Exhibit 99
News Release |
Date: April 21, 2005 |
| Phone Number: 805/473-6803 |
Contact: James G. Stathos |
| NASDAQ Symbol: MDST |
Title: Executive Vice President/ |
| Web site: www.midstatebank.com |
Chief Financial Officer |
|
|
Mid-State Bancshares Reports 21.9% Earnings Per Share
Increase in First Quarter of 2005
ARROYO GRANDE, CA - Mid-State Bancshares (the Company) [NASDAQ: MDST], the holding company for Mid-State Bank & Trust (the Bank), reported diluted earnings of $0.39 per share for the first quarter of 2005, a 21.9% increase over the $0.32 earned one year earlier. Net income for the quarter was $9.1 million, an 18.6% increase over the $7.7 million earned in the same quarter in 2004.
“Results in the first three months of 2005 have reaffirmed the positive prospects for Mid-State Bank & Trust this year,” said James W. Lokey, president and chief executive officer. “As expected, our net interest margin has improved significantly with the recent rate increases and our improved earning asset mix. Both our return on assets and return on equity increased significantly compared to the first quarter of 2004.”
The Company’s net interest margin was 5.22% in the first quarter of 2005 compared to 4.88% in the year earlier period. Similarly, the Company’s return on assets and return on equity were 1.60% and 13.33%, respectively, for the three months ended March 31, 2005 compared to 1.40% and 11.09%, respectively, in the like 2004 period.
Non-performing asset levels declined to $5.8 million at March 31, 2005 compared to $15.6 million one year earlier. These levels represented 0.3% and 0.7% of total assets respectively. These non-performing assets, which in recent quarters have been centered primarily in one loan secured by real estate (originally totaling $8.5 million), were reduced dramatically in the first quarter as a result of the receipt of $4.6 million in principal reductions on that one loan. Management has specific reserves for potential losses inherent in its impaired loans that it believes are adequate at the present time. The ratio of the Company’s allowances for losses to non-performing loans was 262% compared to 151% one year earlier. The Company’s allowances for losses to loans was 1.0% of total gross loans at March 31, 2005, compared to 1.5% at March 31, 2004.
Total assets of the Company increased 4.7% to $2.3 billion at quarter-end, up from $2.2 billion one year earlier, while deposits increased 4.6% to $2.0 billion at quarter-end, up from just over $1.9 billion one year earlier. Time deposits decreased modestly to $402.2 million from $404.9 million one year earlier. All other deposit categories including demand, NOW, money market, and savings increased to $1.6 billion from just over $1.5 billion at March 31, 2004. The loan portfolio reached just under $1.5 billion at March 31, 2005, compared to $1.25 billion one year earlier. The Company is seeing growth in its loan portfolio, especially in both the residential and non-residential real estate sectors.
“Both non-interest income and expense have been reduced because of Management’s decision to outsource the credit card merchant processing activity,” said James G. Stathos, executive vice president and chief financial officer. “The net effect has been relatively neutral to the Bank’s bottom line, with the Bank now receiving a check
2
for a percentage of the net profit associated with the activity. The new process affords more competitive pricing and products for the customers, while allowing the Bank to reduce costs at the same time. Those adjustments, along with the increased net interest margin, have positively affected the Company’s efficiency ratio.”
In early 2004, the Board authorized the repurchase of up to 1,178,352 additional shares of the Company’s common stock. This authorization does not have an expiration date. The Company repurchased 193,770 shares of its common stock in the first quarter of 2005 at an average price of $27.29 per share compared to 862 shares repurchased in the first quarter of 2004 at an average price of $26.52 per share. As of March 31, 2005, the Company can repurchase up to 326,587 additional shares under the January 2004 authorization.
In other matters concerning capital, the Board of Directors approved a quarterly cash dividend in the first quarter of 2005 of $0.16 per share, up from $0.14 declared in the first quarter of 2004.
Mid-State Bancshares is a $2.3 billion holding company for Mid-State Bank & Trust, an independent, community bank serving California’s San Luis Obispo, Santa Barbara, and Ventura Counties. Since opening its doors in 1961, the Bank has grown to 41 offices serving more than 100,000 households.
3
This Press Release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act. All of the statements contained in the Press Release, other than statements of historical fact, should be considered forward-looking statements, including, but not limited to, those concerning (i) the Company’s strategies, objectives and plans for expansion of its operations, products and services, and growth of its portfolio of loans, investments and deposits, (ii) the Company’s beliefs and expectations regarding actions that may be taken by regulatory authorities having oversight of its operation and interest rates, (iii) the Company’s beliefs as to the adequacy of its existing and anticipated allowances for loan and real estate losses, (iv) the Company’s beliefs and expectations concerning future operating results, (v) the growth of its loan portfolio and its net interest margin and (vi) the strength of the economy in its service area. Although the Company believes the expectations reflected in those forward-looking statements are reasonable, it can give no assurance that those expectations will prove to have been correct. All subsequent written and oral forward-looking statements by or attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by this qualification. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and are not intended to give any assurance as to future results. The Company undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Please See Pertinent Financial Data Attached.
###
4
Consolidated Financial Data - Mid-State Bancshares
(Unaudited)
|
| Year-to-Date |
| ||||
(In thousands, except per share data) |
| Mar. 31, 2005 |
| Mar. 31, 2004 |
| ||
|
|
|
|
|
| ||
Interest Income (not taxable equivalent) |
| $ | 29,482 |
| $ | 26,237 |
|
Interest Expense |
| 2,713 |
| 2,076 |
| ||
Net Interest Income |
| 26,769 |
| 24,161 |
| ||
Provision for Loan Losses |
| — |
| — |
| ||
Net Interest Income after provision for loan losses |
| 26,769 |
| 24,161 |
| ||
Non-interest income |
| 5,395 |
| 7,000 |
| ||
Non-interest expense |
| 18,335 |
| 19,694 |
| ||
Income before income taxes |
| 13,829 |
| 11,467 |
| ||
Provision for income taxes |
| 4,739 |
| 3,802 |
| ||
Net Income |
| $ | 9,090 |
| $ | 7,665 |
|
|
|
|
|
|
| ||
Per share: |
|
|
|
|
| ||
Net Income - basic |
| $ | 0.39 |
| $ | 0.33 |
|
Net Income - diluted |
| $ | 0.39 |
| $ | 0.32 |
|
Weighted average shares used in Basic E.P.S. calculation |
| 23,019 |
| 23,570 |
| ||
Weighted average shares used in Diluted E.P.S. calculation |
| 23,557 |
| 24,045 |
| ||
Cash dividends |
| $ | 0.16 |
| $ | 0.14 |
|
Book value at period-end |
| $ | 11.78 |
| $ | 11.80 |
|
Tangible book value at period end |
| $ | 9.38 |
| $ | 9.40 |
|
Ending Shares |
| 22,949 |
| 23,586 |
| ||
|
|
|
|
|
| ||
Financial Ratios |
|
|
|
|
| ||
Return on assets |
| 1.60 | % | 1.40 | % | ||
Return on tangible assets |
| 1.64 | % | 1.44 | % | ||
Return on equity |
| 13.33 | % | 11.09 | % | ||
Return on tangible equity |
| 16.66 | % | 13.93 | % | ||
Net interest margin (not taxable equivalent) |
| 5.22 | % | 4.88 | % | ||
Net interest margin (taxable equivalent yield) |
| 5.65 | % | 5.30 | % | ||
Net loan losses (recoveries) to average loans |
| 0.05 | % | (0.04 | )% | ||
Efficiency ratio |
| 57.0 | % | 63.2 | % | ||
|
|
|
|
|
| ||
Period Averages |
|
|
|
|
| ||
Total Assets |
| $ | 2,306,314 |
| $ | 2,199,365 |
|
Total Tangible Assets |
| 2,250,937 |
| 2,142,613 |
| ||
Total Loans (includes loans held for sale) |
| 1,434,150 |
| 1,189,945 |
| ||
Total Earning Assets |
| 2,079,604 |
| 1,993,070 |
| ||
Total Deposits |
| 1,991,356 |
| 1,899,475 |
| ||
Common Equity |
| 276,592 |
| 278,047 |
| ||
Common Tangible Equity |
| 221,215 |
| 221,295 |
| ||
|
|
|
|
|
| ||
Balance Sheet - At Period-End |
|
|
|
|
| ||
Cash and due from banks |
| $ | 127,861 |
| $ | 123,672 |
|
Investments and Fed Funds Sold |
| 628,634 |
| 749,708 |
| ||
Loans held for sale |
| 9,927 |
| 10,712 |
| ||
Loans, net of deferred fees, before allowance for loan losses |
| 1,456,091 |
| 1,240,325 |
| ||
Allowance for Loan Losses |
| (13,630 | ) | (16,584 | ) | ||
Goodwill and other intangibles |
| 55,228 |
| 56,603 |
| ||
Other assets |
| 58,070 |
| 54,231 |
| ||
Total Assets |
| $ | 2,322,181 |
| $ | 2,218,667 |
|
|
|
|
|
|
| ||
Non-interest bearing deposits |
| $ | 526,597 |
| $ | 480,652 |
|
Interest bearing deposits |
| 1,478,735 |
| 1,435,908 |
| ||
Other borrowings |
| 23,621 |
| 4,886 |
| ||
Allowance for losses - unfunded commitments |
| 1,624 |
| 1,867 |
| ||
Other liabilities |
| 21,228 |
| 17,072 |
| ||
Shareholders’ equity |
| 270,376 |
| 278,282 |
| ||
Total Liabilities and Shareholders’ Equity |
| $ | 2,322,181 |
| $ | 2,218,667 |
|
|
|
|
|
|
| ||
Asset Quality & Capital - At Period-End |
|
|
|
|
| ||
Non-accrual loans |
| $ | 5,828 |
| $ | 12,220 |
|
Loans past due 90 days or more |
| — |
| — |
| ||
Other real estate owned |
| — |
| 3,428 |
| ||
Total non performing assets |
| $ | 5,828 |
| $ | 15,648 |
|
|
|
|
|
|
| ||
Allowance for losses to loans, gross (1) |
| 1.0 | % | 1.5 | % | ||
Non-accrual loans to total loans, gross |
| 0.4 | % | 1.0 | % | ||
Non performing assets to total assets |
| 0.3 | % | 0.7 | % | ||
Allowance for losses to non performing loans (1) |
| 261.7 | % | 151.0 | % | ||
|
|
|
|
|
| ||
Equity to average assets (leverage ratio) |
| 9.5 | % | 9.7 | % | ||
Tier One capital to risk-adjusted assets |
| 11.9 | % | 13.6 | % | ||
Total capital to risk-adjusted assets |
| 12.8 | % | 14.8 | % |
(1) Includes allowance for loan losses and allowance for losses - unfunded commitments
5
|
| Quarter Ended |
| |||||||||||||
(In thousands, except per share data) |
| Mar. 31, 2005 |
| Dec. 31, 2004 |
| Sept. 30, 2004 |
| June 30, 2004 |
| Mar. 31, 2004 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Interest Income (not taxable equivalent) |
| $ | 29,482 |
| $ | 28,843 |
| $ | 28,236 |
| $ | 26,620 |
| $ | 26,237 |
|
Interest Expense |
| 2,713 |
| 2,301 |
| 2,083 |
| 1,990 |
| 2,076 |
| |||||
Net Interest Income |
| 26,769 |
| 26,542 |
| 26,153 |
| 24,630 |
| 24,161 |
| |||||
(Benefit)/Provision for Loan Losses |
| — |
| — |
| — |
| (2,700 | ) | — |
| |||||
Net Interest Income after provision for loan losses |
| 26,769 |
| 26,542 |
| 26,153 |
| 27,330 |
| 24,161 |
| |||||
Non-interest income |
| 5,395 |
| 5,604 |
| 7,250 |
| 7,910 |
| 7,000 |
| |||||
Non-interest expense |
| 18,335 |
| 18,458 |
| 20,265 |
| 20,877 |
| 19,694 |
| |||||
Income before income taxes |
| 13,829 |
| 13,688 |
| 13,138 |
| 14,363 |
| 11,467 |
| |||||
Provision for income taxes |
| 4,739 |
| 4,290 |
| 4,465 |
| 4,990 |
| 3,802 |
| |||||
Net Income |
| $ | 9,090 |
| $ | 9,398 |
| $ | 8,673 |
| $ | 9,373 |
| $ | 7,665 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Per share: |
|
|
|
|
|
|
|
|
|
|
| |||||
Net Income - basic |
| $ | 0.39 |
| $ | 0.41 |
| $ | 0.37 |
| $ | 0.40 |
| $ | 0.33 |
|
Net Income - diluted |
| $ | 0.39 |
| $ | 0.40 |
| $ | 0.36 |
| $ | 0.39 |
| $ | 0.32 |
|
Weighted average shares used in Basic E.P.S. calculation |
| 23,019 |
| 23,201 |
| 23,369 |
| 23,550 |
| 23,570 |
| |||||
Weighted average shares used in Diluted E.P.S. calculation |
| 23,557 |
| 23,741 |
| 23,842 |
| 23,962 |
| 24,045 |
| |||||
Cash dividends |
| $ | 0.16 |
| $ | 0.16 |
| $ | 0.14 |
| $ | 0.14 |
| $ | 0.14 |
|
Book value at period-end |
| $ | 11.78 |
| $ | 11.89 |
| $ | 11.94 |
| $ | 11.60 |
| $ | 11.80 |
|
Tangible book value at period end |
| $ | 9.38 |
| $ | 9.48 |
| $ | 9.54 |
| $ | 9.20 |
| $ | 9.40 |
|
Ending Shares |
| 22,949 |
| 23,099 |
| 23,323 |
| 23,454 |
| 23,586 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Financial Ratios |
|
|
|
|
|
|
|
|
|
|
| |||||
Return on assets |
| 1.60 | % | 1.60 | % | 1.50 | % | 1.68 | % | 1.40 | % | |||||
Return on tangible assets |
| 1.64 | % | 1.64 | % | 1.53 | % | 1.72 | % | 1.44 | % | |||||
Return on equity |
| 13.33 | % | 13.40 | % | 12.47 | % | 13.73 | % | 11.09 | % | |||||
Return on tangible equity |
| 16.66 | % | 16.75 | % | 15.64 | % | 17.28 | % | 13.93 | % | |||||
Net interest margin (not taxable equivalent) |
| 5.22 | % | 5.01 | % | 5.01 | % | 4.90 | % | 4.88 | % | |||||
Net interest margin (taxable equivalent yield) |
| 5.65 | % | 5.42 | % | 5.41 | % | 5.31 | % | 5.30 | % | |||||
Net loan losses (recoveries) to average loans |
| 0.05 | % | 0.03 | % | (0.01 | )% | 0.00 | % | (0.04 | )% | |||||
Efficiency ratio |
| 57.0 | % | 57.4 | % | 60.7 | % | 64.2 | % | 63.2 | % | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Period Averages |
|
|
|
|
|
|
|
|
|
|
| |||||
Total Assets |
| $ | 2,306,314 |
| $ | 2,330,364 |
| $ | 2,306,318 |
| $ | 2,242,379 |
| $ | 2,199,365 |
|
Total Tangible Assets |
| 2,250,937 |
| 2,274,646 |
| 2,250,254 |
| 2,185,971 |
| 2,142,613 |
| |||||
Total Loans (includes loans held for sale) |
| 1,434,150 |
| 1,403,478 |
| 1,358,768 |
| 1,289,633 |
| 1,189,945 |
| |||||
Total Earning Assets |
| 2,079,604 |
| 2,107,007 |
| 2,077,356 |
| 2,022,516 |
| 1,993,070 |
| |||||
Total Deposits |
| 1,991,356 |
| 2,026,945 |
| 2,005,694 |
| 1,947,865 |
| 1,899,475 |
| |||||
Common Equity |
| 276,592 |
| 278,924 |
| 276,652 |
| 274,577 |
| 278,047 |
| |||||
Common Tangible Equity |
| 221,215 |
| 223,206 |
| 220,587 |
| 218,169 |
| 221,295 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Balance Sheet - At Period-End |
|
|
|
|
|
|
|
|
|
|
| |||||
Cash and due from banks |
| $ | 127,861 |
| $ | 109,719 |
| $ | 119,104 |
| $ | 128,141 |
| $ | 123,672 |
|
Investments and Fed Funds Sold |
| 628,634 |
| 650,817 |
| 688,923 |
| 697,431 |
| 749,708 |
| |||||
Loans held for sale |
| 9,927 |
| 12,988 |
| 10,001 |
| 12,789 |
| 10,712 |
| |||||
Loans, net of deferred fees, before allowance for loan losses |
| 1,456,091 |
| 1,421,894 |
| 1,394,478 |
| 1,316,135 |
| 1,240,325 |
| |||||
Allowance for Loan Losses |
| (13,630 | ) | (13,799 | ) | (13,912 | ) | (13,895 | ) | (16,584 | ) | |||||
Goodwill and other intangibles (excl OMSR’s) |
| 55,228 |
| 55,572 |
| 55,916 |
| 56,259 |
| 56,603 |
| |||||
Other assets (incl OMSR’s) |
| 58,070 |
| 55,946 |
| 55,033 |
| 55,155 |
| 54,231 |
| |||||
Total Assets |
| $ | 2,322,181 |
| $ | 2,293,137 |
| $ | 2,309,543 |
| $ | 2,252,015 |
| $ | 2,218,667 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Non-interest bearing deposits |
| $ | 526,597 |
| $ | 517,139 |
| $ | 524,785 |
| $ | 498,754 |
| $ | 480,652 |
|
Interest bearing deposits |
| 1,478,735 |
| 1,477,406 |
| 1,474,782 |
| 1,455,691 |
| 1,435,908 |
| |||||
Other borrowings |
| 23,621 |
| 6,582 |
| 5,843 |
| 4,964 |
| 4,886 |
| |||||
Allowance for losses - unfunded commitments |
| 1,624 |
| 1,783 |
| 1,682 |
| 1,570 |
| 1,867 |
| |||||
Other liabilities |
| 21,228 |
| 15,600 |
| 23,989 |
| 19,074 |
| 17,072 |
| |||||
Shareholders’ equity |
| 270,376 |
| 274,627 |
| 278,462 |
| 271,962 |
| 278,282 |
| |||||
Total Liabilities and Shareholders’ equity |
| $ | 2,322,181 |
| $ | 2,293,137 |
| $ | 2,309,543 |
| $ | 2,252,015 |
| $ | 2,218,667 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Asset Quality & Capital - At Period-End |
|
|
|
|
|
|
|
|
|
|
| |||||
Non-accrual loans |
| $ | 5,828 |
| $ | 10,700 |
| $ | 10,954 |
| $ | 11,758 |
| $ | 12,220 |
|
Loans past due 90 days or more |
| — |
| — |
| — |
| 2 |
| — |
| |||||
Other real estate owned |
| — |
| — |
| — |
| — |
| 3,428 |
| |||||
Total non performing assets |
| $ | 5,828 |
| $ | 10,700 |
| $ | 10,954 |
| $ | 11,760 |
| $ | 15,648 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Allowance for losses to loans, gross (1) |
| 1.0 | % | 1.1 | % | 1.1 | % | 1.2 | % | 1.5 | % | |||||
Non-accrual loans to total loans, gross |
| 0.4 | % | 0.8 | % | 0.8 | % | 0.9 | % | 1.0 | % | |||||
Non performing assets to total assets |
| 0.3 | % | 0.5 | % | 0.5 | % | 0.5 | % | 0.7 | % | |||||
Allowance for losses to non performing loans (1) |
| 261.7 | % | 145.6 | % | 142.4 | % | 131.5 | % | 151.0 | % | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Equity to average assets (leverage ratio) |
| 9.5 | % | 9.3 | % | 9.5 | % | 9.7 | % | 9.7 | % | |||||
Tier One capital to risk-adjusted assets |
| 11.9 | % | 12.1 | % | 12.4 | % | 13.0 | % | 13.6 | % | |||||
Total capital to risk-adjusted assets |
| 12.8 | % | 13.0 | % | 13.3 | % | 13.9 | % | 14.8 | % |
(1) Includes allowance for loan losses and allowance for losses - unfunded commitments
6