EXHIBIT 99.1
NEWS RELEASE
(BANCORPSOUTH LOGO)
CONTACT:
L. Nash Allen, Jr. Gary C. Bonds
Treasurer and Chief Financial Senior Vice President and
Officer Controller
662/680-2330 662/680-2332
BANCORPSOUTH, INC. ANNOUNCES FINANCIAL RESULTS FOR THE SECOND QUARTER OF 2005
------------------------
SIGNIFICANT GROWTH IN LOANS AND INSURANCE REVENUE HIGHLIGHT
CONTINUED IMPROVEMENT IN KEY TRENDS
TUPELO, Miss., July 21, 2005 /PRNewswire-FirstCall via COMTEX/ -- BancorpSouth,
Inc. (NYSE: BXS) today announced financial results for the second quarter and
six-months ended June 30, 2005.
Highlights of the second quarter of 2005 included:
o A 9.7 percent expansion in loans and leases, net of unearned interest,
at the end of the second quarter of 2005 compared with the end of the
second quarter of 2004.
o Growth of 9.0 percent in insurance commission revenue, supporting the
recent ranking of BancorpSouth's insurance brokerage operations as the
18th largest in the country among bank holding companies.
o Continuing improvement in key trends in BancorpSouth's traditional
banking business on both a comparable-quarter and sequential quarter
basis, including growth in net interest margin, interest revenue and
net interest revenue.
o Further strengthening in credit quality, with a 36.1 percent decline in
nonperforming loans and leases at the end of the quarter from the end
of the second quarter of 2004; a reduction in annualized net
charge-offs to 0.26 percent of average loans and leases, net of
unearned interest, from 0.36 percent; and an increase in reserve
coverage of nonperforming loans and leases to 3.83 from 2.44.
Net income was $25.8 million, or $0.33 per diluted share, for the second quarter
of 2005 compared with net income of $31.3 million, or $0.40 per diluted share,
for the second quarter of 2004. As in previous quarters, BancorpSouth's second
quarter 2005 financial results were significantly affected by impairment of the
Company's mortgage servicing asset ("MSA"). For the quarter, a $3.9 million MSA
impairment charge reduced earnings by $0.03 per diluted share after tax. For the
second quarter of 2004, the reversal of previously recorded MSA impairment
charges totaled $9.4 million, or $0.07 per diluted share after tax. Excluding
the impact of MSA
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Box 789 o Tupelo, MS 38802-0789 o (662) 680-2000
BancorpSouth, Inc. is a financial holding company.
BXS Announces Second-Quarter Results
Page 2
July 21, 2005
impairment, adjusted earnings for the second quarter of 2005 would have been
$28.2 million, or $0.36 per diluted share, from adjusted earnings of $25.5
million, or $0.33 per diluted share, for the second quarter of 2004. Please see
page 14 for reconciliation of earnings and earnings per diluted share to
adjusted earnings and adjusted earnings per diluted share.
"Despite the negative swing from a year ago in the impairment of our mortgage
servicing asset, we are pleased by the direction of our fundamental results in
the second quarter," commented Aubrey Patterson, Chairman and Chief Executive
Officer of BancorpSouth. "The moderate and steady improvement in the national
economic environment has been reflected in our markets through continued growth
in loan demand. As interest rates have increased, and as we have funded loan
growth primarily through the maturation of lower rate investments and the growth
in our lower cost demand deposits, we have also benefited from an expansion in
our net interest margin. This ongoing recovery in our traditional banking
business continues to be complemented by growth from noninterest revenue
products and services, such as the significant growth achieved in our insurance
business. As a result, we believe BancorpSouth is well positioned to leverage
continued improvement in the economic environment to achieve further growth in
the second half of 2005."
Net Interest Revenue
Interest revenue for the second quarter of 2005 grew 10.0 percent, or $12.3
million, to $136.0 million from $123.7 million for the second quarter of 2004
and 3.0 percent from $132.1 million for the first quarter of 2005. Interest
expense increased 20.8 percent, or $8.3 million, to $48.3 million for the second
quarter of 2005 from $40.0 million for the second quarter last year and 7.4
percent from $45.0 million for the first quarter of 2005.
The average taxable equivalent yield on earning assets increased to 5.63 percent
for the second quarter of 2005 from 5.15 percent for the second quarter of 2004
and 5.48 percent for the first quarter of 2005. The average rate paid on
interest bearing liabilities was 2.34 percent for the second quarter of 2005,
compared with 1.93 percent for the second quarter of 2004 and 2.17 percent for
the first quarter of 2005.
Net interest revenue increased 4.8 percent to $87.7 million for the second
quarter of 2005 from $83.7 million for the second quarter of 2004 and 0.7
percent from $87.1 million for the first quarter of 2005. Net interest margin
expanded to 3.66 percent for the second quarter of 2005 from 3.52 percent for
the second quarter of 2004 and 3.64 percent for the first quarter of 2005.
Patterson remarked, "The stronger loan growth is primarily accountable for our
second consecutive comparable-quarter increase in net interest revenue. The
increase in our net interest margin again demonstrated our ongoing efforts to
optimize our asset/liability mix to maximize net interest revenue while reducing
our exposure to interest rate volatility. The growth in loans enhanced our
ability to achieve this goal for the second quarter, especially in a rising
interest rate environment, as did our conservative investment discipline and our
continued focus on growth in low cost liabilities."
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BXS Announces Second-Quarter Results
Page 3
July 21, 2005
Deposit and Loan Activity
Total assets at June 30, 2005, increased 1.5 percent to $10.8 billion from $10.7
billion at June 30, 2004. Total deposits grew 2.1 percent to $9.0 billion at
June 30, 2005, from $8.8 billion at June 30, 2004. Loans and leases, net of
unearned interest, increased 9.7 percent to $7.0 billion at June 30, 2005, from
$6.4 billion at June 30, 2004.
Patterson said, "We attribute our loan growth for the second quarter to both
continued internal growth, which has now increased for four consecutive
quarters, and to our December 2004 acquisitions of banks in Brentwood, TN, and
Baton Rouge, LA. As in recent quarters, a number of our markets produced
double-digit loan growth for the second quarter, driven by the stronger economic
activity throughout our markets. In addition, the 7.5 percent increase in our
demand deposits for the second quarter of 2005 compared with the second quarter
last year also reflects strong internal growth and the December acquisitions.
Savings and other time deposits fell 2.2 percent on a comparable-quarter basis,
consistent with our success in funding our loan growth through lower cost demand
deposits and maturing investment securities, while restricting growth in higher
priced liabilities."
Provision for Credit Losses and Allowance for Credit Losses
The provision for credit losses for the second quarter of 2005 decreased 38.4
percent to $3.0 million from $4.8 million for both the second quarter of 2004
and the first quarter of 2005. Annualized net charge-offs were 0.26 percent of
average loans and leases for the second quarter of 2005 compared with 0.36
percent for the second quarter of 2004 and 0.22 percent for the first quarter of
2005.
Non-performing loans and leases fell 36.1 percent to $23.7 million, or 0.34
percent of loans and leases, at June 30, 2005, from $37.1 million, or 0.58
percent of loans and leases, at June 30, 2004, while decreasing 25.8 percent
from $32.0 million, or 0.46 percent of loans and leases, at March 31, 2005. The
allowance for credit losses was 1.29 percent of loans and leases at June 30,
2005, 1.41 percent of loans and leases at June 30, 2004 and 1.34 percent of
loans and leases at March 31, 2005.
"Our ability to reduce our provision for credit losses for the quarter, in spite
of solid loan growth, was entirely attributable to the continued improvement in
our loan quality," said Patterson. "After six consecutive quarterly declines in
total nonperforming loans, our reserve coverage, or allowance for credit losses
to nonperforming loans, has improved to 3.8 at the end of the second quarter of
2005 from 2.4 at the same time in 2004 and 2.9 at the end of the first quarter
of 2005. In addition, our allowance for credit losses to annualized charge-offs
remained significantly stronger than industry averages at 4.9 for the second
quarter of 2005 compared with 4.0 for the second quarter last year and 6.1 for
the first quarter of 2005. Although we believe a stronger economic environment
has contributed to stronger loan quality, we also credit the Company's
disciplined lending and credit practices and our colleagues responsible for
their ongoing implementation."
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BXS Announces Second-Quarter Results
Page 4
July 21, 2005
Noninterest Revenue
Noninterest revenue declined $8.4 million, or 16.3 percent, for the second
quarter of 2005 compared with the second quarter of 2004, primarily due, as
discussed above, to the negative $3.9 million impact from impairment of the MSA
for the second quarter of 2005 compared with the positive $9.4 million impact
from the recovery of a previously recorded impairment to the MSA for the second
quarter of 2004. Excluding these items, noninterest revenue increased 11.5
percent for the second quarter of 2005 from the second quarter of 2004.
Patterson added, "We remain fully committed to expanding our noninterest
revenues as an important long-term strategy for lowering the impact of interest
rate volatility on the Company's financial results. The continuing potential of
this strategy is demonstrated by the ongoing growth in our insurance commission
revenue, which rose 9.0 percent for the second quarter of 2005 from the
comparable prior-year quarter. We are pleased with the growth produced in our
insurance operations as we have increased the integration of our regional
insurance agencies. We are focused on expanding this business through further
growth within existing markets and additional potential acquisitions within our
current six-state franchise or contiguous states."
Noninterest Expense
Noninterest expense increased 7.8 percent to $90.6 million for the second
quarter of 2005 from $84.0 million for the same quarter in 2004 and increased
1.0 percent from $89.7 million for the first quarter of 2005. The
comparable-quarter growth in noninterest expense for the second quarter
primarily reflected the additional salaries and employee benefits expense from
operating the Brentwood, TN and Baton Rouge, LA banks that were acquired in
December 2004, as well as increased occupancy costs related to the opening of
new offices.
Capital Management
BancorpSouth repurchased 24,000 shares of its common stock during the second
quarter of 2005 under a new stock repurchase plan authorized in April 2005 for
the repurchase of up to 3 million shares. Combined with the shares repurchased
under earlier plans, BancorpSouth had repurchased approximately 10.6 million
shares of its common stock as of June 30, 2005, or approximately 13 percent of
the shares outstanding when the share repurchase program was initiated in 2001.
BancorpSouth will continue to evaluate additional share repurchases under the
April 2005 plan, which authorizes these repurchases during a two-year period
expiring April 30, 2007.
Summary
Patterson concluded, "As we enter the second half of 2005, we are confident of
BancorpSouth's strong competitive position within its mid-South market and of
the Company's ability to leverage the opportunities presented by sustained
economic expansion. Because of the long-term focus of our business model and
operating strategies, we are prepared for the expansionary phase of the economic
cycle with proven people, clear business objectives, a strong capital base, high
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BXS Announces Second-Quarter Results
Page 5
July 21, 2005
credit quality and a centralized technology infrastructure with inherent
potential for significant operating leverage. We expect to produce growth in
both our traditional banking business and in our noninterest revenue products
and services through increased penetration of existing markets and expansion
into new markets. We also continue to evaluate potential acquisitions
appropriate to achieving our goals."
Conference Call
BancorpSouth will conduct a conference call to discuss its second quarter
results tomorrow, July 22, 2005, at 10:00 a.m. (Central Time). Investors may
listen via the Internet by accessing BancorpSouth's website at
http://www.bancorpsouth.com. A replay of the conference call will be available
at BancorpSouth's website for at least two weeks following the call.
Forward-Looking Statements
Certain statements contained in this news release may not be based on historical
facts and are "forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. These forward-looking statements may be
identified by their reference to a future period or periods or by the use of
forward-looking terminology such as "anticipate," "believe," "estimate,"
"expect," "may," "might," "will," "would," "could" or "intend." These
forward-looking statements may include, without limitation, statements relating
to interest rates, noninterest revenue products and services, lending and credit
practices, business objectives, asset/liability mix, low cost liabilities, loan
demand, loan quality, loan and deposit growth, long-term strategy, insurance
operations, operating leverage, centralized technology infrastructure, allowance
for credit losses, net interest revenue, customer relationships, credit quality,
business model and operating strategies, expansion of products and services,
penetration of existing markets and expansion into new markets, potential
acquisitions, the economic and operating environment, common stock repurchase
plan, capitalization, competitive position, long-term growth prospects and
future growth and profitability.
We caution you not to place undue reliance on the forward-looking statements
contained in this news release in that actual results could differ materially
from those indicated in such forward-looking statements due to a variety of
factors. These factors 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 fund growth with lower cost
liabilities, the ability of BancorpSouth to maintain credit quality, the ability
of BancorpSouth to effectively integrate acquisitions, changes in laws and
regulations affecting financial service companies in general, possible adverse
rulings, judgments, settlements and other outcomes of pending litigation, the
ability of BancorpSouth to compete with other financial services companies, the
ability of BancorpSouth to provide and market competitive services and products,
changes in BancorpSouth's operating or expansion strategy, the ability of
BancorpSouth to diversify revenue, geographic concentration of BancorpSouth's
assets,
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BXS Announces Second-Quarter Results
Page 6
July 21, 2005
availability of and costs associated with obtaining adequate and timely
sources of liquidity, the ability of BancorpSouth to manage its growth and
effectively serve an expanding customer and market base, the ability of
BancorpSouth to 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 leverage opportunities, the ability of BancorpSouth
to identify and close potential acquisitions, the ability of BancorpSouth to
expand geographically and enter fast-growing markets, changes in consumer
preferences, other factors generally understood to affect the financial results
of financial services companies, and other factors described from time to time
in BancorpSouth's filings with the Securities and Exchange Commission. We
undertake no obligation to update these forward-looking statements to reflect
events or circumstances that occur after the date on which such statements were
made.
BancorpSouth, Inc. is a financial holding company headquartered in Tupelo,
Mississippi with approximately $10.8 billion in assets. BancorpSouth Bank, a
wholly-owned subsidiary of BancorpSouth, Inc., operates approximately 250
commercial banking, insurance, trust and broker/dealer locations in Alabama,
Arkansas, Louisiana, Mississippi, Tennessee and Texas.
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BXS Announces Second-Quarter Results
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July 21, 2005
BANCORPSOUTH, INC.
SELECTED FINANCIAL DATA
Three Months Ended Six Months Ended
June 30, June 30,
--------------------------- ---------------------------
2005 2004 2005 2004
----------- ----------- ----------- -----------
(Dollars in thousands, except per
share amounts)
EARNINGS SUMMARY:
Net interest revenue $ 87,717 $ 83,684 $ 174,846 $ 167,166
Provision for credit losses 2,980 4,835 7,767 8,851
Noninterest revenue 43,022 51,416 96,941 97,456
Noninterest expense 90,575 84,031 180,263 170,036
----------- ----------- ----------- -----------
Income before income taxes 37,184 46,234 83,757 85,735
Income tax provision 11,394 14,961 26,223 27,297
----------- ----------- ----------- -----------
Net income $ 25,790 $ 31,273 $ 57,534 $ 58,438
=========== =========== =========== ===========
Earning per share: Basic $ 0.33 $ 0.41 $ 0.74 $ 0.76
=========== =========== =========== ===========
Diluted $ 0.33 $ 0.40 $ 0.73 $ 0.75
=========== =========== =========== ===========
BALANCE SHEET DATA AT JUNE 30:
Total assets $10,831,291 $10,670,323
Total earning assets 9,876,000 9,797,631
Loans and leases, net of unearned interest 7,046,942 6,422,864
Allowance for credit losses 91,076 90,537
Total deposits 8,974,580 8,789,246
Common shareholders' equity 936,167 852,910
Book value per share 11.96 11.10
AVERAGE BALANCE SHEET DATA:
Total assets $10,788,265 $10,614,248 $10,833,282 $10,533,989
Total earning assets 9,858,677 9,831,843 9,906,348 9,753,243
Loans and leases, net of unearned interest 6,989,792 6,333,868 6,932,500 6,280,566
Total deposits 8,963,216 8,801,737 9,028,500 8,794,229
Common shareholders' equity 924,661 886,197 921,617 876,096
NON-PERFORMING ASSETS AT JUNE 30:
Non-accrual loans and leases $ 10,619 $ 13,611
Loans and leases 90+ days past due 11,010 19,462
Restructured loans and leases 2,120 4,072
Other real estate owned 16,072 20,440
Net charge-offs as a percentage
of average loans (annualized) 0.26% 0.36% 0.24% 0.33%
PERFORMANCE RATIOS (ANNUALIZED)
Return on average assets 0.96% 1.18% 1.07% 1.12%
Return on common equity 11.19% 14.19% 12.59% 13.40%
Net interest margin 3.66% 3.52% 3.65% 3.54%
Average shares outstanding - basic 78,220,515 77,063,891 78,212,363 77,365,432
Average shares outstanding - diluted 78,536,657 77,444,302 78,554,782 77,783,687
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BXS Announces Second-Quarter Results
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July 21, 2005
BANCORPSOUTH, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
June 30,
------------------------------------ %
2005 2004 Change
----------- ----------- --------
(In thousands)
Assets
- ------
Cash and due from banks $ 354,694 $ 333,697 6.29%
Interest bearing deposits with other banks 6,746 18,024 (62.57%)
Held-to-maturity securities, at amortized cost 1,208,680 1,510,209 (19.97%)
Available-for-sale securities, at fair value 1,531,165 1,793,134 (14.61%)
Trading securities, at fair value 114 -- N/A
Federal funds sold and securities
purchased under agreement to resell 24,569 10,488 134.26%
Loans and leases 7,077,568 6,452,602 9.69%
Less: Unearned interest (30,626) (29,738) 2.99%
Allowance for credit losses (91,076) (90,537) 0.60%
----------- -----------
Net loans and leases 6,955,866 6,332,327 9.85%
Loans held for sale 57,785 42,913 34.66%
Premises and equipment, net 239,306 218,456 9.54%
Accrued interest receivable 65,428 68,690 (4.75%)
Goodwill 107,780 61,445 75.41%
Other assets 279,158 280,940 (0.63%)
----------- -----------
Total Assets $10,831,291 $10,670,323 1.51%
=========== ===========
Liabilities
- -----------
Deposits:
Demand: Noninterest bearing $ 1,489,190 $ 1,311,477 13.55%
Interest bearing 2,723,172 2,607,141 4.45%
Savings 732,298 786,235 (6.86%)
Other time 4,029,920 4,084,393 (1.33%)
----------- -----------
Total deposits 8,974,580 8,789,246 2.11%
Federal funds purchased and
securities sold under agreement
to repurchase 484,400 458,116 5.74%
Other short-term borrowings 62,000 185,000 (66.49%)
Accrued interest payable 19,628 17,590 11.59%
Junior subordinated debt securities 138,145 128,866 7.20%
Long-term debt 137,954 137,838 0.08%
Other liabilities 78,417 100,757 (22.17%)
----------- -----------
Total Liabilities 9,895,124 9,817,413 0.79%
Shareholders' Equity
- --------------------
Common stock 195,723 192,086 1.89%
Capital surplus 83,359 44,445 87.56%
Accumulated other comprehensive income (loss) (7,607) (8,276) (8.08%)
Retained earnings 664,692 624,655 6.41%
----------- -----------
Total Shareholders' Equity 936,167 852,910 9.76%
----------- -----------
Total Liabilities & Shareholders' Equity $10,831,291 $10,670,323 1.51%
=========== ===========
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BXS Announces Second-Quarter Results
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July 21, 2005
BANCORPSOUTH, INC.
Consolidated Condensed Statements of Income
(dollars in thousands, except per share data)
(Unaudited)
Quarter Ended Year To Date
---------------------------------------------- ------------------------------
Jun 2005 Mar 2005 Dec 2004 Sep 2004 Jun 2004 Jun 2005 Jun 2004
--------- -------- --------- --------- -------- -------- --------
INTEREST REVENUE:
Loans and leases $ 109,874 $103,805 $ 96,666 $ 93,759 $ 91,358 $213,678 $183,608
Deposits with other banks 139 111 135 102 288 251 416
Federal funds sold and securities
purchased under agreement to resell 197 391 272 111 115 589 811
Held-to-maturity securities:
Taxable 9,452 9,766 10,812 12,020 12,791 19,218 22,903
Tax-exempt 1,557 1,598 1,621 1,693 1,694 3,154 3,490
Available-for-sale securities:
Taxable 12,765 13,745 14,516 14,691 15,309 26,510 30,997
Tax-exempt 1,491 1,677 1,584 1,613 1,650 3,168 3,409
Loans held for sale 571 1,018 649 517 478 1,589 1,234
--------- -------- --------- --------- -------- -------- --------
Total interest revenue 136,046 132,111 126,255 124,506 123,683 268,157 246,868
--------- -------- --------- --------- -------- -------- --------
INTEREST EXPENSE:
Deposits 40,432 37,905 36,103 35,198 33,915 78,337 67,832
Fed funds purchased and securities sold
under agreement to repurchase 2,590 2,161 1,726 1,336 1,101 4,751 2,163
Other 5,307 4,916 4,758 5,014 4,983 10,223 9,707
--------- -------- --------- --------- -------- -------- --------
Total interest expense 48,329 44,982 42,587 41,548 39,999 93,311 79,702
--------- -------- --------- --------- -------- -------- --------
Net interest revenue 87,717 87,129 83,668 82,958 83,684 174,846 167,166
Provision for credit losses 2,980 4,787 5,104 3,530 4,835 7,767 8,851
--------- -------- --------- --------- -------- -------- --------
Net interest revenue, after
provision for credit losses 84,737 82,342 78,564 79,428 78,849 167,079 158,315
--------- -------- --------- --------- -------- -------- --------
NONINTEREST REVENUE:
Mortgage lending (2,453) 5,628 2,041 (672) 11,365 3,175 10,224
Service charges 16,411 14,726 15,533 15,965 16,057 31,137 30,375
Trust income 2,004 1,889 2,111 2,059 1,842 3,893 3,528
Security gains, net 371 70 (1,484) 146 59 441 677
Insurance commissions 14,425 15,932 14,282 14,366 13,232 30,357 27,690
Other 12,264 15,674 11,253 10,463 8,861 27,938 24,962
--------- -------- --------- --------- -------- -------- --------
Total noninterest revenue 43,022 53,919 43,736 42,327 51,416 96,941 97,456
--------- -------- --------- --------- -------- -------- --------
NONINTEREST EXPENSES:
Salaries and employee benefits 52,578 53,240 50,852 49,176 48,628 105,818 98,663
Occupancy, net of rental income 6,841 6,412 6,649 6,264 6,084 13,252 12,040
Equipment 5,637 5,449 5,329 5,390 5,636 11,087 11,096
Other 25,519 24,587 25,098 24,150 23,683 50,106 48,237
--------- -------- --------- --------- -------- -------- --------
Total noninterest expenses 90,575 89,688 87,928 84,980 84,031 180,263 170,036
--------- -------- --------- --------- -------- -------- --------
Income before income taxes 37,184 46,573 34,372 36,775 46,234 83,757 85,735
Income tax expense 11,394 14,829 9,778 9,187 14,961 26,223 27,297
--------- -------- --------- --------- -------- -------- --------
Net income $ 25,790 $ 31,744 $ 24,594 $ 27,588 $ 31,273 $ 57,534 $ 58,438
========= ======== ========= ========= ======== ======== ========
Net income per share: Basic $ 0.33 $ 0.41 $ 0.32 $ 0.36 $ 0.41 $ 0.74 $ 0.76
========= ======== ========= ========= ======== ======== ========
Diluted $ 0.33 $ 0.40 $ 0.32 $ 0.36 $ 0.40 $ 0.73 $ 0.75
========= ======== ========= ========= ======== ======== ========
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July 21, 2005
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended
June 30, 2005
------------------------------------------
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
------- -------- ----
ASSETS
Loans, loans held for sale,
and leases net of unearned interest $ 7,034,782 $111,017 6.33%
Held-to-maturity securities:
Taxable 1,072,562 9,452 3.53%
Tax-exempt 137,503 2,395 6.99%
Available-for-sale securities:
Taxable 1,444,327 12,765 3.54%
Tax-exempt 131,287 2,294 7.01%
Short-term investments 38,216 336 3.54%
----------- --------
Total interest earning
assets and revenue 9,858,677 138,259 5.63%
Other assets 1,022,044
Less: allowance for credit losses (92,456)
-----------
Total $10,788,265
===========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $ 2,795,706 $ 8,762 1.26%
Savings 747,451 1,503 0.81%
Other time 3,954,223 30,166 3.06%
Short-term borrowings 517,846 3,109 2.41%
Junior subordinated debt 138,145 2,771 8.04%
Long-term debt 138,074 2,018 5.86%
----------- --------
Total interest bearing
liabilities and expense 8,291,445 48,329 2.34%
Demand deposits -
noninterest bearing 1,465,836
Other liabilities 106,323
-----------
Total liabilities 9,863,604
Shareholders' equity 924,661
-----------
Total $10,788,265
===========
--------
Net interest revenue $ 89,930
========
Net interest margin 3.66%
Net interest rate spread 3.29%
Interest bearing liabilities to
interest earning assets 84.10%
Net interest tax equivalent adjustment $ 2,213
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BXS Announces Second-Quarter Results
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July 21, 2005
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended
June 30, 2004
------------------------------------------
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
------- -------- ----
ASSETS
Loans, loans held for sale,
and leases net of unearned interest $ 6,374,578 $ 92,361 5.83%
Held-to-maturity securities:
Taxable 1,343,048 12,791 3.83%
Tax-exempt 148,345 2,606 7.06%
Available-for-sale securities:
Taxable 1,718,434 15,307 3.58%
Tax-exempt 152,756 2,538 6.68%
Short-term investments 94,682 402 1.71%
----------- --------
Total interest earning
assets and revenue 9,831,843 126,005 5.15%
Other assets 874,186
Less: allowance for credit losses (91,781)
-----------
Total $10,614,248
===========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $ 2,669,270 $ 5,765 0.87%
Savings 790,000 1,353 0.69%
Other time 4,059,635 26,798 2.65%
Short-term borrowings 531,398 1,400 1.06%
Junior subordinated debt 128,866 2,625 8.19%
Long-term debt 137,952 2,058 6.00%
----------- --------
Total interest bearing
liabilities and expense 8,317,122 39,999 1.93%
Demand deposits -
noninterest bearing 1,282,832
Other liabilities 128,097
-----------
Total liabilities 9,728,051
Shareholders' equity 886,197
-----------
Total $10,614,248
===========
--------
Net interest revenue $ 86,006
========
Net interest margin 3.52%
Net interest rate spread 3.22%
Interest bearing liabilities to
interest earning assets 84.59%
Net interest tax equivalent adjustment $ 2,322
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BXS Announces Second-Quarter Results
Page 12
July 21, 2005
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Year To Date
June 30, 2005
------------------------------------------
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
------- -------- ----
ASSETS
Loans, loans held for sale,
and leases net of unearned interest $ 7,006,579 $216,388 6.23%
Held-to-maturity securities:
Taxable 1,082,715 19,218 3.58%
Tax-exempt 137,915 4,853 7.10%
Available-for-sale securities:
Taxable 1,488,762 26,510 3.59%
Tax-exempt 135,200 4,874 7.27%
Short-term investments 55,177 839 3.07%
----------- --------
Total interest earning
assets and revenue 9,906,348 272,682 5.55%
Other assets 1,019,268
Less: allowance for credit losses (92,334)
-----------
Total $10,833,282
===========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $ 2,832,204 $ 16,577 1.18%
Savings 756,919 3,058 0.81%
Other time 3,993,458 58,702 2.96%
Short-term borrowings 491,173 5,407 2.22%
Junior subordinated debt 138,145 5,526 8.07%
Long-term debt 138,276 4,041 5.89%
----------- --------
Total interest bearing
liabilities and expense 8,350,175 93,311 2.25%
Demand deposits -
noninterest bearing 1,445,919
Other liabilities 115,571
-----------
Total liabilities 9,911,665
Shareholders' equity 921,617
-----------
Total $10,833,282
===========
--------
Net interest revenue $179,371
========
Net interest margin 3.65%
Net interest rate spread 3.30%
Interest bearing liabilities to
interest earning assets 84.29%
Net interest tax equivalent adjustment $ 4,525
- MORE -
BXS Announces Second-Quarter Results
Page 12
July 21, 2005
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Year To Date
June 30, 2004
------------------------------------------
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
------- -------- ----
ASSETS
Loans, loans held for sale,
and leases net of unearned interest $ 6,344,678 $185,883 5.89%
Held-to-maturity securities:
Taxable 1,170,951 22,903 3.93%
Tax-exempt 148,805 5,368 7.25%
Available-for-sale securities:
Taxable 1,730,460 30,994 3.60%
Tax-exempt 158,982 5,244 6.63%
Short-term investments 199,367 1,227 1.24%
----------- --------
Total interest earning
assets and revenue 9,753,243 251,619 5.19%
Other assets 872,802
Less: allowance for credit losses (92,056)
-----------
Total $10,533,989
===========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $ 2,685,161 $ 11,459 0.86%
Savings 787,081 2,715 0.69%
Other time 4,062,137 53,659 2.66%
Short-term borrowings 471,545 2,497 1.06%
Junior subordinated debt 128,866 5,251 8.19%
Long-term debt 138,117 4,122 6.00%
----------- --------
Total interest bearing
liabilities and expense 8,272,907 79,702 1.94%
Demand deposits -
noninterest bearing 1,259,850
Other liabilities 124,136
-----------
Total liabilities 9,656,893
Shareholders' equity 876,096
-----------
Total $10,533,989
===========
--------
Net interest revenue $171,917
========
Net interest margin 3.54%
Net interest rate spread 3.25%
Interest bearing liabilities to
interest earning assets 84.82%
Net interest tax equivalent adjustment $ 4,751
- MORE -
BXS Announces Second-Quarter Results
Page 14
July 21, 2005
BancorpSouth, Inc.
Reconciliation of Adjusted Earnings and Adjusted Earnings Per Diluted Share to
Earnings and Earnings Per Diluted Share
(Unaudited)
(In thousands, except per share amounts)
Three-Months Ended
June 30,
----------------------------
2005 2004
----------- ------------
Earnings - GAAP basis (a) $ 25,790 $ 31,273
Mortgage servicing asset expense (recovery), net of tax 2,383 (5,782)
----------- ------------
Adjusted earnings (b) $ 28,173 $ 25,491
=========== ============
Earnings per diluted share - GAAP basis $ 0.33 $ 0.40
=========== ============
Adjusted earnings per diluted share (b) $ 0.36 $ 0.33
=========== ============
Diluted shares used in computing per share amounts:
Earnings per share 78,536,657 77,444,302
Adjusted earnings per share 78,536,657 77,444,302
(a) GAAP is the acronym for generally accepted accounting principles.
(b) BancorpSouth, Inc. believes its calculation of adjusted earnings per
diluted share provides a better measure of the Company's ongoing
performance and provides better comparability to prior periods because
it excludes a volatile non-cash item. Adjusted earnings per diluted
share should not be considered as a measure of financial performance
under accounting principles generally accepted in the United States,
and the items excluded from it are significant components in
understanding and assessing financial performance. Because adjusted
earnings per diluted share is not a measurement determined in
accordance with accounting principles generally accepted in the United
States and is thus susceptible to varying calculations, it may not be
comparable as presented to other similarly titled measures of other
companies.
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