8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 24, 2007 (July 23, 2007)

BANCORPSOUTH, INC.

(Exact name of registrant as specified in its charter)

Mississippi	1-12991	64-0659571
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

One Mississippi Plaza 201 South Spring Street Tupelo, Mississippi	38804
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code (662) 680-2000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 2 — Financial Information

Item 2.02. Results of Operations and Financial Condition.

          On July 23, 2007 BancorpSouth, Inc. issued a press release announcing its financial results for the second quarter ended June 30, 2007. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference in its entirety.

Section 9 — Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits.

(a) Not applicable.

(b) Not applicable.

(c) Not applicable.

(d) Exhibits.

          Exhibit 99.1 Press release issued on July 23, 2007 by BancorpSouth, Inc.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

BANCORPSOUTH, INC.
By:	/s/ L. Nash Allen, Jr.
	L. Nash Allen, Jr.
	Treasurer and Chief Financial Officer

Date: July 24, 2007

EXHIBIT INDEX

Exhibit Number		Description
	99.1	Press Release issued on July 23, 2007 by BancorpSouth, Inc.

EX-99.1

EXHIBIT 99.1

News Release

Contact: L. Nash Allen, Jr.	Gary C. Bonds
Treasurer and Chief Financial Officer	Senior Vice President and Controller
662/680-2330	662/680-2332

BancorpSouth Reports Earnings of $0.43 per Diluted Share
for Second Quarter 2007

TUPELO, Miss., July 23, 2007/PRNewswire-FirstCall via COMTEX/ — BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the second quarter ended June 30, 2007.

                 Highlights of the announcement include:

• Growth of 18.5 percent in loans and leases, net of unearned income, at the end of the second quarter from the end of the second quarter of 2006, which drove a 26.1 percent increase in comparable-quarter interest revenue from loans and leases.

• Net interest revenue of $106.7 million for the quarter, up 9.7 percent from the second quarter of 2006.

• A 12.4 percent increase in noninterest revenue for the quarter from the second quarter of 2006, which includes growth in insurance commission revenue of 19.0 percent and in mortgage lending revenue of 47.4 percent.

• Improvement in non-performing loans and leases to 0.27 percent of total loans and leases from 0.32 percent at the same date in 2006, while annualized net charge offs as a percentage of average loans improved to 0.14 percent for the quarter from 0.18 percent for the second quarter of 2006.

• The declaration of a 5.0 percent increase in the Company’s quarterly cash dividend to $0.21 per share, making 2007 the 24^th consecutive year in which the dividend has been increased.

• Adoption of a new stock repurchase plan for the repurchase of up to three million shares of the Company’s common stock during the period May 1, 2007 through April 30, 2009.

Second Quarter 2007 Summary Results

BancorpSouth’s net income for the second quarter of 2007 was $35.9 million, or $0.43 per diluted share, compared with $35.5 million, or $0.45 per diluted share, for the second quarter of

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Box 789 • Tupelo, MS 38802-0789 • (662) 680-2000
BancorpSouth, Inc.is a financial holding company.

BXS Announces Second Quarter Results
Page 2
July 23, 2007

2006. These results include the positive effect of an increase in the value of the Company’s mortgage servicing asset of $1.2 million and $0.5 million for the second quarter of 2007 and 2006, respectively. Also, the results for the second quarter of 2007 included a 32.5 percent effective tax rate as compared to a 27.4 percent effective tax rate for the second quarter of 2006. The favorable resolution of a state income tax issue during the second quarter of 2006 reduced the effective tax rate for that quarter.

“We are pleased with the Company’s operating performance for the second quarter of 2007,” remarked Aubrey Patterson, Chairman and Chief Executive Officer of BancorpSouth. “The expansion of our banking business continued to reflect the impact of the acquisition of The Signature Bank during the first quarter of 2007. In addition, our noninterest revenues benefited from significant ongoing organic growth in our insurance business and stronger loan origination activity in our mortgage lending business.”

Net Interest Revenue

Interest revenue for the second quarter of 2007 increased 21.0 percent, or $35.2 million, to $202.6 million from $167.4 million for the second quarter of 2006 and increased 8.2 percent from $187.1 million for the first quarter of 2007. Interest expense increased 36.7 percent, or $25.7 million, to $95.9 million for the second quarter of 2007 from $70.2 million for the second quarter of 2006 and 8.4 percent from $88.5 million for the first quarter of 2007.

The average taxable equivalent yield on earning assets increased to 6.94 percent for the second quarter of 2007 from 6.39 percent for the second quarter of 2006 and 6.85 percent for the first quarter of 2007. The average rate paid on interest bearing liabilities was 3.86 percent for the second quarter of 2007, compared with 3.17 percent for the second quarter of 2006 and 3.80 percent for the first quarter of 2007.

Net interest revenue increased 9.7 percent to $106.7 million for the second quarter of 2007 from $97.2 million for the second quarter of 2006 and increased 8.1 percent from $98.7 million for the first quarter of 2007. Net interest margin was 3.69 percent for the second quarter of 2007 compared with 3.75 percent for the second quarter of 2006 and 3.66 percent for the first quarter of 2007.

Patterson added, “We attribute our solid growth in net interest revenue, in spite of a decline of six basis points in net interest margin from the second quarter of 2006, both to the impact of the Signature acquisition and the successful efforts of our management team. With Signature’s operations producing a somewhat higher margin than BancorpSouth Bank, the combination of our operations produced an increase in net interest margin for the second quarter to 3.69 percent, from 3.66 percent for the first quarter of 2007. We also chose to fund the growth in loans for the second quarter with the proceeds of maturing investment securities and short-term borrowings. Consistent with our long-term operating history, we will continue to manage our mix of assets and liabilities through conservative policies designed to mitigate the impact of interest-rate volatility.”

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BXS Announces Second Quarter Results
Page 3
July 23, 2007

Deposit and Loan Activity

Total assets at June 30, 2007 increased 11.6 percent to $13.2 billion from $11.8 billion at June 30, 2006. Total deposits grew 9.2 percent to $10.4 billion at June 30, 2007 from $9.6 billion at June 30, 2006. Loans and leases, net of unearned income, increased 18.5 percent to $9.0 billion at June 30, 2007 from $7.6 billion at June 30, 2006.

“The double-digit growth in our total assets and loans compared to the second quarter last year is attributable to a combination of the Signature acquisition and solid organic growth,” said Patterson. “The underlying momentum of our organic growth is evident in the 2.6 percent growth in our loan portfolio from the first quarter of 2007. The sequential-quarter changes in our deposit base also reflect our continuing initiatives to manage our interest-rate risk as discussed above.”

Total deposits declined $222.6 million, or 2.1 percent, at the end of the second quarter of 2007 from the end of the first quarter of the year. This decline was comprised of a $127.3 million decrease in interest-bearing demand deposits, a $64.6 million decrease in savings and other time deposits and a $30.7 million decrease on non-interest-bearing deposits.

Provision for Credit Losses and Allowance for Credit Losses

For the second quarter of 2007, the provision for credit losses was $7.8 million compared with $3.6 million for the second quarter of 2006 and $1.4 million for the first quarter of 2007. Annualized net charge-offs were 0.14 percent of average loans and leases for the second quarter of 2007 compared with 0.18 percent for the second quarter of 2006 and 0.08 percent for the first quarter of 2007.

Non-performing loans and leases decreased 2.0 percent to $23.9 million, or 0.27 percent of loans and leases, at June 30, 2007, from $24.4 million, or 0.32 percent of loans and leases, at June 30, 2006, and decreased 1.2 percent from $24.2 million, or 0.28 percent of loans and leases, at March 31, 2007. The allowance for credit losses was 1.22 percent of loans and leases at June 30, 2007, compared with 1.27 percent of loans and leases at June 30, 2006 and 1.20 percent of loans and leases at March 31, 2007.

Patterson continued, “BancorpSouth’s credit quality remained strong during the second quarter of 2007, with reductions in both non-performing loans and net charge offs from the second quarter of 2006. Our loan growth for the second quarter of 2007 drove the increase in our provision for credit losses. We strongly believe that sound credit and lending policies are central to our past and future long-term success.”

Noninterest Revenue

Noninterest revenue increased 12.4 percent to $60.2 million for the second quarter of 2007 from $53.6 million for the second quarter of 2006. These results include the positive effect of an increase in each quarter in the value of the mortgage servicing asset, totaling $1.2 million for the second quarter of 2007 and $0.5 million for the same prior-year quarter.

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BXS Announces Second Quarter Results
Page 4
July 23, 2007

“The performance of our noninterest revenue businesses continued to validate their key role in our strategies for long-term growth,” commented Patterson. “Our insurance business produced its fifth consecutive quarter of double-digit increases in commission revenues, up 19.0 percent for the quarter compared to the previous quarter, with gains in all four states in which we have insurance operations. Our Mississippi and Louisiana operations continue to reflect the ongoing Hurricane Katrina recovery efforts in the region, and our new operation in Alabama, which opened in Mobile in the fourth quarter of 2006, has expanded our presence on the Gulf Coast.

“We were also pleased with the growth of our mortgage lending business, which generated revenue growth of 33.8 percent for the quarter, excluding the impact of changes in the value of the mortgage servicing asset. This growth demonstrates the continued economic vitality within markets across our broadening geographic footprint, and these services provide us an opportunity to strengthen existing customer relationships or introduce new customers to BancorpSouth.”

Noninterest Expense

Noninterest expense increased 7.7 percent to $105.9 million for the second quarter of 2007 from $98.3 million for the second quarter of 2006 and increased 0.3 percent from $105.6 million for the first quarter of 2007. The growth in noninterest expense primarily resulted from additional salaries, employee benefits and occupancy expense associated with the opening of new loan production offices and full-service branch bank offices during 2006 and 2007 to date, the launch of insurance operations in Mobile, Alabama in the fourth quarter of 2006 and the acquisition of Signature effective March 1, 2007.

Capital Management

BancorpSouth repurchased 195,000 shares of its common stock during the second quarter of 2007. Including 20,000 of the shares repurchased during the second quarter, BancorpSouth repurchased 1,006,000 shares under the stock repurchase plan that expired April 30, 2007. The Company purchased 175,000 shares during the second quarter under a new stock repurchase plan for the repurchase of up to three million shares that commenced on May 1, 2007 and expires on April 30, 2009. BancorpSouth will continue to evaluate additional share repurchase opportunities under this plan. The Company has repurchased approximately 11.7 million shares of its common stock since its original share repurchase program was initiated in 2001.

Summary

     Patterson said, “As we look to the second half of 2007, we are encouraged by steady economic growth and other favorable macroeconomic trends. Although we face challenges, such as optimizing our asset/liability management efforts and maintaining our credit quality in any market environment, we expect steady economic growth and a relatively stable and low interest rate environment to enhance our ability to pursue a variety of growth opportunities. For instance, we continue to progress toward the full integration of Signature Bank, which was merged with and into BancorpSouth Bank effective July 1, 2007, and toward leveraging our presence in strong markets in Missouri, our newest state. Also we are only in the early stages of our potential expansion in attractive new markets in Florida, east Texas, northern Arkansas and middle Tennessee. Our growth along the Gulf Coast and the long-term recovery of the region

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BXS Announces Second Quarter Results
Page 5
July 23, 2007

from Hurricane Katrina represents a further, substantial long-term growth opportunity for BancorpSouth. Finally, while we will continue to evaluate expansion into attractive markets contiguous to our existing operations, we also have a very significant long-term opportunity to build out our existing markets through organic growth or acquisitions.

“As a result,” concluded Patterson, “we remain optimistic about BancorpSouth’s potential for earnings growth, which we have tangibly demonstrated through our stock repurchase and dividend policies. We are committed to offering our unique blend of personalized service and comprehensive, sophisticated financial products to our primarily retail and small to mid-sized business customers. With a foundation based on conservative operating principles, we are confident that the outstanding team of people throughout BancorpSouth can continue to execute to achieve our long-term goals.”

Conference Call

BancorpSouth will conduct a conference call to discuss its second quarter 2007 results tomorrow, July 24, 2007, at 10:00 a.m. (Central Time). Investors may listen via the Internet by accessing BancorpSouth’s website at http://www.bancorpsouth.com. A replay of the conference call will be available at BancorpSouth’s website for at least two weeks following the call.

Forward-Looking Statements

     Certain statements contained in this news release may not be based on historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as “anticipate,” “believe,” “estimate,” “expect,” “may,” “might,” “will,” “would,” “could” or “intend.” These forward-looking statements include, without limitation, statements relating to the management of our mix of assets and liabilities, consistency of our credit and lending policies, our evaluation of expansion into other markets, our potential for growth, the execution and achievement of our long-term goals, repurchases under our common stock repurchase plan and our ability to pursue growth opportunities.

     We caution you not to place undue reliance on the forward-looking statements contained in this news release in that actual results could differ materially from those indicated in such forward-looking statements because of a variety of factors. These factors may include, but are not limited to, changes in economic conditions and government fiscal and monetary policies, fluctuations in prevailing interest rates and the ability of BancorpSouth to manage its assets and liabilities to limit exposure to changing interest rates, the ability of BancorpSouth to increase noninterest revenue and expand noninterest revenue business, the ability of BancorpSouth to maintain credit quality, changes in laws and regulations affecting financial service companies in general, the ability of BancorpSouth to compete with other financial services companies, the ability of BancorpSouth to provide and market competitive services and products, changes in BancorpSouth’s operating or expansion strategy, 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

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BXS Announces Second Quarter Results
Page 6
July 23, 2007

shareholder value, the ability of BancorpSouth to attract, train and retain qualified personnel, the ability of BancorpSouth to repurchase its common stock on favorable terms, the ability of BancorpSouth to identify, close and effectively integrate potential acquisitions, the ability of BancorpSouth to expand geographically and enter growing markets, changes in consumer preferences, other factors generally understood to affect the financial results of financial services companies, and other factors described from time to time in BancorpSouth’s filings with the Securities and Exchange Commission. We undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.

BancorpSouth, Inc. is a financial holding company headquartered in Tupelo, Mississippi, with approximately $13.2 billion in assets. BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., operates approximately 290 commercial banking, mortgage, insurance, trust and broker/dealer locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas.

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BXS Announces Second Quarter Results
Page 7
July 23, 2007

BancorpSouth, Inc.
Selected Financial Data
(Unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2007			2006			2007			2006
(Dollars in thousands, except per share amounts)
Earnings Summary:
Net interest revenue	$	106,658		$	97,221		$	205,326		$	193,150
Provision for credit losses		7,843			3,586			9,198			(274	)
Noninterest revenue		60,232			53,600			118,591			106,370
Noninterest expense		105,928			98,344			211,538			194,352
Income before income taxes		53,119			48,891			103,181			105,442
Income tax provision		17,238			13,392			33,723			32,198
Net income	$	35,881		$	35,499		$	69,458		$	73,244
Earning per share: Basic	$	0.44		$	0.45		$	0.86		$	0.93
Diluted	$	0.43		$	0.45		$	0.86		$	0.92
Balance sheet data at June 30:
Total assets							$	13,209,093		$	11,832,245
Total earning assets								12,012,304			10,687,106
Loans and leases, net of unearned income								8,966,280			7,567,009
Allowance for credit losses								109,328			96,264
Total deposits								10,436,920			9,556,234
Common shareholders’ equity								1,140,280			1,008,953
Book value per share								13.88			12.76
Average balance sheet data:
Total assets	$	12,955,586		$	11,761,349		$	12,627,776		$	11,762,821
Total earning assets		11,850,069			10,672,338			11,539,853			10,678,476
Loans and leases, net of unearned interest		8,875,403			7,476,032			8,514,807			7,424,186
Total deposits		10,471,566			9,587,542			10,255,177			9,646,603
Common shareholders’ equity		1,122,820			994,495			1,089,428			984,250
Non-performing assets at June 30:
Non-accrual loans and leases							$	9,135		$	6,391
Loans and leases 90+ days past due								13,706			15,819
Restructured loans and leases								1,066			2,181
Other real estate owned								11,277			12,713
Net charge-offs as a percentage of average loans (annualized)		0.14	%		0.18	%		0.11	%		0.13	%
Performance ratios (annualized):
Return on average assets		1.11	%		1.21	%		1.11	%		1.26	%
Return on common equity		12.82	%		14.32	%		12.86	%		15.01	%
Net interest margin		3.69	%		3.75	%		3.68	%		3.74	%
Average shares outstanding — basic		82,169,901			79,146,546			80,813,169			79,179,429
Average shares outstanding — diluted		82,534,762			79,535,200			81,213,583			79,539,667

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BXS Announces Second Quarter Results
Page 8
July 23, 2007

BancorpSouth, Inc.
Consolidated Balance Sheets
(Unaudited)

	June 30,
							%
	2007			2006			Change
	(Dollars in thousands)
Assets
Cash and due from banks	$	301,899		$	422,523			(28.55	%)
Interest bearing deposits with other banks		13,143			5,982			119.71	%
Held-to-maturity securities, at amortized cost		1,785,468			1,692,018			5.52	%
Available-for-sale securities, at fair value		1,138,890			1,266,659			(10.09	%)
Federal funds sold and securities purchased under agreement to resell		22,895			104,181			(78.02	%)
Loans and leases		9,012,362			7,611,477			18.40	%
Less: Unearned income		46,082			44,468			3.63	%
Allowance for credit losses		109,328			96,264			13.57	%
Net loans and leases		8,856,952			7,470,745			18.56	%
Loans held for sale		85,627			51,258			67.05	%
Premises and equipment, net		308,248			278,410			10.72	%
Accrued interest receivable		95,577			83,577			14.36	%
Goodwill		249,426			142,548			74.98	%
Other assets		350,968			314,344			11.65	%
Total Assets	$	13,209,093			11,832,245			11.64	%
Liabilities
Deposits:
Demand: Noninterest bearing	$	1,756,652			1,829,782			(4.00	%)
Interest bearing		3,185,461			2,800,391			13.75	%
Savings		727,106			758,471			(4.14	%)
Other time		4,767,701			4,167,590			14.40	%
Total deposits		10,436,920			9,556,234			9.22	%
Federal funds purchased and securities sold under agreement to repurchase		746,182			675,280			10.50	%
Short-term Federal Home Loan Bank borrowings		400,000			175,000			128.57	%
Accrued interest payable		44,260			28,668			54.39	%
Junior subordinated debt securities		163,405			144,847			12.81	%
Long-term Federal Home Loan Bank borrowings		145,146			136,479			6.35	%
Other liabilities		132,900			106,784			24.46	%
Total Liabilities		12,068,813			10,823,292			11.51	%
Shareholders’ Equity
Common stock		205,426			197,744			3.88	%
Capital surplus		190,043			112,127			69.49	%
Accumulated other comprehensive income (loss)		(26,270	)		(20,754	)		26.58	%
Retained earnings		771,081			719,836			7.12	%
Total Shareholders’ Equity		1,140,280			1,008,953			13.02	%
Total Liabilities & Shareholders’ Equity	$	13,209,093		$	11,832,245			11.64	%

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BXS Announces Second Quarter Results
Page 9
July 23, 2007

BancorpSouth, Inc.
Consolidated Condensed Statements of Income
(Dollars in thousands, except per share data)
(Unaudited)

	Quarter Ended											Year To Date
	Jun-07		Mar-07		Dec-06			Sep-06		Jun-06		Jun-07		Jun-06
INTEREST REVENUE:
Loans and leases	$	169,717	$	153,241	$	147,784		$	143,712	$	134,569	$	322,958	$	261,769
Deposits with other banks		268		286		217			295		176		554		317
Federal funds sold and securities purchased under agreement to resell		633		2,511		635			609		976		3,144		3,822
Held-to-maturity securities:
Taxable		16,962		16,705		16,532			16,107		16,048		33,667		30,371
Tax-exempt		2,044		2,015		2,012			2,017		2,077		4,059		3,964
Available-for-sale securities:
Taxable		10,839		9,592		9,653			10,405		11,389		20,431		22,293
Tax-exempt		1,010		1,115		1,170			1,215		1,276		2,125		2,639
Loans held for sale		1,082		1,675		1,366			878		871		2,757		2,109
Total interest revenue		202,555		187,140		179,369			175,238		167,382		389,695		327,284
INTEREST EXPENSE:
Interest bearing demand		21,992		19,887		16,228			15,514		14,613		41,879		28,402
Savings		2,481		2,383		2,160			2,089		2,044		4,864		3,738
Other time		55,459		51,985		48,585			45,361		40,773		107,444		78,423
Federal funds purchased and securities sold under agreement to repurchase		9,283		7,824		8,940			8,498		6,549		17,107		12,451
Other		6,682		6,393		7,205			7,378		6,182		13,075		11,120
Total interest expense		95,897		88,472		83,118			78,840		70,161		184,369		134,134
Net interest revenue		106,658		98,668		96,251			96,398		97,221		205,326		193,150
Provision for credit losses		7,843		1,355		6,325			2,526		3,586		9,198		(274	)
Net interest revenue, after provision for credit losses		98,815		97,313		89,926			93,872		93,635		196,128		193,424
NONINTEREST REVENUE:
Mortgage lending		5,484		1,779		(820	)		41		3,720		7,263		6,896
Credit card, debit card and merchant fees		7,391		6,874		6,793			6,447		6,408		14,265		12,541
Service charges		17,677		15,396		16,262			16,247		16,323		33,073		30,615
Trust income		2,457		2,214		3,703			2,344		2,325		4,671		4,341
Security gains, net		10		7		4			9		17		17		27
Insurance commissions		17,665		19,794		16,146			15,977		14,841		37,459		31,162
Other		9,548		12,295		8,402			8,169		9,966		21,843		20,788
Total noninterest revenue		60,232		58,359		50,490			49,234		53,600		118,591		106,370
NONINTEREST EXPENSES:
Salaries and employee benefits		63,851		63,628		60,178			58,453		58,376		127,479		115,949
Occupancy, net of rental income		8,709		8,463		8,173			8,598		7,759		17,172		15,201
Equipment		6,053		6,026		5,941			5,896		5,822		12,079		11,585
Other		27,315		27,493		25,849			25,714		26,387		54,808		51,617
Total noninterest expenses		105,928		105,610		100,141			98,661		98,344		211,538		194,352
Income before income taxes		53,119		50,062		40,275			44,445		48,891		103,181		105,442
Income tax expense		17,238		16,485		12,202			20,568		13,392		33,723		32,198
Net income	$	35,881	$	33,577	$	28,073		$	23,877	$	35,499	$	69,458	$	73,244
Net income per share: Basic	$	0.44	$	0.42	$	0.35		$	0.30	$	0.45	$	0.86	$	0.93
Diluted	$	0.43	$	0.42	$	0.35		$	0.30	$	0.45	$	0.86	$	0.92

BXS Announces Second Quarter Results
Page 10
July 23, 2007

BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)

	Quarter Ended
	June 30, 2007
	Average					Yield/
(Taxable equivalent basis)	Balance			Interest		Rate
ASSETS
Loans, loans held for sale, and leases net of unearned income	$	8,949,661		$	171,637		7.69	%
Held-to-maturity securities:
Taxable		1,530,082			16,962		4.45	%
Tax-exempt		188,112			3,145		6.71	%
Available-for-sale securities:
Taxable		1,034,219			10,838		4.20	%
Tax-exempt		84,133			1,554		7.41	%
Short-term investments		63,862			901		5.66	%
Total interest earning assets and revenue		11,850,069			205,037		6.94	%
Other assets		1,214,152
Less: allowance for credit losses		(108,635	)
Total	$	12,955,586
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Demand — interest bearing	$	3,241,430		$	21,993		2.72	%
Savings		733,283			2,481		1.36	%
Other time		4,799,252			55,459		4.63	%
Short-term borrowings		867,995			10,455		4.83	%
Junior subordinated debt		163,405			3,342		8.20	%
Long-term debt		151,270			2,166		5.75	%
Total interest bearing liabilities and expense		9,956,635			95,896		3.86	%
Demand deposits - noninterest bearing		1,697,601
Other liabilities		178,530
Total liabilities		11,832,766
Shareholders’ equity		1,122,820
Total	$	12,955,586
Net interest revenue				$	109,141
Net interest margin							3.69	%
Net interest rate spread							3.08	%
Interest bearing liabilities to interest earning assets							84.02	%
Net interest tax equivalent adjustment				$	2,482

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BXS Announces Second Quarter Results
Page 11
July 23, 2007

BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)

	Quarter Ended
	June 30, 2006
	Average					Yield/
(Taxable equivalent basis)	Balance			Interest		Rate
ASSETS
Loans, loans held for sale, and leases net of unearned income	$	7,517,364		$	136,189		7.27	%
Held-to-maturity securities:
Taxable		1,557,135			16,048		4.13	%
Tax-exempt		190,733			3,196		6.72	%
Available-for-sale securities:
Taxable		1,199,635			11,388		3.81	%
Tax-exempt		108,604			1,963		7.25	%
Short-term investments		98,867			1,151		4.67	%
Total interest earning assets and revenue		10,672,338			169,935		6.39	%
Other assets		1,185,888
Less: allowance for credit losses		(96,877	)
Total	$	11,761,349
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Demand — interest bearing	$	2,927,036		$	14,613		2.00	%
Savings		767,750			2,044		1.07	%
Other time		4,164,848			40,773		3.93	%
Short-term borrowings		735,180			7,789		4.25	%
Junior subordinated debt		144,847			2,947		8.16	%
Long-term debt		136,609			1,995		5.86	%
Total interest bearing liabilities and expense		8,876,270			70,161		3.17	%
Demand deposits - noninterest bearing		1,727,908
Other liabilities		162,676
Total liabilities		10,766,854
Shareholders’ equity		994,495
Total	$	11,761,349
Net interest revenue				$	99,774
Net interest margin							3.75	%
Net interest rate spread							3.22	%
Interest bearing liabilities to interest earning assets							83.17	%
Net interest tax equivalent adjustment				$	2,553

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BXS Announces Second Quarter Results
Page 12
July 23, 2007

BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)

	Year to Date
	June 30, 2007
	Average					Yield/
(Taxable equivalent basis)	Balance			Interest		Rate
ASSETS
Loans, loans held for sale, and leases net of unearned income	$	8,604,184		$	327,377		7.67	%
Held-to-maturity securities:
Taxable		1,526,653			33,667		4.45	%
Tax-exempt		186,492			6,244		6.75	%
Available-for-sale securities:
Taxable		999,464			20,430		4.12	%
Tax-exempt		88,596			3,270		7.44	%
Short-term investments		134,464			3,699		5.55	%
Total interest earning assets and revenue		11,539,853			394,687		6.90	%
Other assets		1,192,296
Less: allowance for credit losses		(104,373	)
Total	$	12,627,776
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Demand — interest bearing	$	3,186,340		$	41,879		2.65	%
Savings		728,095			4,864		1.35	%
Other time		4,661,361			107,443		4.65	%
Short-term borrowings		815,275			19,548		4.84	%
Junior subordinated debt		157,356			6,423		8.23	%
Long-term debt		146,254			4,211		5.81	%
Total interest bearing liabilities and expense		9,694,681			184,368		3.84	%
Demand deposits - noninterest bearing		1,679,381
Other liabilities		164,286
Total liabilities		11,538,348
Shareholders’ equity		1,089,428
Total	$	12,627,776
Net interest revenue				$	210,319
Net interest margin							3.68	%
Net interest rate spread							3.06	%
Interest bearing liabilities to interest earning assets							84.01	%
Net interest tax equivalent adjustment				$	4,992

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BXS Announces Second Quarter Results
Page 13
July 23, 2007

BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)

	Year to Date
	June 30, 2006
	Average					Yield/
(Taxable equivalent basis)	Balance			Interest		Rate
ASSETS
Loans, loans held for sale, and leases net of unearned income	$	7,491,790		$	265,286		7.14	%
Held-to-maturity securities:
Taxable		1,507,396			30,371		4.06	%
Tax-exempt		182,582			6,099		6.74	%
Available-for-sale securities:
Taxable		1,200,449			22,293		3.74	%
Tax-exempt		113,078			4,060		7.24	%
Short-term investments		183,181			4,138		4.56	%
Total interest earning assets and revenue		10,678,476			332,247		6.27	%
Other assets		1,182,871
Less: allowance for credit losses		(98,526	)
Total	$	11,762,821
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Demand — interest bearing	$	3,005,663		$	28,403		1.91	%
Savings		758,585			3,738		0.99	%
Other time		4,157,481			78,423		3.80	%
Short-term borrowings		689,792			13,718		4.01	%
Junior subordinated debt		144,847			5,858		8.16	%
Long-term debt		136,794			3,994		5.89	%
Total interest bearing liabilities and expense		8,893,162			134,134		3.04	%
Demand deposits - noninterest bearing		1,724,874
Other liabilities		160,535
Total liabilities		10,778,571
Shareholders’ equity		984,250
Total	$	11,762,821
Net interest revenue				$	198,113
Net interest margin							3.74	%
Net interest rate spread							3.23	%
Interest bearing liabilities to interest earning assets							83.28	%
Net interest tax equivalent adjustment				$	4,963

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