EX-99.1 2 g14283exv99w1.htm EX-99.1 PRESS RELEASE ISSUED ON JULY 17, 2008 BY BANCORPSOUTH, INC. EX-99.1 Press Release issued on July 17, 2008
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 Announces Earnings of $0.49 per Diluted Share for Second
Quarter 2008
TUPELO, Miss., July 17, 2008/PRNewswire-FirstCall via COMTEX/ — BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the second quarter ended June 30, 2008.
     Highlights of the announcement include:
  •   Growth of 14.0 percent in earnings per diluted share to $0.49 for the second quarter of 2008 from the second quarter of 2007.
 
  •   Continued solid loan demand reflected in a 5.7 percent increase in loans for the second quarter of 2008 from the second quarter of 2007 and 2.7 percent growth sequentially from the first quarter of 2008.
 
  •   Maintaining the Company’s net interest margin at 3.79 percent for the second consecutive quarter, the highest level achieved in over five years.
 
  •   An increase of 3.0 percent in net interest revenue for the second quarter of 2008 from the second quarter of 2007.
 
  •   Strong credit quality, despite some deterioration in nonperforming loans and net charge-offs. Nonperforming loans at the end of the second quarter of 2008 totaled 0.49 percent of net loans and annualized net charge-offs for the second quarter of 2008 were 0.30 percent of average loans.
 
  •   A 21.6 percent increase in noninterest revenue over the second quarter of 2007 to a record $73.3 million, including growth in insurance commission revenue of 21.5 percent compared to the second quarter of 2007, the second consecutive quarter of growth in insurance commission revenue in excess of 20 percent.
 
  •   The declaration of a 4.8 percent increase in the Company’s quarterly cash dividend to $0.22 per share, making 2008 the 25th consecutive year in which the dividend has been increased.
Box 789 • Tupelo, MS 38802-0789 • (662) 680-2000
BancorpSouth, Inc. is a financial holding company.
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BXS Announces Second Quarter Results
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July 17, 2008
  •   An 8.2 percent increase in shareholders’ equity and a 1.4 percent increase in total assets at the end of the second quarter of 2008 from the end of the second quarter of 2007, driving BancorpSouth’s capital to asset ratio to 9.21 percent from 8.63 percent.
Second Quarter 2008 Summary Results
BancorpSouth’s net income for the second quarter of 2008 increased 11.8 percent to $40.1 million from $35.9 million for the second quarter of 2007. Net income per diluted share for the second quarter of 2008 increased 14.0 percent to $0.49 from $0.43 for the second quarter of 2007.
“We are pleased with BancorpSouth’s financial performance for the second quarter of 2008,” remarked Aubrey Patterson, Chairman and Chief Executive Officer of BancorpSouth. “At a time when many peers within our markets and across the nation have struggled with growth, credit quality and liquidity issues, BancorpSouth’s second quarter results are again differentiated by solid growth in loans, a relatively high net interest margin, growth in net interest revenue, strength in both credit quality and capital and ample sources of liquidity. In addition, our long-term strategy of diversifying our revenue through growth in noninterest revenue continues to achieve outstanding results, contributing to our ongoing progress in improving our operating efficiency.
“BancorpSouth is not immune to the challenges the banking industry has been experiencing, as reflected by the slight deterioration in our measures of credit quality during the second quarter of 2008. While the movement in these measures was more substantial compared to the unusual and unsustainably strong levels at the end of the second quarter of 2007, they remained well within the range of our historical experience.
“We attribute the continuing strength of our credit quality to our conservative lending and credit philosophy and the disciplined consistency with which we have implemented our policies throughout the economic cycle. In addition, because our technology infrastructure enhances centralized credit monitoring and control, we have purposefully decentralized much lending and other decision making authority to our local bank managers, improving the quality of the customer experience and our ability to understand the circumstances of each loan customer. As just one indication of the strong relationships created by this combination of sophisticated technology and high quality customer service, BancorpSouth was recently ranked ‘Highest Customer Satisfaction with Retail Banking in the Southeast Region’ by J.D. Power and Associates in its 2008 Retail Banking Satisfaction StudySM.”
Net Interest Revenue
Interest revenue for the second quarter of 2008 decreased 13.2 percent, or $26.8 million, to $175.8 million from $202.6 million for the second quarter of 2007 and decreased 7.7 percent from $190.5 million for the first quarter of 2008. Interest expense decreased 31.3 percent, or $30.0 million, to $65.9 million for the second quarter of 2008 from $95.9 million for the second quarter of 2007 and decreased 18.0 percent from $80.4 million for the first quarter of 2008.
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BXS Announces Second Quarter Results
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July 17, 2008
The average taxable equivalent yield on earning assets decreased to 6.01 percent for the second quarter of 2008 from 6.94 percent for the second quarter of 2007 and from 6.50 percent for the first quarter of 2008. The average rate paid on interest bearing liabilities was 2.64 percent for the second quarter of 2008, down from 3.86 percent for the second quarter of 2007 and 3.19 percent for the first quarter of 2008.
Net interest revenue increased 3.0 percent to $109.8 million for the second quarter of 2008 from $106.7 million for the second quarter of 2007 and decreased 0.2 percent from $110.1 million for the first quarter of 2008. Net interest margin was 3.79 percent for the second quarter of 2008, an increase from 3.69 percent for the second quarter of 2007 and even with 3.79 percent for the first quarter of 2008.
Patterson said, “We produced a comparable quarter increase in net interest revenue through the continuation of asset/liability management strategies that, in a declining interest rate environment, produced a larger decrease in both average interest rate paid and interest expense than in average taxable equivalent yield and interest revenue. A primary focus of these strategies has been to lower our interest expense by funding loan growth with the proceeds from maturing lower yielding investment securities, short-term borrowings from the Federal Home Loan Bank (FHLB) and the Federal Reserve and growth in demand deposits, which increased 3.2 percent at the end of the second quarter of 2008 from the same quarter in 2007.
“We have also lowered our interest expense by reducing our other time deposits over this period by 16.9 percent through more conservative pricing of public fund time deposits. This strategy has not affected our firm commitment to serving our core deposit customers, which contributed to a 1.8 percent increase in savings deposits at the end of the second quarter of 2008 from the end of the second quarter of 2007. In addition, we continue to have ample funding flexibility through our ability to price public fund time deposits more aggressively in the future and through further significant short-term borrowing capacity with the FHLB. As a result of our asset/liability management efforts, we maintained our net interest margin at 3.79 percent for each of the first and the second quarters of 2008, the highest level achieved since the first quarter of 2003.”
Deposit and Loan Activity
Total assets at June 30, 2008 increased 1.4 percent to $13.4 billion from $13.2 billion at June 30, 2007. Total deposits declined 6.0 percent to $9.8 billion at June 30, 2008 from $10.4 billion at June 30, 2007. Loans and leases, net of unearned income, increased 5.7 percent to $9.5 billion at June 30, 2008 from $9.0 billion at June 30, 2007.
“We are encouraged by the strengthened loan demand indicated by our second quarter results,” Patterson added. “While we produced moderate organic growth in loans and leases during the 12 month period ending June 30, 2008, a disproportionate amount of that growth occurred in the latest quarter, during which our loans increased at a double-digit annualized growth rate. As discussed above, the decline in total deposits was driven by a strategic decision to reduce interest expense through more competitive pricing of other time deposits, which more than offset growth in both demand deposits and savings deposits.”
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BXS Announces Second Quarter Results
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Provision for Credit Losses and Allowance for Credit Losses
For the second quarter of 2008, the provision for credit losses was $11.2 million compared with $7.8 million for the second quarter of 2007 and $10.8 million for the first quarter of 2008. Annualized net charge-offs were 0.30 percent of average loans and leases for the second quarter of 2008 compared with 0.14 percent for the second quarter of 2007 and 0.29 percent for the first quarter of 2008.
Non-performing loans and leases increased to $46.0 million, or 0.49 percent of loans and leases, at June 30, 2008 from $23.9 million, or 0.27 percent of loans and leases, at June 30, 2007 and from $38.7 million, or 0.42 percent of loans and leases, at March 31, 2008. The allowance for credit losses was 1.30 percent of loans and leases at June 30, 2008 compared with 1.22 percent of loans and leases at June 30, 2007 and 1.29 percent of loans and leases at March 31, 2008.
Patterson commented, “BancorpSouth’s strong credit quality in a challenging economic environment is a continuing tribute to the performance of our loan review and credit personnel. It further reflects a conservative credit culture throughout the Company. As a result of this culture, at June 30, 2008 we had only nominal exposure to the credit issues affecting subprime residential mortgages and limited exposure to commercial real estate projects in the non-owner occupied residential market. Our current credit quality also reflects our steps to tighten real estate lending standards beginning in late 2006. While we expect that continuing weakness in the economic environment would affect the strength of our credit quality, we are well reserved against expected losses and intend to move decisively to address any emerging credit issues. We remain confident that the strength of BancorpSouth’s credit quality will continue to differentiate our performance from our peers.”
Noninterest Revenue
For the second quarter of 2008, noninterest revenue increased 21.6 percent to $73.3 million from $60.2 million for the second quarter of 2007 and increased 10.6 percent from $66.2 million for the first quarter of 2008. This growth reflected a 21.5 percent increase in insurance commission revenue for the second quarter of 2008 from the second quarter of 2007 and a 19.7 percent increase in credit and debit card fee revenue over the same period. In addition, the value of the mortgage servicing asset increased for the second quarter of 2008 by $4.9 million compared with an increase of $1.2 million for the second quarter of 2007, and BancorpSouth had a $2.6 million gain during the second quarter of 2008 from the sale of shares of MasterCard, Inc. common stock.
Patterson said, “We are very pleased with our second consecutive quarter of growth in insurance commission revenue in excess of 20 percent, which follows our third quarter 2007 acquisition of the Insurance Network of Jonesboro, Arkansas, and the acquisitions in the first quarter of 2008 of the Joe Max Green/Insurance Concepts Insurance Agency headquartered in Nacogdoches, Texas, and an insurance broker now operating as SMI Group in Springfield, Missouri. This expanding business, along with growth in our credit and debit card business and our mortgage origination business, contributed substantially to the increase in our noninterest revenue to 66.7 percent of net interest revenue for the second quarter of 2008, compared with 56.5 percent for the second quarter of 2007 and 60.2 percent for the first quarter of 2008.
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BXS Announces Second Quarter Results
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“The strength of our noninterest revenue stream during a challenging period for the industry’s traditional spread dependent businesses reflects our long-term strategic commitment to the expansion of our noninterest revenue products and services. In addition to mitigating the impact of interest rate volatility, the growth in these products and services has greatly enhanced our ability to provide superior customer service, enabling us to leverage our strong relationships with our existing customer base and bring new customers to BancorpSouth. We expect our ability to serve our customers’ comprehensive financial needs will continue to differentiate BancorpSouth in our core markets, and we are confident of our prospects for growing these businesses further.”
Noninterest Expense
Noninterest expense increased 5.8 percent to $112.1 million for the second quarter of 2008 from $105.9 million for the second quarter of 2007 and decreased 1.2 percent from $113.5 million for the first quarter of 2008. The comparable-quarter increase in noninterest expense is primarily attributable to the operation of the insurance agencies acquired in 2007 and 2008. In addition, BancorpSouth also incurred salaries, employee benefits and occupancy expense associated with the opening of new loan production offices and full-service branch bank offices during 2007 and the first six months of 2008.
Capital Management
At its April 23rd meeting, BancorpSouth’s Board of Directors approved an increase in the Company’s quarterly cash dividend to $0.22 per share from $0.21 per share, marking the 25th consecutive year in which the dividend has been increased.
BancorpSouth did not repurchase shares of its common stock during the second quarter of 2008. The Company will continue to evaluate additional share repurchase opportunities under a stock repurchase plan for the repurchase of up to three million shares that commenced on May 1, 2007 and that expires on April 30, 2009. BancorpSouth has repurchased approximately 12.0 million shares of its common stock since its original share repurchase program was initiated in 2001.
The expansion of BancorpSouth’s capital to asset ratio to 9.21 percent at the end of the second quarter of 2008 from 8.63 percent at the end of the second quarter of 2007 reflects the Company’s commitment to maintaining a sound and adequate capital position. This position also enhances BancorpSouth’s ability to respond to opportunities of strategic value that are consistent with achieving the Company’s long-term growth objectives. BancorpSouth’s tangible equity to asset ratio increased to 7.12 percent at June 30, 2008 from 6.68 percent at June 30, 2007.
Summary
Patterson concluded, “We believe BancorpSouth has performed well through an extended period of economic uncertainty because our business model has been designed to accommodate the inevitability of economic cycles. It has been proven and refined through the economic cycles of the past 25 years. We expect BancorpSouth — as well as the entire financial services industry — will continue to be tested in the quarters ahead. As we again demonstrated with our second quarter operating and financial results, BancorpSouth remains well positioned to outperform our
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BXS Announces Second Quarter Results
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peer group through this phase of the current economic cycle and to gain additional market share, even as we steadily implement our long-term growth strategies. We are confident that neither the potential of these strategies to produce long-term growth in earnings and shareholder value nor the long-term market opportunities before us have been diminished.”
Conference Call
BancorpSouth will conduct a conference call to discuss its second quarter 2008 results tomorrow, July 18, 2008, 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 pricing of public fund time deposits, the impact of the economic environment on our credit quality, our ability to serve our customers’ financial needs comprehensively, our prospects for growing our businesses, our performance during a period of economic uncertainty and repurchases under our common stock repurchase plan.
We caution you not to place undue reliance on the forward-looking statements contained in this news release in that actual results could differ materially from those indicated in such forward-looking statements because of a variety of factors. These factors may include, but are not limited to, changes in economic conditions and government fiscal and monetary policies, fluctuations in prevailing interest rates and the ability of BancorpSouth to manage its assets and liabilities to limit exposure to changing interest rates, the ability of BancorpSouth to increase noninterest revenue and expand noninterest revenue business, the ability of BancorpSouth to maintain credit quality, changes in laws and regulations affecting financial service companies in general, the ability of BancorpSouth to compete with other financial services companies, the ability of BancorpSouth to provide and market competitive services and products, changes in BancorpSouth’s operating or expansion strategy, BancorpSouth’s business model, geographic concentration of BancorpSouth’s assets, the ability of BancorpSouth to manage its growth and effectively serve an expanding customer and market base, the ability of BancorpSouth to achieve profitable growth and increase shareholder value, the ability of BancorpSouth to attract, train and retain qualified personnel, the ability of BancorpSouth to repurchase its common stock on favorable terms, the ability of BancorpSouth to identify, close and effectively integrate potential acquisitions, the ability of BancorpSouth to expand geographically and enter growing markets, 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
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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 $13.4 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. BancorpSouth Bank also operates an insurance location in Illinois.
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BXS Announces Second Quarter Results
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BancorpSouth, Inc.
Selected Financial Data
                                 
    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2008     2007     2008     2007  
(Dollars in thousands, except per share amounts)                                
Earnings Summary:
                                
Net interest revenue
   $ 109,843     $ 106,658     $ 219,913     $ 205,326  
Provision for credit losses
     11,237       7,843       22,048       9,198  
Noninterest revenue
     73,266       60,232       139,497       118,591  
Noninterest expense
     112,064       105,928       225,534       211,538  
 
                        
Income before income taxes
     59,808       53,119       111,828       103,181  
Income tax provision
     19,683       17,238       36,558       33,723  
 
                        
Net income
   $ 40,125     $ 35,881     $ 75,270     $ 69,458  
 
                        
Earning per share: Basic
   $ 0.49     $ 0.44     $ 0.91     $ 0.86  
 
                        
Diluted
   $ 0.49     $ 0.43     $ 0.91     $ 0.86  
 
                        
 
                                
Balance sheet data at June 30:
                                
Total assets
                   $ 13,399,151     $ 13,209,093  
Total earning assets
                     12,139,547       12,012,304  
Loans and leases, net of unearned income
                     9,481,380       8,966,280  
Allowance for credit losses
                     123,478       109,328  
Total deposits
                     9,806,553       10,436,920  
Common shareholders’ equity
                     1,233,776       1,140,280  
Book value per share
                     14.98       13.88  
 
                                
Average balance sheet data:
                                
Total assets
   $ 13,116,139     $ 12,955,586     $ 13,108,332     $ 12,627,776  
Total earning assets
     11,957,174       11,850,069       11,952,466       11,539,853  
Loans and leases, net of unearned interest
     9,369,676       8,875,403       9,291,485       8,514,807  
Total deposits
     9,871,935       10,471,566       9,981,139       10,255,177  
Common shareholders’ equity
     1,226,570       1,122,820       1,213,013       1,089,428  
 
                                
Non-performing assets at June 30:
                                
Non-accrual loans and leases
                   $ 17,710     $ 9,135  
Loans and leases 90+ days past due
                     25,719       13,706  
Restructured loans and leases
                     2,620       1,066  
Other real estate owned
                     28,942       11,277  
 
                                
Net charge-offs as a percentage of average loans (annualized)
     0.30 %     0.14 %     0.30 %     0.11 %
 
                                
Performance ratios (annualized):
                                
Return on average assets
     1.23 %     1.11 %     1.15 %     1.11 %
Return on common equity
     13.16 %     12.82 %     12.48 %     12.86 %
 
                                
Net interest margin
     3.79 %     3.69 %     3.79 %     3.68 %
 
                                
Average shares outstanding — basic
     82,369,159       82,169,901       82,350,038       80,813,169  
Average shares outstanding — diluted
     82,565,722       82,534,762       82,549,761       81,213,583  
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BXS Announces Second Quarter Results
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July 17, 2008
BancorpSouth, Inc.
Consolidated Balance Shee
(Unaudited)
                         
    June 30,     %  
    2008     2007     Change  
    (Dollars in thousands)          
Assets
                        
Cash and due from banks
   $ 307,038     $ 301,899       1.70 %
Interest bearing deposits with other banks
     15,531       13,143       18.17 %
Held-to-maturity securities, at amortized cost
     1,447,806       1,785,468       (18.91 %)
Available-for-sale securities, at fair value
     1,023,065       1,138,890       (10.17 %)
Federal funds sold and securities purchased under agreement to resell
     —       22,895       (100.00 %)
Loans and leases
     9,529,978       9,012,362       5.74 %
Less: Unearned income
     48,598       46,082       5.46 %
Allowance for credit losses
     123,478       109,328       12.94 %
 
                  
Net loans and leases
     9,357,902       8,856,952       5.66 %
Loans held for sale
     171,765       85,627       100.60 %
Premises and equipment, net
     334,869       308,248       8.64 %
Accrued interest receivable
     83,739       95,577       (12.39 %)
Goodwill
     270,807       249,426       8.57 %
Other assets
     386,629       350,968       10.16 %
 
                  
Total Assets
   $ 13,399,151     $ 13,209,093       1.44 %
 
                  
Liabilities
                        
Deposits:
                        
Demand: Noninterest bearing
   $ 1,737,356     $ 1,756,652       (1.10 %)
Interest bearing
     3,364,873       3,185,461       5.63 %
Savings
     740,207       727,106       1.80 %
Other time
     3,964,117       4,767,701       (16.85 %)
 
                  
Total deposits
     9,806,553       10,436,920       (6.04 %)
Federal funds purchased and securities sold under agreement to repurchase
     1,093,805       746,182       46.59 %
Short-term Federal Home Loan Bank borrowings and other short-term borrowings
     643,427       400,000       60.86 %
Accrued interest payable
     29,134       44,260       (34.18 %)
Junior subordinated debt securities
     160,312       163,405       (1.89 %)
Long-term Federal Home Loan Bank borrowings
     288,900       145,146       99.04 %
Other liabilities
     143,244       132,900       7.78 %
 
                  
Total Liabilities
     12,165,375       12,068,813       0.80 %
Shareholders’ Equity
                        
Common stock
     205,945       205,426       0.25 %
Capital surplus
     201,612       190,043       6.09 %
Accumulated other comprehensive income (loss)
     (9,232 )     (26,270 )     (64.86 %)
Retained earnings
     835,451       771,081       8.35 %
 
                  
Total Shareholders’ Equity
     1,233,776       1,140,280       8.20 %
 
                  
Total Liabilities & Shareholders’ Equity
   $ 13,399,151     $ 13,209,093       1.44 %
 
                  
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BXS Announces Second Quarter Results
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July 17, 2008
BancorpSouth, Inc.
Consolidated Condensed Statements of Income
(Dollars in thousands, except per share data)
(Unaudited)
                                                         
    Quarter Ended     Year To Date  
    Jun-08     Mar-08     Dec-07     Sep-07     Jun-07     Jun-08     Jun-07  
INTEREST REVENUE:
                                                        
Loans and leases
   $ 147,289     $ 159,184     $ 171,068     $ 174,787     $ 169,717     $ 306,473     $ 322,958  
Deposits with other banks
     193       208       274       316       268       401       554  
Federal funds sold and securities purchased under agreement to resell
     —       67       311       232       633       67       3,144  
Held-to-maturity securities:
                                                        
Taxable
     15,044       15,947       16,890       17,585       16,962       30,991       33,667  
Tax-exempt
     2,025       2,075       2,120       2,077       2,044       4,100       4,059  
Available-for-sale securities:
                                                        
Taxable
     8,531       9,564       10,227       10,554       10,839       18,095       20,431  
Tax-exempt
     1,260       1,204       941       960       1,010       2,464       2,125  
Loans held for sale
     1,420       2,210       1,751       1,454       1,082       3,630       2,757  
 
                                          
Total interest revenue
     175,762       190,459       203,582       207,965       202,555       366,221       389,695  
 
                                          
 
                                                        
INTEREST EXPENSE:
                                                        
Interest bearing demand deposits
     12,938       17,257       19,765       22,189       21,992       30,195       41,879  
Savings deposits
     1,291       1,543       1,934       2,503       2,481       2,834       4,864  
Other time deposits
     39,778       46,860       52,551       55,728       55,459       86,638       107,444  
Federal funds purchased and securities sold under agreement to repurchase
     3,321       5,195       8,259       9,151       9,283       8,516       17,107  
FHLB Borrowings
     5,359       6,285       8,107       7,130       3,332       11,644       6,633  
Other
     3,232       3,249       3,309       3,348       3,350       6,481       6,442  
 
                                          
Total interest expense
     65,919       80,389       93,925       100,049       95,897       146,308       184,369  
 
                                          
 
                                                        
Net interest revenue
     109,843       110,070       109,657       107,916       106,658       219,913       205,326  
Provision for credit losses
     11,237       10,811       7,771       5,727       7,843       22,048       9,198  
 
                                          
Net interest revenue, after provision for credit losses
     98,606       99,259       101,886       102,189       98,815       197,865       196,128  
 
                                          
 
                                                        
NONINTEREST REVENUE:
                                                        
Mortgage lending
     9,507       1,543       (1,149 )     100       5,484       11,050       7,263  
Credit card, debit card and merchant fees
     8,846       7,976       7,904       7,667       7,391       16,822       14,265  
Service charges
     17,093       15,839       18,125       17,281       17,677       32,932       33,073  
Trust income
     2,261       2,234       2,996       2,487       2,457       4,495       4,671  
Security gains, net
     199       78       97       7       10       277       17  
Insurance commissions
     21,462       24,668       16,181       17,542       17,665       46,130       37,459  
Other
     13,898       13,893       11,160       12,810       9,548       27,791       21,843  
 
                                          
Total noninterest revenue
     73,266       66,231       55,314       57,894       60,232       139,497       118,591  
 
                                          
 
                                                        
NONINTEREST EXPENSES:
                                                        
Salaries and employee benefits
     68,121       70,175       64,594       63,269       63,851       138,296       127,479  
Occupancy, net of rental income
     9,716       9,483       8,967       8,959       8,709       19,199       17,172  
Equipment
     6,245       6,433       6,078       6,057       6,053       12,678       12,079  
Other
     27,982       27,379       30,530       28,066       27,315       55,361       54,808  
 
                                          
Total noninterest expenses
     112,064       113,470       110,169       106,351       105,928       225,534       211,538  
 
                                          
Income before income taxes
     59,808       52,020       47,031       53,732       53,119       111,828       103,181  
Income tax expense
     19,683       16,875       14,803       17,475       17,238       36,558       33,723  
 
                                          
Net income
   $ 40,125     $ 35,145     $ 32,228     $ 36,257     $ 35,881     $ 75,270     $ 69,458  
 
                                          
 
                                                        
Net income per share: Basic
   $ 0.49     $ 0.43     $ 0.39     $ 0.44     $ 0.44     $ 0.91     $ 0.86  
 
                                          
Diluted
   $ 0.49     $ 0.43     $ 0.39     $ 0.44     $ 0.43     $ 0.91     $ 0.86  
 
                                          
- MORE -

 

 

BXS Announces Second Quarter Results
Page 11
July 17, 2008
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
                         
    Quarter Ended  
    June 30, 2008  
    Average             Yield/  
(Taxable equivalent basis)   Balance     Interest     Rate  
ASSETS
                        
Loans, loans held for sale, and leases net of unearned income
   $ 9,523,668     $ 149,506       6.31 %
Held-to-maturity securities:
                        
Taxable
     1,312,998       15,263       4.68 %
Tax-exempt
     184,022       3,115       6.81 %
Available-for-sale securities:
                        
Taxable
     804,875       8,532       4.26 %
Tax-exempt
     111,113       1,938       7.01 %
Short-term investments
     20,498       194       3.80 %
 
                    
Total interest earning assets and revenue
     11,957,174       178,548       6.01 %
Other assets
     1,283,738                  
Less: allowance for credit losses
     (124,773 )                
 
                      
Total
   $ 13,116,139                  
 
                      
 
                        
LIABILITIES AND SHAREHOLDERS’ EQUITY
                        
Deposits:
                        
Demand — interest bearing
   $ 3,418,678     $ 12,939       1.52 %
Savings
     732,593       1,291       0.71 %
Other time
     4,050,132       39,777       3.95 %
Short-term borrowings
     1,390,189       6,013       1.74 %
Junior subordinated debt
     160,312       3,060       7.68 %
Long-term debt
     288,913       2,839       3.95 %
 
                    
Total interest bearing liabilities and expense
     10,040,817       65,919       2.64 %
Demand deposits — noninterest bearing
     1,670,532                  
Other liabilities
     178,220                  
 
                      
Total liabilities
     11,889,569                  
Shareholders’ equity
     1,226,570                  
 
                      
Total
   $ 13,116,139                  
 
                      
 
                      
Net interest revenue
           $ 112,629          
 
                      
Net interest margin
                     3.79 %
Net interest rate spread
                     3.37 %
Interest bearing liabilities to interest earning assets
                     83.97 %
 
                        
Net interest tax equivalent adjustment
           $ 2,786          
- MORE -

 

 

BXS Announces Second Quarter Results
Page 12
July 17, 2008
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          
- MORE -

 

 

BXS Announces Second Quarter Results
Page 13
July 17, 2008
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
                         
    Year to Date  
    June 30, 2008  
    Average             Yield/  
(Taxable equivalent basis)   Balance     Interest     Rate  
ASSETS
                        
Loans, loans held for sale, and leases net of unearned income
   $ 9,440,229     $ 311,774       6.64 %
Held-to-maturity securities:
                        
Taxable
     1,359,499       30,991       4.58 %
Tax-exempt
     187,888       6,307       6.75 %
Available-for-sale securities:
                        
Taxable
     834,621       18,095       4.36 %
Tax-exempt
     106,885       3,791       7.13 %
Short-term investments
     23,344       468       4.04 %
 
                    
Total interest earning assets and revenue
     11,952,466       371,426       6.25 %
Other assets
     1,278,802                  
Less: allowance for credit losses
     (122,936 )                
 
                      
Total
   $ 13,108,332                  
 
                      
 
                        
LIABILITIES AND SHAREHOLDERS’ EQUITY
                        
Deposits:
                        
Demand — interest bearing
   $ 3,451,922     $ 30,195       1.76 %
Savings
     720,998       2,834       0.79 %
Other time
     4,170,695       86,638       4.18 %
Short-term borrowings
     1,318,695       15,028       2.29 %
Junior subordinated debt
     160,312       6,244       7.83 %
Long-term debt
     269,153       5,369       4.01 %
 
                    
Total interest bearing liabilities and expense
     10,091,775       146,308       2.92 %
Demand deposits — noninterest bearing
     1,637,524                  
Other liabilities
     166,020                  
 
                      
Total liabilities
     11,895,319                  
Shareholders’ equity
     1,213,013                  
 
                      
Total
   $ 13,108,332                  
 
                    
Net interest revenue
           $ 225,118          
 
                      
Net interest margin
                     3.79 %
Net interest rate spread
                     3.33 %
Interest bearing liabilities to interest earning assets
                     84.43 %
 
                        
Net interest tax equivalent adjustment
           $ 5,205          
- MORE -

 

 

BXS Announces Second Quarter Results
Page 14
July 17, 2008
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          
- END -