TUPELO, Miss., July 20 /PRNewswire-FirstCall/ -- BancorpSouth, Inc. today announced financial results for the second quarter and six months ended June 30, 2006.
Highlights of the second quarter of 2006 included:
* A 36.4 percent increase in earnings per diluted share to $0.45 for the
second quarter of 2006 from $0.33 for the second quarter of 2005.
* The expansion of the Company's net interest margin to 3.75 percent for
the second quarter from 3.66 percent for the second quarter of 2005 and
3.73 percent from the first quarter of 2006.
* Growth in non-interest bearing demand deposits of 22.9 percent compared
with the second quarter of 2005, the fourth consecutive quarter of
growth in excess of 19 percent.
* Improvement in non-performing loans and leases as a percentage of total
loans and leases to 0.32 percent and an increase in the reserve
coverage (allowance for credit losses to non-performing loans) to
395 percent.
* Substantial organic growth within the Company's insurance business with
revenues increasing 13.8 percent for the second quarter of 2006 from
the second quarter of 2005.
* Continued expansion of the Company's markets, with the second-quarter
opening of loan production offices in Tyler, Texas and Huntsville,
Alabama; the opening of a full-service bank office in Bay St. Louis,
Mississippi; and the announcement of the Company's intent to expand
into the panhandle of Florida with a branch office in Destin before the
end of 2006.
Second Quarter 2006 Summary Results
BancorpSouth's net income increased 37.6 percent for the second quarter of 2006 to $35.5 million from $25.8 million for the second quarter of 2005. Net income per diluted share for the second quarter of 2006 increased 36.4 percent to $0.45 from $0.33 for the second quarter of 2005.
"We are pleased to report that BancorpSouth continued its momentum in the second quarter of 2006," commented Aubrey Patterson, Chairman and Chief Executive Officer of BancorpSouth. "In a rising interest rate environment characterized by a generally flat yield curve, we achieved our third consecutive quarter of double-digit growth in net interest revenue through a combination of solid loan and deposit growth, focused asset/liability management and strong credit quality. In addition, we expanded non-interest income through a resurgence in our insurance business, which had been significantly affected by Hurricane Katrina. We also continued to lay the foundation for long-term growth by expanding into attractive new markets.
"As in the previous two quarters, our net income for the second quarter of 2006 benefited from a reduction in a previously recorded allowance for credit losses related to Hurricane Katrina, totaling approximately $600,000 pre-tax for the quarter. Our earnings growth when compared to the second quarter of 2005 also reflected a positive net pre-tax impact of $6.5 million related to changes in the value of our mortgage servicing asset, as well as the favorable resolution of a state income tax issue that resulted in a lower effective tax rate for the quarter."
Net Interest Revenue
Interest revenue for the second quarter of 2006 increased 23.0 percent, or $31.3 million, to $167.4 million from $136.0 million for the second quarter of 2005 and 4.7 percent from $159.9 million for the first quarter of 2006. Interest expense increased 45.2 percent, or $21.8 million, to $70.2 million for the second quarter of 2006 from $48.3 million for the second quarter of 2005 and 9.7 percent from $64.0 million for the first quarter of 2006.
The average taxable equivalent yield on earning assets increased to 6.39 percent for the second quarter of 2006 from 5.63 percent for the second quarter of 2005 and 6.16 percent for the first quarter of 2006. The average rate paid on interest bearing liabilities was 3.17 percent for the second quarter of 2006, compared with 2.34 percent for the second quarter of 2005 and 2.91 percent for the first quarter of 2006.
Net interest revenue increased 10.8 percent to $97.2 million for the second quarter of 2006 from $87.7 million for the second quarter of 2005 and 1.3 percent from $95.9 million for the first quarter of 2006. Net interest margin was 3.75 percent for the second quarter of 2006 compared with 3.66 percent for the second quarter of 2005 and 3.73 percent for the first quarter of 2006.
"With the increase in our second quarter net interest margin, we have not only achieved our sixth consecutive comparable-quarter increase in this key metric, but also, in a difficult interest rate environment, the third consecutive sequential-quarter improvement," continued Patterson. "This strong record is the product of our conservative asset/liability management philosophy, which we have consistently applied over the long term through many interest rate cycles. Our conservative stance on maturities in our investment portfolio has enabled us to improve our average taxable yield on earning assets by investing funds from maturing securities in higher rate loans or new higher-rate short- and intermediate-term investments. In addition, our focus on careful pricing of our liabilities continues to support our ability to fund the majority of our loan growth with lower-cost demand deposits. As an institution dependent on often-volatile interest rates, we remain committed to this conservative philosophy as the most effective approach to building long- term shareholder value."
Deposit and Loan Activity
Total assets at June 30, 2006 increased 9.2 percent to $11.8 billion from $10.8 billion at June 30, 2005. Total deposits grew 6.5 percent to $9.6 billion at June 30, 2006 from $9.0 billion at June 30, 2005. Loans and leases, net of unearned interest, increased 7.4 percent to $7.6 billion at June 30, 2006 from $7.0 billion at June 30, 2005.
Patterson remarked, "BancorpSouth continued to expand its loan portfolio at a steady pace during the second quarter, as an expanding economy and diverse markets in our six-state franchise enabled us to overcome the impact on consumer sentiment of rising interest rates and higher fuel prices. The opening of loan production offices in Fayetteville, Arkansas and Gulf Shores, Alabama, during the fourth quarter of 2005 has helped support our organic growth in 2006. In addition, we benefited from the acquisition of American State Bank Corporation, headquartered in Jonesboro, Arkansas, in late 2005. This transaction, as well as increased demand resulting from rising interest rates, also contributed to the 3.4 percent growth in savings and other time deposits. Total demand deposits rose 9.9% for the second quarter of 2006, including a 22.9 percent expansion in non-interest bearing demand deposits, which reflected the flow of relief money into the Mississippi Gulf Coast."
Provision for Credit Losses and Allowance for Credit Losses
For the second quarter of 2006, the provision for credit losses was $3.6 million, an increase of 20.3 percent compared with $3.0 million for the second quarter of 2005, and compared with the negative provision for credit losses of $3.9 million that was recorded for the first quarter of 2006. Annualized net charge-offs were 0.18 percent of average loans and leases for the second quarter of 2006 compared with 0.26 percent for the second quarter of 2005 and 0.09 percent for the first quarter of 2006. The Company continues to closely monitor its loan portfolio in the areas impacted by Hurricane Katrina. As of June 30, 2006, approximately $2.2 million of the Company's allowance for credit losses was directly related to the impact of Hurricane Katrina.
Non-performing loans and leases increased 2.7 percent to $24.4 million, or 0.32 percent of loans and leases, at June 30, 2006, from $23.7 million, or 0.34 percent of loans and leases, at June 30, 2005, and declined 6.2 percent from $26.0 million, or 0.35 percent of loans and leases, at March 31, 2006. The allowance for credit losses was 1.27 percent of loans and leases at June 30, 2006, compared with 1.29 percent of loans and leases at June 30, 2005, and 1.30 percent of loans and leases at March 31, 2006.
Patterson added, "BancorpSouth's credit quality remained strong at the end of the second quarter, with non-performing loans and leases as a percentage of total loans and leases improving on a comparable-quarter and sequential- quarter basis. As we approach the first anniversary of Hurricane Katrina, our continuing analysis indicates that losses related to loans in the impacted area are not expected to be as great as originally anticipated immediately following the hurricane. Although we continue to caution that the full impact of Hurricane Katrina on our financial condition and results of operations may not be known for some time, our coverage of non-performing loans and annualized net charge-offs by the allowance for credit losses support our confidence in the level of our allowance for credit losses."
Noninterest Revenue
Noninterest revenue increased 24.6 percent to $53.6 million for the second quarter of 2006 from $43.0 million for the second quarter of 2005. As previously noted, these results include the impact of a $6.5 million net increase in mortgage revenue related to changes in the value of BancorpSouth's mortgage servicing asset for the second quarter of 2006 compared with the second quarter of 2005. Excluding this increase, noninterest revenue expanded 8.2 percent for the second quarter, primarily attributable to the 13.8 percent growth in insurance commissions.
"The organic growth in our insurance commissions for the second quarter is the highest we have yet achieved with our current three-state operations," said Patterson. "This level of growth was driven by a general increase in insurance premiums that generated a corresponding increase in commissions to the agencies, which we believe is a direct result of the aftermath of Hurricane Katrina. We expect there will be a continuing significant growth opportunity for our insurance business as the Gulf Coast rebuilds and that new relationships created through these services will have potential for additional financial services we are well positioned to provide."
Noninterest Expense
Noninterest expense increased 8.6 percent to $98.3 million for the second quarter of 2006 from $90.6 million for the second quarter of 2005 and increased 2.4 percent from $96.0 million for the first quarter of 2006. The growth in noninterest expense primarily resulted from additional salaries, employee benefits and occupancy expense associated with the acquisition of American State Bank Corporation and the opening of four new loan production offices and a new full-service branch bank office since November 2005.
Capital Management
BancorpSouth repurchased 270,000 shares of its common stock during the second quarter of 2006 under the stock repurchase plan authorized in April 2005 for the repurchase of up to three million shares. With 735,500 shares repurchased under this plan through the end of the second quarter of 2006 combined with the shares repurchased under earlier plans, BancorpSouth had repurchased approximately 11.3 million shares of its common stock as of June 30, 2006, or approximately 13.4 percent of the shares outstanding when the original share repurchase program was initiated in 2001. BancorpSouth will continue to evaluate additional share repurchases under the April 2005 plan, which authorizes these repurchases during a two-year period expiring April 30, 2007.
Summary
"While it is clear that BancorpSouth and the overall banking industry could be challenged by the impact of rising fuel costs and interest rates, our second quarter results support our confidence that this organization has the opportunities and the resources to achieve long-term profitable growth and increased shareholder value," Patterson said. "In particular, we continue to expect to play a significant role in the rebuilding of the Mississippi Gulf Coast, and we have demonstrated our commitment to the region through the opening of the Bay St. Louis office and the grand reopening of our principal office in Gulfport, Mississippi. We have already benefited from substantial growth in deposits and insurance commission revenues in the Mississippi Gulf Coast, and we expect to build our loan portfolio in the area as reconstruction gathers momentum in the quarters to come.
"As the recent opening of our loan production office in Gulf Shores, Alabama and our plans to enter the Destin, Florida, market indicate, we also intend to play a greater role in the further growth of the Gulf Coast. In spite of the magnitude of this opportunity, it remains just one element of our overall strategy to expand, either through organic growth or acquisition, in existing or contiguous markets."
Conference Call
BancorpSouth will conduct a conference call to discuss its second quarter results tomorrow, July 21, 2006, at 10:00 a.m. (Central Time). 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 may include, without limitation, statements relating to the magnitude of loan-related losses in the area impacted by Hurricane Katrina, the aggregate impact of Hurricane Katrina on our financial condition and results of operation, growth opportunities for our insurance business and other financial services as the Gulf Coast rebuilds, repurchases under our common stock repurchase plan, the impact of rising fuel costs and interest rates, our role in rebuilding and contributing to growth of the Gulf Coast and increasing our loan portfolio in the Mississippi Gulf Coast area.
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 may include, but are not limited to, the rate of economic recovery in the region affected by Hurricane Katrina, the ability of BancorpSouth to obtain additional reliable information in the region affected by Hurricane Katrina, changes in economic conditions and government fiscal and monetary policies, fluctuations in prevailing interest rates and the ability of BancorpSouth to manage its assets and liabilities to limit exposure to changing interest rates, the ability of BancorpSouth to increase noninterest revenue and expand noninterest revenue business, the ability of BancorpSouth to maintain credit quality, changes in laws and regulations affecting financial service companies in general, 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, the ability of BancorpSouth to manage its growth and effectively serve an expanding customer and market base, the ability of BancorpSouth to achieve profitable growth and increase shareholder value, 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, close and effectively integrate potential acquisitions, the ability of BancorpSouth to expand geographically and enter fast-growing markets, 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 $11.8 billion in assets. BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., operates approximately 270 commercial banking, insurance, trust and broker/dealer locations in Alabama, Arkansas, Louisiana, Mississippi, Tennessee and Texas.
BancorpSouth, Inc.
Selected Financial Data
Three Months Ended Six Months Ended
June 30, June 30,
2006 2005 2006 2005
(Dollars in thousands,
except per share
amounts)
Earnings Summary:
Net interest revenue $97,221 $87,717 $193,150 $174,846
Provision for credit
losses 3,586 2,980 (274) 7,767
Noninterest revenue 53,600 43,022 106,370 96,941
Noninterest expense 98,344 90,575 194,352 180,263
Income before income
taxes 48,891 37,184 105,442 83,757
Income tax provision 13,392 11,394 32,198 26,223
Net income $35,499 $25,790 $73,244 $57,534
Earning per share:
Basic $0.45 $0.33 $0.93 $0.74
Diluted $0.45 $0.33 $0.92 $0.73
Balance sheet data at June 30:
Total assets $11,832,245 $10,831,291
Total earning assets 10,687,106 9,876,000
Loans and leases, net
of unearned income 7,567,009 7,046,942
Allowance for credit
losses 96,264 91,076
Total deposits 9,556,234 8,974,580
Common shareholders'
equity 1,008,953 936,167
Book value per share 12.76 11.96
Average balance sheet data:
Total assets $11,761,349 $10,788,265 $11,762,821 $10,833,282
Total earning assets 10,672,338 9,858,677 10,678,476 9,906,348
Loans and leases, net
of unearned income 7,476,032 6,989,792 7,424,186 6,932,500
Total deposits 9,587,542 8,963,216 9,646,603 9,028,500
Common shareholders'
equity 994,495 924,661 984,250 921,617
Non-performing assets at June 30:
Non-accrual loans and
leases $6,391 $10,619
Loans and leases 90+
days past due 15,819 11,010
Restructured loans and
leases 2,181 2,120
Other real estate
owned 12,713 16,072
Net charge-offs as a
percentage of average
loans (annualized) 0.18% 0.26% 0.13% 0.24%
Performance ratios (annualized):
Return on average
assets 1.21% 0.96% 1.26% 1.07%
Return on common
equity 14.32% 11.19% 15.01% 12.59%
Net interest margin 3.75% 3.66% 3.74% 3.65%
Average shares
outstanding - basic 79,146,546 78,220,515 79,179,429 78,212,363
Average shares
outstanding - diluted 79,535,200 78,536,657 79,539,667 78,554,782
BancorpSouth, Inc.
Consolidated Balance Sheet
(Unaudited)
June 30, %
2006 2005 Change
(Dollars in thousands)
Assets
Cash and due from banks $422,523 $354,694 19.12%
Interest bearing deposits with other
banks 5,982 6,746 (11.33%)
Held-to-maturity securities, at
amortized cost 1,692,018 1,208,680 39.99%
Available-for-sale securities, at fair
value 1,266,659 1,531,165 (17.27%)
Trading securities, at fair value - 114 N/A
Federal funds sold and securities
purchased under agreement to resell 104,181 24,569 324.03%
Loans and leases 7,611,477 7,077,568 7.54%
Less: Unearned income (44,468) (30,626) 45.20%
Allowance for credit
losses (96,264) (91,076) 5.70%
Net loans and leases 7,470,745 6,955,866 7.40%
Loans held for sale 51,258 57,785 (11.30%)
Premises and equipment, net 278,410 239,306 16.34%
Accrued interest receivable 83,577 65,428 27.74%
Goodwill 142,548 107,780 32.26%
Other assets 314,344 279,158 12.60%
Total Assets $11,832,245 $10,831,291 9.24%
Liabilities
Deposits:
Demand: Noninterest bearing $1,829,782 $1,489,190 22.87%
Interest bearing 2,800,391 2,723,172 2.84%
Savings 758,471 732,298 3.57%
Other time 4,167,590 4,029,920 3.42%
Total deposits 9,556,234 8,974,580 6.48%
Federal funds purchased and
securities sold under agreement
to repurchase 675,280 484,400 39.41%
Other short-term borrowings 175,000 62,000 182.26%
Accrued interest payable 28,668 19,628 46.06%
Junior subordinated debt securities 144,847 138,145 4.85%
Long-term debt 136,479 137,954 (1.07%)
Other liabilities 106,784 78,417 36.17%
Total Liabilities 10,823,292 9,895,124 9.38%
Shareholders' Equity
Common stock 197,744 195,723 1.03%
Capital surplus 112,127 83,359 34.51%
Accumulated other comprehensive income
(loss) (20,754) (7,607) 172.83%
Retained earnings 719,836 664,692 8.30%
Total Shareholders' Equity 1,008,953 936,167 7.77%
Total Liabilities & Shareholders'
Equity $11,832,245 $10,831,291 9.24%
BancorpSouth, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
Quarter Ended
Jun 2006 Mar 2006 Dec 2005
INTEREST REVENUE:
Loans and leases $134,569 $127,200 $121,243
Deposits with other banks 176 141 177
Federal funds sold and securities
purchased under agreement to resell 976 2,846 3,052
Held-to-maturity securities:
Taxable 16,048 14,323 10,461
Tax-exempt 2,077 1,887 1,696
Available-for-sale securities:
Taxable 11,389 10,904 11,048
Tax-exempt 1,276 1,363 1,400
Loans held for sale 871 1,238 920
Total interest revenue 167,382 159,902 149,997
INTEREST EXPENSE:
Deposits 57,430 53,133 47,970
Federal funds purchased and securities
sold under agreement to repurchase 6,549 5,902 4,896
Other 6,182 4,938 4,861
Total interest expense 70,161 63,973 57,727
Net interest revenue 97,221 95,929 92,270
Provision for credit losses 3,586 (3,860) 1,975
Net interest revenue, after
provision for credit losses 93,635 99,789 90,295
NONINTEREST REVENUE:
Mortgage lending 3,720 3,176 2,191
Service charges 17,489 15,450 15,852
Trust income 2,325 2,016 2,412
Security gains, net 17 10 11
Insurance commissions 16,411 17,445 14,411
Other 13,638 14,673 18,831
Total noninterest revenue 53,600 52,770 53,708
NONINTEREST EXPENSES:
Salaries and employee benefits 58,376 57,573 53,959
Occupancy, net of rental income 7,759 7,442 7,133
Equipment 5,822 5,763 5,592
Other 26,387 25,230 25,642
Total noninterest expenses 98,344 96,008 92,326
Income before income taxes 48,891 56,551 51,677
Income tax expense 13,392 18,806 16,871
Net income $35,499 $37,745 $34,806
Net income per share: Basic $0.45 $0.48 $0.44
Diluted $0.45 $0.47 $0.44
BancorpSouth, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
Quarter Ended
Sept 2005 Jun 2005
INTEREST REVENUE:
Loans and leases $115,800 $109,874
Deposits with other banks 166 139
Federal funds sold and securities
purchased
under agreement to resell 1,061 197
Held-to-maturity securities:
Taxable 9,160 9,452
Tax-exempt 1,667 1,557
Available-for-sale securities:
Taxable 11,761 12,765
Tax-exempt 1,481 1,491
Loans held for sale 686 571
Total interest revenue 141,782 136,046
INTEREST EXPENSE:
Deposits 44,790 40,432
Federal funds purchased and
securities sold
under agreement to repurchase 3,692 2,590
Other 4,859 5,307
Total interest expense 53,341 48,329
Net interest revenue 88,441 87,717
Provision for credit losses 14,725 2,980
Net interest revenue, after
provision for
credit losses 73,716 84,737
NONINTEREST REVENUE:
Mortgage lending 4,207 (2,453)
Service charges 15,860 16,411
Trust income 2,161 2,004
Security gains, net 20 371
Insurance commissions 14,830 14,425
Other 11,085 12,264
Total noninterest revenue 48,163 43,022
NONINTEREST EXPENSES:
Salaries and employee benefits 52,173 52,578
Occupancy, net of rental income 6,751 6,841
Equipment 5,501 5,637
Other 25,088 25,519
Total noninterest expenses 89,513 90,575
Income before income taxes 32,366 37,184
Income tax expense 9,507 11,394
Net income $22,859 $25,790
Net income per share: Basic $0.29 $0.33
Diluted $0.29 $0.33
BancorpSouth, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
Year To Date
Jun 2006 Jun 2005
INTEREST REVENUE:
Loans and leases $261,769 $213,678
Deposits with other banks 317 251
Federal funds sold and securities
purchased
under agreement to resell 3,822 589
Held-to-maturity securities:
Taxable 30,371 19,218
Tax-exempt 3,964 3,154
Available-for-sale securities:
Taxable 22,293 26,510
Tax-exempt 2,639 3,168
Loans held for sale 2,109 1,589
Total interest revenue 327,284 268,157
INTEREST EXPENSE:
Deposits 110,563 78,337
Federal funds purchased and
securities sold
under agreement to repurchase 12,451 4,751
Other 11,120 10,223
Total interest expense 134,134 93,311
Net interest revenue 193,150 174,846
Provision for credit losses (274) 7,767
Net interest revenue, after
provision for
credit losses 193,424 167,079
NONINTEREST REVENUE:
Mortgage lending 6,896 3,175
Service charges 32,939 31,137
Trust income 4,341 3,893
Security gains, net 27 441
Insurance commissions 33,856 30,357
Other 28,311 27,938
Total noninterest revenue 106,370 96,941
NONINTEREST EXPENSES:
Salaries and employee benefits 115,949 105,818
Occupancy, net of rental income 15,201 13,252
Equipment 11,585 11,087
Other 51,617 50,106
Total noninterest expenses 194,352 180,263
Income before income taxes 105,442 83,757
Income tax expense 32,198 26,223
Net income $73,244 $57,534
Net income per share: Basic $0.93 $0.74
Diluted $0.92 $0.73
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended
June 30, 2006
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans, loans held for sale,
and leases net of unearned
income $7,517,364 $136,189 7.27%
Held-to-maturity securities:
Taxable 1,557,135 16,048 4.13%
Tax-exempt 190,733 3,196 6.72%
Available-for-sale securities:
Taxable 1,199,635 11,388 3.81%
Tax-exempt 108,604 1,963 7.25%
Short-term investments 98,867 1,151 4.67%
Total interest earning
assets and revenue 10,672,338 169,935 6.39%
Other assets 1,185,888
Less: allowance for credit losses (96,877)
Total $11,761,349
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $2,927,036 $14,613 2.00%
Savings 767,750 2,044 1.07%
Other time 4,164,848 40,773 3.93%
Short-term borrowings 735,180 7,789 4.25%
Junior subordinated debt 144,847 2,947 8.16%
Long-term debt 136,609 1,995 5.86%
Total interest bearing
liabilities and expense 8,876,270 70,161 3.17%
Demand deposits -
noninterest bearing 1,727,908
Other liabilities 162,676
Total liabilities 10,766,854
Shareholders' equity 994,495
Total $11,761,349
Net interest revenue $99,774
Net interest margin 3.75%
Net interest rate spread 3.22%
Interest bearing liabilities to
interest earning assets 83.17%
Net interest tax equivalent
adjustment $2,553
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended
June 30, 2005
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans, loans held for sale,
and leases net of unearned
income $7,034,782 $111,017 6.33%
Held-to-maturity securities:
Taxable 1,072,562 9,452 3.53%
Tax-exempt 137,503 2,395 6.99%
Available-for-sale securities:
Taxable 1,444,327 12,765 3.54%
Tax-exempt 131,287 2,294 7.01%
Short-term investments 38,216 336 3.54%
Total interest earning
assets and revenue 9,858,677 138,259 5.63%
Other assets 1,022,044
Less: allowance for credit losses (92,456)
Total $10,788,265
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $2,795,706 $8,762 1.26%
Savings 747,451 1,503 0.81%
Other time 3,954,223 30,166 3.06%
Short-term borrowings 517,846 3,109 2.41%
Junior subordinated debt 138,145 2,771 8.04%
Long-term debt 138,074 2,018 5.86%
Total interest bearing
liabilities and expense 8,291,445 48,329 2.34%
Demand deposits -
noninterest bearing 1,465,836
Other liabilities 106,323
Total liabilities 9,863,604
Shareholders' equity 924,661
Total $10,788,265
Net interest revenue $89,930
Net interest margin 3.66%
Net interest rate spread 3.29%
Interest bearing liabilities to
interest earning assets 84.10%
Net interest tax equivalent
adjustment $2,213
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Year to Date
June 30, 2006
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans, loans held for sale,
and leases net of unearned
income $7,491,790 $265,286 7.14%
Held-to-maturity securities:
Taxable 1,507,396 30,371 4.06%
Tax-exempt 182,582 6,099 6.74%
Available-for-sale securities:
Taxable 1,200,449 22,293 3.74%
Tax-exempt 113,078 4,060 7.24%
Short-term investments 183,181 4,138 4.56%
Total interest earning
assets and revenue 10,678,476 332,247 6.27%
Other assets 1,182,871
Less: allowance for credit losses (98,526)
Total $11,762,821
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $3,005,663 $28,403 1.91%
Savings 758,585 3,738 0.99%
Other time 4,157,481 78,423 3.80%
Short-term borrowings 689,792 13,718 4.01%
Junior subordinated debt 144,847 5,858 8.16%
Long-term debt 136,794 3,994 5.89%
Total interest bearing
liabilities and expense 8,893,162 134,134 3.04%
Demand deposits -
noninterest bearing 1,724,874
Other liabilities 160,535
Total liabilities 10,778,571
Shareholders' equity 984,250
Total $11,762,821
Net interest revenue $198,113
Net interest margin 3.74%
Net interest rate spread 3.23%
Interest bearing liabilities to
interest earning assets 83.28%
Net interest tax equivalent
adjustment $4,963
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Year to Date
June 30, 2005
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans, loans held for sale,
and leases net of unearned
income $7,006,579 $216,388 6.23%
Held-to-maturity securities:
Taxable 1,082,715 19,218 3.58%
Tax-exempt 137,915 4,853 7.10%
Available-for-sale securities:
Taxable 1,488,762 26,510 3.59%
Tax-exempt 135,200 4,874 7.27%
Short-term investments 55,177 839 3.07%
Total interest earning
assets and revenue 9,906,348 272,682 5.55%
Other assets 1,019,268
Less: allowance for credit losses (92,334)
Total $10,833,282
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $2,832,204 $16,577 1.18%
Savings 756,919 3,058 0.81%
Other time 3,993,458 58,702 2.96%
Short-term borrowings 491,173 5,407 2.22%
Junior subordinated debt 138,145 5,526 8.07%
Long-term debt 138,276 4,041 5.89%
Total interest bearing
liabilities and expense 8,350,175 93,311 2.25%
Demand deposits -
noninterest bearing 1,445,919
Other liabilities 115,571
Total liabilities 9,911,665
Shareholders' equity 921,617
Total $10,833,282
Net interest revenue $179,371
Net interest margin 3.65%
Net interest rate spread 3.30%
Interest bearing liabilities to
interest earning assets 84.29%
Net interest tax equivalent
adjustment $4,525
