Exhibit 99.1
MidSouth Bancorp, Inc. 3rd Quarter 2004 Earnings Up 12.6%
LAFAYETTE, La., Oct. 28 /PRNewswire-FirstCall/ -- MidSouth Bancorp, Inc.
(Amex: MSL) ("MidSouth") announced third quarter 2004 net income of
$1,954,000, a 12.6% increase over the $1,735,000 for the third quarter of 2003
and up 12% over second quarter 2004 net income of $1,745,000. Basic earnings
per share were $.61 for the quarter ended September 30, 2004, up from the
$.55 per share for the third quarter of 2003, and the $.55 per share in the
second quarter of 2004. Diluted earnings per share were $.59 for the third
quarter of 2004 compared to $.52 per share for the third quarter of 2003 and
$.52 per share for the second quarter of 2004.
Earnings for the nine months ended September 30, 2004 were $5,360,000,
which is a $692,000 or 14.8% increase over the $4,668,000 in earnings for the
nine months ended September 30, 2003. Basic earnings per share were $1.68 for
the first nine months of 2004 versus $1.47 for the first nine months of 2003.
Diluted earnings per share were $1.61 and $1.41, respectively.
Net income increased $219,000 in the third quarter of 2004 compared to the
third quarter of 2003, primarily due to increases in both net interest income
of $271,000 and non-interest income of $386,000, including $120,000 in gains
on sales of securities. These increases were partially offset by a $430,000
increase in non-interest expenses. The increased net interest income resulted
from a $546,000 or 9% increase in interest income, partially offset by a
$275,000 or 24% increase in interest expense on deposits. The improvement in
interest income resulted from a 15% increase in average earning assets for the
third quarter of 2004 compared to the third quarter of 2003. Interest expense
increased due to a $43.1 million or 15% increase in the average volume of
interest-bearing deposits, resulting primarily from the addition of
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 primarily due to a $396,000 increase
in fees and service charges resulting from a higher volume of demand deposit
accounts. Non-interest expense increased in quarterly comparison primarily
due to a $244,000 increase in salaries and benefit costs.
Gains on sales of securities totaled $130,000 for the third quarter of
2004, an increase of $120,000 over the $10,000 in gains reported for the third
quarter of 2003. The increase resulted almost entirely from the sale of a
correspondent bank's common stock back to the issuing bank in July of 2004.
MidSouth no longer utilized any services with the bank and therefore
liquidated its stock position. The $128,000 gain on sale of the common stock
brought year-to-date gains on sales of securities to $132,000 at September 30,
2004 compared to $98,000 at September 30, 2003. Sales of $6.5 million in
available-for-sale securities in 2003 netted MidSouth the $98,000 gain and
allowed improvement of the overall yield on the securities sold as they neared
maturity.
Compared to the prior quarter ending June 30, 2004, third quarter 2004 net
income increased $209,000 or 12%. In comparing the two quarters, net interest
income increased $310,000 and non-interest income increased $323,000. The
increase in non-interest income resulted from the $128,000 gain on sale of
securities and a $215,000 increase in fees and service charges on deposit
accounts. An increase in the provision for loan losses of $60,000 partially
offset the increase in earnings over prior quarter and resulted from a
reduction in the Allowance for Loan Losses ("ALL") at Financial Services of
the South ("FSS"), MidSouth's finance company subsidiary during the second
quarter of 2004. The ALL was lowered at the finance company due to the
minimal amount of loans remaining for liquidation. Increased non-interest
expenses in salaries and benefits ($161,000), legal and professional fees
($50,000), and marketing expenses ($63,000) partially offset the quarterly
improvement in net interest and non-interest income.
For the nine months ended September 30, 2004 compared to 2003, net income
increased $692,000 or 15%. Net interest income improved $1,048,000 or 7% due
to increased interest income on a higher volume of earning assets partially
offset by an increase in interest expense on deposits. Increases of $779,000
in fees and service charges on deposit accounts and $120,000 in ATM/Debit card
income was partially offset by a $254,000 decrease in other non-interest
income categories, primarily Visa merchant income ($193,000) and mortgage loan
processing fees ($140,000). 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 $179,000 decrease in Visa
merchant processing expenses that resulted from the processing change and is
reflected in the change in other non-interest expense in year-to-date
comparison. Salaries and employee benefits increased $456,000 and occupancy
expenses increased $155,000, offsetting the decrease in Visa merchant
processing expenses.
Highlights for the Quarter Ended September 30, 2004
-- Return on average equity was 22.46% for the third quarter of 2004
compared to 21.90% for the third quarter of 2003. The leverage
capital ratio was 9.66% at September 30, 2004 compared to 8.51% at
September 30, 2003 due to the issuance of $8 million in additional
junior subordinated debentures in September 2004.
-- Net income for 2004 is up 12.6% in quarterly comparison and 14.8% in
year-to-date comparison over 2003 net income.
-- Total loans grew $47.2 million or 19%, from $246.9 million at
September 30, 2003 to $294.1 million at September 30, 2004, primarily
in commercial loans.
-- Nonperforming assets, including loans 90 days or more past due, as a
percentage of total assets decreased from .34% at September 30, 2003
to .17% at September 30, 2004. Year-to-date net charge-offs to total
loans remained constant at .17% for both periods.
-- Total consolidated assets increased $82.4 million or 19.6%, from
$419.9 million at the end of the third quarter of 2003 to
$502.2 million at the end of the third quarter of 2004. Total
deposits increased $69.7 million or 18.6%, from $374.1 million at
September 30, 2003 to $443.8 million at September 30, 2004. The
increase resulted primarily from 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 October 1, 2004, MidSouth completed a merger with Lamar Bancshares
of Beaumont, Texas. At closing, Lamar Bank had assets of
approximately $115 million and six banking offices in southwest
Texas. The Company's banks, MidSouth Bank and Lamar Bank will
continue to operate as separate subsidiaries under MidSouth Bancorp,
Inc.
-- MidSouth continued to work on expansion plans for the Louisiana
market during the third quarter of 2004, with the new facility on
Moss Street completed and property purchased to build a full service
facility in Houma. Additionally, MidSouth announced that it will
also open a new location on Johnston Street in the heart of Lafayette
and will construct an office in the Town Square of the traditional
neighborhood development of River Ranch, bringing the total number of
offices in its home base to nine. In the Texas market, 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.
On October 14, 2004, MidSouth announced a five-for-four (25%) stock split
on its common stock to holders of record as of October 29, 2004 payable on
November 30, 2004. The Board of Directors also announced that it would
continue its quarterly dividend at $.06 per share and awarded an additional
$.06 Special Dividend to be paid on its common stock on January 4, 2005 to
holders of record as of December 15, 2004. This will result in a total of
$.12 per share to be paid to shareholders on January 4, 2005.
MidSouth's common stock is traded on the American Stock Exchange under the
symbol MSL.
Forward Looking Statements
This release along with the remarks by made by our management during press
conferences and conference calls related to this release may contain forward-
looking statements within the meaning of the Private Securities Litigation Act
of 1995. This act provides a safe harbor for disclosure of information about a
company's anticipated future financial performance and protects a company from
unwarranted litigation if actual results differ from management's expectations
based on current assumptions, estimates and projections about MidSouth Bancorp
Inc. and its subsidiaries. These forward-looking statements are not
guarantees of future performance and are subject to risks and uncertainties,
many of which are outside of MidSouth's control, that may cause actual results
to differ materially from those currently expected, expressed, or implied. A
discussion of factors affecting MidSouth's business and prospects is contained
in the Company's most recent Quarterly Report on Form 10Q.
MIDSOUTH BANCORP, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS (UNAUDITED)
(in thousands except per share data)
For The
For The Qtr Qtr Ended
Ended Sept. 30, % Jun. 30, %
EARNINGS DATA 2004 2003 Chg 2004 Chg
Total interest
income $6,815 $6,269 8.7% $6,350 7.3%
Total interest
expense 1,431 1,156 23.8% 1,276 12.1%
Net interest
income 5,384 5,113 5.3% 5,074 6.1%
Provision for
loan losses 250 250 0.0% 190 31.6%
Non-interest
income 2,376 1,990 19.4% 2,053 15.7%
Non-interest
expense 4,934 4,504 9.5% 4,569 8.0%
Provision for
income tax 622 614 1.3% 623 -0.2%
Net income $1,954 $1,735 12.6% $1,745 12.0%
PER COMMON SHARE
DATA
Basic earnings
per share $0.61 $0.55 10.9% $0.55 10.9%
Diluted earnings
per share $0.59 $0.52 13.5% $0.52 13.5%
Book value at
end of period $11.45 $9.73 17.7% $10.58 8.2%
Market price at
end of period $33.00 $31.70 4.1% $35.00 -5.7%
Weighted avg
shares outstanding
Basic 3,183,057 3,173,579 0.3% 3,190,830 -0.2%
Diluted 3,327,046 3,325,503 0.0% 3,334,349 -0.2%
AVERAGE BALANCE
SHEET DATA
Total assets $483,738 $426,035 13.5% $467,383 3.5%
Earning assets 453,758 393,919 15.2% 435,937 4.1%
Loans and leases 284,840 244,988 16.3% 272,266 4.6%
Interest-bearing
deposits 335,087 291,936 14.8% 322,008 4.1%
Total deposits 433,976 380,325 14.1% 418,735 3.6%
Total stockholders'
equity 34,613 31,431 10.1% 35,485 -2.5%
SELECTED RATIOS 09/30/2004 09/30/2003 06/30/2004
Return on average
assets 1.61% 1.62% -0.5% 1.50% 7.0%
Return on average
total equity 22.46% 21.90% 2.5% 19.78% 13.6%
Return on
average realized
equity (A) 22.19% 23.51% -5.6% 20.90% 6.2%
Average equity to
average assets 7.16% 7.38% -3.0% 7.59% -5.8%
Leverage capital
ratio (B) 9.66% 8.51% 13.5% 8.65% 11.7%
CREDIT QUALITY
Allowance for loan
losses as a %
of total loans 1.00% 1.23% -18.5% 1.06% -5.8%
Nonperforming
assets to total
assets 0.17% 0.34% -50.0% 0.36% -52.8%
Net YTD charge-offs
to total loans 0.17% 0.17% 2.6% 0.08% 112.5%
(A) Excluding net unrealized gain (loss) on securities available for
sale.
(B) On September 20, 2004, MidSouth issued $8 million in junior
subordinated debentures at a floating rate equal to the 3-month
LIBOR plus 2.50%, adjustable and payable quarterly. As of
September 30, 2004, $4.9 million of the $8 million issued qualified
as Tier 1 capital and was included in the leverage capital ratio.
MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
Period Ended % Period Ended
BALANCE SHEET Sept. 30, Chg Jun. 30, Dec. 31,
Assets 2004 2003 2004 2003
Cash and cash equivalents $33,226 $18,509 79.5% $25,697 $13,840
Securities available-for-
sale 135,137 115,881 16.6% 132,950 118,227
Securities held-to-
maturity 23,133 23,397 -1.1% 23,133 23,367
Total investment
securities 158,270 139,278 13.6% 156,083 141,594
Total loans 294,062 246,867 19.1% 279,434 261,873
Allowance for loan losses (2,949) (3,032) -2.7% (2,974) (2,790)
Loans, net 291,113 243,835 19.4% 276,460 259,083
Premises and equipment 12,553 12,018 4.5% 12,039 11,984
Goodwill and other
intangibles 941 1,007 -6.6% 957 990
Other assets 6,128 5,233 17.1% 6,152 5,206
Total assets $502,231 $419,880 19.6% $477,388 $432,697
Liabilities and
Stockholders' Equity
Non-interest bearing
deposits $100,296 $88,923 12.8% $100,689 $96,949
Interest bearing deposits 343,454 285,161 20.4% 330,491 277,440
Total deposits 443,750 374,084 18.6% 431,180 374,389
Securities sold under
agreements to repurchase
and FHLB borrowings 5,213 6,332 -17.7% 4,159 17,567
Junior subordinated
debentures 15,000 7,000 114.3% 7,000 7,000
Other liabilities 1,710 1,477 15.8% 1,205 1,513
Total liabilities 465,673 388,893 19.7% 443,544 400,469
Total shareholders' equity 36,558 30,987 18.0% 33,844 32,228
Total liabilities and
shareholders' equity $502,231 $419,880 19.6% $477,388 $432,697
MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
Three Months Ended Nine Months Ended
INCOME STATEMENT September 30, % September 30, %
2004 2003 Chg 2004 2003 Change
Interest income $6,815 $6,269 8.7% $19,295 $18,034 7.0%
Interest expense 1,431 1,156 23.8% 3,804 3,591 5.9%
Net interest
income 5,384 5,113 5.3% 15,491 14,443 7.3%
Provision for
loan losses 250 250 0.0% 670 550 21.8%
Service charges on
deposit accounts 1,739 1,343 29.5% 4,665 3,886 20.0%
Gains on securities,
net 130 10 1200.0% 132 98 34.7%
Other charges and
fees 507 637 -20.4% 1,494 1,748 -14.5%
Total non-interest
income 2,376 1,990 19.4% 6,291 5,732 9.8%
Salaries and
employee benefits 2,419 2,175 11.2% 6,829 6,373 7.2%
Occupancy expense 1,031 976 5.6% 3,003 2,848 5.4%
Goodwill and
intangible
amortization 16 16 0.0% 49 49 0.0%
Other non-interest
expense 1,468 1,337 9.8% 4,020 3,984 0.9%
Total non-interest
expense 4,934 4,504 9.5% 13,901 13,254 4.9%
Income before
income taxes 2,576 2,349 9.7% 7,211 6,371 13.2%
Provision for
income taxes 622 614 1.3% 1,851 1,703 8.7%
Net income $1,954 $1,735 12.6% $5,360 $4,668 14.8%
Earnings per share,
diluted $0.59 $0.52 13.5% $1.61 $1.41 14.2%
MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
INCOME STATEMENT Third Second First Fourth Third
Quarterly Trends Quarter Quarter Quarter Quarter Quarter
2004 2004 2004 2003 2003
Interest income $6,815 $6,350 $6,130 $6,196 $6,269
Interest expense 1,431 1,276 1,097 1,089 1,156
Net interest income 5,384 5,074 5,033 5,107 5,113
Provision for loan losses 250 190 230 --- 250
Net interest income after
provision for loan losses 5,134 4,884 4,803 5,107 4,863
Total non-interest income 2,376 2,053 1,861 1,866 1,990
Total non-interest expense 4,934 4,569 4,397 4,717 4,504
Income before income taxes 2,576 2,368 2,267 2,256 2,349
Income taxes 622 623 606 591 614
Net income $1,954 $1,745 $1,661 $1,665 $1,735
Earnings per share, basic $0.61 $0.55 $0.52 $0.52 $0.55
Earnings per share, diluted $0.59 $0.52 $0.50 $0.50 $0.52
Book value per share $11.45 $10.58 $10.65 $10.09 $9.73
Return on Average Equity 22.46% 19.78% 20.05% 20.22% 21.90%
MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
Asset Quality Data Period Ended % Period Ended
Sept. 30, Chg Jun. 30, Dec. 31,
2004 2003 2004 2003
Nonaccrual loans $482 $704 -31.5% $1,003 $829
Loans past due 90
days and over 283 489 -42.1% 662 503
Total nonperforming loans 765 1,193 -35.9% 1,665 1,332
Other real estate owned 86 233 -63.1% 77 218
Total nonperforming assets $851 $1,426 -40.3% $1,742 $1,550
Nonperforming assets to
total assets 0.17% 0.34% -50.2% 0.36% 0.36%
Nonperforming assets to
total loans + OREO + other
foreclosed assets 0.29% 0.58% -50.1% 0.62% 0.59%
ALL to nonperforming assets 346.53% 212.54% 63.0% 170.72% 180.00%
ALL to nonperforming loans 385.49% 254.05% 51.7% 178.62% 209.46%
ALL to total loans 1.00% 1.23% -18.5% 1.06% 1.07%
Year-to-date charge-offs $644 $599 7.5% $336 $904
Year-to-date recoveries 133 190 -30.0% 100 253
Year-to-date net charge-offs $511 $409 24.9% $236 $651
Net YTD charge-offs to total
loans 0.17% 0.17% 2.2% 0.08% 0.25%
SOURCE MidSouth Bancorp, Inc.
-0- 10/28/2004
/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