Exhibit 99.1
MidSouth Bancorp, Inc. Reports 4th Quarter Earnings Up 30% and
Annual Earnings Up 43%
LAFAYETTE, La., Jan. 26 /PRNewswire-FirstCall/ -- MidSouth Bancorp, Inc.
(Amex: MSL) ("MidSouth") announced net income of $1,665,053, a 30% increase
over the $1,282,034 for the fourth quarter of 2002 and a decrease of 4% from
the third quarter net income of $1,734,567. Basic earnings per share were
$.52 for the quarter ended December 31, 2003, a significant increase from the
$.40 per share reported for the fourth quarter of 2002, and three cents less
than the $.55 per share earned in the third quarter of 2003. Diluted earnings
per share were $.50 for the fourth quarter of 2003 compared to $.39 per share
for the fourth quarter of 2002 and $.52 per share for the third quarter of
2003. On August 29, 2003, MidSouth paid a 10% stock dividend on its common
stock to holders of record on July 31, 2003. Earnings per common share data
have been adjusted accordingly.
Substantial declines in interest expense and loan loss provisions
accounted for the increase in fourth quarter comparison. Net income decreased
from the third quarter 2003 despite a decrease of $250,000 in loan loss
provisions. The decrease in net income resulted primarily from a $124,000
decrease in non-interest income and a $213,000 increase in non-interest
expense. The decrease in non-interest income resulted primarily from a
$107,000 decrease in mortgage origination fees. The increase in non-interest
expense resulted primarily from additional incentive costs of $76,000 as a
result of outstanding earnings for the year and from a $60,000 increase in
costs associated with group benefit plans, including the Employee Stock
Ownership Plan ("ESOP").
Earnings for the year-end December 31, 2003 were $6,333,313, a $1,904,230
or 43% increase over the $4,429,083 for the year-end December 31, 2002. Basic
earnings per share were $1.99 for 2003 compared to $ 1.39 for 2002. Diluted
earnings per share were $1.91 and $1.36, respectively.
Substantial declines in interest expense and loan loss provisions also
accounted for the increase in year-to-date earnings.
Highlights for the Quarter Ended December 31, 2003
-- Return on average equity was 20.22% for the fourth quarter of 2003
compared to 18.41% for the fourth quarter of 2002. The leverage
capital ratio was 8.86% at December 31, 2003 compared to 8.45% at
December 31, 2002. Market cap exceeded the $100 million mark at
December 31, 2003 with a closing market price of $31.50 per
common share.
-- MidSouth increased dividends paid on its common stock by 35% with a
10% stock dividend paid on August 29, 2003 and an increase in cash
dividends from 25 cents ($.25) per common share in 2002 to 32 cents
($.32) per common share in 2003.
-- Net interest income totaled $5,107,141 for the fourth quarter of 2003,
up 15% from the $4,447,943 reported for the fourth quarter 2002. Net
interest income increased primarily due to a substantial decline in
interest expense combined with a slight increase in interest income
due to an increase in the average volume of earning assets.
-- With no provision for loan losses expensed in the fourth quarter of
2003, quarterly earnings were boosted $275,000 over the fourth quarter
of 2002.
-- Total loans grew $34.8 million or 15%, from $227.0 million at
December 31, 2002 to $261.8 million at December 31, 2003, primarily in
commercial and real estate loans.
-- Nonperforming assets, including loans 90 days or more past due, as a
percentage of total assets decreased from .46% at December 31, 2002 to
.36% at December 31, 2003. Net charge-offs to total loans decreased
from .53% to .25% for the same periods, respectively.
-- Total consolidated assets increased $50.0 million or 13%, from
$382.7 million at the end of the fourth quarter of 2002 to
$432.7 million at the end of the fourth quarter of 2003.
-- Total deposits increased $30.9 million or 9%, from $343.5 million at
year-end 2002 to $374.4 million at year-end 2003. The increase
resulted primarily from deposits associated with a public fund
contract. The contracted funds were deposited on July 1, 2003 and
averaged $26.6 million for the second half of 2003.
-- MidSouth completed its first full quarter in the Houma/Terrebonne
market, offering commercial lending and mortgage financing services to
the area. A full service facility planned for construction in 2004
will allow MidSouth to offer quality banking services as well as
financing activities that contribute to the economic development of
the Houma market.
MidSouth's common stock is traded on the American Stock Exchange under the
symbol MSL.
The Private Securities Litigation Act of 1995 provides a safe harbor for
disclosure of information about a company's anticipated future financial
performance. This act protects a company from unwarranted litigation if
actual results differ from management expectations. This press release
reflects management's current views and estimates of future economic
circumstances, industry conditions, MidSouth's performance and financial
results. A number of factors and uncertainties could cause actual results to
differ from anticipated results and expectations.
MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
Asset Quality Data Period Ended % Period Ended
Dec. 31, Chg Sept. 30, Jun. 30,
2003 2002 2003 2003
Nonaccrual loans $829 $710 17% $704 $852
Loans past due 90
days and over 503 819 -39% 489 477
Total nonperforming loans 1,332 1,529 -13% 1,193 1,329
Other real estate owned 218 175 25% 233 175
Other foreclosed assets --- 45 --- ---
Total nonperforming assets $1,550 $1,749 -11% $1,426 $1,504
Nonperforming assets to
total assets 0.36% 0.46% -43% 0.34% 0.37%
Nonperforming assets to
total loans + OREO + other
foreclosed assets 0.59% 0.77% -41% 0.58% 0.62%
ALL to nonperforming assets 180.00% 165.30% 61% 212.54% 196.22%
ALL to nonperforming loans 209.46% 189.07% 69% 254.05% 222.03%
ALL to total loans 1.07% 1.27% -4% 1.23% 1.22%
Year-to-date charge-offs $904 $1,364 -34% $599 $348
Year-to-date recoveries 253 152 66% 190 108
Year-to-date net charge-offs 651 1,212 -46% 409 240
Net charge-offs to total loans 0.25% 0.53% -53% 0.17% 0.10%
MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
Fourth Third Second First Fourth
INCOME STATEMENT Quarter Quarter Quarter Quarter Quarter
2003 2003 2003 2003 2002
Interest income $6,196 $6,269 $5,912 $5,853 $5,989
Interest expense 1,089 1,156 1,169 1,266 1,541
Net interest income 5,107 5,113 4,743 4,587 4,448
Provision for loan losses --- 250 100 200 275
Net interest income after
provision for loan losses 5,107 4,863 4,643 4,387 4,173
Total non-interest income 1,866 1,990 2,029 1,713 1,932
Total non-interest expense 4,717 4,504 4,438 4,311 4,494
Income before income taxes 2,256 2,349 2,234 1,789 1,611
Income taxes 591 614 610 479 329
Net income $1,665 $1,735 $1,624 $1,310 $1,282
Earnings per share, basic $0.52 $0.55 $0.51 $0.41 $0.40
Earnings per share, diluted $0.50 $0.52 $0.49 $0.40 $0.39
Book value per share $10.09 $9.73 $9.37 $8.83 $8.50
Return on Average Equity 20.22% 21.90% 22.15% 18.76% 18.41%
MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
Three Months Ended Twelve Months Ended
INCOME STATEMENT December 31, % December 31, %
2003 2002 Chg 2003 2002 Chg
Interest income $6,196 $5,989 3% $24,230 $24,125 0%
Interest expense 1,089 1,541 -29% 4,680 6,709 -30%
Net interest income 5,107 4,448 15% 19,550 17,416 12%
Provision for loan losses --- 275 -100% 550 1,398 -61%
Service charges on
deposit accounts 1,388 1,267 10% 5,273 4,707 12%
Gains on securities, net --- 155 -100% 98 156 -37%
Other charges and fees 478 510 -6% 2,227 2,058 8%
Total non-interest
income 1,866 1,932 -3% 7,598 6,921 10%
Salaries and employee
benefits 2,276 2,108 8% 8,649 8,103 7%
Occupancy expense 1,034 979 6% 3,882 3,709 5%
Goodwill and intangible
amortization 16 16 0% 66 33 100%
Other non-interest
expense 1,391 1,391 0% 5,374 5,237 3%
Total non-interest
expense 4,717 4,494 5% 17,971 17,082 5%
Income before
income taxes 2,256 1,611 40% 8,627 5,857 47%
Net income $1,665 $1,282 30% $6,333 $4,429 43%
Earnings per share,
diluted $0.50 $0.39 28% $1.91 $1.36 40%
MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
Period Ended % Period Ended
BALANCE SHEET Dec. 31, Chg Sept. 30, June 30,
Assets 2003 2002 2003 2003
Cash and cash equivalents $13,840 $27,468 -50% $18,509 $23,218
Securities
available-for-sale 118,227 89,576 32% 115,881 98,602
Securities held-to-maturity 23,367 23,398 0% 23,397 23,397
Total investment
securities 141,594 112,974 25% 139,278 121,999
Total loans 261,873 227,052 15% 246,867 241,827
Allowance for loan losses (2,790) (2,891) -3% (3,032) (2,951)
Loans, net 259,083 224,161 16% 243,835 238,876
Premises and equipment 11,984 12,322 -3% 12,018 12,122
Goodwill and other intangibles 990 1,055 -6% 1,007 1,023
Other assets 5,206 4,707 11% 5,233 5,002
Total assets $432,697 $382,687 13% $419,880 $402,240
Liabilities and
Stockholders' Equity
Non-interest bearing
deposits $96,949 $94,452 3% $88,923 $91,602
Interest bearing deposits 277,440 249,022 11% 285,161 266,598
Total deposits 374,389 343,474 9% 374,084 358,200
Securities sold under
agreements to repurchase
and FHLB borrowings 17,567 2,979 490% 6,332 5,066
Long-term debt --- 568 -100% --- 421
Junior subordinated debenture 7,000 7,000 0% 7,000 7,000
Other liabilities 1,513 1,547 -2% 1,477 1,654
Total liabilities 400,469 355,568 13% 388,893 372,341
Total shareholders' equity 32,228 27,119 19% 30,987 29,899
Total liabilities and
shareholders' equity $432,697 $382,687 13% $419,880 $402,240
MIDSOUTH BANCORP, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS (UNAUDITED)
(in thousands except per share data)
For The
For The Qtr Qtr Ended
Ended Dec. 31, % Sept. 30, %
EARNINGS DATA 2003 2002 Chg 2003 Chg
Total interest income $6,196 $5,989 3% $6,269 -1%
Total interest expense 1,089 1,541 -29% 1,156 -6%
Net interest income 5,107 4,448 15% 5,113 0%
Provision for loan losses --- 275 -100% 250 100%
Non-interest income 1,866 1,932 -3% 1,990 -6%
Non-interest expense 4,717 4,494 5% 4,504 5%
Provision for income tax 591 329 80% 614 -4%
Net income $1,665 $1,282 30% $1,735 -4%
PER COMMON SHARE DATA (A)
Basic earnings per share $0.52 $0.40 30% $0.55 -5%
Diluted earnings per share $0.50 $0.39 28% $0.52 -4%
Book value at end of period $10.09 $8.50 19% $9.73 4%
Market price at end of period $31.50 $15.73 100% $31.70 -1%
Weighted avg shares
outstanding
Basic 3,175,226 3,177,726 0% 3,173,579 0%
Diluted 3,330,674 3,265,707 2% 3,325,503 0%
AVERAGE BALANCE SHEET DATA
Total assets $424,911 $380,072 12% $426,035 0%
Earning assets 392,963 347,904 13% 393,919 0%
Loans and leases 250,964 230,039 9% 244,988 2%
Interest-bearing deposits 282,581 255,160 11% 291,936 -3%
Total deposits 374,237 339,745 10% 380,325 -2%
Total stockholders' equity 32,669 27,625 18% 31,431 4%
SELECTED RATIOS 12/31/2003 12/31/2002 09/30/2003
Return on average assets 1.55% 1.34% 16% 1.62% -4%
Return on average total equity 20.22% 18.41% 10% 21.90% -8%
Return on average
realized equity (B) 21.48% 20.21% 6% 23.51% -9%
Average equity
to average assets 7.69% 7.27% 6% 7.38% 4%
Leverage capital ratio 8.86% 8.45% 5% 8.51% 4%
CREDIT QUALITY
Allowance for loan losses as
a % of total loans 1.07% 1.27% -16% 1.23% -13%
Nonperforming assets
to total assets 0.36% 0.46% -22% 0.34% 6%
Net charge-offs to total loans 0.25% 0.53% -53% 0.17% 51%
(A) On August 29, 2003, MidSouth paid a 10% stock dividend on its common
stock to holders of record on July 31, 2003. Per common share data
has been adjusted accordingly.
(B) Excluding net unrealized gain (loss) on securities available for
sale.
SOURCE MidSouth Bancorp, Inc.
-0- 01/26/2004
/CONTACT: Sally Gary, Investor Relations, +1-337-267-4202, or
sallyg@midsouthbank.com , or Teri Stelly, Controller, +1-337-267-4208, or C.
R. Rusty Cloutier, President, +1-337-267-4201, all of MidSouth Bancorp, Inc./
(MSL)
CO: MidSouth Bancorp, Inc.
ST: Louisiana
IN: FIN
SU: ERN