EXHIBIT 99.1
------------
[BANCORPSOUTH GRAPHIC]
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 A 17.5 PERCENT INCREASE IN EARNINGS PER DILUTED
SHARE TO $0.47 FOR THE FIRST QUARTER OF 2006
TUPELO, Miss., April 20, 2006 /PRNewswire-FirstCall via COMTEX/ -- BancorpSouth,
Inc. (NYSE: BXS) today announced financial results for the first quarter ended
March 31, 2006.
Highlights of the first quarter of 2006 included:
o Growth of 17.5 percent in earnings per diluted share to $0.47 for the
first quarter of 2006 from $0.40 for the first quarter of 2005.
o The expansion of the Company's net interest margin for the first
quarter to 3.73 percent from 3.64 percent for each of the first and
fourth quarters of 2005.
o The third consecutive quarter of double-digit growth in demand
deposits, which increased 11.8 percent for the first quarter from the
first quarter of 2005 and which included 19.1 percent growth in
non-interest bearing demand deposits.
o The ninth consecutive comparable quarterly improvement in
non-performing loans and a $4.8 million reduction of the allowance for
credit losses related to Hurricane Katrina recorded in the third
quarter of 2005.
o A return to high single-digit growth in insurance commissions, up 9.5
percent for the first quarter compared with the first quarter of 2005,
after two consecutive quarters in which growth was significantly
affected by the impact of Hurricane Katrina.
First Quarter 2006 Summary Results
BancorpSouth's net income increased 18.9 percent for the first quarter of 2006
to $37.7 million from $31.7 million for the first quarter of 2005. Net income
per diluted share for the first quarter of 2006 increased 17.5 percent to $0.47
from $0.40 for the first quarter of 2005.
Aubrey Patterson, Chairman and Chief Executive Officer of BancorpSouth,
remarked, "We achieved a strong beginning to 2006 with our first quarter
operating and financial results. Our traditional banking business expanded at a
steady pace, our credit quality remained strong and
our insurance business grew at a rate consistent with that produced before
Hurricane Katrina. As time has passed, we have also found that the impact of the
hurricane on our customers was less than originally estimated and therefore, our
results for the first quarter of 2006 reflect a $4.8 million reduction in the
previous allowance for credit losses related to Hurricane Katrina, originally
recorded in the third quarter of 2005. In addition, our results for the first
quarter of 2006 included $1.9 million less in mortgage revenue related to
changes in the value of our mortgage servicing asset from which we benefited in
the first quarter of 2005."
Net Interest Revenue
Interest revenue for the first quarter of 2006 increased 21.0 percent, or $27.8
million, to $159.9 million from $132.1 million for the first quarter of 2005 and
6.6 percent from $150.0 million for the fourth quarter of 2005. Interest expense
increased 42.2 percent, or $19.0 million, to $64.0 million for the first quarter
of 2006 from $45.0 million for the first quarter of 2005 and 10.8 percent from
$57.7 million for the fourth quarter of 2005.
The average taxable equivalent yield on earning assets increased to 6.16 percent
for the first quarter of 2006 from 5.48 percent for the first quarter of 2005
and 5.86 percent for the fourth quarter of 2005. The average rate paid on
interest bearing liabilities was 2.91 percent for the first quarter of 2006,
compared with 2.17 percent for the first quarter of 2005 and 2.69 percent for
the fourth quarter of 2005.
Net interest revenue increased 10.1 percent to $95.9 million for the first
quarter of 2006 from $87.1 million for the first quarter of 2005 and 4.0 percent
from $92.3 million for the fourth quarter of 2005. Net interest margin was 3.73
percent for the first quarter of 2006 compared with 3.64 percent for both the
first quarter of 2005 and the fourth quarter of 2005.
"We continue to be pleased with our asset/liability management performance
which, in a challenging interest rate environment, again produced an increase in
our net interest margin for the first quarter of 2006," added Patterson. "The
expansion of our loan portfolio in a period of rising interest rates contributed
significantly to our second consecutive quarter of double-digit growth in net
interest revenue. In addition to loan growth, however, the increase in our net
interest margin reflects our ability to continue funding our loan growth
primarily with lower-cost demand deposits. Also, our conservative stance on
maturities in our investment portfolio has enabled us to improve our average
taxable yield on earning assets by investing funds from maturing securities in
higher rate loans or new higher rate short- and intermediate-term investments."
Deposit and Loan Activity
Total assets at March 31, 2006 increased 9.8 percent to $11.9 billion from $10.8
billion at March 31, 2005. Total deposits grew 7.9 percent to $9.8 billion at
March 31, 2006 from $9.1 billion at March 31, 2005. Loans and leases, net of
unearned interest, increased 7.1 percent to $7.4 billion at March 31, 2006 from
$6.9 billion at March 31, 2005.
Patterson said, "BancorpSouth produced solid growth in loans for the first
quarter of 2006, reflecting steady growth in national and regional economies. We
expect that, as recently opened
loan production offices in Fayetteville, Arkansas, Gulf Shores and Huntsville,
Alabama, and Tyler, Texas ramp up their operations, they will support further
loan growth in an improving economy. We also continued to generate substantial
growth in our demand deposits, which increased 11.8 percent for the first
quarter of 2006. As a component of this growth, non-interest bearing demand
deposits have now increased at a rate in excess of 19 percent for the third
consecutive comparable quarter. The expansion in loans and deposits for the
first quarter of 2006 reflected a combination of organic growth and the
acquisition of American State Bank in Jonesboro, Arkansas in December 2005."
Provision for Credit Losses and Allowance for Credit Losses
For the first quarter of 2006, a negative provision for credit losses of $3.9
million was recorded compared with a provision for credit losses of $4.8 million
for the first quarter of 2005 and $2.0 million for the fourth quarter of 2005.
As previously noted, the $10.4 million allowance for credit losses recorded in
the third quarter of 2005 relating to the impact of Hurricane Katrina was
reduced by $4.8 million in the first quarter of 2006, as contacts with many
customers have been re-established and losses related to loans in the impacted
area are not expected to be as great as originally anticipated immediately
following the hurricane. Excluding this reduction, the provision for credit
losses would have been $0.9 million for the first quarter of 2006, an 81.0
percent reduction from the first quarter of 2005. Annualized net charge-offs
were 0.09 percent of average loans and leases for the first quarter of 2006
compared with 0.22 percent for the first quarter of 2005 and 0.16 percent for
the fourth quarter of 2005.
Non-performing loans and leases declined 18.7 percent to $26.0 million, or 0.35
percent of loans and leases, at March 31, 2006, from $32.0 million, or 0.46
percent of loans and leases, at March 31, 2005, and improved 9.7 percent from
$28.8 million, or 0.39 percent of loans and leases, at December 31, 2005. The
allowance for credit losses was 1.30 percent of loans and leases at March 31,
2006, compared with 1.34 percent of loans and leases at March 31, 2005 and 1.38
percent of loans and leases at December 31, 2005.
Patterson continued, "While we were certainly pleased to reduce the first
quarter provision for credit losses because of the positive impact this had on
our financial results, we are also grateful that the reason for the reduction is
that the financial impact on our customers as a result of Hurricane Katrina now
appears less than originally feared. In addition to the impact of the reduction,
we believe our first-quarter results demonstrate that we have continued to
enhance our strong credit quality. As a result of the ninth consecutive
comparable-quarter improvement in non-performing loans and a single-digit
annualized net charge-off percentage, our coverage ratios have continued to
strengthen. At the end of the first quarter of 2006, our reserve coverage, or
allowance for credit losses to non-performing loans and leases, increased to 369
percent from 352 percent at the end of 2005. Although the full impact of
Hurricane Katrina on our financial condition and results of operations may not
be known for some time, we intend for our high credit quality to remain a
defining strength of BancorpSouth."
Noninterest Revenue
Noninterest revenue was $52.8 million for the first quarter of 2006, down 2.1
percent from $53.9 million for the first quarter of 2005. As previously noted,
these results include the impact of a
$1.9 million net decrease in mortgage revenue related to changes in the value of
BancorpSouth's mortgage servicing asset for the first quarter of 2006 compared
with the first quarter of 2005. In addition, consistent with the past, the
Company sold its accumulated inventory of government-guaranteed student loans,
producing a $2.4 million gain for the first quarter of 2006 compared with a $2.5
million gain for the first quarter of 2005. Results for the first quarter of
2005 also benefited from a $1.7 million gain on the sale of the Company's
membership in an electronic banking network.
"The highlight of our noninterest revenue performance for the first quarter of
2006 was the 9.5 percent growth produced in insurance commission revenue
compared with the first quarter last year," stated Patterson. "This growth,
which is consistent with the 9.6 percent revenue increase produced for the first
half of 2005 prior to Hurricane Katrina, reflects the continuing potential of
this business to produce significant organic growth. Because this business is a
key element of our strategy to increase noninterest revenue as a percentage of
net interest revenue, we will continue to focus on both opportunities for
organic growth within this business, as well as growth through expansion or
acquisition within or contiguous to our existing six-state franchise."
Noninterest Expense
Noninterest expense increased 7.0 percent to $96.0 million for the first quarter
of 2006 from $89.7 million for the first quarter of 2005 and increased 4.0
percent from $92.3 million for the fourth quarter of 2005. The growth in
noninterest expense primarily resulted from additional salaries and employee
benefits associated with the acquisitions of three bank holding companies since
late December 2004 and increased occupancy costs from opening new offices during
2005 and 2006 to date.
Capital Management
BancorpSouth repurchased 125,000 shares of its common stock during the first
quarter of 2006 under the stock repurchase plan authorized in April 2005 for the
repurchase of up to 3 million shares. With 465,500 shares repurchased under this
plan through the end of the first quarter of 2006 combined with the shares
repurchased under earlier plans, BancorpSouth had repurchased approximately 11.0
million shares of its common stock as of March 31, 2006, 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 our second quarter news release issued in July 2005, we
discussed the Company's ability to leverage the steady recovery of the
traditional banking business to grow within existing and new markets. Now,
nearly seven months after the landfall of Hurricane Katrina, conditions are
again favorable for the Company to pursue opportunities presented by sustained
economic growth. Within the context of our conservative lending, credit and
operating philosophies, we are committed to the continuing expansion of our
interest and noninterest revenue streams within existing and new markets in our
current geographic footprint. We will also continue to evaluate acquisitions in
states in which we currently conduct business and
contiguous states that would contribute to achieving our financial and operating
objectives for 2006."
Conference Call
BancorpSouth will conduct a conference call to discuss its first quarter results
tomorrow, April 21, 2006, 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 the contribution of our new loan production offices to expanding our loan
markets, the magnitude of loan-related losses in the area impacted by Hurricane
Katrina, the aggregate impact of Hurricane Katrina on our financial condition
and results of operation, our high credit quality remaining a defining strength,
our focus on opportunities for organic growth or growth through expansion or
acquisition and purchases 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 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, the ability of
BancorpSouth to obtain additional reliable information 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 maintain
credit quality, changes in laws and regulations affecting financial service
companies in general, the ability of BancorpSouth to compete with other
financial services companies, the ability of BancorpSouth to provide and market
competitive services and products, changes in BancorpSouth's operating or
expansion strategy, geographic concentration of BancorpSouth's assets, the
ability of BancorpSouth to manage its growth and effectively serve an expanding
customer and market base, the ability of BancorpSouth to achieve profitable
growth and increase shareholder value, the ability of BancorpSouth to attract,
train and retain qualified personnel, the ability of BancorpSouth to repurchase
its common stock on favorable terms, the ability of BancorpSouth to leverage
opportunities, the ability of BancorpSouth to identify, close and effectively
integrate 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 $11.9 billion in assets. BancorpSouth Bank, a
wholly-owned subsidiary of BancorpSouth, Inc., operates approximately 270
commercial banking, insurance, trust and broker/dealer locations in Alabama,
Arkansas, Louisiana, Mississippi, Tennessee and Texas.
BANCORPSOUTH, INC.
SELECTED FINANCIAL DATA
<Table>
<Caption>
Three Months Ended
March 31,
-----------------------------
2006 2005
------------ ------------
(Dollars in thousands, except per share amounts)
EARNINGS SUMMARY:
Net interest revenue $ 95,929 $ 87,129
Provision for credit losses (3,860) 4,787
Noninterest revenue 52,770 53,919
Noninterest expense 96,008 89,688
------------ ------------
Income before income taxes 56,551 46,573
Income tax provision 18,806 14,829
------------ ------------
Net income $ 37,745 $ 31,744
============ ============
Earning per share: Basic $ 0.48 $ 0.41
============ ============
Diluted $ 0.47 $ 0.40
============ ============
BALANCE SHEET DATA AT MARCH 31:
Total assets $ 11,889,916 $ 10,829,104
Total earning assets 10,779,583 9,881,109
Loans and leases, net of unearned income 7,395,287 6,907,387
Allowance for credit losses 96,017 92,706
Total deposits 9,793,203 9,079,407
Common shareholders' equity 997,565 921,516
Book value per share 12.59 11.78
AVERAGE BALANCE SHEET DATA:
Total assets $ 11,764,310 $ 10,878,800
Total earning assets 10,684,683 9,954,549
Loans and leases, net of unearned income 7,371,764 6,874,571
Total deposits 9,706,317 9,094,507
Common shareholders' equity 973,891 918,538
NON-PERFORMING ASSETS AT MARCH 31:
Non-accrual loans and leases $ 10,157 $ 13,184
Loans and leases 90+ days past due 13,661 16,622
Restructured loans and leases 2,197 2,182
Other real estate owned 12,012 15,754
Net charge-offs as a percentage
of average loans (annualized) 0.09% 0.22%
PERFORMANCE RATIOS (ANNUALIZED):
Return on average assets 1.30% 1.18%
Return on common equity 15.72% 14.02%
Net interest margin 3.73% 3.64%
Average shares outstanding - basic 79,212,313 78,204,212
Average shares outstanding - diluted 79,541,988 78,518,145
</Table>
BANCORPSOUTH, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
<Table>
<Caption>
March 31,
------------------------------ %
2006 2005 Change
------------ ------------ --------
(Dollars in thousands)
Assets
Cash and due from banks $ 386,543 $ 340,930 13.38%
Interest bearing deposits with other banks 6,809 18,329 (62.85%)
Held-to-maturity securities, at amortized
cost 1,777,923 1,203,910 47.68%
Available-for-sale securities, at fair value 1,336,745 1,622,194 (17.60%)
Trading securities, at fair value -- 167 (100.00%)
Federal funds sold and securities
purchased under agreement to resell 224,298 85,075 163.65%
Loans and leases 7,433,156 6,936,119 7.17%
Less: Unearned income (37,869) (28,732) 31.80%
Allowance for credit losses (96,017) (92,706) 3.57%
------------ ------------
Net loans and leases 7,299,270 6,814,681 7.11%
Loans held for sale 38,521 44,047 (12.55%)
Premises and equipment, net 270,605 235,736 14.79%
Accrued interest receivable 85,616 67,366 27.09%
Goodwill 139,335 104,871 32.86%
Other assets 324,251 291,798 11.12%
------------ ------------
Total Assets $ 11,889,916 $ 10,829,104 9.80%
============ ============
Liabilities
Deposits:
Demand: Noninterest bearing $ 1,790,418 $ 1,503,523 19.08%
Interest bearing 3,071,176 2,843,824 7.99%
Savings 771,933 767,778 0.54%
Other time 4,159,676 3,964,282 4.93%
------------ ------------
Total deposits 9,793,203 9,079,407 7.86%
Federal funds purchased and
securities sold under agreement
to repurchase 643,401 431,339 49.16%
Other short-term borrowings -- 2,000 (100.00%)
Accrued interest payable 28,492 19,674 44.82%
Junior subordinated debt securities 144,847 138,145 4.85%
Long-term debt 136,857 138,308 (1.05%)
Other liabilities 145,551 98,715 47.45%
----------- -----------
Total Liabilities 10,892,351 9,907,588 9.94%
Shareholders' Equity
Common stock 198,018 195,640 1.22%
Capital surplus 110,000 82,750 32.93%
Accumulated other comprehensive income
(loss) (16,904) (11,102) 52.26%
Retained earnings 706,451 654,228 7.98%
------------ ------------
Total Shareholders' Equity 997,565 921,516 8.25%
------------ ------------
Total Liabilities & Shareholders' Equity $ 11,889,916 $ 10,829,104 9.80%
============ ============
</Table>
BancorpSouth, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
<Table>
<Caption>
Quarter Ended
------------------------------------------------------------------------
Mar 2006 Dec 2005 Sept 2005 Jun 2005 Mar 2005
---------- ---------- ---------- ---------- ----------
INTEREST REVENUE:
Loans and leases $ 127,200 $ 121,243 $ 115,800 $ 109,874 $ 103,805
Deposits with other banks 141 177 166 139 111
Federal funds sold and securities purchased
under agreement to resell 2,846 3,052 1,061 197 391
Held-to-maturity securities:
Taxable 14,323 10,461 9,160 9,452 9,766
Tax-exempt 1,887 1,696 1,667 1,557 1,598
Available-for-sale securities:
Taxable 10,904 11,048 11,761 12,765 13,745
Tax-exempt 1,363 1,400 1,481 1,491 1,677
Loans held for sale 1,238 920 686 571 1,018
---------- ---------- ---------- ---------- ----------
Total interest revenue 159,902 149,997 141,782 136,046 132,111
---------- ---------- ---------- ---------- ----------
INTEREST EXPENSE:
Deposits 53,133 47,970 44,790 40,432 37,905
Federal funds purchased and securities sold
under agreement to repurchase 5,902 4,896 3,692 2,590 2,161
Other 4,938 4,861 4,859 5,307 4,916
---------- ---------- ---------- ---------- ----------
Total interest expense 63,973 57,727 53,341 48,329 44,982
---------- ---------- ---------- ---------- ----------
Net interest revenue 95,929 92,270 88,441 87,717 87,129
Provision for credit losses (3,860) 1,975 14,725 2,980 4,787
---------- ---------- ---------- ---------- ----------
Net interest revenue, after provision
for credit losses 99,789 90,295 73,716 84,737 82,342
---------- ---------- ---------- ---------- ----------
NONINTEREST REVENUE:
Mortgage lending 3,176 2,191 4,207 (2,453) 5,628
Service charges 15,450 15,852 15,860 16,411 14,726
Trust income 2,016 2,412 2,161 2,004 1,889
Security gains, net 10 11 20 371 70
Insurance commissions 17,445 14,411 14,830 14,425 15,932
Other 14,673 18,831 11,085 12,264 15,674
---------- ---------- ---------- ---------- ----------
Total noninterest revenue 52,770 53,708 48,163 43,022 53,919
---------- ---------- ---------- ---------- ----------
NONINTEREST EXPENSES:
Salaries and employee benefits 57,573 53,959 52,173 52,578 53,240
Occupancy, net of rental income 7,442 7,133 6,751 6,841 6,412
Equipment 5,763 5,592 5,501 5,637 5,449
Other 25,230 25,642 25,088 25,519 24,587
---------- ---------- ---------- ---------- ----------
Total noninterest expenses 96,008 92,326 89,513 90,575 89,688
---------- ---------- ---------- ---------- ----------
Income before income taxes 56,551 51,677 32,366 37,184 46,573
Income tax expense 18,806 16,871 9,507 11,394 14,829
---------- ---------- ---------- ---------- ----------
Net income $ 37,745 $ 34,806 $ 22,859 $ 25,790 $ 31,744
========== ========== ========== ========== ==========
Net income per share: Basic $ 0.48 $ 0.44 $ 0.29 $ 0.33 $ 0.41
========== ========== ========== ========== ==========
Diluted $ 0.47 $ 0.44 $ 0.29 $ 0.33 $ 0.40
========== ========== ========== ========== ==========
</Table>
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
<Table>
<Caption>
Quarter Ended
March 31, 2006
----------------------------------------
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
------------ ------------ ------
ASSETS
Loans, loans held for sale,
and leases net of unearned income $ 7,465,932 $ 129,097 7.01%
Held-to-maturity securities:
Taxable 1,457,104 14,323 3.99%
Tax-exempt 174,340 2,903 6.75%
Available-for-sale securities:
Taxable 1,201,272 10,904 3.68%
Tax-exempt 117,601 2,097 7.23%
Short-term investments 268,434 2,987 4.51%
------------ ------------
Total interest earning
assets and revenue 10,684,683 162,311 6.16%
Other assets 1,179,820
Less: allowance for credit losses (100,193)
------------
Total $ 11,764,310
============
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $ 3,085,163 $ 13,790 1.81%
Savings 749,318 1,693 0.92%
Other time 4,150,031 37,650 3.68%
Short-term borrowings 643,899 5,929 3.73%
Junior subordinated debt 144,847 2,911 8.15%
Long-term debt 136,984 2,000 5.92%
------------ ------------
Total interest bearing
liabilities and expense 8,910,242 63,973 2.91%
Demand deposits -
noninterest bearing 1,721,805
Other liabilities 158,372
------------
Total liabilities 10,790,419
Shareholders' equity 973,891
------------
Total $ 11,764,310
============
------------
Net interest revenue $ 98,338
============
Net interest margin 3.73%
Net interest rate spread 3.25%
Interest bearing liabilities to
interest earning assets 83.39%
Net interest tax equivalent
adjustment $ 2,409
</Table>
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
<Table>
<Caption>
Quarter Ended
March 31, 2005
----------------------------------------
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
------------ ------------ ------
ASSETS
Loans, loans held for sale,
and leases net of unearned income $ 6,978,063 $ 105,372 6.12%
Held-to-maturity securities:
Taxable 1,092,981 9,766 3.62%
Tax-exempt 138,331 2,458 7.21%
Available-for-sale securities:
Taxable 1,533,691 13,745 3.63%
Tax-exempt 139,157 2,580 7.52%
Short-term investments 72,326 502 2.82%
------------ ------------
Total interest earning
assets and revenue 9,954,549 134,423 5.48%
Other assets 1,016,461
Less: allowance for credit losses (92,210)
------------
Total $ 10,878,800
============
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $ 2,869,107 $ 7,815 1.10%
Savings 766,491 1,555 0.82%
Other time 4,033,129 28,536 2.87%
Short-term borrowings 464,205 2,298 2.01%
Junior subordinated debt 138,145 2,755 8.09%
Long-term debt 138,481 2,023 5.92%
------------ -----------
Total interest bearing
liabilities and expense 8,409,558 44,982 2.17%
Demand deposits -
noninterest bearing 1,425,780
Other liabilities 124,924
------------
Total liabilities 9,960,262
Shareholders' equity 918,538
------------
Total $ 10,878,800
============
------------
Net interest revenue $ 89,441
============
Net interest margin 3.64%
Net interest rate spread 3.31%
Interest bearing liabilities to
interest earning assets 84.48%
Net interest tax equivalent
adjustment $ 2,312
</Table>