Exhibit 99.1
News Release
| | | |
Contact: | | |
| L. Nash Allen, Jr. | | Gary C. Bonds |
| Treasurer and Chief Financial Officer | | Executive Vice President and Controller |
| 662/680-2330 | | 662/680-2332 |
BancorpSouth Announces Earnings of $0.34 per Diluted Share
for Third Quarter 2008
TUPELO, Miss., October 20, 2008/PRNewswire-FirstCall via COMTEX/ — BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the third quarter ended September 30, 2008.
Highlights of the announcement include:
| | • | | Solid profitability for the third quarter of 2008, with net income of $28.3 million, or $0.34 per diluted share. |
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| | • | | Net interest margin stable at 3.67 percent. |
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| | • | | Growth in net interest revenue of 1.6 percent for the third quarter of 2008, driven by continued loan growth. |
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| | • | | Strong credit quality with third quarter net charge-offs of 0.45 percent of average net loans and leases; manageable non-performing loans at 0.68 percent of ending net loans. |
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| | • | | Increase in non-interest revenue of 9.6 percent to $63.4 million, led by a 24.2 percent increase in insurance commissions. |
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| | • | | Further expansion of equity to assets ratio to 9.34 percent at the end of the third quarter of 2008 from 8.91 percent at the end of the third quarter of 2007. |
Third Quarter 2008 Summary Results
BancorpSouth’s net income for the third quarter of 2008 was $28.3 million compared with $36.3 million for the third quarter of 2007. Net income per diluted share was $0.34 for the third quarter of 2008 and $0.44 for the third quarter of 2007.
Commenting on the announcement, Aubrey Patterson, Chairman and Chief Executive Officer of BancorpSouth, said, “In an unusually challenging environment for the financial services industry, BancorpSouth produced very solid operating and financial results for the third quarter of 2008. We enhanced our already strong capital structure and maintained ample sources of liquidity. Our credit quality remained strong with net charge-offs and non-performing assets
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Box 789
• Tupelo, MS 38802-0789
• (662) 680-2000
is a financial holding company.
BXS Announces Third Quarter Results
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October 20, 2008
rising but remaining at manageable levels. Through disciplined implementation of our asset/liability management strategies, we produced a relatively high net interest margin, and a modest increase in net interest revenue.
“As we have previously stated, we are not immune to the impact of the slowing economy or other challenges facing the financial industry. Our nonperforming loans and net charge-offs increased for the third quarter of 2008 and a larger provision for credit losses was primarily responsible for the decline in net income compared with the third quarter of 2007. As a result of our long-term conservative lending and investment philosophies, we have virtually no exposure to the credit issues affecting the subprime residential mortgage market and no equity investments in the securities of Fannie Mae or Freddie Mac. We believe that we are in a strong competitive position relative to many of our peers to continue serving our customers effectively, implementing our long-term operating and growth strategies, and expanding our market share.”
Net Interest Revenue
Net interest revenue increased 1.6 percent over the third quarter 2007 level to $109.6 million, as growth in loans more than offset a decline in investment securities and other earning assets. The fully taxable equivalent net interest margin remained stable at 3.67 percent compared to 3.66 percent in the third quarter of 2007.
Patterson remarked, “For the third quarter, we produced an increase in net interest revenue and maintained a relatively strong net interest margin. While the growth in our loans contributed to positive net interest revenue, we also continued the disciplined implementation of our asset/liability management strategies which has been evident throughout the year.
“These strategies are focused on improving net interest revenue by funding loan growth with proceeds from maturing lower yielding investment securities, borrowings from the Federal Home Loan Bank (FHLB) and the Federal Reserve and growth in demand deposits, which increased 11.5 percent and 7.1 percent at the end of the third quarter of 2008 from the end of the third quarter of 2007 and second quarter of 2008, respectively. In addition, we reduced higher cost time deposits 23.1 percent and 11.1 percent on the same comparable-quarter and sequential-quarter basis, respectively, through conservative pricing. We still have access to ample sources of liquidity due to our substantial capacity for further short-term borrowings with the FHLB. We believe these asset/liability management strategies remain relevant to our continuing efforts to manage our interest-rate risk and maintain our liquidity.”
Deposit and Loan Activity
Total assets at September 30, 2008 increased 1.1 percent to $13.3 billion from $13.1 billion at September 30, 2007. Total deposits declined 5.0 percent to $9.7 billion at September 30, 2008 from $10.2 billion at September 30, 2007. Loans and leases, net of unearned income, increased 5.9 percent to $9.6 billion at September 30, 2008 from $9.1 billion at September 30, 2007.
“Although loan growth was moderate during the third quarter, we were pleased with the increase achieved given the economic environment and increased competition for high quality loans,” said Patterson. “The wide diversity of the markets within our eight-state franchise continues to
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BXS Announces Third Quarter Results
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October 20, 2008
enhance our lending business, validating our strategy of focusing our expansion in relatively fast-growing cities in existing or contiguous markets that we understand well. We also continue to benefit from our established presence in more-mature markets that are stable sources of lower cost demand deposit funding. The growth we have produced in demand deposits during 2008 significantly enhances our liability pricing options.”
Provision for Credit Losses and Allowance for Credit Losses
For the third quarter of 2008, the provision for credit losses was $16.3 million compared with $5.7 million for the third quarter of 2007 and $11.2 million for the second quarter of 2008. Annualized net charge-offs were 0.45 percent of average loans and leases for the third quarter of 2008 compared with 0.13 percent for the third quarter of 2007 and 0.30 percent for the second quarter of 2008.
Non-performing loans and leases increased to $65.2 million, or 0.68 percent of loans and leases, at September 30, 2008 from $31.3 million, or 0.35 percent of loans and leases, at September 30, 2007 and from $46.0 million, or 0.49 percent of loans and leases, at June 30, 2008. The allowance for credit losses was 1.35 percent of loans and leases at September 30, 2008 compared with 1.24 percent of loans and leases at September 30, 2007 and 1.30 percent of loans and leases at June 30, 2008.
Patterson commented, “The increases in our provision for credit losses, non-accrual loans and annualized net charge-offs reflect our commitment to taking appropriate steps to recognize and deal with emerging credit quality issues. We are well reserved against probable losses with an allowance for credit losses at the end of the third quarter that is double the size of non-performing loans and triple the size of annualized net charge-offs for the quarter. We expect the strength of BancorpSouth’s credit quality to continue to be a differentiating competitive advantage in our markets.”
Noninterest Revenue
For the third quarter of 2008, noninterest revenue increased 9.6 percent to $63.4 million from $57.9 million for the third quarter of 2007 and decreased 13.4 percent from $73.3 million for the second quarter of 2008. These results include a decline in the value of the mortgage servicing asset of $1.0 million and $3.2 million for the third quarters of 2008 and 2007, respectively, compared to an increase of $4.9 million for the second quarter of 2008. In addition, BancorpSouth had gains of $2.4 million and $2.6 million for the third quarter of 2007 and the second quarter of 2008, respectively, from the sales of shares of MasterCard, Inc. common stock.
“Our noninterest revenue growth for the third quarter of 2008 was driven by a 24.2 percent increase in insurance commission revenue to a record $21.8 million, the third consecutive quarter of growth in excess of 20 percent,” Patterson stated. “This growth primarily reflects the acquisition of an insurance agency in the third quarter last year and two agencies acquired in the first quarter of 2008. We also produced an 11.0 percent increase in credit and debit card revenue for the third quarter of 2008 compared with the third quarter of 2007, due primarily to the increasing number and size of transactions processed.”
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BXS Announces Third Quarter Results
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October 20, 2008
Noninterest Expense
Noninterest expense increased 9.1 percent to $116.2 million for the third quarter of 2008 from $106.4 million for the third quarter of 2007 and increased 3.6 percent from $112.1 million for the second 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 the second half of 2007 and the first nine months of 2008.
Capital Management
BancorpSouth’s long-term, conservative focus on maintaining a sound and adequate capital position and ample liquidity provides it with a competitive advantage in the current economic cycle and enhances its opportunity for future growth. BancorpSouth continued building upon its strong capital position, expanding its equity to asset ratio to 9.34 percent at the end of the third quarter of 2008 from 8.91 percent at the end of the third quarter of 2007 and 9.21 percent at the end of the second quarter of 2008. BancorpSouth’s ratio of tangible equity to assets rose to 7.25 percent at the end of the third quarter of 2008 from 6.90 percent at the end of the third quarter of 2007 and 7.12 percent at the end of the second quarter of 2008.
BancorpSouth also has demonstrated an extensive record of enhancing shareholder value through the return of excess capital through cash dividends and repurchases of its common stock. In the second quarter of 2008, the Company’s Board of Directors approved the 25th consecutive annual increase in the quarterly cash dividend to $0.22 per share. BancorpSouth did not repurchase shares of its common stock during the third 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 which commenced on May 1, 2007 and which expires on April 30, 2009.
Summary
Recently enacted federal legislation, actions by the Secretary of the Treasury and announcements by the Federal Deposit Insurance Corporation and the Federal Reserve System to strengthen and provide liquidity to the banking system have been actively supported by BancorpSouth. The Company’s management is currently evaluating this industry-changing landmark body of laws and regulations to determine whether opportunities exist which will have a positive impact on BancorpSouth’s future operations and financial results.
Patterson concluded, “Our goal is to continue producing long-term growth in earnings and shareholder value. The financial services industry has recently experienced substantial volatility in pricing and availability of credit. Our balance sheet management strategy, while somewhat conservative in the strongest part of the economic cycle, continues to position us to perform well in this environment of slowing growth and economic uncertainty. Our practice of intensely monitoring potential credit problems in order to work with borrowers to achieve a solution benefiting all parties continues to differentiate BancorpSouth from many of our competitors.
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BXS Announces Third Quarter Results
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“We also recognize that we approach the end of 2008 in a position of strength, with a high quality loan portfolio, sound capital structure and diversified revenue streams. We intend to continue pursuing our long-term expansion strategies, while maintaining the flexibility to respond to strategic opportunities that are consistent with our long-term growth objectives. By leveraging our strengths to continuously gain additional market share, we expect to enhance BancorpSouth’s prospects for growth as the economic cycle strengthens.”
Conference Call
BancorpSouth will conduct a conference call to discuss its third quarter 2008 results tomorrow, October 21, 2008, at 10:00 a.m. (Central Time). Investors may listen via the Internet by accessing BancorpSouth’s website athttp://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 our credit quality, our allowance for credit losses, our ability to serve our customers, the coverage of our allowance for credit losses, the impact of and our response to recent legislation affecting financial institutions, the implementation of our long-term operating and growth strategies, our ability to expand market share, our asset/liability management strategies, our prospects for growing our businesses, our ability to manage our interest-rate risk and maintain liquidity, 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,
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BXS Announces Third Quarter Results
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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 $13.3 billion in assets. BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., operates approximately 300 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.
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BXS Announces Third Quarter Results
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October 20, 2008
BancorpSouth, Inc.
Selected Financial Data
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine Months Ended | |
| | | September 30, | | | September 30, | |
| | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
| (Dollars in thousands, except per share amounts) | | | | | | | | | | | | | | | | |
Earnings Summary: | | | | | | | | | | | | | | | | |
| Net interest revenue | | $ | 109,602 | | | $ | 107,916 | | | $ | 329,515 | | | $ | 313,242 | |
| Provision for credit losses | | | 16,306 | | | | 5,727 | | | | 38,354 | | | | 14,925 | |
| Noninterest revenue | | | 63,433 | | | | 57,894 | | | | 202,930 | | | | 176,485 | |
| Noninterest expense | | | 116,059 | | | | 106,351 | | | | 341,593 | | | | 317,889 | |
| | | | | | | | | | | | | |
| Income before income taxes | | | 40,670 | | | | 53,732 | | | | 152,498 | | | | 156,913 | |
| Income tax provision | | | 12,325 | | | | 17,475 | | | | 48,883 | | | | 51,198 | |
| | | | | | | | | | | | | |
| Net income | | $ | 28,345 | | | $ | 36,257 | | | $ | 103,615 | | | $ | 105,715 | |
| | | | | | | | | | | | | |
| Earning per share: Basic | | $ | 0.34 | | | $ | 0.44 | | | $ | 1.26 | | | $ | 1.30 | |
| | | | | | | | | | | | | |
| Diluted | | $ | 0.34 | | | $ | 0.44 | | | $ | 1.25 | | | $ | 1.30 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Balance sheet data at September 30: | | | | | | | | | | | | | | | | |
| Total assets | | | | | | | | | | $ | 13,300,728 | | | $ | 13,134,317 | |
| Total earning assets | | | | | | | | | | | 12,073,837 | | | | 11,958,168 | |
| Loans and leases, net of unearned income | | | | | | | | | | | 9,592,412 | | | | 9,054,725 | |
| Allowance for credit losses | | | | | | | | | | | 129,147 | | | | 112,134 | |
| Total deposits | | | | | | | | | | | 9,684,800 | | | | 10,190,817 | |
| Common shareholders’ equity | | | | | | | | | | | 1,242,719 | | | | 1,169,739 | |
| Book value per share | | | | | | | | | | | 14.96 | | | | 14.22 | |
| | | | | | | | | | | | | | | | | |
Average balance sheet data: | | | | | | | | | | | | | | | | |
| Total assets | | $ | 13,304,939 | | | $ | 13,084,787 | | | $ | 13,174,345 | | | $ | 12,781,787 | |
| Total earning assets | | | 12,132,130 | | | | 11,954,777 | | | | 12,012,791 | | | | 11,679,681 | |
| Loans and leases, net of unearned interest | | | 9,529,731 | | | | 8,995,863 | | | | 9,371,480 | | | | 8,676,921 | |
| Total deposits | | | 9,659,246 | | | | 10,246,437 | | | | 9,873,058 | | | | 10,252,233 | |
| Common shareholders’ equity | | | 1,231,350 | | | | 1,141,295 | | | | 1,219,170 | | | | 1,106,907 | |
| | | | | | | | | | | | | | | | | |
Non-performing assets at September 30: | | | | | | | | | | | | | | | | |
| Non-accrual loans and leases | | | | | | | | | | $ | 30,642 | | | $ | 7,301 | |
| Loans and leases 90+ days past due | | | | | | | | | | | 31,866 | | | | 23,158 | |
| Restructured loans and leases | | | | | | | | | | | 2,666 | | | | 878 | |
| Other real estate owned | | | | | | | | | | | 32,479 | | | | 10,966 | |
| | | | | | | | | | | | | | | |
| Total non-performing assets | | | | | | | | | | | 97,653 | | | | 42,303 | |
| | | | | | | | | | | | | | | | | |
| Net charge-offs as a percentage of average loans (annualized) | | | 0.45 | % | | | 0.13 | % | | | 0.35 | % | | | 0.12 | % |
| | | | | | | | | | | | | | | | | |
Performance ratios (annualized): | | | | | | | | | | | | | | | | |
| Return on average assets | | | 0.85 | % | | | 1.10 | % | | | 1.05 | % | | | 1.11 | % |
| Return on common equity | | | 9.16 | % | | | 12.60 | % | | | 11.35 | % | | | 12.77 | % |
| | | | | | | | | | | | | | | | | |
| Net interest margin | | | 3.67 | % | | | 3.66 | % | | | 3.75 | % | | | 3.67 | % |
| | | | | | | | | | | | | | | | | |
| Average shares outstanding — basic | | | 82,560,724 | | | | 82,165,256 | | | | 82,420,266 | | | | 81,263,864 | |
| Average shares outstanding — diluted | | | 82,765,428 | | | | 82,467,583 | | | | 82,645,153 | | | | 81,631,582 | |
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BXS Announces Third Quarter Results
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October 20, 2008
BancorpSouth, Inc.
Consolidated Balance Sheet
(Unaudited)
| | | | | | | | | | | | | |
| | | September 30, | | | % | |
| | | 2008 | | | 2007 | | | Change | |
| | | (Dollars in thousands) | | | | | |
| Assets | | | | | | | | | | | | |
| Cash and due from banks | | $ | 246,687 | | | $ | 273,616 | | | | (9.84 | %) |
| Interest bearing deposits with other banks | | | 15,730 | | | | 18,069 | | | | (12.94 | %) |
| Held-to-maturity securities, at amortized cost | | | 1,350,396 | | | | 1,706,350 | | | | (20.86 | %) |
| Available-for-sale securities, at fair value | | | 919,468 | | | | 1,018,301 | | | | (9.71 | %) |
| Federal funds sold and securities purchased under agreement to resell | | | — | | | | 57,000 | | | | (100.00 | %) |
| Loans and leases | | | 9,641,497 | | | | 9,103,307 | | | | 5.91 | % |
| Less: Unearned income | | | 49,085 | | | | 48,582 | | | | 1.04 | % |
| Allowance for credit losses | | | 129,147 | | | | 112,134 | | | | 15.17 | % |
| | | | | | | | | | | |
| Net loans and leases | | | 9,463,265 | | | | 8,942,591 | | | | 5.82 | % |
| Loans held for sale | | | 195,830 | | | | 103,722 | | | | 88.80 | % |
| Premises and equipment, net | | | 345,235 | | | | 312,832 | | | | 10.36 | % |
| Accrued interest receivable | | | 85,968 | | | | 101,118 | | | | (14.98 | %) |
| Goodwill | | | 271,017 | | | | 254,587 | | | | 6.45 | % |
| Other assets | | | 407,132 | | | | 346,131 | | | | 17.62 | % |
| | | | | | | | | | | |
| Total Assets | | $ | 13,300,728 | | | $ | 13,134,317 | | | | 1.27 | % |
| | | | | | | | | | | |
| Liabilities | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | |
| Demand: Noninterest bearing | | $ | 1,694,303 | | | $ | 1,687,157 | | | | 0.42 | % |
| Interest bearing | | | 3,771,265 | | | | 3,215,632 | | | | 17.28 | % |
| Savings | | | 693,034 | | | | 705,519 | | | | (1.77 | %) |
| Other time | | | 3,526,198 | | | | 4,582,509 | | | | (23.05 | %) |
| | | | | | | | | | | |
| Total deposits | | | 9,684,800 | | | | 10,190,817 | | | | (4.97 | %) |
| Federal funds purchased and securities sold under agreement to repurchase | | | 1,079,088 | | | | 797,177 | | | | 35.36 | % |
| Short-term Federal Home Loan Bank borrowings and other short-term borrowing | | | 625,000 | | | | 500,000 | | | | 25.00 | % |
| Accrued interest payable | | | 24,846 | | | | 42,509 | | | | (41.55 | %) |
| Junior subordinated debt securities | | | 160,312 | | | | 163,405 | | | | (1.89 | %) |
| Long-term Federal Home Loan Bank borrowings | | | 288,861 | | | | 141,605 | | | | 103.99 | % |
| Other liabilities | | | 195,102 | | | | 129,065 | | | | 51.17 | % |
| | | | | | | | | | | |
| Total Liabilities | | | 12,058,009 | | | | 11,964,578 | | | | 0.78 | % |
| Shareholders’ Equity | | | | | | | | | | | | |
| Common stock | | | 207,714 | | | | 205,663 | | | | 1.00 | % |
| Capital surplus | | | 216,394 | | | | 195,323 | | | | 10.79 | % |
| Accumulated other comprehensive income (loss) | | | (8,746 | ) | | | (18,004 | ) | | | (51.42 | %) |
| Retained earnings | | | 827,357 | | | | 786,757 | | | | 5.16 | % |
| | | | | | | | | | | |
| Total Shareholders’ Equity | | | 1,242,719 | | | | 1,169,739 | | | | 6.24 | % |
| | | | | | | | | | | |
| Total Liabilities & Shareholders’ Equity | | $ | 13,300,728 | | | $ | 13,134,317 | | | | 1.27 | % |
| | | | | | | | | | | |
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BXS Announces Third Quarter Results
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October 20, 2008
BancorpSouth, Inc.
Consolidated Condensed Statements of Income
(Dollars in thousands, except per share data)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Quarter Ended | | | Year To Date | |
| | | Sep-08 | | | Jun-08 | | | Mar-08 | | | Dec-07 | | | Sep-07 | | | Sep-08 | | | Sep-07 | |
| INTEREST REVENUE: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans and leases | | $ | 144,393 | | | $ | 147,289 | | | $ | 159,184 | | | $ | 171,068 | | | $ | 174,787 | | | $ | 450,866 | | | $ | 497,745 | |
| Deposits with other banks | | | 172 | | | | 193 | | | | 208 | | | | 274 | | | | 316 | | | | 573 | | | | 870 | |
| Federal funds sold and securities purchased under agreement to resell | | | 218 | | | | — | | | | 67 | | | | 311 | | | | 232 | | | | 285 | | | | 3,376 | |
| Held-to-maturity securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 14,063 | | | | 15,044 | | | | 15,947 | | | | 16,890 | | | | 17,585 | | | | 45,054 | | | | 51,252 | |
| Tax-exempt | | | 1,959 | | | | 2,025 | | | | 2,075 | | | | 2,120 | | | | 2,077 | | | | 6,059 | | | | 6,136 | |
| Available-for-sale securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 9,025 | | | | 8,531 | | | | 9,564 | | | | 10,227 | | | | 10,554 | | | | 27,120 | | | | 30,985 | |
| Tax-exempt | | | 874 | | | | 1,260 | | | | 1,204 | | | | 941 | | | | 960 | | | | 3,338 | | | | 3,085 | |
| Loans held for sale | | | 1,920 | | | | 1,420 | | | | 2,210 | | | | 1,751 | | | | 1,454 | | | | 5,550 | | | | 4,211 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Total interest revenue | | | 172,624 | | | | 175,762 | | | | 190,459 | | | | 203,582 | | | | 207,965 | | | | 538,845 | | | | 597,660 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| INTEREST EXPENSE: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest bearing demand deposits | | | 14,214 | | | | 12,938 | | | | 17,257 | | | | 19,765 | | | | 22,189 | | | | 44,409 | | | | 64,068 | |
| Savings deposits | | | 1,366 | | | | 1,291 | | | | 1,543 | | | | 1,934 | | | | 2,503 | | | | 4,200 | | | | 7,367 | |
| Other time deposits | | | 33,660 | | | | 39,778 | | | | 46,860 | | | | 52,551 | | | | 55,728 | | | | 120,298 | | | | 163,172 | |
| Federal funds purchased and securities sold under agreement to repurchase | | | 4,308 | | | | 3,321 | | | | 5,195 | | | | 8,259 | | | | 9,151 | | | | 12,824 | | | | 26,258 | |
| FHLB Borrowings | | | 6,277 | | | | 5,359 | | | | 6,285 | | | | 8,107 | | | | 7,130 | | | | 17,921 | | | | 13,763 | |
| Other | | | 3,197 | | | | 3,232 | | | | 3,249 | | | | 3,309 | | | | 3,348 | | | | 9,678 | | | | 9,790 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Total interest expense | | | 63,022 | | | | 65,919 | | | | 80,389 | | | | 93,925 | | | | 100,049 | | | | 209,330 | | | | 284,418 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest revenue | | | 109,602 | | | | 109,843 | | | | 110,070 | | | | 109,657 | | | | 107,916 | | | | 329,515 | | | | 313,242 | |
| Provision for credit losses | | | 16,306 | | | | 11,237 | | | | 10,811 | | | | 7,771 | | | | 5,727 | | | | 38,354 | | | | 14,925 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Net interest revenue, after provision for credit losses | | | 93,296 | | | | 98,606 | | | | 99,259 | | | | 101,886 | | | | 102,189 | | | | 291,161 | | | | 298,317 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| NONINTEREST REVENUE: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Mortgage lending | | | 3,270 | | | | 9,507 | | | | 1,543 | | | | (1,149 | ) | | | 100 | | | | 14,320 | | | | 7,363 | |
| Credit card, debit card and merchant fees | | | 8,512 | | | | 8,846 | | | | 7,976 | | | | 7,904 | | | | 7,667 | | | | 25,334 | | | | 21,932 | |
| Service charges | | | 17,687 | | | | 17,093 | | | | 15,839 | | | | 18,125 | | | | 17,281 | | | | 50,619 | | | | 50,354 | |
| Trust income | | | 2,507 | | | | 2,261 | | | | 2,234 | | | | 2,996 | | | | 2,487 | | | | 7,002 | | | | 7,158 | |
| Security gains, net | | | 100 | | | | 199 | | | | 78 | | | | 97 | | | | 7 | | | | 377 | | | | 24 | |
| Insurance commissions | | | 21,779 | | | | 21,462 | | | | 24,668 | | | | 16,181 | | | | 17,542 | | | | 67,909 | | | | 55,001 | |
| Other | | | 9,578 | | | | 13,898 | | | | 13,893 | | | | 11,160 | | | | 12,810 | | | | 37,369 | | | | 34,653 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Total noninterest revenue | | | 63,433 | | | | 73,266 | | | | 66,231 | | | | 55,314 | | | | 57,894 | | | | 202,930 | | | | 176,485 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| NONINTEREST EXPENSES: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 68,865 | | | | 68,121 | | | | 70,175 | | | | 64,594 | | | | 63,269 | | | | 207,161 | | | | 190,748 | |
| Occupancy, net of rental income | | | 10,340 | | | | 9,716 | | | | 9,483 | | | | 8,967 | | | | 8,959 | | | | 29,539 | | | | 26,131 | |
| Equipment | | | 6,214 | | | | 6,245 | | | | 6,433 | | | | 6,078 | | | | 6,057 | | | | 18,892 | | | | 18,136 | |
| Other | | | 30,640 | | | | 27,982 | | | | 27,379 | | | | 30,530 | | | | 28,066 | | | | 86,001 | | | | 82,874 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Total noninterest expenses | | | 116,059 | | | | 112,064 | | | | 113,470 | | | | 110,169 | | | | 106,351 | | | | 341,593 | | | | 317,889 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Income before income taxes | | | 40,670 | | | | 59,808 | | | | 52,020 | | | | 47,031 | | | | 53,732 | | | | 152,498 | | | | 156,913 | |
| Income tax expense | | | 12,325 | | | | 19,683 | | | | 16,875 | | | | 14,803 | | | | 17,475 | | | | 48,883 | | | | 51,198 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Net income | | $ | 28,345 | | | $ | 40,125 | | | $ | 35,145 | | | $ | 32,228 | | | $ | 36,257 | | | $ | 103,615 | | | $ | 105,715 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income per share: Basic | | $ | 0.34 | | | $ | 0.49 | | | $ | 0.43 | | | $ | 0.39 | | | $ | 0.44 | | | $ | 1.26 | | | $ | 1.30 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Diluted | | $ | 0.34 | | | $ | 0.49 | | | $ | 0.43 | | | $ | 0.39 | | | $ | 0.44 | | | $ | 1.25 | | | $ | 1.30 | |
| | | | | | | | | | | | | | | | | | | | | | |
-MORE-
BXS Announces Third Quarter Results
Page 10
October 20, 2008
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
| | | | | | | | | | | | | |
| | | Quarter Ended | |
| | | September 30, 2008 | |
| | | Average | | | | | | | Yield/ | |
| (Taxable equivalent basis) | | Balance | | | Interest | | | Rate | |
| ASSETS | | | | | | | | | | | | |
| Loans, loans held for sale, and leases net of unearned income | | $ | 9,689,955 | | | $ | 147,113 | | | | 6.04 | % |
| Held-to-maturity securities: | | | | | | | | | | | | |
| Taxable | | | 1,219,169 | | | | 14,173 | | | | 4.62 | % |
| Tax-exempt | | | 180,579 | | | | 3,014 | | | | 6.64 | % |
| Available-for-sale securities: | | | | | | | | | | | | |
| Taxable | | | 901,023 | | | | 9,025 | | | | 3.98 | % |
| Tax-exempt | | | 75,917 | | | | 1,344 | | | | 7.04 | % |
| Short-term investments | | | 65,487 | | | | 390 | | | | 2.37 | % |
| | | | | | | | | | | |
| Total interest earning assets and revenue | | | 12,132,130 | | | | 175,059 | | | | 5.74 | % |
| Other assets | | | 1,304,430 | | | | | | | | | |
| Less: allowance for credit losses | | | (131,621 | ) | | | | | | | | |
| | | | | | | | | | | | |
| Total | | $ | 13,304,939 | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | |
| Demand — interest bearing | | $ | 3,492,942 | | | $ | 14,214 | | | | 1.62 | % |
| Savings | | | 723,444 | | | | 1,366 | | | | 0.75 | % |
| Other time | | | 3,761,753 | | | | 33,660 | | | | 3.56 | % |
| Short-term borrowings | | | 1,790,760 | | | | 7,879 | | | | 1.75 | % |
| Junior subordinated debt | | | 160,312 | | | | 3,064 | | | | 7.60 | % |
| Long-term debt | | | 288,875 | | | | 2,839 | | | | 3.91 | % |
| | | | | | | | | | | |
| Total interest bearing liabilities and expense | | | 10,218,086 | | | | 63,022 | | | | 2.45 | % |
| Demand deposits — noninterest bearing | | | 1,681,107 | | | | | | | | | |
| Other liabilities | | | 174,396 | | | | | | | | | |
| | | | | | | | | | | | |
| Total liabilities | | | 12,073,589 | | | | | | | | | |
| Shareholders’ equity | | | 1,231,350 | | | | | | | | | |
| | | | | | | | | | | | |
| Total | | $ | 13,304,939 | | | | | | | | | |
| | | | | | | | | | | |
| Net interest revenue | | | | | | $ | 112,037 | | | | | |
| | | | | | | | | | | | |
| Net interest margin | | | | | | | | | | | 3.67 | % |
| Net interest rate spread | | | | | | | | | | | 3.29 | % |
| Interest bearing liabilities to interest earning assets | | | | | | | | | | | 84.22 | % |
| | | | | | | | | | | | | |
| Net interest tax equivalent adjustment | | | | | | $ | 2,435 | | | | | |
-MORE-
BXS Announces Third Quarter Results
Page 11
October 20, 2008
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
| | | | | | | | | | | | | |
| | | Quarter Ended | |
| | | September 30, 2007 | |
| | | Average | | | | | | | Yield/ | |
| (Taxable equivalent basis) | | Balance | | | Interest | | | Rate | |
| ASSETS | | | | | | | | | | | | |
| Loans, loans held for sale, and leases net of unearned income | | $ | 9,087,608 | | | $ | 177,093 | | | | 7.73 | % |
| Held-to-maturity securities: | | | | | | | | | | | | |
| Taxable | | | 1,568,959 | | | | 17,585 | | | | 4.45 | % |
| Tax-exempt | | | 191,397 | | | | 3,196 | | | | 6.62 | % |
| Available-for-sale securities: | | | | | | | | | | | | |
| Taxable | | | 987,901 | | | | 10,555 | | | | 4.24 | % |
| Tax-exempt | | | 80,696 | | | | 1,476 | | | | 7.26 | % |
| Short-term investments | | | 38,216 | | | | 548 | | | | 5.69 | % |
| | | | | | | | | | | |
| Total interest earning assets and revenue | | | 11,954,777 | | | | 210,453 | | | | 6.98 | % |
| Other assets | | | 1,241,511 | | | | | | | | | |
| Less: allowance for credit losses | | | (111,501 | ) | | | | | | | | |
| | | | | | | | | | | | |
| Total | | $ | 13,084,787 | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | |
| Demand — interest bearing | | $ | 3,178,394 | | | $ | 22,189 | | | | 2.77 | % |
| Savings | | | 715,875 | | | | 2,503 | | | | 1.39 | % |
| Other time | | | 4,711,683 | | | | 55,729 | | | | 4.69 | % |
| Short-term borrowings | | | 1,207,633 | | | | 14,230 | | | | 4.67 | % |
| Junior subordinated debt | | | 163,405 | | | | 3,342 | | | | 8.11 | % |
| Long-term debt | | | 142,000 | | | | 2,058 | | | | 5.75 | % |
| | | | | | | | | | | |
| Total interest bearing liabilities and expense | | | 10,118,990 | | | | 100,051 | | | | 3.92 | % |
| Demand deposits — noninterest bearing | | | 1,640,485 | | | | | | | | | |
| Other liabilities | | | 184,017 | | | | | | | | | |
| | | | | | | | | | | | |
| Total liabilities | | | 11,943,492 | | | | | | | | | |
| Shareholders’ equity | | | 1,141,295 | | | | | | | | | |
| | | | | | | | | | | | |
| Total | | $ | 13,084,787 | | | | | | | | | |
| | | | | | | | | | | |
| Net interest revenue | | | | | | $ | 110,402 | | | | | |
| | | | | | | | | | | | |
| Net interest margin | | | | | | | | | | | 3.66 | % |
| Net interest rate spread | | | | | | | | | | | 3.06 | % |
| Interest bearing liabilities to interest earning assets | | | | | | | | | | | 84.64 | % |
| | | | | | | | | | | | | |
| Net interest tax equivalent adjustment | | | | | | $ | 2,487 | | | | | |
-MORE-
BXS Announces Third Quarter Results
Page 12
October 20, 2008
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
| | | | | | | | | | | | | |
| | | Year to Date | |
| | | September 30, 2008 | |
| | | Average | | | | | | | Yield/ | |
| (Taxable equivalent basis) | | Balance | | | Interest | | | Rate | |
| ASSETS | | | | | | | | | | | | |
| Loans, loans held for sale, and leases net of unearned income | | $ | 9,524,079 | | | $ | 458,887 | | | | 6.44 | % |
| Held-to-maturity securities: | | | | | | | | | | | | |
| Taxable | | | 1,312,381 | | | | 45,274 | | | | 4.61 | % |
| Tax-exempt | | | 185,434 | | | | 9,321 | | | | 6.71 | % |
| Available-for-sale securities: | | | | | | | | | | | | |
| Taxable | | | 856,917 | | | | 27,120 | | | | 4.23 | % |
| Tax-exempt | | | 96,487 | | | | 5,135 | | | | 7.11 | % |
| Short-term investments | | | 37,493 | | | | 858 | | | | 3.06 | % |
| | | | | | | | | | | |
| Total interest earning assets and revenue | | | 12,012,791 | | | | 546,595 | | | | 6.08 | % |
| Other assets | | | 1,287,407 | | | | | | | | | |
| Less: allowance for credit losses | | | (125,853 | ) | | | | | | | | |
| | | | | | | | | | | | |
| Total | | $ | 13,174,345 | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | |
| Demand — interest bearing | | $ | 3,465,696 | | | $ | 44,409 | | | | 1.71 | % |
| Savings | | | 721,819 | | | | 4,200 | | | | 0.78 | % |
| Other time | | | 4,033,386 | | | | 120,298 | | | | 3.98 | % |
| Short-term borrowings | | | 1,477,199 | | | | 22,907 | | | | 2.07 | % |
| Junior subordinated debt | | | 160,312 | | | | 9,309 | | | | 7.76 | % |
| Long-term debt | | | 275,774 | | | | 8,207 | | | | 3.98 | % |
| | | | | | | | | | | |
| Total interest bearing liabilities and expense | | | 10,134,186 | | | | 209,330 | | | | 2.76 | % |
| Demand deposits — noninterest bearing | | | 1,652,157 | | | | | | | | | |
| Other liabilities | | | 168,832 | | | | | | | | | |
| | | | | | | | | | | | |
| Total liabilities | | | 11,955,175 | | | | | | | | | |
| Shareholders’ equity | | | 1,219,170 | | | | | | | | | |
| | | | | | | | | | | | |
| Total | | $ | 13,174,345 | | | | | | | | | |
| | | | | | | | | | | |
| Net interest revenue | | | | | | $ | 337,265 | | | | | |
| | | | | | | | | | | | |
| Net interest margin | | | | | | | | | | | 3.75 | % |
| Net interest rate spread | | | | | | | | | | | 3.32 | % |
| Interest bearing liabilities to interest earning assets | | | | | | | | | | | 84.36 | % |
| | | | | | | | | | | | | |
| Net interest tax equivalent adjustment | | | | | | $ | 7,750 | | | | | |
-MORE-
BXS Announces Third Quarter Results
Page 13
October 20, 2008
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
| | | | | | | | | | | | | |
| | | Year to Date | |
| | | September 30, 2007 | |
| | | Average | | | | | | | Yield/ | |
| (Taxable equivalent basis) | | Balance | | | Interest | | | Rate | |
| ASSETS | | | | | | | | | | | | |
| Loans, loans held for sale, and leases net of unearned income | | $ | 8,767,096 | | | $ | 504,470 | | | | 7.69 | % |
| Held-to-maturity securities: | | | | | | | | | | | | |
| Taxable | | | 1,540,910 | | | | 51,252 | | | | 4.45 | % |
| Tax-exempt | | | 188,145 | | | | 9,440 | | | | 6.71 | % |
| Available-for-sale securities: | | | | | | | | | | | | |
| Taxable | | | 995,567 | | | | 30,985 | | | | 4.16 | % |
| Tax-exempt | | | 85,934 | | | | 4,746 | | | | 7.38 | % |
| Short-term investments | | | 102,029 | | | | 4,246 | | | | 5.56 | % |
| | | | | | | | | | | |
| Total interest earning assets and revenue | | | 11,679,681 | | | | 605,139 | | | | 6.93 | % |
| Other assets | | | 1,208,881 | | | | | | | | | |
| Less: allowance for credit losses | | | (106,775 | ) | | | | | | | | |
| | | | | | | | | | | | |
| Total | | $ | 12,781,787 | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | |
| Demand — interest bearing | | $ | 3,183,663 | | | $ | 64,068 | | | | 2.69 | % |
| Savings | | | 723,977 | | | | 7,367 | | | | 1.36 | % |
| Other time | | | 4,678,320 | | | | 163,172 | | | | 4.66 | % |
| Short-term borrowings | | | 947,498 | | | | 33,778 | | | | 4.77 | % |
| Junior subordinated debt | | | 159,394 | | | | 9,765 | | | | 8.19 | % |
| Long-term debt | | | 144,820 | | | | 6,268 | | | | 5.79 | % |
| | | | | | | | | | | |
| Total interest bearing liabilities and expense | | | 9,837,672 | | | | 284,418 | | | | 3.87 | % |
| Demand deposits — noninterest bearing | | | 1,666,273 | | | | | | | | | |
| Other liabilities | | | 170,935 | | | | | | | | | |
| | | | | | | | | | | | |
| Total liabilities | | | 11,674,880 | | | | | | | | | |
| Shareholders’ equity | | | 1,106,907 | | | | | | | | | |
| | | | | | | | | | | | |
| Total | | $ | 12,781,787 | | | | | | | | | |
| | | | | | | | | | | |
| Net interest revenue | | | | | | $ | 320,721 | | | | | |
| | | | | | | | | | | | |
| Net interest margin | | | | | | | | | | | 3.67 | % |
| Net interest rate spread | | | | | | | | | | | 3.06 | % |
| Interest bearing liabilities to interest earning assets | | | | | | | | | | | 84.23 | % |
| | | | | | | | | | | | | |
| Net interest tax equivalent adjustment | | | | | | $ | 7,479 | | | | | |
-END-
