BancorpSouth, Inc. Reports First Quarter Earnings

Apr 17, 2001, 01:00 ET from BancorpSouth, Inc.

    TUPELO, Miss., April 17 /PRNewswire/ -- BancorpSouth, Inc. (NYSE:   BXS)
 today announced that income for the first quarter ended March 31, 2001,
 excluding the impact of impairment on its mortgage servicing asset, was
 30 cents per common share.  Declining interest rates, both mortgage and short
 term, resulted in a $4.3 million pretax, non-cash charge to earnings to record
 mortgage servicing impairment which reduced net income to $22.3 million, or
 27 cents per share (basic and diluted), compared to net income of
 $26.6 million, or 31 cents per share (basic and diluted) for the first quarter
 of 2000.
     Aubrey Patterson, Chairman and Chief Executive Officer of BancorpSouth,
 commented, "The integration with First United Bancshares, Inc. is proceeding
 as planned.  Longer term, we expect BancorpSouth to benefit from the
 opportunity to leverage our technology and strong product line into those
 markets.  We will continue to look for opportunities to expand the number of
 products we offer to all our customers, such as insurance, and look to expand
 our relationships with small businesses."
     "The rapid decline in interest rates in the first quarter created a
 challenging environment for banks.  BancorpSouth does have some variable-rate
 loans and other loans with repricing options over a reasonably short time
 horizon and thus is subject to margin pressure as interest rates fall.
 However, we have been able to reduce the interest rates on our deposits in
 order to offset some of the impact of the interest rate decline."
 
     Net Interest Income
     Total interest revenue was $174.1 million in the first quarter of 2001, up
 9.7 percent from the corresponding period in 2000 but down 2.4 percent from
 $178.3 million reported in the fourth quarter of 2000.  Total interest expense
 for the 2001 first quarter was $92.5 million, a 19.6 percent increase from
 total interest expense of $77.4 million in the same period of the prior year
 but a decline of 3.2% from total interest expense of $95.6 million reported in
 the fourth quarter of 2000.  In the first quarter of 2001, net interest margin
 was 4.01 percent, compared to 4.28 percent for the first quarter of 2000 and
 4.03 percent in the fourth quarter of 2000.  The cost of interest-bearing
 liabilities was 5.15 percent in the first quarter of 2001, compared to
 4.66 percent in the first quarter of 2000 and 5.30 percent in the fourth
 quarter of 2000, while the taxable equivalent yield on earning assets was
 8.41 percent in the first quarter of 2001 versus 8.21 percent in the same
 period a year earlier and 8.52 percent in the immediately preceding quarter.
     "The drop in interest rates during the quarter caused the reduction in
 interest income," commented Patterson, "although it also led to a significant
 rate reduction for new deposits.  When the Federal Reserve cuts short-term
 rates, the rates on some of our loans usually drop immediately or within a
 short time.  Because we are not able to adjust the rate we pay on deposits as
 rapidly, net interest margins are compressed in a period of rapidly falling
 interest rates."
 
     Deposit and Loan Activity
     BancorpSouth continued to experience growth in total assets and total
 deposits compared to both the first quarter of 2000 and the fourth quarter of
 2000.  As of March 31, 2001, total assets were $9.4 billion, up 9.6 percent
 since March 31, 2000, and up 3.8 percent since the end of 2000; while total
 deposits were $7.8 billion, up 7.5 percent from March 31, 2000, and up
 4.1 percent since year end 2000.  Total loans as of March 31, 2001 were
 $6.0 billion, 5.7 percent higher than the level as of March 31, 2000, but down
 2.3 percent from December 31, 2000.
     Continuing a practice begun in the first quarter of 2000, the company sold
 its accumulated inventory of insured student loans in the first quarter of
 2001.  The sale of the  $61.1 million loan portfolio created a pretax gain of
 $1.7 million.  In addition, management decided to reduce the company's
 exposure to indirect automobile sales financing and is allowing BancorpSouth's
 portfolio of such loans to decline.  The portfolio has decreased
 $123.0 million since the first quarter of 2000 and $30.5 million in the first
 quarter of 2001, reaching $234.4 million.  Excluding the impact of these two
 items, total loan volume would have declined only 0.8 percent from the fourth
 quarter of 2000 to the first quarter of 2001.
     "The economy in our markets generally is holding up, with unemployment at
 historically low rates," said Patterson, "but we are seeing some slowness in
 home construction in the Memphis area.  Our liquidity position is strong
 because of good deposit growth coupled with slowing loan demand.  Given the
 opportunities presented by the merger with First United, we anticipate a
 modest increase in loan volume for the year, and we expect to be able to
 continue to expand our loan portfolio without the need for outside funding
 because of our solid deposit base."
 
     Loan Losses
     The provision for loan losses in the first quarter of 2001 was
 $4.1 million, versus $4.6 million in the same quarter of the previous year and
 $5.5 million in the fourth quarter of 2000.  Annualized net charge-offs for
 the first quarter of 2001 were .36 percent of average loans, while they were
 .18 percent of average loans in the year-ago quarter and .19 percent of
 average loans in the fourth quarter of 2000.
     Non-performing assets totaled $43.6 million (.73 percent of loans) as of
 March 31, 2001, compared to $48.4 million (.86 percent of loans) as of
 March 31, 2000, and $50.1 million (.82 percent of net loans) at December 31,
 2000.  The allowance for credit losses amounted to 1.35 percent of total net
 loans at March 31, 2001.
     "Loan quality has always been a hallmark of BancorpSouth," continued
 Patterson.  "We maintain our high standards by applying conservative criteria
 at the time of origination and closely monitoring our credits throughout the
 life of the loan.  While net charge-offs as a percent of loans was higher than
 usual in the first quarter of 2001, we anticipate that loans losses will be
 closer to historical levels for the remainder of the year."
 
     Non-interest Income
     Non-interest income totaled $27.9 million in the first quarter of 2001, up
 4.8 percent from the $26.7 million reported in the first quarter of 2000 and
 up 9.0 percent from $25.6 million reported in the fourth quarter of 2000.
     "Non-traditional businesses such as insurance and investment services are
 providing a growing revenue stream," Patterson stated.  "In the recent
 quarter, insurance-related revenue was $5.7 million, compared to $4.5 million
 a year earlier.  We anticipate that these services will continue to show
 strong growth as we implement improved cross-selling techniques and as we
 introduce BancorpSouth's products into former First United markets."
     Two unusual items impacted non-interest income in the first quarter of
 2001.  Revenue from mortgage lending swung from a $3.4 million positive in the
 first quarter of 2000 to a $1.3 million negative in the first quarter of 2001
 as a result of a $4.3 million impairment in the value of BancorpSouth's
 mortgage servicing asset, which represents the present value of the future
 stream of servicing revenue.  As interest rates decline, refinancing of home
 mortgages accelerates and the present value of the future stream of servicing
 fees declines as the expected life of those mortgages shortens.  The company
 must recognize the decline in future revenue with a non-cash charge against
 income.  To some extent, this charge is offset by higher loan origination fees
 as lower interest rates stimulate loan growth.  As the company expects to
 retain the mortgage servicing rights, the charge should reverse itself as
 interest rates rise, refinancing slows and the expected life of the mortgages
 lengthens.
     In the first quarter of 2001, the impact of the write-down in the
 servicing asset was partially offset by a pre-tax gain of $2.2 million
 resulting from the sale of certain investment securities out of the available-
 for-sale portfolio.
 
     Non-interest Expense
     Non-interest expenses for the first quarter of 2001 were $72.9 million,
 compared to $64.1 million for the first quarter of 2000 and $68.7 million in
 the fourth quarter of 2000 (before non-recurring charges).
     "We continue to see the impact of the First United merger on non-interest
 expense," explained Jim Kelley, President and Chief Operating Officer of
 BancorpSouth.  "At the time of the merger, we made customer retention our
 first priority in the transition process, even though that means higher non-
 interest expenses over the first year of the combined company as we gradually
 transition former First United offices to BancorpSouth systems.  We achieved
 product standardization among all the offices in December without a
 detrimental effect on our customer base.  In the first quarter, we
 transitioned the first two former First United banks to BancorpSouth systems
 with equal success.  We anticipate completing the conversion by the end of the
 third quarter and expect to see the resulting cost savings begin to have a
 positive impact on our results in the fourth quarter."
 
     Capital Management
     During the first quarter of 2001, the company repurchased a total of
 276,550 shares of its outstanding common stock, 21,850 shares under a
 repurchase program which terminated in January and 254,700 shares under a
 repurchase program announced on March 5, 2001, which will allow the company to
 acquire up to 4.2 million shares or approximately 5% of the shares outstanding
 at the time of the announcement.
 
     BancorpSouth, Inc. is a financial services company with $9.4 billion in
 assets, headquartered in Tupelo, Mississippi.  The company operates
 approximately 250 commercial banking, insurance, trust, broker/dealer and
 consumer finance locations in Alabama, Arkansas, Louisiana, Mississippi,
 Tennessee and Texas.
 
     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," or "intend."  These forward-looking
 statements include, without limitation, those relating to interest rates on
 deposits, expansion and prospects of products and services, integration and
 impact of recent acquisitions, effects of technology, interest rate
 sensitivity, expansion of loan portfolio, loan losses, prospects for 2001,
 mortgage servicing, the Company's future growth, and profitability.
     We caution you not to place undue reliance on the forward-looking
 statements contained in this news release in that actual results could differ
 materially from those indicated in such forward-looking statements, due to a
 variety of factors.  Those factors include, but are not limited to, changes in
 economic conditions and government fiscal and monetary policies, fluctuations
 in prevailing interest rates, ability to reduce interest on deposits as
 interest rates decline, laws and regulations affecting financial institutions,
 the ability of BancorpSouth to compete with other financial services
 companies, the ability of BancorpSouth to integrate acquisitions, the ability
 of BancorpSouth to operate and integrate new technology, the ability of
 BancorpSouth to manage its growth and effectively serve an expanding customer
 and market base,  the ability of BancorpSouth to provide competitive services
 and products, changes in BancorpSouth's operating or expansion strategy,
 geographic concentration of BancorpSouth's assets, availability of and costs
 associated with obtaining adequate and timely sources of liquidity, the
 ability of BancorpSouth to attract, train and retain qualified personnel, the
 ability of BancorpSouth to effectively market its services and products,
 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.
     Selected Financial Data
                                                      Three Months Ended
                                                           March 31,
                                                     2001              2000
     (Dollars in thousands, except per
      share amounts)
     Earnings Summary:
     Net interest revenue                           $81,599           $81,328
     Provision for credit losses                      4,097             4,615
     Noninterest revenue                             27,949            26,674
     Noninterest expense                             72,832            64,120
     Income before income taxes                      32,619            39,267
     Income tax provision                            10,300            12,622
     Net income                                      22,319            26,645
     Earning per share:  Basic                        $0.27             $0.31
                         Diluted:                     $0.27             $0.31
 
 
     Balance sheet data at March 31:
     Total assets                                $9,384,078        $8,560,573
     Total earning assets                         8,738,930         7,985,297
     Loans and lease receivables, net of
      unearned discount                           5,960,862         5,620,581
     Allowance for credit losses                     80,461            76,362
     Total deposits                               7,785,627         7,245,458
     Common shareholders' equity                    804,085           758,183
     Book value per share                              9.59              8.92
 
 
     Average balance sheet data:
     Total assets                                $9,160,057        $8,479,566
     Total earning assets                         8,539,226         7,919,175
     Loans and lease receivables, net of
      unearned discount                           6,025,742         5,559,943
     Total deposits                               7,612,436         7,125,843
     Common shareholders' equity                    789,892           755,015
 
     Non-performing assets at March 31:
     Non-accrual loans                              $12,116           $18,011
     Loans 90+ days past due                         22,338            18,120
     Restructured loans                               1,542               979
     Other real estate owned                          7,643            11,280
 
     Net charge-offs as a percentage
          of average loans (annualized)               0.36%             0.18%
 
     Performance ratios (annualized)
     Return on average assets                         0.99%             1.26%
     Return on common equity                         11.46%            14.16%
 
     Net interest margin                              4.01%             4.28%
 
     Average shares outstanding - diluted        84,200,255        85,704,216
 
 
 
     BancorpSouth, Inc.
     Consolidated Balance Sheets
     (dollars in thousands)
     (Unaudited)
 
                                               March 31, 2001    March 31, 2000
     Assets
     Cash & due from banks                        $298,663          $273,427
     Interest bearing deposits
       with other banks                              7,871            48,469
     Held-to-maturity securities                 1,224,997         1,077,997
     Federal funds sold and securities
       purchased under agreement to resell         520,399           129,219
 
     Loans & leases                              5,960,862         5,620,581
       Allowance for credit losses                 (80,461)          (76,362)
      Net loans & leases                         5,880,401         5,544,219
 
     Available-for-sale securities                 973,847         1,077,151
     Mortgages held for sale                        50,953            31,882
     Bank premises & equipment                     202,539           173,195
     Accrued interest receivable                    90,827            74,426
     Other real estate owned                         7,568            10,714
     Other assets                                  126,013           119,874
        Total assets                            $9,384,078        $8,560,573
     Liabilities
     Demand deposits:
      Non-interest bearing                      $1,032,551        $1,002,662
      Interest bearing                           1,828,324         1,727,489
      Total demand deposits                      2,860,875         2,730,151
     Savings & time deposits:
      Savings                                      468,679           280,803
      Premium access                               427,092           579,860
      Certificates of deposit                    4,028,981         3,654,644
      Total savings & time deposits              4,924,752         4,515,307
      Total deposits                             7,785,627         7,245,458
     Federal funds purchased and
      securities sold under
      agreement to repurchase                      502,749           277,088
     Short-term borrowings                               0             9,000
     Accrued interest payable                       52,466            39,563
     Long-term debt                                151,778           161,087
     Other liabilities                              87,373            70,194
       Total liabilities                         8,579,993         7,802,390
     Shareholders' Equity
     Common stock                                  214,484           214,410
     Capital surplus                                70,581            69,978
     Unrealized gain(loss) on
      securities                                    22,933           (16,904)
     Retained earnings                             525,383           502,587
      Less:  Cost of treasury stock                (29,296)          (11,888)
       Total shareholders' equity                  804,085           758,183
       Total liabilities &
        shareholders' equity                    $9,384,078        $8,560,573
 
 
 
     BancorpSouth, Inc.
     Consolidated Statements of Income
     (amounts in thousands, except per share data)
     (Unaudited)
 
                                      Quarter Ended
                                Mar-01    Dec-00    Sep-00    Jun-00    Mar-00
     Interest Revenue:
     Loans, including fees     $136,737  $140,892  $134,910  $129,030  $124,360
     Held-to-maturity
      securities:                16,051    18,141    15,899    15,307    15,408
     Available-for-sale
      securities                 15,586    16,177    21,554    17,696    17,155
     Short term investments       5,766     3,185       962     1,553     1,806
      Total interest revenue    174,140   178,395   173,325   163,586   158,729
     Interest Expense:
     Deposits                    83,944    84,709    81,031    74,088    70,536
     Short term borrowings        3,557     7,007     9,058     4,416     4,274
     Long term borrowings         2,265     2,378     2,559     2,442     2,397
     Other interest expense       2,775     1,503       110       182       194
      Total interest expense     92,541    95,597    92,758    81,128    77,401
      Net interest revenue       81,599    82,798    80,567    82,458    81,328
     Provision for credit
      losses                      4,097     5,497    10,656     5,398     4,615
       Net interest revenue,
        after credit loss
        provision                77,502    77,301    69,911    77,060    76,713
      Other Revenue:
      Mortgage lending           (1,333)    1,900     2,493     3,059     3,422
      Service charges            10,342    10,927    10,213    10,234     9,098
      Life insurance premiums     1,094     1,116     1,107     1,058     1,020
      Trust income                1,684     1,625     1,794     1,637     1,644
      Securities gains, net       2,884   (15,549)     (254)       (7)      177
      Insurance commissions       4,608     4,845     3,717     3,972     3,499
      Other                       8,670     5,188     4,496     5,333     7,814
        Total other revenue      27,949    10,052    23,566    25,286    26,674
      Other Expense:
      Salaries and employee
       benefits                  38,721    33,845    34,070    32,008    33,933
      Occupancy                   5,129     4,838     4,647     4,409     4,449
      Equipment                   7,032     6,960     6,124     5,506     5,544
      Telecommunications          2,182     2,041     1,868     1,751     1,574
      Other                      19,768    21,981    29,898    20,161    18,620
        Total other expense      72,832    69,665    76,607    63,835    64,120
        Income before
         income taxes            32,619    17,688    16,870    38,511    39,267
      Income tax expense         10,300     5,413     7,379    12,527    12,622
        Net Income              $22,319   $12,275    $9,491   $25,984   $26,645
      Net Income Per Share:
        Basic                     $0.27     $0.15     $0.11     $0.31     $0.31
        Diluted                   $0.27     $0.15     $0.11     $0.31     $0.31
 
 
          BancorpSouth, Inc.
          Average Balances, Interest Income and Expense,
            and Average Yields and Rates
          (dollars in thousands)          Quarter Ended
          Unaudited                       March 31, 2001
                                             Average                  Yield/
          (Taxable equivalent basis)         Balance      Interest     Rate
          ASSETS
          Loans net of Unearned Income       $6,063,946    $137,055     9.17%
          Held-to-maturity securities:
            Taxable                             842,693      13,212     6.36%
            Non Taxable                         232,636       4,366     7.61%
          Available-for-sale securities
            Taxable                             838,410      13,616     6.59%
            Non Taxable                         155,988       3,031     7.88%
          Short term investments                405,553       5,767     5.77%
            Total interest earning
              assets and revenue              8,539,226     177,047     8.41%
          Other assets                          701,784
          Less:  allowance for credit
           losses                               (80,953)
              Total                          $9,160,057
 
          LIABILITIES AND
          SHAREHOLDERS' EQUITY
          Deposits:
            Demand - interest bearing        $1,770,537     $14,340     3.28%
            Savings                             896,888      10,685     4.83%
            Time                              3,975,219      58,918     6.01%
          Short-term borrowings                 490,736       6,333     5.23%
          Long-term debt                        151,870       2,265     6.05%
            Total interest bearing
              liabilities and expense         7,285,250      92,541     5.15%
          Demand deposits -
            non-interest bearing                969,793
          Other liabilities                     115,122
            Total liabilities                 8,370,165
          Shareholders' equity                  789,892
            Total                            $9,160,057
          Net interest revenue                              $84,506
          Net interest margin                                           4.01%
          Net interest rate spread                                      3.26%
          Interest bearing liabilities to
             interest earning assets                                   85.32%
 
          Net interest tax equivalent
           adjustment                                        $2,907
 
 
 
          BancorpSouth, Inc.
          Average Balances, Interest Income and Expense,
            and Average Yields and Rates
          (dollars in thousands)          Quarter Ended
          Unaudited                     December 31, 2000
                                             Average                  Yield/
          (Taxable equivalent basis)         Balance      Interest     Rate
          ASSETS
          Loans net of Unearned Income       $6,073,609    $141,295     9.25%
          Held-to-maturity securities:
            Taxable                             889,349      14,114     6.31%
            Non Taxable                         327,673       6,195     7.52%
          Available-for-sale securities
            Taxable                             913,866      15,271     6.65%
            Non Taxable                          69,280       1,394     8.00%
          Short term investments                198,310       3,185     6.39%
            Total interest earning
              assets and revenue              8,472,087     181,454     8.52%
          Other assets                          670,163
          Less:  allowance for credit
           losses                               (79,633)
              Total                          $9,062,617
 
          LIABILITIES AND
          SHAREHOLDERS' EQUITY
          Deposits:
            Demand - interest bearing        $1,668,090     $13,960     3.33%
            Savings                             904,717      11,888     5.23%
            Time                              3,883,979      58,861     6.03%
          Short-term borrowings                 567,066       8,509     5.97%
          Long-term debt                        157,786       2,378     6.00%
            Total interest bearing
              liabilities and expense         7,181,638      95,596     5.30%
          Demand deposits -
            non-interest bearing                987,644
          Other liabilities                     120,012
            Total liabilities                 8,289,294
          Shareholders' equity                  773,323
            Total                            $9,062,617
          Net interest revenue                              $85,858
          Net interest margin                                           4.03%
          Net interest rate spread                                      3.23%
          Interest bearing liabilities to
             interest earning assets                                   84.77%
 
          Net interest tax equivalent
           adjustment                                        $3,060
 
 
 
          BancorpSouth, Inc.
          Average Balances, Interest Income and Expense,
            and Average Yields and Rates
          (dollars in thousands)          Quarter Ended
                                          September 30, 2000
          Unaudited                          Average                  Yield/
                                             Balance      Interest     Rate
          (Taxable equivalent basis)
          ASSETS
          Loans net of Unearned Income       $5,888,736    $135,311     9.14%
          Held-to-maturity securities:
            Taxable                             760,409      11,951     6.25%
            Non Taxable                         325,687       6,074     7.42%
          Available-for-sale securities
            Taxable                           1,242,043      20,519     6.57%
            Non Taxable                          75,530       1,591     8.38%
          Short term investments                 58,408         962     6.55%
            Total interest earning
              assets and revenue              8,350,813     176,408     8.40%
          Other assets                          645,252
          Less:  allowance for credit
           losses                               (76,879)
              Total                          $8,919,186
 
          LIABILITIES AND
          SHAREHOLDERS' EQUITY
          Deposits:
            Demand - interest bearing        $1,659,533     $13,842     3.32%
            Savings                             877,041       9,956     4.52%
            Time                              3,801,938      57,233     5.99%
          Short-term borrowings                 579,725       9,168     6.29%
          Long-term debt                        169,573       2,559     6.00%
            Total interest bearing
              liabilities and expense         7,087,810      92,758     5.21%
          Demand deposits -
            non-interest bearing                972,647
          Other liabilities                      96,615
            Total liabilities                 8,157,072
          Shareholders' equity                  762,114
            Total                            $8,919,186
          Net interest revenue                              $83,650
          Net interest margin                                           3.99%
          Net interest rate spread                                      3.20%
          Interest bearing liabilities to
             interest earning assets                                   84.88%
 
          Net interest tax equivalent
           adjustment                                        $3,083
 
 
 
         BancorpSouth, Inc.
         Average Balances, Interest Income and Expense,
           and Average Yields and Rates
         (dollars in thousands)          Quarter Ended
         Unaudited                          June 30, 2000
                                             Average                  Yield/
                                             Balance     Interest      Rate
         (Taxable equivalent basis)
         ASSETS
         Loans net of Unearned Income       $5,750,197    $129,411     9.05%
         Held-to-maturity securities:
           Taxable                             753,072      11,446     6.11%
           Non Taxable                         324,755       5,941     7.36%
         Available-for-sale securities
           Taxable                             996,124      16,685     6.74%
           Non Taxable                          76,029       1,555     8.23%
         Short term investments                 99,355       1,553     6.29%
           Total interest earning
             assets and revenue              7,999,532     166,591     8.38%
         Other assets                          636,386
         Less:  allowance for credit
          losses                               (76,545)
             Total                          $8,559,373
 
         LIABILITIES AND
         SHAREHOLDERS' EQUITY
         Deposits:
           Demand - interest bearing        $1,707,641     $13,758     3.24%
           Savings                             826,070       8,206     4.00%
           Time                              3,708,808      52,124     5.65%
         Short-term borrowings                 328,870       4,598     5.62%
         Long-term debt                        165,584       2,442     5.93%
           Total interest bearing
             liabilities and expense         6,736,973      81,128     4.84%
         Demand deposits -
           non-interest bearing                965,742
         Other liabilities                      99,701
           Total liabilities                 7,802,416
         Shareholders' equity                  756,957
           Total                            $8,559,373
         Net interest revenue                              $85,463
         Net interest margin                                           4.30%
         Net interest rate spread                                      3.53%
         Interest bearing liabilities to
            interest earning assets                                   84.22%
 
         Net interest tax equivalent
            adjustment                                      $3,005
 
 
 
          BancorpSouth, Inc.
          Average Balances, Interest Income and Expense,
            and Average Yields and Rates
          (dollars in thousands)          Quarter Ended
          Unaudited                       March 31, 2000
                                             Average                  Yield/
                                             Balance      Interest     Rate
          (Taxable equivalent basis)
          ASSETS
          Loans net of Unearned Income       $5,608,277    $124,713     8.94%
          Held-to-maturity securities:
            Taxable                             781,038      11,575     5.96%
            Non Taxable                         321,956       5,898     7.37%
          Available-for-sale securities
            Taxable                           1,007,238      16,106     6.43%
            Non Taxable                          74,507       1,614     8.71%
          Short term investments                126,159       1,805     5.75%
            Total interest earning
              assets and revenue              7,919,175     161,711     8.21%
          Other assets                          635,476
          Less:  allowance for credit
           losses                               (75,085)
              Total                          $8,479,566
 
          LIABILITIES AND
          SHAREHOLDERS' EQUITY
          Deposits:
            Demand - interest bearing        $1,654,789     $12,666     3.08%
            Savings                             890,646       8,897     4.02%
            Time                              3,635,417      48,973     5.42%
          Short-term borrowings                 338,072       4,467     5.31%
          Long-term debt                        165,802       2,397     5.81%
            Total interest bearing
              liabilities and expense         6,684,726      77,400     4.66%
          Demand deposits -
            non-interest bearing                944,990
          Other liabilities                      94,835
            Total liabilities                 7,724,551
          Shareholders' equity                  755,015
            Total                            $8,479,566
          Net interest revenue                              $84,311
          Net interest margin                                           4.28%
          Net interest rate spread                                      3.56%
          Interest bearing liabilities to
             interest earning assets                                   84.41%
 
          Net interest tax equivalent
           adjustment                                        $2,983
 
 

SOURCE BancorpSouth, Inc.
    TUPELO, Miss., April 17 /PRNewswire/ -- BancorpSouth, Inc. (NYSE:   BXS)
 today announced that income for the first quarter ended March 31, 2001,
 excluding the impact of impairment on its mortgage servicing asset, was
 30 cents per common share.  Declining interest rates, both mortgage and short
 term, resulted in a $4.3 million pretax, non-cash charge to earnings to record
 mortgage servicing impairment which reduced net income to $22.3 million, or
 27 cents per share (basic and diluted), compared to net income of
 $26.6 million, or 31 cents per share (basic and diluted) for the first quarter
 of 2000.
     Aubrey Patterson, Chairman and Chief Executive Officer of BancorpSouth,
 commented, "The integration with First United Bancshares, Inc. is proceeding
 as planned.  Longer term, we expect BancorpSouth to benefit from the
 opportunity to leverage our technology and strong product line into those
 markets.  We will continue to look for opportunities to expand the number of
 products we offer to all our customers, such as insurance, and look to expand
 our relationships with small businesses."
     "The rapid decline in interest rates in the first quarter created a
 challenging environment for banks.  BancorpSouth does have some variable-rate
 loans and other loans with repricing options over a reasonably short time
 horizon and thus is subject to margin pressure as interest rates fall.
 However, we have been able to reduce the interest rates on our deposits in
 order to offset some of the impact of the interest rate decline."
 
     Net Interest Income
     Total interest revenue was $174.1 million in the first quarter of 2001, up
 9.7 percent from the corresponding period in 2000 but down 2.4 percent from
 $178.3 million reported in the fourth quarter of 2000.  Total interest expense
 for the 2001 first quarter was $92.5 million, a 19.6 percent increase from
 total interest expense of $77.4 million in the same period of the prior year
 but a decline of 3.2% from total interest expense of $95.6 million reported in
 the fourth quarter of 2000.  In the first quarter of 2001, net interest margin
 was 4.01 percent, compared to 4.28 percent for the first quarter of 2000 and
 4.03 percent in the fourth quarter of 2000.  The cost of interest-bearing
 liabilities was 5.15 percent in the first quarter of 2001, compared to
 4.66 percent in the first quarter of 2000 and 5.30 percent in the fourth
 quarter of 2000, while the taxable equivalent yield on earning assets was
 8.41 percent in the first quarter of 2001 versus 8.21 percent in the same
 period a year earlier and 8.52 percent in the immediately preceding quarter.
     "The drop in interest rates during the quarter caused the reduction in
 interest income," commented Patterson, "although it also led to a significant
 rate reduction for new deposits.  When the Federal Reserve cuts short-term
 rates, the rates on some of our loans usually drop immediately or within a
 short time.  Because we are not able to adjust the rate we pay on deposits as
 rapidly, net interest margins are compressed in a period of rapidly falling
 interest rates."
 
     Deposit and Loan Activity
     BancorpSouth continued to experience growth in total assets and total
 deposits compared to both the first quarter of 2000 and the fourth quarter of
 2000.  As of March 31, 2001, total assets were $9.4 billion, up 9.6 percent
 since March 31, 2000, and up 3.8 percent since the end of 2000; while total
 deposits were $7.8 billion, up 7.5 percent from March 31, 2000, and up
 4.1 percent since year end 2000.  Total loans as of March 31, 2001 were
 $6.0 billion, 5.7 percent higher than the level as of March 31, 2000, but down
 2.3 percent from December 31, 2000.
     Continuing a practice begun in the first quarter of 2000, the company sold
 its accumulated inventory of insured student loans in the first quarter of
 2001.  The sale of the  $61.1 million loan portfolio created a pretax gain of
 $1.7 million.  In addition, management decided to reduce the company's
 exposure to indirect automobile sales financing and is allowing BancorpSouth's
 portfolio of such loans to decline.  The portfolio has decreased
 $123.0 million since the first quarter of 2000 and $30.5 million in the first
 quarter of 2001, reaching $234.4 million.  Excluding the impact of these two
 items, total loan volume would have declined only 0.8 percent from the fourth
 quarter of 2000 to the first quarter of 2001.
     "The economy in our markets generally is holding up, with unemployment at
 historically low rates," said Patterson, "but we are seeing some slowness in
 home construction in the Memphis area.  Our liquidity position is strong
 because of good deposit growth coupled with slowing loan demand.  Given the
 opportunities presented by the merger with First United, we anticipate a
 modest increase in loan volume for the year, and we expect to be able to
 continue to expand our loan portfolio without the need for outside funding
 because of our solid deposit base."
 
     Loan Losses
     The provision for loan losses in the first quarter of 2001 was
 $4.1 million, versus $4.6 million in the same quarter of the previous year and
 $5.5 million in the fourth quarter of 2000.  Annualized net charge-offs for
 the first quarter of 2001 were .36 percent of average loans, while they were
 .18 percent of average loans in the year-ago quarter and .19 percent of
 average loans in the fourth quarter of 2000.
     Non-performing assets totaled $43.6 million (.73 percent of loans) as of
 March 31, 2001, compared to $48.4 million (.86 percent of loans) as of
 March 31, 2000, and $50.1 million (.82 percent of net loans) at December 31,
 2000.  The allowance for credit losses amounted to 1.35 percent of total net
 loans at March 31, 2001.
     "Loan quality has always been a hallmark of BancorpSouth," continued
 Patterson.  "We maintain our high standards by applying conservative criteria
 at the time of origination and closely monitoring our credits throughout the
 life of the loan.  While net charge-offs as a percent of loans was higher than
 usual in the first quarter of 2001, we anticipate that loans losses will be
 closer to historical levels for the remainder of the year."
 
     Non-interest Income
     Non-interest income totaled $27.9 million in the first quarter of 2001, up
 4.8 percent from the $26.7 million reported in the first quarter of 2000 and
 up 9.0 percent from $25.6 million reported in the fourth quarter of 2000.
     "Non-traditional businesses such as insurance and investment services are
 providing a growing revenue stream," Patterson stated.  "In the recent
 quarter, insurance-related revenue was $5.7 million, compared to $4.5 million
 a year earlier.  We anticipate that these services will continue to show
 strong growth as we implement improved cross-selling techniques and as we
 introduce BancorpSouth's products into former First United markets."
     Two unusual items impacted non-interest income in the first quarter of
 2001.  Revenue from mortgage lending swung from a $3.4 million positive in the
 first quarter of 2000 to a $1.3 million negative in the first quarter of 2001
 as a result of a $4.3 million impairment in the value of BancorpSouth's
 mortgage servicing asset, which represents the present value of the future
 stream of servicing revenue.  As interest rates decline, refinancing of home
 mortgages accelerates and the present value of the future stream of servicing
 fees declines as the expected life of those mortgages shortens.  The company
 must recognize the decline in future revenue with a non-cash charge against
 income.  To some extent, this charge is offset by higher loan origination fees
 as lower interest rates stimulate loan growth.  As the company expects to
 retain the mortgage servicing rights, the charge should reverse itself as
 interest rates rise, refinancing slows and the expected life of the mortgages
 lengthens.
     In the first quarter of 2001, the impact of the write-down in the
 servicing asset was partially offset by a pre-tax gain of $2.2 million
 resulting from the sale of certain investment securities out of the available-
 for-sale portfolio.
 
     Non-interest Expense
     Non-interest expenses for the first quarter of 2001 were $72.9 million,
 compared to $64.1 million for the first quarter of 2000 and $68.7 million in
 the fourth quarter of 2000 (before non-recurring charges).
     "We continue to see the impact of the First United merger on non-interest
 expense," explained Jim Kelley, President and Chief Operating Officer of
 BancorpSouth.  "At the time of the merger, we made customer retention our
 first priority in the transition process, even though that means higher non-
 interest expenses over the first year of the combined company as we gradually
 transition former First United offices to BancorpSouth systems.  We achieved
 product standardization among all the offices in December without a
 detrimental effect on our customer base.  In the first quarter, we
 transitioned the first two former First United banks to BancorpSouth systems
 with equal success.  We anticipate completing the conversion by the end of the
 third quarter and expect to see the resulting cost savings begin to have a
 positive impact on our results in the fourth quarter."
 
     Capital Management
     During the first quarter of 2001, the company repurchased a total of
 276,550 shares of its outstanding common stock, 21,850 shares under a
 repurchase program which terminated in January and 254,700 shares under a
 repurchase program announced on March 5, 2001, which will allow the company to
 acquire up to 4.2 million shares or approximately 5% of the shares outstanding
 at the time of the announcement.
 
     BancorpSouth, Inc. is a financial services company with $9.4 billion in
 assets, headquartered in Tupelo, Mississippi.  The company operates
 approximately 250 commercial banking, insurance, trust, broker/dealer and
 consumer finance locations in Alabama, Arkansas, Louisiana, Mississippi,
 Tennessee and Texas.
 
     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," or "intend."  These forward-looking
 statements include, without limitation, those relating to interest rates on
 deposits, expansion and prospects of products and services, integration and
 impact of recent acquisitions, effects of technology, interest rate
 sensitivity, expansion of loan portfolio, loan losses, prospects for 2001,
 mortgage servicing, the Company's future growth, and profitability.
     We caution you not to place undue reliance on the forward-looking
 statements contained in this news release in that actual results could differ
 materially from those indicated in such forward-looking statements, due to a
 variety of factors.  Those factors include, but are not limited to, changes in
 economic conditions and government fiscal and monetary policies, fluctuations
 in prevailing interest rates, ability to reduce interest on deposits as
 interest rates decline, laws and regulations affecting financial institutions,
 the ability of BancorpSouth to compete with other financial services
 companies, the ability of BancorpSouth to integrate acquisitions, the ability
 of BancorpSouth to operate and integrate new technology, the ability of
 BancorpSouth to manage its growth and effectively serve an expanding customer
 and market base,  the ability of BancorpSouth to provide competitive services
 and products, changes in BancorpSouth's operating or expansion strategy,
 geographic concentration of BancorpSouth's assets, availability of and costs
 associated with obtaining adequate and timely sources of liquidity, the
 ability of BancorpSouth to attract, train and retain qualified personnel, the
 ability of BancorpSouth to effectively market its services and products,
 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.
     Selected Financial Data
                                                      Three Months Ended
                                                           March 31,
                                                     2001              2000
     (Dollars in thousands, except per
      share amounts)
     Earnings Summary:
     Net interest revenue                           $81,599           $81,328
     Provision for credit losses                      4,097             4,615
     Noninterest revenue                             27,949            26,674
     Noninterest expense                             72,832            64,120
     Income before income taxes                      32,619            39,267
     Income tax provision                            10,300            12,622
     Net income                                      22,319            26,645
     Earning per share:  Basic                        $0.27             $0.31
                         Diluted:                     $0.27             $0.31
 
 
     Balance sheet data at March 31:
     Total assets                                $9,384,078        $8,560,573
     Total earning assets                         8,738,930         7,985,297
     Loans and lease receivables, net of
      unearned discount                           5,960,862         5,620,581
     Allowance for credit losses                     80,461            76,362
     Total deposits                               7,785,627         7,245,458
     Common shareholders' equity                    804,085           758,183
     Book value per share                              9.59              8.92
 
 
     Average balance sheet data:
     Total assets                                $9,160,057        $8,479,566
     Total earning assets                         8,539,226         7,919,175
     Loans and lease receivables, net of
      unearned discount                           6,025,742         5,559,943
     Total deposits                               7,612,436         7,125,843
     Common shareholders' equity                    789,892           755,015
 
     Non-performing assets at March 31:
     Non-accrual loans                              $12,116           $18,011
     Loans 90+ days past due                         22,338            18,120
     Restructured loans                               1,542               979
     Other real estate owned                          7,643            11,280
 
     Net charge-offs as a percentage
          of average loans (annualized)               0.36%             0.18%
 
     Performance ratios (annualized)
     Return on average assets                         0.99%             1.26%
     Return on common equity                         11.46%            14.16%
 
     Net interest margin                              4.01%             4.28%
 
     Average shares outstanding - diluted        84,200,255        85,704,216
 
 
 
     BancorpSouth, Inc.
     Consolidated Balance Sheets
     (dollars in thousands)
     (Unaudited)
 
                                               March 31, 2001    March 31, 2000
     Assets
     Cash & due from banks                        $298,663          $273,427
     Interest bearing deposits
       with other banks                              7,871            48,469
     Held-to-maturity securities                 1,224,997         1,077,997
     Federal funds sold and securities
       purchased under agreement to resell         520,399           129,219
 
     Loans & leases                              5,960,862         5,620,581
       Allowance for credit losses                 (80,461)          (76,362)
      Net loans & leases                         5,880,401         5,544,219
 
     Available-for-sale securities                 973,847         1,077,151
     Mortgages held for sale                        50,953            31,882
     Bank premises & equipment                     202,539           173,195
     Accrued interest receivable                    90,827            74,426
     Other real estate owned                         7,568            10,714
     Other assets                                  126,013           119,874
        Total assets                            $9,384,078        $8,560,573
     Liabilities
     Demand deposits:
      Non-interest bearing                      $1,032,551        $1,002,662
      Interest bearing                           1,828,324         1,727,489
      Total demand deposits                      2,860,875         2,730,151
     Savings & time deposits:
      Savings                                      468,679           280,803
      Premium access                               427,092           579,860
      Certificates of deposit                    4,028,981         3,654,644
      Total savings & time deposits              4,924,752         4,515,307
      Total deposits                             7,785,627         7,245,458
     Federal funds purchased and
      securities sold under
      agreement to repurchase                      502,749           277,088
     Short-term borrowings                               0             9,000
     Accrued interest payable                       52,466            39,563
     Long-term debt                                151,778           161,087
     Other liabilities                              87,373            70,194
       Total liabilities                         8,579,993         7,802,390
     Shareholders' Equity
     Common stock                                  214,484           214,410
     Capital surplus                                70,581            69,978
     Unrealized gain(loss) on
      securities                                    22,933           (16,904)
     Retained earnings                             525,383           502,587
      Less:  Cost of treasury stock                (29,296)          (11,888)
       Total shareholders' equity                  804,085           758,183
       Total liabilities &
        shareholders' equity                    $9,384,078        $8,560,573
 
 
 
     BancorpSouth, Inc.
     Consolidated Statements of Income
     (amounts in thousands, except per share data)
     (Unaudited)
 
                                      Quarter Ended
                                Mar-01    Dec-00    Sep-00    Jun-00    Mar-00
     Interest Revenue:
     Loans, including fees     $136,737  $140,892  $134,910  $129,030  $124,360
     Held-to-maturity
      securities:                16,051    18,141    15,899    15,307    15,408
     Available-for-sale
      securities                 15,586    16,177    21,554    17,696    17,155
     Short term investments       5,766     3,185       962     1,553     1,806
      Total interest revenue    174,140   178,395   173,325   163,586   158,729
     Interest Expense:
     Deposits                    83,944    84,709    81,031    74,088    70,536
     Short term borrowings        3,557     7,007     9,058     4,416     4,274
     Long term borrowings         2,265     2,378     2,559     2,442     2,397
     Other interest expense       2,775     1,503       110       182       194
      Total interest expense     92,541    95,597    92,758    81,128    77,401
      Net interest revenue       81,599    82,798    80,567    82,458    81,328
     Provision for credit
      losses                      4,097     5,497    10,656     5,398     4,615
       Net interest revenue,
        after credit loss
        provision                77,502    77,301    69,911    77,060    76,713
      Other Revenue:
      Mortgage lending           (1,333)    1,900     2,493     3,059     3,422
      Service charges            10,342    10,927    10,213    10,234     9,098
      Life insurance premiums     1,094     1,116     1,107     1,058     1,020
      Trust income                1,684     1,625     1,794     1,637     1,644
      Securities gains, net       2,884   (15,549)     (254)       (7)      177
      Insurance commissions       4,608     4,845     3,717     3,972     3,499
      Other                       8,670     5,188     4,496     5,333     7,814
        Total other revenue      27,949    10,052    23,566    25,286    26,674
      Other Expense:
      Salaries and employee
       benefits                  38,721    33,845    34,070    32,008    33,933
      Occupancy                   5,129     4,838     4,647     4,409     4,449
      Equipment                   7,032     6,960     6,124     5,506     5,544
      Telecommunications          2,182     2,041     1,868     1,751     1,574
      Other                      19,768    21,981    29,898    20,161    18,620
        Total other expense      72,832    69,665    76,607    63,835    64,120
        Income before
         income taxes            32,619    17,688    16,870    38,511    39,267
      Income tax expense         10,300     5,413     7,379    12,527    12,622
        Net Income              $22,319   $12,275    $9,491   $25,984   $26,645
      Net Income Per Share:
        Basic                     $0.27     $0.15     $0.11     $0.31     $0.31
        Diluted                   $0.27     $0.15     $0.11     $0.31     $0.31
 
 
          BancorpSouth, Inc.
          Average Balances, Interest Income and Expense,
            and Average Yields and Rates
          (dollars in thousands)          Quarter Ended
          Unaudited                       March 31, 2001
                                             Average                  Yield/
          (Taxable equivalent basis)         Balance      Interest     Rate
          ASSETS
          Loans net of Unearned Income       $6,063,946    $137,055     9.17%
          Held-to-maturity securities:
            Taxable                             842,693      13,212     6.36%
            Non Taxable                         232,636       4,366     7.61%
          Available-for-sale securities
            Taxable                             838,410      13,616     6.59%
            Non Taxable                         155,988       3,031     7.88%
          Short term investments                405,553       5,767     5.77%
            Total interest earning
              assets and revenue              8,539,226     177,047     8.41%
          Other assets                          701,784
          Less:  allowance for credit
           losses                               (80,953)
              Total                          $9,160,057
 
          LIABILITIES AND
          SHAREHOLDERS' EQUITY
          Deposits:
            Demand - interest bearing        $1,770,537     $14,340     3.28%
            Savings                             896,888      10,685     4.83%
            Time                              3,975,219      58,918     6.01%
          Short-term borrowings                 490,736       6,333     5.23%
          Long-term debt                        151,870       2,265     6.05%
            Total interest bearing
              liabilities and expense         7,285,250      92,541     5.15%
          Demand deposits -
            non-interest bearing                969,793
          Other liabilities                     115,122
            Total liabilities                 8,370,165
          Shareholders' equity                  789,892
            Total                            $9,160,057
          Net interest revenue                              $84,506
          Net interest margin                                           4.01%
          Net interest rate spread                                      3.26%
          Interest bearing liabilities to
             interest earning assets                                   85.32%
 
          Net interest tax equivalent
           adjustment                                        $2,907
 
 
 
          BancorpSouth, Inc.
          Average Balances, Interest Income and Expense,
            and Average Yields and Rates
          (dollars in thousands)          Quarter Ended
          Unaudited                     December 31, 2000
                                             Average                  Yield/
          (Taxable equivalent basis)         Balance      Interest     Rate
          ASSETS
          Loans net of Unearned Income       $6,073,609    $141,295     9.25%
          Held-to-maturity securities:
            Taxable                             889,349      14,114     6.31%
            Non Taxable                         327,673       6,195     7.52%
          Available-for-sale securities
            Taxable                             913,866      15,271     6.65%
            Non Taxable                          69,280       1,394     8.00%
          Short term investments                198,310       3,185     6.39%
            Total interest earning
              assets and revenue              8,472,087     181,454     8.52%
          Other assets                          670,163
          Less:  allowance for credit
           losses                               (79,633)
              Total                          $9,062,617
 
          LIABILITIES AND
          SHAREHOLDERS' EQUITY
          Deposits:
            Demand - interest bearing        $1,668,090     $13,960     3.33%
            Savings                             904,717      11,888     5.23%
            Time                              3,883,979      58,861     6.03%
          Short-term borrowings                 567,066       8,509     5.97%
          Long-term debt                        157,786       2,378     6.00%
            Total interest bearing
              liabilities and expense         7,181,638      95,596     5.30%
          Demand deposits -
            non-interest bearing                987,644
          Other liabilities                     120,012
            Total liabilities                 8,289,294
          Shareholders' equity                  773,323
            Total                            $9,062,617
          Net interest revenue                              $85,858
          Net interest margin                                           4.03%
          Net interest rate spread                                      3.23%
          Interest bearing liabilities to
             interest earning assets                                   84.77%
 
          Net interest tax equivalent
           adjustment                                        $3,060
 
 
 
          BancorpSouth, Inc.
          Average Balances, Interest Income and Expense,
            and Average Yields and Rates
          (dollars in thousands)          Quarter Ended
                                          September 30, 2000
          Unaudited                          Average                  Yield/
                                             Balance      Interest     Rate
          (Taxable equivalent basis)
          ASSETS
          Loans net of Unearned Income       $5,888,736    $135,311     9.14%
          Held-to-maturity securities:
            Taxable                             760,409      11,951     6.25%
            Non Taxable                         325,687       6,074     7.42%
          Available-for-sale securities
            Taxable                           1,242,043      20,519     6.57%
            Non Taxable                          75,530       1,591     8.38%
          Short term investments                 58,408         962     6.55%
            Total interest earning
              assets and revenue              8,350,813     176,408     8.40%
          Other assets                          645,252
          Less:  allowance for credit
           losses                               (76,879)
              Total                          $8,919,186
 
          LIABILITIES AND
          SHAREHOLDERS' EQUITY
          Deposits:
            Demand - interest bearing        $1,659,533     $13,842     3.32%
            Savings                             877,041       9,956     4.52%
            Time                              3,801,938      57,233     5.99%
          Short-term borrowings                 579,725       9,168     6.29%
          Long-term debt                        169,573       2,559     6.00%
            Total interest bearing
              liabilities and expense         7,087,810      92,758     5.21%
          Demand deposits -
            non-interest bearing                972,647
          Other liabilities                      96,615
            Total liabilities                 8,157,072
          Shareholders' equity                  762,114
            Total                            $8,919,186
          Net interest revenue                              $83,650
          Net interest margin                                           3.99%
          Net interest rate spread                                      3.20%
          Interest bearing liabilities to
             interest earning assets                                   84.88%
 
          Net interest tax equivalent
           adjustment                                        $3,083
 
 
 
         BancorpSouth, Inc.
         Average Balances, Interest Income and Expense,
           and Average Yields and Rates
         (dollars in thousands)          Quarter Ended
         Unaudited                          June 30, 2000
                                             Average                  Yield/
                                             Balance     Interest      Rate
         (Taxable equivalent basis)
         ASSETS
         Loans net of Unearned Income       $5,750,197    $129,411     9.05%
         Held-to-maturity securities:
           Taxable                             753,072      11,446     6.11%
           Non Taxable                         324,755       5,941     7.36%
         Available-for-sale securities
           Taxable                             996,124      16,685     6.74%
           Non Taxable                          76,029       1,555     8.23%
         Short term investments                 99,355       1,553     6.29%
           Total interest earning
             assets and revenue              7,999,532     166,591     8.38%
         Other assets                          636,386
         Less:  allowance for credit
          losses                               (76,545)
             Total                          $8,559,373
 
         LIABILITIES AND
         SHAREHOLDERS' EQUITY
         Deposits:
           Demand - interest bearing        $1,707,641     $13,758     3.24%
           Savings                             826,070       8,206     4.00%
           Time                              3,708,808      52,124     5.65%
         Short-term borrowings                 328,870       4,598     5.62%
         Long-term debt                        165,584       2,442     5.93%
           Total interest bearing
             liabilities and expense         6,736,973      81,128     4.84%
         Demand deposits -
           non-interest bearing                965,742
         Other liabilities                      99,701
           Total liabilities                 7,802,416
         Shareholders' equity                  756,957
           Total                            $8,559,373
         Net interest revenue                              $85,463
         Net interest margin                                           4.30%
         Net interest rate spread                                      3.53%
         Interest bearing liabilities to
            interest earning assets                                   84.22%
 
         Net interest tax equivalent
            adjustment                                      $3,005
 
 
 
          BancorpSouth, Inc.
          Average Balances, Interest Income and Expense,
            and Average Yields and Rates
          (dollars in thousands)          Quarter Ended
          Unaudited                       March 31, 2000
                                             Average                  Yield/
                                             Balance      Interest     Rate
          (Taxable equivalent basis)
          ASSETS
          Loans net of Unearned Income       $5,608,277    $124,713     8.94%
          Held-to-maturity securities:
            Taxable                             781,038      11,575     5.96%
            Non Taxable                         321,956       5,898     7.37%
          Available-for-sale securities
            Taxable                           1,007,238      16,106     6.43%
            Non Taxable                          74,507       1,614     8.71%
          Short term investments                126,159       1,805     5.75%
            Total interest earning
              assets and revenue              7,919,175     161,711     8.21%
          Other assets                          635,476
          Less:  allowance for credit
           losses                               (75,085)
              Total                          $8,479,566
 
          LIABILITIES AND
          SHAREHOLDERS' EQUITY
          Deposits:
            Demand - interest bearing        $1,654,789     $12,666     3.08%
            Savings                             890,646       8,897     4.02%
            Time                              3,635,417      48,973     5.42%
          Short-term borrowings                 338,072       4,467     5.31%
          Long-term debt                        165,802       2,397     5.81%
            Total interest bearing
              liabilities and expense         6,684,726      77,400     4.66%
          Demand deposits -
            non-interest bearing                944,990
          Other liabilities                      94,835
            Total liabilities                 7,724,551
          Shareholders' equity                  755,015
            Total                            $8,479,566
          Net interest revenue                              $84,311
          Net interest margin                                           4.28%
          Net interest rate spread                                      3.56%
          Interest bearing liabilities to
             interest earning assets                                   84.41%
 
          Net interest tax equivalent
           adjustment                                        $2,983
 
 SOURCE  BancorpSouth, Inc.