TUPELO, Miss., July 23 /PRNewswire-FirstCall/ -- BancorpSouth, Inc. today announced financial results for the second quarter ended June 30, 2007.
Highlights of the announcement include:
-- Growth of 18.5 percent in loans and leases, net of unearned income, at
the end of the second quarter from the end of the second quarter of
2006, which drove a 26.1 percent increase in comparable-quarter
interest revenue from loans and leases.
-- Net interest revenue of $106.7 million for the quarter, up 9.7 percent
from the second quarter of 2006.
-- A 12.4 percent increase in noninterest revenue for the quarter from
the second quarter of 2006, which includes growth in insurance
commission revenue of 19.0 percent and in mortgage lending revenue of
47.4 percent.
-- Improvement in non-performing loans and leases to 0.27 percent of
total loans and leases from 0.32 percent at the same date in 2006,
while annualized net charge offs as a percentage of average loans
improved to 0.14 percent for the quarter from 0.18 percent for the
second quarter of 2006.
-- The declaration of a 5.0 percent increase in the Company's quarterly
cash dividend to $0.21 per share, making 2007 the 24th consecutive
year in which the dividend has been increased.
-- Adoption of a new stock repurchase plan for the repurchase of up to
three million shares of the Company's common stock during the period
May 1, 2007 through April 30, 2009.
Second Quarter 2007 Summary Results
BancorpSouth's net income for the second quarter of 2007 was $35.9 million, or $0.43 per diluted share, compared with $35.5 million, or $0.45 per diluted share, for the second quarter of 2006. These results include the positive effect of an increase in the value of the Company's mortgage servicing asset of $1.2 million and $0.5 million for the second quarter of 2007 and 2006, respectively. Also, the results for the second quarter of 2007 included a 32.5 percent effective tax rate as compared to a 27.4 percent effective tax rate for the second quarter of 2006. The favorable resolution of a state income tax issue during the second quarter of 2006 reduced the effective tax rate for that quarter.
"We are pleased with the Company's operating performance for the second quarter of 2007," remarked Aubrey Patterson, Chairman and Chief Executive Officer of BancorpSouth. "The expansion of our banking business continued to reflect the impact of the acquisition of The Signature Bank during the first quarter of 2007. In addition, our noninterest revenues benefited from significant ongoing organic growth in our insurance business and stronger loan origination activity in our mortgage lending business."
Net Interest Revenue
Interest revenue for the second quarter of 2007 increased 21.0 percent, or $35.2 million, to $202.6 million from $167.4 million for the second quarter of 2006 and increased 8.2 percent from $187.1 million for the first quarter of 2007. Interest expense increased 36.7 percent, or $25.7 million, to $95.9 million for the second quarter of 2007 from $70.2 million for the second quarter of 2006 and 8.4 percent from $88.5 million for the first quarter of 2007.
The average taxable equivalent yield on earning assets increased to 6.94 percent for the second quarter of 2007 from 6.39 percent for the second quarter of 2006 and 6.85 percent for the first quarter of 2007. The average rate paid on interest bearing liabilities was 3.86 percent for the second quarter of 2007, compared with 3.17 percent for the second quarter of 2006 and 3.80 percent for the first quarter of 2007.
Net interest revenue increased 9.7 percent to $106.7 million for the second quarter of 2007 from $97.2 million for the second quarter of 2006 and increased 8.1 percent from $98.7 million for the first quarter of 2007. Net interest margin was 3.69 percent for the second quarter of 2007 compared with 3.75 percent for the second quarter of 2006 and 3.66 percent for the first quarter of 2007.
Patterson added, "We attribute our solid growth in net interest revenue, in spite of a decline of six basis points in net interest margin from the second quarter of 2006, both to the impact of the Signature acquisition and the successful efforts of our management team. With Signature's operations producing a somewhat higher margin than BancorpSouth Bank, the combination of our operations produced an increase in net interest margin for the second quarter to 3.69 percent, from 3.66 percent for the first quarter of 2007. We also chose to fund the growth in loans for the second quarter with the proceeds of maturing investment securities and short-term borrowings. Consistent with our long-term operating history, we will continue to manage our mix of assets and liabilities through conservative policies designed to mitigate the impact of interest-rate volatility."
Deposit and Loan Activity
Total assets at June 30, 2007 increased 11.6 percent to $13.2 billion from $11.8 billion at June 30, 2006. Total deposits grew 9.2 percent to $10.4 billion at June 30, 2007 from $9.6 billion at June 30, 2006. Loans and leases, net of unearned income, increased 18.5 percent to $9.0 billion at June 30, 2007 from $7.6 billion at June 30, 2006.
"The double-digit growth in our total assets and loans compared to the second quarter last year is attributable to a combination of the Signature acquisition and solid organic growth," said Patterson. "The underlying momentum of our organic growth is evident in the 2.6 percent growth in our loan portfolio from the first quarter of 2007. The sequential-quarter changes in our deposit base also reflect our continuing initiatives to manage our interest-rate risk as discussed above."
Total deposits declined $222.6 million, or 2.1 percent, at the end of the second quarter of 2007 from the end of the first quarter of the year. This decline was comprised of a $127.3 million decrease in interest-bearing demand deposits, a $64.6 million decrease in savings and other time deposits and a $30.7 million decrease on non-interest-bearing deposits.
Provision for Credit Losses and Allowance for Credit Losses
For the second quarter of 2007, the provision for credit losses was $7.8 million compared with $3.6 million for the second quarter of 2006 and $1.4 million for the first quarter of 2007. Annualized net charge-offs were 0.14 percent of average loans and leases for the second quarter of 2007 compared with 0.18 percent for the second quarter of 2006 and 0.08 percent for the first quarter of 2007.
Non-performing loans and leases decreased 2.0 percent to $23.9 million, or 0.27 percent of loans and leases, at June 30, 2007, from $24.4 million, or 0.32 percent of loans and leases, at June 30, 2006, and decreased 1.2 percent from $24.2 million, or 0.28 percent of loans and leases, at March 31, 2007. The allowance for credit losses was 1.22 percent of loans and leases at June 30, 2007, compared with 1.27 percent of loans and leases at June 30, 2006 and 1.20 percent of loans and leases at March 31, 2007.
Patterson continued, "BancorpSouth's credit quality remained strong during the second quarter of 2007, with reductions in both non-performing loans and net charge offs from the second quarter of 2006. Our loan growth for the second quarter of 2007 drove the increase in our provision for credit losses. We strongly believe that sound credit and lending policies are central to our past and future long-term success."
Noninterest Revenue
Noninterest revenue increased 12.4 percent to $60.2 million for the second quarter of 2007 from $53.6 million for the second quarter of 2006. These results include the positive effect of an increase in each quarter in the value of the mortgage servicing asset, totaling $1.2 million for the second quarter of 2007 and $0.5 million for the same prior-year quarter.
"The performance of our noninterest revenue businesses continued to validate their key role in our strategies for long-term growth," commented Patterson. "Our insurance business produced its fifth consecutive quarter of double-digit increases in commission revenues, up 19.0 percent for the quarter compared to the previous quarter, with gains in all four states in which we have insurance operations. Our Mississippi and Louisiana operations continue to reflect the ongoing Hurricane Katrina recovery efforts in the region, and our new operation in Alabama, which opened in Mobile in the fourth quarter of 2006, has expanded our presence on the Gulf Coast.
"We were also pleased with the growth of our mortgage lending business, which generated revenue growth of 33.8 percent for the quarter, excluding the impact of changes in the value of the mortgage servicing asset. This growth demonstrates the continued economic vitality within markets across our broadening geographic footprint, and these services provide us an opportunity to strengthen existing customer relationships or introduce new customers to BancorpSouth."
Noninterest Expense
Noninterest expense increased 7.7 percent to $105.9 million for the second quarter of 2007 from $98.3 million for the second quarter of 2006 and increased 0.3 percent from $105.6 million for the first quarter of 2007. The growth in noninterest expense primarily resulted from additional salaries, employee benefits and occupancy expense associated with the opening of new loan production offices and full-service branch bank offices during 2006 and 2007 to date, the launch of insurance operations in Mobile, Alabama in the fourth quarter of 2006 and the acquisition of Signature effective March 1, 2007.
Capital Management
BancorpSouth repurchased 195,000 shares of its common stock during the second quarter of 2007. Including 20,000 of the shares repurchased during the second quarter, BancorpSouth repurchased 1,006,000 shares under the stock repurchase plan that expired April 30, 2007. The Company purchased 175,000 shares during the second quarter under a new stock repurchase plan for the repurchase of up to three million shares that commenced on May 1, 2007 and expires on April 30, 2009. BancorpSouth will continue to evaluate additional share repurchase opportunities under this plan. The Company has repurchased approximately 11.7 million shares of its common stock since its original share repurchase program was initiated in 2001.
Summary
Patterson said, "As we look to the second half of 2007, we are encouraged by steady economic growth and other favorable macroeconomic trends. Although we face challenges, such as optimizing our asset/liability management efforts and maintaining our credit quality in any market environment, we expect steady economic growth and a relatively stable and low interest rate environment to enhance our ability to pursue a variety of growth opportunities. For instance, we continue to progress toward the full integration of Signature Bank, which was merged with and into BancorpSouth Bank effective July 1, 2007, and toward leveraging our presence in strong markets in Missouri, our newest state. Also we are only in the early stages of our potential expansion in attractive new markets in Florida, east Texas, northern Arkansas and middle Tennessee. Our growth along the Gulf Coast and the long-term recovery of the region from Hurricane Katrina represents a further, substantial long-term growth opportunity for BancorpSouth. Finally, while we will continue to evaluate expansion into attractive markets contiguous to our existing operations, we also have a very significant long-term opportunity to build out our existing markets through organic growth or acquisitions.
"As a result," concluded Patterson, "we remain optimistic about BancorpSouth's potential for earnings growth, which we have tangibly demonstrated through our stock repurchase and dividend policies. We are committed to offering our unique blend of personalized service and comprehensive, sophisticated financial products to our primarily retail and small to mid-sized business customers. With a foundation based on conservative operating principles, we are confident that the outstanding team of people throughout BancorpSouth can continue to execute to achieve our long- term goals."
Conference Call
BancorpSouth will conduct a conference call to discuss its second quarter 2007 results tomorrow, July 24, 2007, 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 include, without limitation, statements relating to the management of our mix of assets and liabilities, consistency of our credit and lending policies, our evaluation of expansion into other markets, our potential for growth, the execution and achievement of our long- term goals, repurchases under our common stock repurchase plan and our ability to pursue growth opportunities.
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 because of a variety of factors. These factors may include, but are not limited to, 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 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 $13.2 billion in assets. BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., operates approximately 290 commercial banking, mortgage, insurance, trust and broker/dealer locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas.
BancorpSouth, Inc.
Selected Financial Data
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2007 2006 2007 2006
(Dollars in thousands,
except per share
amounts)
Earnings Summary:
Net interest revenue $106,658 $97,221 $205,326 $193,150
Provision for credit
losses 7,843 3,586 9,198 (274)
Noninterest revenue 60,232 53,600 118,591 106,370
Noninterest expense 105,928 98,344 211,538 194,352
Income before income
taxes 53,119 48,891 103,181 105,442
Income tax provision 17,238 13,392 33,723 32,198
Net income $35,881 $35,499 $69,458 $73,244
Earning per share:
Basic $0.44 $0.45 $0.86 $0.93
Diluted $0.43 $0.45 $0.86 $0.92
Balance sheet data at
June 30:
Total assets $13,209,093 $11,832,245
Total earning assets 12,012,304 10,687,106
Loans and leases, net
of unearned income 8,966,280 7,567,009
Allowance for credit
losses 109,328 96,264
Total deposits 10,436,920 9,556,234
Common shareholders'
equity 1,140,280 1,008,953
Book value per share 13.88 12.76
Average balance sheet
data:
Total assets $12,955,586 $11,761,349 $12,627,776 $11,762,821
Total earning assets 11,850,069 10,672,338 11,539,853 10,678,476
Loans and leases, net
of unearned interest 8,875,403 7,476,032 8,514,807 7,424,186
Total deposits 10,471,566 9,587,542 10,255,177 9,646,603
Common shareholders'
equity 1,122,820 994,495 1,089,428 984,250
Non-performing assets
at June 30:
Non-accrual loans and
leases $9,135 $6,391
Loans and leases 90+
days past due 13,706 15,819
Restructured loans and
leases 1,066 2,181
Other real estate
owned 11,277 12,713
Net charge-offs as a
percentage of average
loans (annualized) 0.14% 0.18% 0.11% 0.13%
Performance ratios
(annualized):
Return on average
assets 1.11% 1.21% 1.11% 1.26%
Return on common
equity 12.82% 14.32% 12.86% 15.01%
Net interest margin 3.69% 3.75% 3.68% 3.74%
Average shares
outstanding - basic 82,169,901 79,146,546 80,813,169 79,179,429
Average shares
outstanding - diluted 82,534,762 79,535,200 81,213,583 79,539,667
BancorpSouth, Inc.
Consolidated Balance Sheets
(Unaudited)
June 30, %
2007 2006 Change
(Dollars in thousands)
Assets
Cash and due from banks $301,899 $422,523 (28.55%)
Interest bearing deposits with other
banks 13,143 5,982 119.71%
Held-to-maturity securities, at
amortized cost 1,785,468 1,692,018 5.52%
Available-for-sale securities, at
fair value 1,138,890 1,266,659 (10.09%)
Federal funds sold and securities
purchased under agreement to resell 22,895 104,181 (78.02%)
Loans and leases 9,012,362 7,611,477 18.40%
Less: Unearned income 46,082 44,468 3.63%
Allowance for credit losses 109,328 96,264 13.57%
Net loans and leases 8,856,952 7,470,745 18.56%
Loans held for sale 85,627 51,258 67.05%
Premises and equipment, net 308,248 278,410 10.72%
Accrued interest receivable 95,577 83,577 14.36%
Goodwill 249,426 142,548 74.98%
Other assets 350,968 314,344 11.65%
Total Assets $13,209,093 11,832,245 11.64%
Liabilities
Deposits:
Demand: Noninterest bearing $1,756,652 1,829,782 (4.00%)
Interest bearing 3,185,461 2,800,391 13.75%
Savings 727,106 758,471 (4.14%)
Other time 4,767,701 4,167,590 14.40%
Total deposits 10,436,920 9,556,234 9.22%
Federal funds purchased and
securities sold under agreement
to repurchase 746,182 675,280 10.50%
Short-term Federal Home Loan Bank
borrowings 400,000 175,000 128.57%
Accrued interest payable 44,260 28,668 54.39%
Junior subordinated debt securities 163,405 144,847 12.81%
Long-term Federal Home Loan Bank
borrowings 145,146 136,479 6.35%
Other liabilities 132,900 106,784 24.46%
Total Liabilities 12,068,813 10,823,292 11.51%
Shareholders' Equity
Common stock 205,426 197,744 3.88%
Capital surplus 190,043 112,127 69.49%
Accumulated other comprehensive
income (loss) (26,270) (20,754) 26.58%
Retained earnings 771,081 719,836 7.12%
Total Shareholders' Equity 1,140,280 1,008,953 13.02%
Total Liabilities & Shareholders'
Equity $13,209,093 $11,832,245 11.64%
BancorpSouth, Inc.
Consolidated Condensed Statements of Income
(Dollars in thousands, except per share data)
(Unaudited)
Quarter Ended
Jun-07 Mar-07 Dec-06 Sep-06 Jun-06
INTEREST REVENUE:
Loans and leases $169,717 $153,241 $147,784 $43,712 $134,569
Deposits with other banks 268 286 217 295 176
Federal funds sold and
securities purchased
under agreement to resell 633 2,511 635 609 976
Held-to-maturity securities:
Taxable 16,962 16,705 16,532 16,107 16,048
Tax-exempt 2,044 2,015 2,012 2,017 2,077
Available-for-sale securities:
Taxable 10,839 9,592 9,653 10,405 11,389
Tax-exempt 1,010 1,115 1,170 1,215 1,276
Loans held for sale 1,082 1,675 1,366 878 871
Total interest
revenue 202,555 187,140 179,369 175,238 167,382
INTEREST EXPENSE:
Interest bearing demand 21,992 19,887 16,228 15,514 14,613
Savings 2,481 2,383 2,160 2,089 2,044
Other time 55,459 51,985 48,585 45,361 40,773
Federal funds purchased
and securities sold
under agreement to
repurchase 9,283 7,824 8,940 8,498 6,549
Other 6,682 6,393 7,205 7,378 6,182
Total interest
expense 95,897 88,472 83,118 78,840 70,161
Net interest
revenue 106,658 98,668 96,251 96,398 97,221
Provision for credit
losses 7,843 1,355 6,325 2,526 3,586
Net interest revenue,
after provision for
credit losses 98,815 97,313 89,926 93,872 93,635
NONINTEREST REVENUE:
Mortgage lending 5,484 1,779 (820) 41 3,720
Credit card, debit card
and merchant fees 7,391 6,874 6,793 6,447 6,408
Service charges 17,677 15,396 16,262 16,247 16,323
Trust income 2,457 2,214 3,703 2,344 2,325
Security gains, net 10 7 4 9 17
Insurance commissions 17,665 19,794 16,146 15,977 14,841
Other 9,548 12,295 8,402 8,169 9,966
Total noninterest
revenue 60,232 58,359 50,490 49,234 53,600
NONINTEREST EXPENSES:
Salaries and employee
benefits 63,851 63,628 60,178 58,453 58,376
Occupancy, net of rental
income 8,709 8,463 8,173 8,598 7,759
Equipment 6,053 6,026 5,941 5,896 5,822
Other 27,315 27,493 25,849 25,714 26,387
Total noninterest
expenses 105,928 105,610 100,141 98,661 98,344
Income before
income taxes 53,119 50,062 40,275 44,445 48,891
Income tax expense 17,238 16,485 12,202 20,568 13,392
Net income $35,881 $33,577 $28,073 $23,877 $35,499
Net income per share: Basic $0.44 $0.42 $0.35 $0.30 $0.45
Diluted $0.43 $0.42 $0.35 $0.30 $0.45
Year To Date
Jun-07 Jun-06
INTEREST REVENUE:
Loans and leases $322,958 $261,769
Deposits with other banks 554 317
Federal funds sold and securities
purchased under agreement to resell 3,144 3,822
Held-to-maturity securities:
Taxable 33,667 30,371
Tax-exempt 4,059 3,964
Available-for-sale securities:
Taxable 20,431 22,293
Tax-exempt 2,125 2,639
Loans held for sale 2,757 2,109
Total interest revenue 389,695 327,284
INTEREST EXPENSE:
Interest bearing demand 41,879 28,402
Savings 4,864 3,738
Other time 107,444 78,423
Federal funds purchased and
securities sold under agreement to
repurchase 17,107 12,451
Other 13,075 11,120
Total interest expense 184,369 134,134
Net interest revenue 205,326 193,150
Provision for credit losses 9,198 (274)
Net interest revenue, after
provision for credit losses 196,128 193,424
NONINTEREST REVENUE:
Mortgage lending 7,263 6,896
Credit card, debit card and merchant
fees 14,265 12,541
Service charges 33,073 30,615
Trust income 4,671 4,341
Security gains, net 17 27
Insurance commissions 37,459 31,162
Other 21,843 20,788
Total noninterest revenue 118,591 106,370
NONINTEREST EXPENSES:
Salaries and employee benefits 127,479 115,949
Occupancy, net of rental income 17,172 15,201
Equipment 12,079 11,585
Other 54,808 51,617
Total noninterest expenses 211,538 194,352
Income before income taxes 103,181 105,442
Income tax expense 33,723 32,198
Net income $69,458 $73,244
Net income per share: Basic $0.86 $0.93
Diluted $0.86 $0.92
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended
June 30, 2007
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans, loans held for sale,
and leases net of unearned
income $8,949,661 $171,637 7.69%
Held-to-maturity securities:
Taxable 1,530,082 16,962 4.45%
Tax-exempt 188,112 3,145 6.71%
Available-for-sale securities:
Taxable 1,034,219 10,838 4.20%
Tax-exempt 84,133 1,554 7.41%
Short-term investments 63,862 901 5.66%
Total interest earning
assets and revenue 11,850,069 205,037 6.94%
Other assets 1,214,152
Less: allowance for credit losses (108,635)
Total $12,955,586
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $3,241,430 $21,993 2.72%
Savings 733,283 2,481 1.36%
Other time 4,799,252 55,459 4.63%
Short-term borrowings 867,995 10,455 4.83%
Junior subordinated debt 163,405 3,342 8.20%
Long-term debt 151,270 2,166 5.75%
Total interest bearing
liabilities and expense 9,956,635 95,896 3.86%
Demand deposits -
noninterest bearing 1,697,601
Other liabilities 178,530
Total liabilities 11,832,766
Shareholders' equity 1,122,820
Total $12,955,586
Net interest revenue $109,141
Net interest margin 3.69%
Net interest rate spread 3.08%
Interest bearing liabilities to
interest earning assets 84.02%
Net interest tax equivalent
adjustment $2,482
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)
Year to Date
June 30, 2007
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
ASSETS
Loans, loans held for sale,
and leases net of unearned
income $8,604,184 $327,377 7.67%
Held-to-maturity securities:
Taxable 1,526,653 33,667 4.45%
Tax-exempt 186,492 6,244 6.75%
Available-for-sale securities:
Taxable 999,464 20,430 4.12%
Tax-exempt 88,596 3,270 7.44%
Short-term investments 134,464 3,699 5.55%
Total interest earning
assets and revenue 11,539,853 394,687 6.90%
Other assets 1,192,296
Less: allowance for credit losses (104,373)
Total $12,627,776
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $3,186,340 $41,879 2.65%
Savings 728,095 4,864 1.35%
Other time 4,661,361 107,443 4.65%
Short-term borrowings 815,275 19,548 4.84%
Junior subordinated debt 157,356 6,423 8.23%
Long-term debt 146,254 4,211 5.81%
Total interest bearing
liabilities and expense 9,694,681 184,368 3.84%
Demand deposits -
noninterest bearing 1,679,381
Other liabilities 164,286
Total liabilities 11,538,348
Shareholders' equity 1,089,428
Total $12,627,776
Net interest revenue $210,319
Net interest margin 3.68%
Net interest rate spread 3.06%
Interest bearing liabilities to
interest earning assets 84.01%
Net interest tax equivalent
adjustment $4,992
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
