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 THIRD QUARTER OF 2005
REPORTS SOLID GROWTH IN LOANS, DEPOSITS AND NET INTEREST REVENUE DESPITE
KATRINA
TUPELO, Miss., October 19, 2005 /PRNewswire-FirstCall via COMTEX/ --
BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the third
quarter and nine-months ended September 30, 2005.
Highlights of the third quarter of 2005 included:
- An 8.9 percent expansion in loans and leases, net of unearned
interest, at the end of the third quarter of 2005 compared with the
end of the third quarter of 2004.
- Continued strong growth in demand deposits, which increased 13.7
percent at the end of the third quarter of 2005 from the end of the
third quarter last year.
- Growth in net interest revenue, which, on a comparable-quarter
basis, increased 6.6% for the third quarter of 2005, 4.8% for the
second quarter of 2005 and 4.4% for the first quarter of 2005.
- The signing of a definitive agreement to acquire American State Bank
Corporation, headquartered in Jonesboro, Arkansas, expanding
BancorpSouth's presence in growing markets in northeast Arkansas.
Impact of Hurricane Katrina on Third-Quarter Results
For the third quarter, Hurricane Katrina reduced the Company's net income per
diluted share by $0.10. Of this amount, $0.08 resulted from a $10.4 million
pre-tax increase in the provision for credit losses, primarily as a result of
the storm's impact on the Mississippi Gulf Coast region. In addition, $0.02
resulted from the $2.4 million impact of hurricane relief efforts, assistance
for affected employees and lost non-interest revenue, a significant portion of
which resulted from the Company's waiver of certain fees and service charges for
people and businesses in the affected area.
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Box 789 - Tupelo, MS 38802-0789 - (662) 680-2000
BANCORPSOUTH, INC. is a financial holding company.
BXS Announces Third-Quarter Results
Page 2
October 19, 2005
Including the impact of Hurricane Katrina, net income was $22.9 million, or
$0.29 per diluted share, for the third quarter of 2005 compared with $27.6
million, or $0.36 per diluted share, for the third quarter of 2004. Excluding
the impact of Hurricane Katrina, net income for the third quarter of 2005 would
have been $30.8 million and net income per diluted share for the third quarter
of 2005 would have been $0.39.
BancorpSouth's third quarter 2005 financial results also reflected the reversal
of previous impairment of the Company's mortgage servicing asset ("MSA")
totaling $2.8 million, which increased net income by $0.02 per diluted share.
For the third quarter of 2004, impairment of the MSA totaled $2.2 million, which
decreased net income by $0.02 per diluted share. In addition, our comparable
quarter financial results reflect an unusually low effective tax rate for the
third quarter of 2004, due to the reversal of merger related income tax
contingencies and a state income tax refund. Compared to the effective tax rate
for the third quarter of this year, the lower effective tax rate for the third
quarter last year resulted in increased net income for the period of $0.02 per
diluted share.
Excluding the impact of changes in the value of the MSA, Hurricane Katrina and
the change in effective tax rate, earnings for the third quarter of 2005 would
have been $0.37 per diluted share, compared with $0.36 for the third quarter of
2004. Please see pages 14 and 15 of this press release for reconciliation of
GAAP and non-GAAP results.
"Given the very substantial impact of Hurricane Katrina on our markets,
employees and customers, BancorpSouth performed well during the third quarter,"
remarked Aubrey Patterson, Chairman and Chief Executive Officer of BancorpSouth.
"We have specifically identified a $0.10 per diluted share impact from the
hurricane, related to our provision for credit losses, additional expenses for
hurricane relief and assistance and foregone noninterest revenue from people
directly affected by the hurricane. We have not been able to quantify the impact
of the hurricane, and the resulting dramatic rise in fuel prices and shortages,
on our overall business, although we believe there was some impact on our loan
volume and on our insurance business."
Net Interest Revenue
Interest revenue for the third quarter of 2005 grew 13.9 percent, or $17.3
million, to $141.8 million from $124.5 million for the third quarter of 2004 and
4.2 percent from $136.0 million for the second quarter of 2005. Interest expense
increased 28.4 percent, or $11.8 million, to $53.3 million for the third quarter
of 2005 from $41.5 million for the third quarter last year and 10.4 percent from
$48.3 million for the second quarter of 2005.
The average taxable equivalent yield on earning assets increased to 5.74 percent
for the third quarter of 2005 from 5.17 percent for the third quarter of 2004
and 5.63 percent for the second quarter of 2005. The average rate paid on
interest bearing liabilities was 2.54 percent for the third quarter of 2005,
compared with 1.99 percent for the third quarter of 2004 and 2.34 percent for
the second quarter of 2005.
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BXS Announces Third-Quarter Results
Page 3
October 19, 2005
Net interest revenue increased 6.6 percent to $88.4 million for the third
quarter of 2005 from $83.0 million for the third quarter of 2004 and 0.8 percent
from $87.7 million for the second quarter of 2005. Net interest margin was 3.61
percent for the third quarter of 2005 compared with 3.48 percent for the third
quarter of 2004 and 3.66 percent for the second quarter of 2005.
"We are pleased to have produced a second consecutive quarter of accelerated
growth in net interest revenue," said Patterson. "As in the first half of 2005,
this growth reflects our efforts to optimize our asset/liability mix, primarily
by funding significant loan volume through lower cost demand deposits and
maturing lower rate investments. The expansion of our net interest margin
through this strategy from the third quarter last year demonstrates that rising
interest rates have enhanced our options for managing interest-rate risk. The
slight decline in net interest margin from the second quarter of 2005 is also
evidence of the margin pressure inherent in being moderately liability sensitive
in a rising interest rate environment, a position consistent with our focus on
the retail and small to mid sized business markets. We will continue to manage
our asset/liability structure to achieve long-term growth in net interest
revenue, while minimizing the impact of interest rate volatility."
Deposit and Loan Activity
Total assets at September 30, 2005, increased 4.3 percent to $11.1 billion from
$10.6 billion at September 30, 2004. Total deposits grew 4.3 percent to $9.2
billion at September 30, 2005, from $8.8 billion at September 30, 2004. Loans
and leases, net of unearned interest, increased 8.9 percent to $7.1 billion at
September 30, 2005, from $6.5 billion at September 30, 2004.
Patterson continued, "We produced solid loan growth for the third quarter, the
sixth consecutive quarterly increase, although the rate of growth reflected
rising interest rates and increased concern about the strength of the economy in
the face Hurricanes Katrina and Rita and surging energy costs. We have continued
to generate the majority of our loan growth in faster growing urban areas within
our established markets, while also benefiting from our December 2004
acquisitions that built our presence in Brentwood, Tennessee, and Baton Rouge,
Louisiana. Our less urban markets have continued to serve as critical sources of
lower cost funds, accounting for a substantial portion of the 22.3 percent
growth in noninterest bearing demand deposits at the end of the third quarter of
2005 from the same time in 2004, as well as the 9.4% increase in interest
bearing demand deposits. Total time deposits fell 3.5 percent at the end of the
third quarter of 2005 from the end of the third quarter of 2004, reflecting our
strategy of funding loan growth through lower cost demand deposits and maturing
investments rather than higher cost liabilities."
Provision for Credit Losses and Allowance for Credit Losses
The provision for credit losses for the third quarter of 2005 increased to $14.7
million from $3.5 million for the third quarter of 2004 and $3.0 million for the
second quarter of 2005. As noted earlier, $10.4 million of the third quarter of
2005 provision related to the impact of Hurricane Katrina. Annualized net
charge-offs were 0.27 percent of average loans and leases for the third quarter
of 2005 compared with 0.25 percent for the third quarter of 2004 and 0.26
percent for the second quarter of 2005.
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BXS Announces Third-Quarter Results
Page 4
October 19, 2005
Non-performing loans and leases fell 34.9 percent to $23.9 million, or 0.34
percent of loans and leases, at September 30, 2005, from $36.7 million, or 0.56
percent of loans and leases, at September 30, 2004, while increasing 0.6 percent
from $23.7 million, or 0.34 percent of loans and leases, at June 30, 2005. The
allowance for credit losses increased to 1.43 percent of loans and leases at
September 30, 2005, from 1.38 percent of loans and leases at September 30, 2004
and 1.29 percent of loans and leases at June 30, 2005.
Patterson added, "Although the impact of Hurricane Katrina on our third quarter
results is somewhat less than projected in our October 3rd press release, $0.10
per diluted share versus $0.115 per diluted share, it is important to note that
we will continue to assess the impact of the hurricane on our operations and on
our customers. In addition, because of extending customer loan payment dates in
the wake of the hurricane as part of our hurricane relief efforts, none of the
loans associated with the hurricane-related increase in our provision of credit
losses are included in non-performing loans and leases at the end of the third
quarter. The aggregate impact of the storm on our financial condition and
results of operations may not be known for some time and must be measured by the
extent of the damage to our properties, the extent of damage to the properties
of our customers, including property pledged to the bank as collateral,
uncertainty regarding the final settlement of insurance claims, the impact of
government and other forms of assistance, and the uncertainty regarding the
expected rate of economic recovery in the region affected by Hurricane Katrina."
Noninterest Revenue
Noninterest revenue increased 13.8 percent to $48.2 million for the third
quarter of 2005 compared with $42.3 million for the third quarter of 2004,
primarily due, as discussed above, to the positive $2.8 million impact from the
recovery of a previously recorded impairment of the MSA for the third quarter of
2005 compared with the negative $2.2 million impact from impairment to the MSA
for the third quarter of 2004. Excluding these items, noninterest revenue
increased 1.9 percent for the third quarter of 2005 from the third quarter of
2004.
Patterson commented, "We believe the impact of Hurricane Katrina is primarily
responsible for the reduced growth in noninterest revenue, excluding MSA
changes, for the third quarter, which is significantly below the growth in
noninterest revenues, excluding MSA changes, for the first nine months of 2005
compared with the same period in 2004. In addition, we experienced a slowing in
our overall insurance business in the last month of the quarter, especially in
the hurricane affected areas."
Noninterest Expense
Noninterest expense increased 5.3 percent to $89.5 million for the third quarter
of 2005 from $85.0 million for the third quarter of 2004 and declined 1.2
percent from $90.6 million for the second quarter of 2005. The
comparable-quarter growth in noninterest expense for the third quarter primarily
reflected the additional salaries and employee benefits expense from operating
the Brentwood, Tennessee, and Baton Rouge, Louisiana, banks that were acquired
in December
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BXS Announces Third-Quarter Results
Page 5
October 19, 2005
2004, increased occupancy costs related to the opening of new offices and
expenses discussed above related to Hurricane Katrina.
Capital Management
BancorpSouth repurchased 97,400 shares of its common stock during the third
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 10.7 million
shares of its common stock as of September 30, 2005, or approximately 13 percent
of the shares outstanding when the original share repurchase program was
initiated in 2001. BancorpSouth will continue to evaluate additional share
repurchases under the April 2005 plan, which authorizes these repurchases during
a two-year period expiring April 30, 2007.
Summary
Patterson concluded, "In the quarters ahead, we have little doubt that our
results will continue to be affected because of the devastation wrought by
Hurricane Katrina to one of our strongest markets. However, we are equally
optimistic the fundamental strengths that have supported the successful growth
of our Company - our strong financial position, high credit quality,
conservative lending and investment strategies, and the deep involvement of our
veteran employees in their local communities - will now support our integral
involvement in the recovery and renewal of the Gulf Coast. Because these
fundamental strengths remain the hallmark characteristics of BancorpSouth, we
remain confident that Hurricane Katrina, despite its short-term impact, has not
significantly affected our ability to produce long-term profitable growth and
increased shareholder value. Furthermore, the Gulf Coast itself has the
potential for long-term positive economic growth as reinvestment and community
development are expected to be strong stimuli."
Conference Call
BancorpSouth will conduct a conference call to discuss its third quarter results
today, October 19, 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 rate volatility, the impact of Hurricane
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BXS Announces Third-Quarter Results
Page 6
October 19, 2005
Katrina, adjusted earnings, the ability of BancorpSouth to obtain additional
reliable information in areas affected by Hurricane Katrina, the amount and
timing of general aid to areas affected by Hurricane Katrina, the final
settlement of insurance claims in areas affected by Hurricane Katrina,
noninterest revenue, asset/liability mix, loan demand, loan quality, loan
volume, loan and deposit growth, insurance business, allowance for credit
losses, net interest revenue, the economic and operating environment, common
stock repurchase plan, 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, the rate of economic
recovery in the region affected by Hurricane Katrina, changes in economic
conditions and government fiscal and monetary policies, fluctuations in
prevailing interest rates and the ability of BancorpSouth to manage its assets
and liabilities to limit exposure to changing interest rates, the ability of
BancorpSouth to increase noninterest revenue and expand noninterest revenue
business, the ability of BancorpSouth to 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, 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 $11.1 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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BANCORPSOUTH, INC.
SELECTED FINANCIAL DATA
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------- -------------------------
2005 2004 2005 2004
------------ ----------- ----------- -----------
(Dollars in thousands, except per share amounts)
EARNINGS SUMMARY:
Net interest revenue $ 88,441 $ 82,958 $ 263,288 $ 250,124
Provision for credit losses 14,725 3,530 22,492 12,381
Noninterest revenue 48,163 42,327 145,105 139,784
Noninterest expense 89,513 84,980 269,777 255,016
------------ ----------- ----------- -----------
Income before income taxes 32,366 36,775 116,124 122,511
Income tax provision 9,507 9,187 35,730 36,484
------------ ----------- ----------- -----------
Net income $ 22,859 $ 27,588 $ 80,394 $ 86,027
============ =========== =========== ===========
Earning per share: Basic $ 0.29 $ 0.36 $ 1.03 $ 1.12
============ =========== =========== ===========
Diluted $ 0.29 $ 0.36 $ 1.02 $ 1.11
============ =========== =========== ===========
BALANCE SHEET DATA AT SEPTEMBER 30:
Total assets $11,065,258 $10,608,150
Total earning assets 10,093,364 9,767,438
Loans and leases, net of unearned interest 7,091,063 6,512,969
Allowance for credit losses 101,067 90,100
Total deposits 9,221,267 8,843,239
Common shareholders' equity 940,878 875,142
Book value per share 12.02 11.44
AVERAGE BALANCE SHEET DATA:
Total assets $ 10,892,408 $10,582,191 $10,853,207 $10,550,174
Total earning assets 9,964,477 9,751,609 9,925,937 9,752,694
Loans and leases, net of unearned interest 7,070,963 6,460,163 6,979,161 6,340,868
Total deposits 9,045,611 8,825,726 9,034,266 8,804,805
Common shareholders' equity 934,915 859,514 926,098 871,192
NON-PERFORMING ASSETS AT SEPTEMBER 30:
Non-accrual loans and leases $ 8,103 $ 13,843
Loans and leases 90+ days past due 13,539 20,675
Restructured loans and leases 2,240 2,164
Other real estate owned 15,357 19,413
Net charge-offs as a percentage
of average loans (annualized) 0.27% 0.25% 0.25% 0.30%
PERFORMANCE RATIOS (ANNUALIZED)
Return on average assets 0.83% 1.04% 0.99% 1.09%
Return on common equity 9.70% 12.77% 11.61% 13.19%
Net interest margin 3.61% 3.48% 3.64% 3.52%
Average shares outstanding - basic 78,223,549 76,582,689 78,216,092 77,104,518
Average shares outstanding - diluted 78,570,139 76,978,834 78,559,901 77,515,403
BANCORPSOUTH, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
September 30,
-------------------------- %
2005 2004 Change
------------------------------------
(In thousands)
Assets
Cash and due from banks $ 370,403 $ 304,389 21.69%
Interest bearing deposits with other banks 15,431 35,090 (56.02%)
Held-to-maturity securities, at amortized cost 1,255,874 1,384,061 (9.26%)
Available-for-sale securities, at fair value 1,455,856 1,758,945 (17.23%)
Trading securities, at fair value 1,983 - N/A
Federal funds sold and securities
purchased under agreement to resell 194,186 7,180 N/A
Loans and leases 7,122,212 6,543,720 8.84%
Less: Unearned interest (31,149) (30,751) 1.29%
Allowance for credit losses (101,067) (90,100) 12.17%
------------ ------------
Net loans and leases 6,989,996 6,422,869 8.83%
Loans held for sale 78,970 69,194 14.13%
Premises and equipment, net 240,141 224,685 6.88%
Accrued interest receivable 71,046 67,849 4.71%
Goodwill 109,239 64,164 70.25%
Other assets 282,133 269,724 4.60%
------------ ------------
Total Assets $ 11,065,258 $ 10,608,150 4.31%
============ ============
Liabilities
Deposits:
Demand: Noninterest bearing $ 1,643,309 $ 1,343,698 22.30%
Interest bearing 2,902,527 2,653,386 9.39%
Savings 711,909 772,159 (7.80%)
Other time 3,963,522 4,073,996 (2.71%)
------------ ------------
Total deposits 9,221,267 8,843,239 4.27%
Federal funds purchased and
securities sold under agreement
to repurchase 499,552 496,647 0.58%
Accrued interest payable 25,821 19,330 33.58%
Junior subordinated debt securities 138,145 128,866 7.20%
Long-term debt 137,594 137,500 0.07%
Other liabilities 102,001 107,426 (5.05%)
------------ ------------
Total Liabilities 10,124,380 9,733,008 4.02%
Shareholders' Equity
Common stock 195,685 191,278 2.30%
Capital surplus 84,456 45,440 85.86%
Accumulated other comprehensive income (loss) (10,313) 6,724 N/A
Retained earnings 671,050 631,700 6.23%
------------ ------------
Total Shareholders' Equity 940,878 875,142 7.51%
------------ ------------
Total Liabilities & Shareholders' Equity $ 11,065,258 $ 10,608,150 4.31%
============ ============
BANCORPSOUTH, INC.
Consolidated Condensed Statements of Income
(dollars in thousands, except per share data)
(Unaudited)
Quarter Ended Year To Date
-------------------------------------------------- ----------------------
Sep 2005 Jun 2005 Mar 2005 Dec 2004 Sep 2004 Sep 2005 Sep 2004
--------- --------- --------- -------- -------- ---------- ---------
INTEREST REVENUE:
Loans and leases $ 115,800 $ 109,874 $ 103,805 $ 96,666 $ 93,759 $ 329,479 $ 277,367
Deposits with other banks 166 139 111 135 102 417 518
Federal funds sold and securities purchased
under agreement to resell 1,061 197 391 272 111 1,649 922
Held-to-maturity securities:
Taxable 9,160 9,452 9,766 10,812 12,020 28,377 34,922
Tax-exempt 1,667 1,557 1,598 1,621 1,693 4,822 5,183
Available-for-sale securities:
Taxable 11,761 12,765 13,745 14,516 14,691 38,271 45,688
Tax-exempt 1,481 1,491 1,677 1,584 1,613 4,649 5,022
Loans held for sale 686 571 1,018 649 517 2,275 1,752
--------- --------- --------- -------- -------- ---------- ---------
Total interest revenue 141,782 136,046 132,111 126,255 124,506 409,939 371,374
--------- --------- --------- -------- -------- ---------- ---------
INTEREST EXPENSE:
Deposits 44,790 40,432 37,905 36,103 35,198 123,127 103,031
Fed funds purchased and securities sold
under agreement to repurchase 3,692 2,590 2,161 1,726 1,336 8,443 3,499
Other 4,859 5,307 4,916 4,758 5,014 15,081 14,720
--------- --------- --------- -------- -------- ---------- ---------
Total interest expense 53,341 48,329 44,982 42,587 41,548 146,651 121,250
--------- --------- --------- -------- -------- ---------- ---------
Net interest revenue 88,441 87,717 87,129 83,668 82,958 263,288 250,124
Provision for credit losses 14,725 2,980 4,787 5,104 3,530 22,492 12,381
--------- --------- --------- -------- -------- ---------- ---------
Net interest revenue, after provision
for credit losses 73,716 84,737 82,342 78,564 79,428 240,796 237,743
--------- --------- --------- -------- -------- ---------- ---------
NONINTEREST REVENUE:
Mortgage lending 4,207 (2,453) 5,628 2,041 (672) 7,382 9,552
Service charges 15,860 16,411 14,726 15,533 15,965 46,997 46,340
Trust income 2,161 2,004 1,889 2,111 2,059 6,054 5,587
Security gains, net 20 371 70 (1,484) 146 461 822
Insurance commissions 14,830 14,425 15,932 14,282 14,366 45,187 42,056
Other 11,085 12,264 15,674 11,253 10,463 39,024 35,427
--------- --------- --------- -------- -------- ---------- ---------
Total noninterest revenue 48,163 43,022 53,919 43,736 42,327 145,105 139,784
--------- --------- --------- -------- -------- ---------- ---------
NONINTEREST EXPENSES:
Salaries and employee benefits 52,173 52,578 53,240 50,852 49,176 157,992 147,840
Occupancy, net of rental income 6,751 6,841 6,412 6,649 6,264 20,004 18,303
Equipment 5,501 5,637 5,449 5,329 5,390 16,588 16,486
Other 25,088 25,519 24,587 25,098 24,150 75,193 72,387
--------- --------- --------- -------- -------- ---------- ---------
Total noninterest expenses 89,513 90,575 89,688 87,928 84,980 269,777 255,016
--------- --------- --------- -------- -------- ---------- ---------
Income before income taxes 32,366 37,184 46,573 34,372 36,775 116,124 122,511
Income tax expense 9,507 11,394 14,829 9,778 9,187 35,730 36,484
--------- --------- --------- -------- -------- ---------- ---------
Net income $ 22,859 $ 25,790 $ 31,744 $ 24,594 $ 27,588 $ 80,394 $ 86,027
========= ========= ========= ======== ======== ========== =========
Net income per share: Basic $ 0.29 $ 0.33 $ 0.41 $ 0.32 $ 0.36 $ 1.03 $ 1.12
========= ========= ========= ======== ======== ========== =========
Diluted $ 0.29 $ 0.33 $ 0.40 $ 0.32 $ 0.36 $ 1.02 $ 1.11
========= ========= ========= ======== ======== ========== =========
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended
September 30, 2005
----------------------------------
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
------------ --------- ------
ASSETS
Loans, loans held for sale, and leases
net of unearned interest $ 7,134,292 $ 117,099 6.51%
Held-to-maturity securities:
Taxable 1,055,292 9,160 3.44%
Tax-exempt 143,832 2,565 7.08%
Available-for-sale securities:
Taxable 1,371,425 11,761 3.40%
Tax-exempt 127,041 2,278 7.12%
Short-term investments 132,595 1,228 3.67%
----------- ---------
Total interest earning
assets and revenue 9,964,477 144,091 5.74%
Other assets 1,023,258
Less: allowance for credit losses (95,327)
------------
Total $ 10,892,408
============
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $ 2,843,192 $ 10,673 1.49%
Savings 718,875 1,458 0.80%
Other time 3,978,600 32,659 3.26%
Short-term borrowings 519,901 3,757 2.87%
Junior subordinated debt 138,145 2,781 7.99%
Long-term debt 137,716 2,013 5.80%
------------ ---------
Total interest bearing
liabilities and expense 8,336,429 53,341 2.54%
Demand deposits -
noninterest bearing 1,504,944
Other liabilities 116,120
------------
Total liabilities 9,957,493
Shareholders' equity 934,915
------------
Total $ 10,892,408
============
---------
Net interest revenue $ 90,750
=========
Net interest margin 3.61%
Net interest rate spread 3.20%
Interest bearing liabilities to
interest earning assets 83.66%
Net interest tax equivalent adjustment $ 2,309
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended
September 30, 2004
----------------------------------
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
------------ --------- ------
ASSETS
Loans, loans held for sale, and leases
net of unearned interest $ 6,509,800 $ 94,804 5.79%
Held-to-maturity securities:
Taxable 1,301,470 12,020 3.67%
Tax-exempt 144,936 2,604 7.15%
Available-for-sale securities:
Taxable 1,616,975 14,691 3.61%
Tax-exempt 145,919 2,482 6.77%
Short-term investments 32,509 213 2.61%
------------ ---------
Total interest earning assets and
revenue 9,751,609 126,814 5.17%
Other assets 921,768
Less: allowance for credit losses (91,186)
------------
Total $ 10,582,191
============
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $ 2,661,627 $ 6,171 0.92%
Savings 780,567 1,479 0.75%
Other time 4,078,551 27,549 2.69%
Short-term borrowings 524,659 1,670 1.27%
Junior subordinated debt 128,866 2,626 8.11%
Long-term debt 137,614 2,054 5.94%
------------ ---------
Total interest bearing liabilities
and expense 8,311,884 41,548 1.99%
Demand deposits - noninterest bearing 1,304,983
Other liabilities 105,810
------------
Total liabilities 9,722,677
Shareholders' equity 859,514
------------
Total $ 10,582,191
============
---------
Net interest revenue $ 85,266
=========
Net interest margin 3.48%
Net interest rate spread 3.18%
Interest bearing liabilities to
interest earning assets 85.24%
Net interest tax equivalent adjustment $ 2,308
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Year To Date
September 30, 2005
----------------------------------
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
------------ --------- ------
ASSETS
Loans, loans held for sale, and leases
net of unearned interest $ 7,049,618 $ 333,488 6.32%
Held-to-maturity securities:
Taxable 1,073,473 28,378 3.53%
Tax-exempt 139,909 7,418 7.09%
Available-for-sale securities:
Taxable 1,449,220 38,271 3.53%
Tax-exempt 132,451 7,153 7.22%
Short-term investments 81,266 2,065 3.40%
------------ ---------
Total interest earning assets and
revenue 9,925,937 416,773 5.61%
Other assets 1,020,612
Less: allowance for credit losses (93,342)
------------
Total $ 10,853,207
============
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $ 2,835,907 $ 27,250 1.28%
Savings 744,098 4,516 0.81%
Other time 3,988,451 91,361 3.06%
Short-term borrowings 500,855 9,164 2.45%
Junior subordinated debt 138,145 8,307 8.04%
Long-term debt 138,087 6,053 5.86%
------------ ---------
Total interest bearing liabilities
and expense 8,345,543 146,651 2.35%
Demand deposits - noninterest bearing 1,465,810
Other liabilities 115,756
------------
Total liabilities 9,927,109
Shareholders' equity 926,098
------------
Total $ 10,853,207
============
---------
Net interest revenue $ 270,122
=========
Net interest margin 3.64%
Net interest rate spread 3.26%
Interest bearing liabilities to
interest earning assets 84.08%
Net interest tax equivalent adjustment $ 6,834
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Year To Date
September 30, 2004
----------------------------------
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
------------ --------- ------
ASSETS
Loans, loans held for sale, and leases
net of unearned interest $ 6,400,120 $ 280,687 5.86%
Held-to-maturity securities:
Taxable 1,214,775 34,923 3.84%
Tax-exempt 147,506 7,972 7.22%
Available-for-sale securities:
Taxable 1,692,356 45,684 3.61%
Tax-exempt 154,596 7,726 6.68%
Short-term investments 143,341 1,441 1.34%
------------ ---------
Total interest earning assets
and revenue 9,752,694 378,433 5.18%
Other assets 889,244
Less: allowance for credit losses (91,764)
------------
Total $ 10,550,174
============
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $ 2,677,259 $ 17,629 0.88%
Savings 784,894 4,194 0.71%
Other time 4,067,648 81,208 2.67%
Short-term borrowings 489,379 4,167 1.14%
Junior subordinated debt 128,866 7,877 8.16%
Long-term debt 137,949 6,175 5.98%
------------ ---------
Total interest bearing
liabilities and expense 8,285,995 121,250 1.95%
Demand deposits -
noninterest bearing 1,275,004
Other liabilities 117,983
------------
Total liabilities 9,678,982
Shareholders' equity 871,192
------------
Total $ 10,550,174
============
---------
Net interest revenue $ 257,183
=========
Net interest margin 3.52%
Net interest rate spread 3.23%
Interest bearing liabilities to
interest earning assets 84.96%
Net interest tax equivalent adjustment $ 7,059
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
September 30,
---------------------------
2005 2004
----------- -----------
Earnings - GAAP basis (a) $ 22,859 $ 27,588
Impact on earnings related to Hurricane Katrina 7,903 -
----------- -----------
Adjusted earnings (b) $ 30,762 $ 27,588
=========== ===========
Earnings per diluted share - GAAP basis $ 0.29 $ 0.36
=========== ===========
Adjusted earnings per diluted share (b) $ 0.39 $ 0.36
=========== ===========
Diluted shares used in computing per share amounts:
Earnings per share 78,570,139 76,978,834
Adjusted earnings per share 78,570,139 76,978,834
- -----------
(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 the impact on earnings related to Hurricane Katrina. 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 measure of other
companies.
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
September 30,
------------------------------
2005 2004
------------ ------------
Earnings - GAAP basis (a) $ 22,859 $ 27,588
Mortgage servicing asset expense (recovery), net of tax (1,724) 1,387
Impact on earnings related to Hurricane Katrina, net of tax 7,903 -
Impact of effective tax rate change - (1,614)
------------ ------------
Adjusted earnings (b) $ 29,038 $ 27,361
============ ============
Earnings per diluted share - GAAP basis $ 0.29 $ 0.36
============ ============
Adjusted earnings per diluted share (b) $ 0.37 $ 0.36
============ ============
Diluted shares used in computing per share amounts:
Earnings per share 78,570,139 76,978,834
Adjusted earnings per share 78,570,139 76,978,834
- --------
(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, the impact on earnings related to
Hurricane Katrina and the impact of the effective tax rate change.
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.