Tax-exempt 168,234 9,594 7.62%
Available-for-sale securities:
Taxable 1,276,990 38,318 4.01%
Tax-exempt 193,580 9,219 6.37%
Short-term investments 315,559 6,067 2.57%
Total interest earning
assets and revenue 9,532,390 408,402 5.73%
Other assets 802,732
Less: Allowance for credit losses (90,499)
Total $10,244,623
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $2,478,536 $19,018 1.03%
Savings 804,946 5,669 0.94%
Other time 4,098,528 90,406 2.95%
Short-term borrowings 476,410 6,698 1.88%
Junior subordinated debt 125,000 7,641 8.15%
Long-term debt 139,241 6,236 5.99%
Total interest bearing
liabilities and expense 8,122,661 135,668 2.23%
Demand deposits -
noninterest bearing 1,163,949
Other liabilities 116,806
Total liabilities 9,403,416
Shareholders' equity 841,207
Total $10,244,623
Net interest revenue $272,734
Net interest margin 3.83%
Net interest rate spread 3.50%
Interest bearing liabilities to
interest earning assets 85.21%
Net interest tax equivalent
adjustment $7,713
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, Inc.
Web site: http://www.bancorpsouth.com/