Exhibit 99.1
MidSouth Bancorp, Inc. 2nd Quarter 2004 Earnings Up 7.5%
LAFAYETTE, La., July 28 /PRNewswire-FirstCall/ -- MidSouth Bancorp, Inc.
(Amex: MSL) ("MidSouth") announced second quarter 2004 net income of
$1,745,000, a 7.5% increase over the $1,624,000 for the second quarter of 2003
and up 5% over first quarter 2004 net income of $1,661,000. Basic earnings
per share were $.55 for the quarter ended June 30, 2004, up from the $.51 per
share for the second quarter of 2003, and the $.52 per share in the first
quarter of 2004. Diluted earnings per share were $.52 for the second quarter
of 2004 compared to $.49 per share for the second quarter of 2003 and $.50 per
share for the first quarter of 2004.
Earnings for the six months ended June 30, 2004 were $3,406,000, which is
a $472,000 or 16% increase over the $2,934,000 in earnings for the six months
ended June 30, 2003. Basic earnings per share were $1.07 for the first six
months of 2004 versus $.92 for the first six months of 2003. Diluted earnings
per share were $1.02 and $.89, respectively.
Net income increased $121,000 in the second quarter of 2004 compared to
the second quarter of 2003, primarily due to increased interest income of
$438,000. The increased interest income resulted from a 21% increase in
average earning assets. The improvement in interest income was partially
offset by a $107,000 increase in interest expense and a $90,000 increase in
the provision for loan losses. Interest expense increased due to a
$61.2 million or 24% increase in the average volume of interest-bearing
deposits, resulting primarily from the addition of approximately $29 million
in interest-bearing deposits under a public fund contract added in the third
quarter 2003 and approximately $45 million in interest-bearing deposits added
through a deposit campaign from March 2004 through May 2004. Non-interest
income, excluding gains on sales of securities, increased $115,000 due to an
increase in fees and service charges resulting from a higher volume of demand
deposit accounts. Non-interest expense increased $131,000 for the second
quarter of 2004 compared to the second quarter of 2003 primarily in salaries
and benefits and occupancy expenses.
Compared to first quarter 2004, second quarter 2004 net income increased
$84,000 or 5%. In comparing the two quarters, net interest income increased
$41,000 and non-interest income increased $192,000. The increase in non-
interest income resulted from increases in fees and service charges on deposit
accounts ($120,000), safe deposit box rental income ($35,000), and ATM and
debit card processing fees ($22,000). A decrease in the provision for loan
losses of $40,000 also contributed to the increase in earnings, primarily due
to a reduction in the Allowance for Loan Losses ("ALL") at Financial Services
of the South ("FSS"), MidSouth's finance company subsidiary. The ALL was
lowered at the finance company due to the minimal amount of loans remaining
for liquidation at the subsidiary. Increased non-interest expenses in
salaries and benefits ($107,000), expenses on other real estate ($27,000),
armored car expenses ($25,000), and ATM and debit card processing expenses
($15,000) partially offset the quarterly improvement in net interest and non-
interest income.
For the six months ended June 30, 2004 compared to 2003, net income
increased $472,000 or 16%. Net interest income improved $777,000 or 8% due to
increased interest income on earning assets combined with a decrease in
interest expense on deposits. An increase of $383,000 in fees and service
charges on deposit accounts was partially offset by a $124,000 decrease in
other non-interest income, primarily Visa merchant income. In the third
quarter of 2003, MidSouth outsourced its Visa merchant processing to First
Data Corporation. The resulting reduction in Visa merchant income is offset
by a decrease in Visa merchant processing expenses that resulted from the
processing change and is reflected in the $96,000 decrease in other non-
interest expense in year-to-date comparison. Salaries and employee benefits
increased $212,000 and occupancy expenses increased $101,000, offsetting the
$96,000 decrease in other non-interest expense.
Highlights for the Quarter Ended June 30, 2004
* Return on average equity was 19.78% for the second quarter of 2004
compared to 22.15% for the second quarter of 2003. The leverage
capital ratio was 8.65% at June 30, 2004 compared to 8.82% at June 30,
2003.
* Net income for 2004 is up 7.5% in quarterly comparison and 16% in
year-to-date comparison over 2003 net income.
* Total loans grew $37.6 million or 16%, from $241.8 million at June 30,
2003 to $279.4 million at June 30, 2004, primarily in commercial loans.
* Nonperforming assets, including loans 90 days or more past due, as a
percentage of total assets decreased slightly from .37% at June 30,
2003 to .36% at June 30, 2004. Year-to-date net charge-offs to total
loans decreased from .10% to .08% for the same periods, respectively.
* Total consolidated assets increased $75.1 million or 19%, from
$402.2 million at the end of the second quarter of 2003 to
$477.3 million at the end of the second quarter of 2004. Total
deposits increased $73 million or 20%, from $358.2 million at June 30,
2003 to $431.2 million at June 30, 2004. The increase resulted
primarily from approximately $29 million in deposits associated with a
public fund contract added in July of 2003 and approximately
$50 million in deposits resulting from a deposit growth campaign that
began in March 2004. The campaign introduced MidSouth's new Platinum
Money Market account for both retail and commercial customers. Of the
$50 million in deposits resulting from the campaign, approximately
$34 million was deposited into the Platinum Money Market and other
savings accounts at an average rate of 2.05%.
* On May 27, 2004, MidSouth signed a definitive agreement with Lamar
Bancshares of Beaumont, Texas to merge the two holding companies. The
companies' banks, MidSouth Bank and Lamar Bank will continue to operate
as separate subsidiaries under MidSouth Bancorp, Inc. Lafayette-based
MidSouth Bank will continue to serve the Louisiana market, with Lamar
Bank directing the Texas expansion. MidSouth plans to build new Lamar
Bank offices in Conroe and College Station, Texas, and plans to
continue expansion in the north Houston and Woodlands area.
* MidSouth continues to work on expansion plans for the Louisiana market
announced in the first quarter of 2004, with the new facility on Moss
Street nearing completion and a closing expected soon on property in
Houma.
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
FINANCIAL HIGHLIGHTS (UNAUDITED)
(in thousands except per share data)
For The
For The Qtr Qtr Ended
Ended Jun. 30, % Mar. 31, %
EARNINGS DATA 2004 2003 Chg 2004 Chg
Total interest income $6,350 $5,912 7.4% $6,130 3.6%
Total interest expense 1,276 1,169 9.2% 1,097 16.3%
Net interest income 5,074 4,743 7.0% 5,033 0.8%
Provision for loan losses 190 100 90.0% 230 -17.4%
Non-interest income 2,053 2,029 1.2% 1,861 10.3%
Non-interest expense 4,569 4,438 3.0% 4,397 3.9%
Provision for income tax 623 610 2.1% 606 2.8%
Net income $1,745 $1,624 7.5% $1,661 5.1%
PER COMMON SHARE DATA
Basic earnings per share $0.55 $0.51 7.8% $0.52 5.8%
Diluted earnings per share $0.52 $0.49 6.1% $0.50 4.0%
Book value at end
of period $10.58 $9.37 12.9% $10.65 -0.7%
Market price at end
of period $35.00 $20.77 68.5% $33.60 4.2%
Weighted avg shares
outstanding
Basic 3,190,830 3,179,256 0.4% 3,184,337 0.2%
Diluted 3,334,349 3,299,111 1.1% 3,334,153 0.0%
AVERAGE BALANCE SHEET DATA
Total assets $467,383 $393,460 18.8% $436,634 7.0%
Earning assets 435,937 361,269 20.7% 408,188 6.8%
Loans and leases 272,266 238,763 14.0% 260,564 4.5%
Interest-bearing deposits 322,008 260,760 23.5% 294,097 9.5%
Total deposits 418,735 350,161 19.6% 387,864 8.0%
Total stockholders' equity 35,485 29,403 20.7% 33,319 6.5%
SELECTED RATIOS 06/30/2004 06/30/2003 03/31/2004
Return on average assets 1.50% 1.66% -9.3% 1.53% -1.9%
Return on average total
equity 19.78% 22.15% -10.7% 20.05% -1.4%
Return on average realized
equity (A) 20.90% 23.54% -11.2% 20.92% -0.1%
Average equity to average
assets 7.59% 7.47% 1.6% 7.63% -0.5%
Leverage capital ratio 8.65% 8.82% -1.9% 8.96% -3.5%
CREDIT QUALITY
Allowance for loan losses
as a % of total loans 1.06% 1.22% -12.8% 1.10% -3.2%
Nonperforming assets
to total assets 0.36% 0.37% -2.7% 0.35% 2.9%
Net YTD charge-offs
to total loans 0.08% 0.10% -20.0% 0.04% 100.0%
(A) Excluding net unrealized gain (loss) on securities available for
sale.
MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
Period Ended % Period Ended
BALANCE SHEET Jun. 30, Chg Mar. 31, Dec. 31,
Assets 2004 2003 2004 2003
Cash and cash equivalents $25,697 $23,217 10.7% $34,111 $13,840
Securities available-for-
sale 132,950 98,602 34.8% 118,562 118,227
Securities held-to-
maturity 23,133 23,397 -1.1% 23,368 23,367
Total investment
securities 156,083 121,999 27.9% 141,930 141,594
Total loans 279,434 241,827 15.6% 264,193 261,873
Allowance for loan losses (2,974) (2,951) 0.8% (2,906) (2,790)
Loans, net 276,460 238,876 15.7% 261,287 259,083
Premises and equipment 12,039 12,122 -0.7% 11,791 11,984
Goodwill and other
intangibles 957 1,023 -6.5% 974 990
Other assets 6,152 5,003 23.0% 4,819 5,206
Total assets $477,388 $402,240 18.7% $454,912 $432,697
Liabilities and
Stockholders' Equity
Non-interest bearing
deposits $100,689 $91,602 9.9% $95,748 $96,949
Interest bearing deposits 330,491 266,598 24.0% 311,778 277,440
Total deposits 431,180 358,200 20.4% 407,526 374,389
Securities sold under
agreements to
repurchase and
FHLB borrowings 4,159 5,066 -17.9% 4,621 17,567
Long-term debt 421 -100.0%
Junior subordinated
debentures 7,000 7,000 0.0% 7,000 7,000
Other liabilities 1,205 1,654 -27.1% 1,608 1,513
Total liabilities 443,544 372,341 19.1% 420,755 400,469
Total shareholders'
equity 33,844 29,899 13.2% 34,157 32,228
Total liabilities
and shareholders'
equity $477,388 $402,240 18.7% $454,912 $432,697
MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
Three Months Ended Six Months Ended
INCOME STATEMENT June 30, % June 30, %
2004 2003 Chg 2004 2003 Change
Interest income $6,350 $5,912 7.4% $12,480 $11,765 6.1%
Interest expense 1,276 1,169 9.2% 2,372 2,434 -2.5%
Net interest income 5,074 4,743 7.0% 10,108 9,331 8.3%
Provision for loan
losses 190 100 90.0% 420 300 40.0%
Service charges
on deposit accounts 1,523 1,336 14.0% 2,926 2,543 15.1%
Gains on securities,
net 2 93 -97.8% 2 88 -97.7%
Other charges and fees 528 600 -12.0% 987 1,111 -11.2%
Total non-interest
income 2,053 2,029 1.2% 3,915 3,742 4.6%
Salaries and employee
benefits 2,259 2,120 6.6% 4,410 4,198 5.1%
Occupancy expense 991 965 2.7% 1,972 1,871 5.4%
Goodwill and intangible
amortization 16 16 0.0% 33 33 0.0%
Other non-interest
expense 1,303 1,337 -2.5% 2,552 2,648 -3.6%
Total non-interest
expense 4,569 4,438 3.0% 8,967 8,750 2.5%
Income before income
taxes 2,368 2,234 6.0% 4,636 4,023 15.2%
Provision for income
taxes 623 610 2.1% 1,230 1,089 12.9%
Net income $1,745 $1,624 7.5% $3,406 $2,934 16.1%
Earnings per share,
diluted $0.52 $0.49 6.1% $1.02 $0.89 14.6%
MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
INCOME STATEMENT Second First Fourth Third Second
Quarterly Trends Quarter Quarter Quarter Quarter Quarter
2004 2004 2003 2003 2003
Interest income $6,350 $6,130 $6,196 $6,269 $5,912
Interest expense 1,276 1,097 1,089 1,156 1,169
Net interest income 5,074 5,033 5,107 5,113 4,743
Provision for loan losses 190 230 --- 250 100
Net interest income after
provision for loan losses 4,884 4,803 5,107 4,863 4,643
Total non-interest income 2,053 1,861 1,866 1,990 2,029
Total non-interest expense 4,569 4,397 4,717 4,504 4,438
Income before income taxes 2,368 2,267 2,256 2,349 2,234
Income taxes 623 606 591 614 610
Net income $1,745 $1,661 $1,665 $1,735 $1,624
Earnings per share, basic $0.55 $0.52 $0.52 $0.55 $0.51
Earnings per share, diluted $0.52 $0.50 $0.50 $0.52 $0.49
Book value per share $10.58 $10.65 $10.09 $9.73 $9.37
Return on Average Equity 19.78% 20.05% 20.22% 21.90% 22.15%
MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
Asset Quality Data Period Ended % Period Ended
Jun. 30, Chg Mar. 31, Dec. 31,
2004 2003 2004 2003
Nonaccrual loans $1,003 $852 17.7% $860 $829
Loans past due 90
days and over 662 477 38.8% 487 503
Total nonperforming loans 1,665 1,329 25.3% 1,347 1,332
Other real estate owned 77 175 -56.0% 247 218
Total nonperforming assets $1,742 $1,504 15.8% $1,594 $1,550
Nonperforming assets to
total assets 0.36% 0.37% -3.7% 0.35% 0.36%
Nonperforming assets to
total loans + OREO + other
foreclosed assets 0.62% 0.62% -0.2% 0.60% 0.59%
ALL to nonperforming assets 170.72% 196.21% -13.0% 182.37% 180.00%
ALL to nonperforming loans 178.62% 222.05% -19.6% 215.81% 209.46%
ALL to total loans 1.06% 1.22% -12.8% 1.10% 1.07%
Year-to-date charge-offs $336 $348 -3.4% $171 $904
Year-to-date recoveries 100 108 -7.4% 55 253
Year-to-date net charge-offs $236 $240 -1.7% $116 $651
Net YTD charge-offs to total
loans 0.08% 0.10% -20.0% 0.04% 0.25%
SOURCE MidSouth Bancorp, Inc.
-0- 07/28/2004
/CONTACT: Sally Gary, Investor Relations, +1-337-267-4202,
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