TUPELO, Miss., July 17 MS-BancorpSouth-earns
TUPELO, Miss., July 17 /PRNewswire-FirstCall/ -- BancorpSouth, Inc. (NYSE:
BXS) today announced financial results for the second quarter ended June 30,
2008.
Highlights of the announcement include:
-- Growth of 14.0 percent in earnings per diluted share to $0.49 for the
second quarter of 2008 from the second quarter of 2007.
-- Continued solid loan demand reflected in a 5.7 percent increase in
loans for the second quarter of 2008 from the second quarter of 2007 and 2.7
percent growth sequentially from the first quarter of 2008.
-- Maintaining the Company's net interest margin at 3.79 percent for the
second consecutive quarter, the highest level achieved in over five years.
-- An increase of 3.0 percent in net interest revenue for the second
quarter of 2008 from the second quarter of 2007.
-- Strong credit quality, despite some deterioration in nonperforming
loans and net charge-offs. Nonperforming loans at the end of the second
quarter of 2008 totaled 0.49 percent of net loans and annualized net
charge-offs for the second quarter of 2008 were 0.30 percent of average loans.
-- A 21.6 percent increase in noninterest revenue over the second quarter
of 2007 to a record $73.3 million, including growth in insurance commission
revenue of 21.5 percent compared to the second quarter of 2007, the second
consecutive quarter of growth in insurance commission revenue in excess of 20
percent.
-- The declaration of a 4.8 percent increase in the Company's quarterly
cash dividend to $0.22 per share, making 2008 the 25th consecutive year in
which the dividend has been increased.
-- An 8.2 percent increase in shareholders' equity and a 1.4 percent
increase in total assets at the end of the second quarter of 2008 from the end
of the second quarter of 2007, driving BancorpSouth's capital to asset ratio
to 9.21 percent from 8.63 percent.
Second Quarter 2008 Summary Results
BancorpSouth's net income for the second quarter of 2008 increased 11.8
percent to $40.1 million from $35.9 million for the second quarter of 2007.
Net income per diluted share for the second quarter of 2008 increased 14.0
percent to $0.49 from $0.43 for the second quarter of 2007.
"We are pleased with BancorpSouth's financial performance for the second
quarter of 2008," remarked Aubrey Patterson, Chairman and Chief Executive
Officer of BancorpSouth. "At a time when many peers within our markets and
across the nation have struggled with growth, credit quality and liquidity
issues, BancorpSouth's second quarter results are again differentiated by
solid growth in loans, a relatively high net interest margin, growth in net
interest revenue, strength in both credit quality and capital and ample
sources of liquidity. In addition, our long-term strategy of diversifying our
revenue through growth in noninterest revenue continues to achieve outstanding
results, contributing to our ongoing progress in improving our operating
efficiency.
"BancorpSouth is not immune to the challenges the banking industry has
been experiencing, as reflected by the slight deterioration in our measures of
credit quality during the second quarter of 2008. While the movement in these
measures was more substantial compared to the unusual and unsustainably strong
levels at the end of the second quarter of 2007, they remained well within the
range of our historical experience.
"We attribute the continuing strength of our credit quality to our
conservative lending and credit philosophy and the disciplined consistency
with which we have implemented our policies throughout the economic cycle. In
addition, because our technology infrastructure enhances centralized credit
monitoring and control, we have purposefully decentralized much lending and
other decision making authority to our local bank managers, improving the
quality of the customer experience and our ability to understand the
circumstances of each loan customer. As just one indication of the strong
relationships created by this combination of sophisticated technology and high
quality customer service, BancorpSouth was recently ranked 'Highest Customer
Satisfaction with Retail Banking in the Southeast Region' by J.D. Power and
Associates in its 2008 Retail Banking Satisfaction Study(SM)."
Net Interest Revenue
Interest revenue for the second quarter of 2008 decreased 13.2 percent, or
$26.8 million, to $175.8 million from $202.6 million for the second quarter of
2007 and decreased 7.7 percent from $190.5 million for the first quarter of
2008. Interest expense decreased 31.3 percent, or $30.0 million, to $65.9
million for the second quarter of 2008 from $95.9 million for the second
quarter of 2007 and decreased 18.0 percent from $80.4 million for the first
quarter of 2008.
The average taxable equivalent yield on earning assets decreased to 6.01
percent for the second quarter of 2008 from 6.94 percent for the second
quarter of 2007 and from 6.50 percent for the first quarter of 2008. The
average rate paid on interest bearing liabilities was 2.64 percent for the
second quarter of 2008, down from 3.86 percent for the second quarter of 2007
and 3.19 percent for the first quarter of 2008.
Net interest revenue increased 3.0 percent to $109.8 million for the
second quarter of 2008 from $106.7 million for the second quarter of 2007 and
decreased 0.2 percent from $110.1 million for the first quarter of 2008. Net
interest margin was 3.79 percent for the second quarter of 2008, an increase
from 3.69 percent for the second quarter of 2007 and even with 3.79 percent
for the first quarter of 2008.
Patterson said, "We produced a comparable quarter increase in net interest
revenue through the continuation of asset/liability management strategies
that, in a declining interest rate environment, produced a larger decrease in
both average interest rate paid and interest expense than in average taxable
equivalent yield and interest revenue. A primary focus of these strategies
has been to lower our interest expense by funding loan growth with the
proceeds from maturing lower yielding investment securities, short-term
borrowings from the Federal Home Loan Bank (FHLB) and the Federal Reserve and
growth in demand deposits, which increased 3.2 percent at the end of the
second quarter of 2008 from the same quarter in 2007.
"We have also lowered our interest expense by reducing our other time
deposits over this period by 16.9 percent through more conservative pricing of
public fund time deposits. This strategy has not affected our firm commitment
to serving our core deposit customers, which contributed to a 1.8 percent
increase in savings deposits at the end of the second quarter of 2008 from the
end of the second quarter of 2007. In addition, we continue to have ample
funding flexibility through our ability to price public fund time deposits
more aggressively in the future and through further significant short-term
borrowing capacity with the FHLB. As a result of our asset/liability
management efforts, we maintained our net interest margin at 3.79 percent for
each of the first and the second quarters of 2008, the highest level achieved
since the first quarter of 2003."
Deposit and Loan Activity
Total assets at June 30, 2008 increased 1.4 percent to $13.4 billion from
$13.2 billion at June 30, 2007. Total deposits declined 6.0 percent to $9.8
billion at June 30, 2008 from $10.4 billion at June 30, 2007. Loans and
leases, net of unearned income, increased 5.7 percent to $9.5 billion at June
30, 2008 from $9.0 billion at June 30, 2007.
"We are encouraged by the strengthened loan demand indicated by our second
quarter results," Patterson added. "While we produced moderate organic growth
in loans and leases during the 12 month period ending June 30, 2008, a
disproportionate amount of that growth occurred in the latest quarter, during
which our loans increased at a double-digit annualized growth rate. As
discussed above, the decline in total deposits was driven by a strategic
decision to reduce interest expense through more competitive pricing of other
time deposits, which more than offset growth in both demand deposits and
savings deposits."
Provision for Credit Losses and Allowance for Credit Losses
For the second quarter of 2008, the provision for credit losses was $11.2
million compared with $7.8 million for the second quarter of 2007 and $10.8
million for the first quarter of 2008. Annualized net charge-offs were 0.30
percent of average loans and leases for the second quarter of 2008 compared
with 0.14 percent for the second quarter of 2007 and 0.29 percent for the
first quarter of 2008.
Non-performing loans and leases increased to $46.0 million, or 0.49
percent of loans and leases, at June 30, 2008 from $23.9 million, or 0.27
percent of loans and leases, at June 30, 2007 and from $38.7 million, or 0.42
percent of loans and leases, at March 31, 2008. The allowance for credit
losses was 1.30 percent of loans and leases at June 30, 2008 compared with
1.22 percent of loans and leases at June 30, 2007 and 1.29 percent of loans
and leases at March 31, 2008.
Patterson commented, "BancorpSouth's strong credit quality in a
challenging economic environment is a continuing tribute to the performance of
our loan review and credit personnel. It further reflects a conservative
credit culture throughout the Company. As a result of this culture, at June
30, 2008 we had only nominal exposure to the credit issues affecting subprime
residential mortgages and limited exposure to commercial real estate projects
in the non-owner occupied residential market. Our current credit quality also
reflects our steps to tighten real estate lending standards beginning in late
2006. While we expect that continuing weakness in the economic environment
would affect the strength of our credit quality, we are well reserved against
expected losses and intend to move decisively to address any emerging credit
issues. We remain confident that the strength of BancorpSouth's credit
quality will continue to differentiate our performance from our peers."
Noninterest Revenue
For the second quarter of 2008, noninterest revenue increased 21.6 percent
to $73.3 million from $60.2 million for the second quarter of 2007 and
increased 10.6 percent from $66.2 million for the first quarter of 2008. This
growth reflected a 21.5 percent increase in insurance commission revenue for
the second quarter of 2008 from the second quarter of 2007 and a 19.7 percent
increase in credit and debit card fee revenue over the same period. In
addition, the value of the mortgage servicing asset increased for the second
quarter of 2008 by $4.9 million compared with an increase of $1.2 million for
the second quarter of 2007, and BancorpSouth had a $2.6 million gain during
the second quarter of 2008 from the sale of shares of MasterCard, Inc. common
stock.
Patterson said, "We are very pleased with our second consecutive quarter
of growth in insurance commission revenue in excess of 20 percent, which
follows our third quarter 2007 acquisition of the Insurance Network of
Jonesboro, Arkansas, and the acquisitions in the first quarter of 2008 of the
Joe Max Green/Insurance Concepts Insurance Agency headquartered in
Nacogdoches, Texas, and an insurance broker now operating as SMI Group in
Springfield, Missouri. This expanding business, along with growth in our
credit and debit card business and our mortgage origination business,
contributed substantially to the increase in our noninterest revenue to 66.7
percent of net interest revenue for the second quarter of 2008, compared with
56.5 percent for the second quarter of 2007 and 60.2 percent for the first
quarter of 2008.
"The strength of our noninterest revenue stream during a challenging
period for the industry's traditional spread dependent businesses reflects our
long-term strategic commitment to the expansion of our noninterest revenue
products and services. In addition to mitigating the impact of interest rate
volatility, the growth in these products and services has greatly enhanced our
ability to provide superior customer service, enabling us to leverage our
strong relationships with our existing customer base and bring new customers
to BancorpSouth. We expect our ability to serve our customers' comprehensive
financial needs will continue to differentiate BancorpSouth in our core
markets, and we are confident of our prospects for growing these businesses
further."
Noninterest Expense
Noninterest expense increased 5.8 percent to $112.1 million for the second
quarter of 2008 from $105.9 million for the second quarter of 2007 and
decreased 1.2 percent from $113.5 million for the first quarter of 2008. The
comparable-quarter increase in noninterest expense is primarily attributable
to the operation of the insurance agencies acquired in 2007 and 2008. In
addition, BancorpSouth also incurred salaries, employee benefits and occupancy
expense associated with the opening of new loan production offices and
full-service branch bank offices during 2007 and the first six months of 2008.
Capital Management
At its April 23rd meeting, BancorpSouth's Board of Directors approved an
increase in the Company's quarterly cash dividend to $0.22 per share from
$0.21 per share, marking the 25th consecutive year in which the dividend has
been increased.
BancorpSouth did not repurchase shares of its common stock during the
second quarter of 2008. The Company will continue to evaluate additional share
repurchase opportunities under a stock repurchase plan for the repurchase of
up to three million shares that commenced on May 1, 2007 and that expires on
April 30, 2009. BancorpSouth has repurchased approximately 12.0 million
shares of its common stock since its original share repurchase program was
initiated in 2001.
The expansion of BancorpSouth's capital to asset ratio to 9.21 percent at
the end of the second quarter of 2008 from 8.63 percent at the end of the
second quarter of 2007 reflects the Company's commitment to maintaining a
sound and adequate capital position. This position also enhances
BancorpSouth's ability to respond to opportunities of strategic value that are
consistent with achieving the Company's long-term growth objectives.
BancorpSouth's tangible equity to asset ratio increased to 7.12 percent at
June 30, 2008 from 6.68 percent at June 30, 2007.
Summary
Patterson concluded, "We believe BancorpSouth has performed well through
an extended period of economic uncertainty because our business model has been
designed to accommodate the inevitability of economic cycles. It has been
proven and refined through the economic cycles of the past 25 years. We
expect BancorpSouth - as well as the entire financial services industry - will
continue to be tested in the quarters ahead. As we again demonstrated with
our second quarter operating and financial results, BancorpSouth remains well
positioned to outperform our peer group through this phase of the current
economic cycle and to gain additional market share, even as we steadily
implement our long-term growth strategies. We are confident that neither the
potential of these strategies to produce long-term growth in earnings and
shareholder value nor the long-term market opportunities before us have been
diminished."
Conference Call
BancorpSouth will conduct a conference call to discuss its second quarter
2008 results tomorrow, July 18, 2008, 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 pricing of public fund time deposits, the impact of the
economic environment on our credit quality, our ability to serve our
customers' financial needs comprehensively, our prospects for growing our
businesses, our performance during a period of economic uncertainty and
repurchases under our common stock repurchase plan.
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, BancorpSouth's business model, 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 $13.4 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 Bank also operates an insurance location in Illinois.
BancorpSouth, Inc.
Selected Financial Data
Three Months Ended Six Months Ended
June 30, June 30,
2008 2007 2008 2007
(Dollars in thousands,
except per share
amounts)
Earnings Summary:
Net interest revenue $109,843 $106,658 $219,913 $205,326
Provision for credit
losses 11,2377,843 22,0489,198
Noninterest revenue 73,266 60,232 139,497 118,591
Noninterest expense112,064 105,928 225,534 211,538
Income before income
taxes 59,808 53,119 111,828 103,181
Income tax provision19,683 17,238 36,558 33,723
Net income $40,125 $35,881 $75,270 $69,458
Earning per share:
Basic $0.49$0.44$0.91$0.86
Diluted$0.49$0.43$0.91$0.86
Balance sheet data at
June 30:
Total assets $13,399,151 $13,209,093
Total earning assets 12,139,547 12,012,304
Loans and leases, net
of unearned income9,481,3808,966,280
Allowance for credit
losses 123,478 109,328
Total deposits 9,806,553 10,436,920
Common shareholders'
equity1,233,7761,140,280
Book value per share 14.9813.88
Average balance sheet
data:
Total assets $13,116,139 $12,955,586 $13,108,332 $12,627,776
Total earning assets11,957,174 11,850,069 11,952,466 11,539,853
Loans and leases, net
of unearned interest9,369,6768,875,4039,291,4858,514,807
Total deposits 9,871,935 10,471,5669,981,139 10,255,177
Common shareholders'
equity 1,226,5701,122,8201,213,0131,089,428
Non-performing assets
at June 30:
Non-accrual loans and
leases $17,710 $9,135
Loans and leases 90+
days past due25,719 13,706
Restructured loans and
leases2,6201,066
Other real estate owned 28,942 11,277
Net charge-offs as a
percentage of average
loans (annualized) 0.30%0.14%0.30%0.11%
Performance ratios
(annualized):
Return on average
assets 1.23%1.11%1.15%1.11%
Return on common
equity 13.16% 12.82% 12.48% 12.86%
Net interest margin 3.79%3.69%3.79%3.68%
Average shares
outstanding - basic82,369,159 82,169,901 82,350,038 80,813,169
Average shares
outstanding - diluted 82,565,722 82,534,762 82,549,761 81,213,583
BancorpSouth, Inc.
Consolidated Balance Sheet
(Unaudited)
June 30, %
2008 2007 Change
(Dollars in thousands)
Assets
Cash and due from banks $307,038 $301,899 1.70%
Interest bearing deposits with other
banks 15,531 13,14318.17%
Held-to-maturity securities, at
amortized cost 1,447,8061,785,468 (18.91%)
Available-for-sale securities, at fair
value 1,023,0651,138,890 (10.17%)
Federal funds sold and securities
purchased under agreement to resell - 22,895 (100.00%)
Loans and leases 9,529,9789,012,362 5.74%
Less: Unearned income48,598 46,082 5.46%
Allowance for credit losses 123,478 109,32812.94%
Net loans and leases 9,357,9028,856,952 5.66%
Loans held for sale171,765 85,627 100.60%
Premises and equipment, net334,869 308,248 8.64%
Accrued interest receivable 83,739 95,577 (12.39%)
Goodwill 270,807 249,426 8.57%
Other assets 386,629 350,96810.16%
Total Assets $13,399,151 $13,209,093 1.44%
Liabilities
Deposits:
Demand: Noninterest bearing $1,737,356 $1,756,652(1.10%)
Interest bearing 3,364,8733,185,461 5.63%
Savings 740,207 727,106 1.80%
Other time 3,964,1174,767,701 (16.85%)
Total deposits 9,806,553 10,436,920(6.04%)
Federal funds purchased and
securities sold under agreement
to repurchase 1,093,805 746,18246.59%
Short-term Federal Home Loan Bank
borrowings and other short-term
borrowings643,427 400,00060.86%
Accrued interest payable29,134 44,260 (34.18%)
Junior subordinated debt securities160,312 163,405(1.89%)
Long-term Federal Home Loan Bank
borrowings288,900 145,14699.04%
Other liabilities 143,244 132,900 7.78%
Total Liabilities 12,165,375 12,068,813 0.80%
Shareholders' Equity
Common stock 205,945 205,426 0.25%
Capital surplus201,612 190,043 6.09%
Accumulated other comprehensive income
(loss) (9,232) (26,270) (64.86%)
Retained earnings 835,451 771,081 8.35%
Total Shareholders' Equity 1,233,7761,140,280 8.20%
Total Liabilities & Shareholders'
Equity$13,399,151 $13,209,093 1.44%
BancorpSouth, Inc.
Consolidated Condensed Statements of Income
(Dollars in thousands, except per share data)
(Unaudited)
Quarter Ended
Jun-08Mar-08Dec-07Sep-07Jun-07
INTEREST REVENUE:
Loans and leases $147,289 $159,184 $171,068 $174,787 $169,717
Deposits with other
banks193 208 274 316 268
Federal funds sold and
securities purchased
under agreement to
resell - 67 311 232 633
Held-to-maturity
securities:
Taxable15,04415,94716,89017,58516,962
Tax-exempt 2,025 2,075 2,120 2,077 2,044
Available-for-sale
securities:
Taxable 8,531 9,56410,22710,55410,839
Tax-exempt 1,260 1,204 941 960 1,010
Loans held for sale 1,420 2,210 1,751 1,454 1,082
Total interest
revenue 175,762 190,459 203,582 207,965 202,555
INTEREST EXPENSE:
Interest bearing demand
deposits 12,93817,25719,76522,18921,992
Savings deposits1,291 1,543 1,934 2,503 2,481
Other time deposits39,77846,86052,55155,72855,459
Federal funds purchased
and securities sold
under agreement to
repurchase 3,321 5,195 8,259 9,151 9,283
FHLB Borrowings 5,359 6,285 8,107 7,130 3,332
Other 3,232 3,249 3,309 3,348 3,350
Total interest
expense 65,91980,38993,925 100,04995,897
Net interest
revenue 109,843 110,070 109,657 107,916 106,658
Provision for credit
losses 11,23710,811 7,771 5,727 7,843
Net interest
revenue, after
provision for
credit losses 98,60699,259 101,886 102,18998,815
NONINTEREST REVENUE:
Mortgage lending9,507 1,543(1,149) 100 5,484
Credit card, debit card
and merchant fees 8,846 7,976 7,904 7,667 7,391
Service charges17,09315,83918,12517,28117,677
Trust income2,261 2,234 2,996 2,487 2,457
Security gains, net 1997897 710
Insurance commissions 21,46224,66816,18117,54217,665
Other 13,89813,89311,16012,810 9,548
Total noninterest
revenue 73,26666,23155,31457,89460,232
NONINTEREST EXPENSES:
Salaries and employee
benefits 68,12170,17564,59463,26963,851
Occupancy, net of rental
income 9,716 9,483 8,967 8,959 8,709
Equipment 6,245 6,433 6,078 6,057 6,053
Other 27,98227,37930,53028,06627,315
Total noninterest
expenses 112,064 113,470 110,169 106,351 105,928
Income before
income taxes 59,80852,02047,03153,73253,119
Income tax expense 19,68316,87514,80317,47517,238
Net income$40,125 $35,145 $32,228 $36,257 $35,881
Net income per share:
Basic $0.49 $0.43 $0.39 $0.44 $0.44
Diluted$0.49 $0.43 $0.39 $0.44 $0.43
Year To Date
Jun-08Jun-07
INTEREST REVENUE:
Loans and leases $306,473 $322,958
Deposits with other banks 401 554
Federal funds sold and securities purchased
under agreement to resell 67 3,144
Held-to-maturity securities:
Taxable 30,99133,667
Tax-exempt 4,100 4,059
Available-for-sale securities:
Taxable 18,09520,431
Tax-exempt 2,464 2,125
Loans held for sale 3,630 2,757
Total interest revenue 366,221 389,695
INTEREST EXPENSE:
Interest bearing demand deposits30,19541,879
Savings deposits 2,834 4,864
Other time deposits 86,638 107,444
Federal funds purchased and securities sold
under agreement to repurchase 8,51617,107
FHLB Borrowings 11,644 6,633
Other6,481 6,442
Total interest expense 146,308 184,369
Net interest revenue 219,913 205,326
Provision for credit losses 22,048 9,198
Net interest revenue, after provision
for credit losses 197,865 196,128
NONINTEREST REVENUE:
Mortgage lending11,050 7,263
Credit card, debit card and merchant fees 16,82214,265
Service charges 32,93233,073
Trust income 4,495 4,671
Security gains, net27717
Insurance commissions 46,13037,459
Other 27,79121,843
Total noninterest revenue 139,497 118,591
NONINTEREST EXPENSES:
Salaries and employee benefits 138,296 127,479
Occupancy, net of rental income 19,19917,172
Equipment 12,67812,079
Other 55,36154,808
Total noninterest expenses 225,534 211,538
Income before income taxes 111,828 103,181
Income tax expense 36,55833,723
Net income $75,270 $69,458
Net income per share: Basic $0.91 $0.86
Diluted$0.91 $0.86
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended
June 30, 2008
Average Yield/
(Taxable equivalent basis)Balance Interest Rate
ASSETS
Loans, loans held for sale, and
leases net of unearned income$9,523,668$149,506 6.31%
Held-to-maturity securities:
Taxable 1,312,998 15,263 4.68%
Tax-exempt 184,022 3,115 6.81%
Available-for-sale securities:
Taxable804,875 8,532 4.26%
Tax-exempt 111,113 1,938 7.01%
Short-term investments20,498 194 3.80%
Total interest earning assets and
revenue11,957,174 178,548 6.01%
Other assets 1,283,738
Less: allowance for credit losses (124,773)
Total$13,116,139
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $3,418,678 $12,939 1.52%
Savings732,593 1,291 0.71%
Other time 4,050,132 39,777 3.95%
Short-term borrowings 1,390,189 6,013 1.74%
Junior subordinated debt 160,312 3,060 7.68%
Long-term debt 288,913 2,839 3.95%
Total interest bearing
liabilities and expense10,040,817 65,919 2.64%
Demand deposits -
noninterest bearing 1,670,532
Other liabilities178,220
Total liabilities 11,889,569
Shareholders' equity 1,226,570
Total $13,116,139
Net interest revenue$112,629
Net interest margin 3.79%
Net interest rate spread 3.37%
Interest bearing liabilities to
interest earning assets83.97%
Net interest tax equivalent
adjustment $2,786
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 investments63,862 901 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%
Savings733,283 2,481 1.36%
Other time 4,799,252 55,459 4.63%
Short-term borrowings867,995 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 liabilities178,530
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 assets84.02%
Net interest tax equivalent
adjustment $2,482
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Year to Date
June 30, 2008
Average Yield/
(Taxable equivalent basis)Balance Interest Rate
ASSETS
Loans, loans held for sale, and
leases net of unearned income$9,440,229$311,774 6.64%
Held-to-maturity securities:
Taxable 1,359,499 30,991 4.58%
Tax-exempt 187,888 6,307 6.75%
Available-for-sale securities:
Taxable834,621 18,095 4.36%
Tax-exempt 106,885 3,791 7.13%
Short-term investments23,344 468 4.04%
Total interest earning
assets and revenue 11,952,466 371,426 6.25%
Other assets 1,278,802
Less: allowance for credit losses (122,936)
Total$13,108,332
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $3,451,922 $30,195 1.76%
Savings720,998 2,834 0.79%
Other time 4,170,695 86,638 4.18%
Short-term borrowings 1,318,695 15,028 2.29%
Junior subordinated debt 160,312 6,244 7.83%
Long-term debt 269,153 5,369 4.01%
Total interest bearing
liabilities and expense10,091,775 146,308 2.92%
Demand deposits -
noninterest bearing 1,637,524
Other liabilities166,020
Total liabilities 11,895,319
Shareholders' equity 1,213,013
Total $13,108,332
Net interest revenue$225,118
Net interest margin 3.79%
Net interest rate spread 3.33%
Interest bearing liabilities to
interest earning assets84.43%
Net interest tax equivalent
adjustment $5,205
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:
Taxable999,464 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%
Savings728,095 4,864 1.35%
Other time 4,661,361 107,443 4.65%
Short-term borrowings815,275 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 liabilities164,286
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 assets84.01%
Net interest tax equivalent
adjustment $4,992
SOURCE BancorpSouth, Inc.
