Exhibit 99.1
MIDSOUTH BANCORP, INC. REPORTS 4TH QUARTER EARNINGS
LAFAYETTE, La., Jan. 25 /PRNewswire-FirstCall/ -- MidSouth Bancorp, Inc.
(Amex: MSL) ("MidSouth") announced fourth quarter 2004 net income of $1,619,000,
a 3% decrease from the $1,665,000 for the fourth quarter of 2003 and a decrease
of 17% from third quarter net income of $1,954,000. Basic earnings per share
were $.36 for the quarter ended December 31, 2004, a decrease of six cents from
the $.42 per share reported for the fourth quarter of 2003, and thirteen cents
less than the $.49 per share earned in the third quarter of 2004. Diluted
earnings per share were $.35 for the fourth quarter of 2004 compared to $.40 per
share for the fourth quarter of 2003 and $.47 per share for the third quarter of
2004. On November 30, 2004, MidSouth paid a 25% stock dividend on its common
stock to holders of record on October 29, 2004. Earnings per common share data
have been adjusted accordingly.
Earnings for the year-end December 31, 2004 were $6,980,000, a 10% increase
over the $6,333,000 for the year-end December 31, 2003. Basic earnings per share
were $1.70 for 2004 compared to $1.60 for 2003. Diluted earnings per share were
$1.63 and $1.53, respectively.
Fourth quarter 2004 data includes the financial results of Lamar Bank
("Lamar"), MidSouth's newest subsidiary acquired on October 1, 2004. Lamar added
$146,000 to consolidated net income for the fourth quarter of 2004. Consolidated
earnings were impacted by the related amortization of core deposit intangibles
of approximately $70,000, net of income taxes.
In fourth quarter comparison, increases in net interest income and non-
interest income were offset by increases in the provision for loan losses and
non-interest expenses, primarily salaries and benefits, marketing costs, ATM and
debit card processing expenses, and occupancy expenses. Net interest income
increased due to a higher volume of earning assets. Non-interest income
increased primarily in service charges on deposit accounts, including NSF fees,
due to a higher volume of transaction accounts. The provision for loan losses
totaled $321,000 for the fourth quarter of 2004 compared to no provision taken
in the fourth quarter of 2003. Sustained loan growth throughout 2004 and loan
concentrations in the commercial real estate and oil and gas loan portfolios
supported the provision taken in the fourth quarter of 2004.
In year-to-date comparison, increases in net interest income and non-
interest income offset increased loan loss provisions, non-interest expenses and
merger-related accounting charges and resulted in a 10% improvement in net
income for 2004.
Highlights for the Quarter Ended December 31, 2004
* Return on average equity was 13.48% for the fourth quarter of 2004
compared to 20.22% for the fourth quarter of 2003. The leverage capital
ratio was 8.73% at December 31, 2004 compared to 8.86% at December 31,
2003. In September 2004, MidSouth issued $8 million in additional junior
subordinated debentures, the proceeds of which were used to fund the
Lamar merger and other general corporate needs.
* MidSouth increased dividends paid on its common stock with a 25% stock
dividend paid on November 30, 2004 and paid a special cash dividend of 6
cents per share in addition to the regular quarterly 6 cents per share
cash dividend paid on its common stock on January 4, 2005 to holders of
record as of December 15, 2004.
* Net interest income totaled $6,561,000 for the fourth quarter of 2004, up
28.5% from the $5,107,000 reported for the fourth quarter 2003. Net
interest income increased primarily due to an increase in the average
volume of earning assets.
* Total loans grew $124.6 million or 47.6%, from $261.9 million at December
31, 2003 to $386.5 million at December 31, 2004, of which $81.7 million
was acquired through the Lamar merger. The remaining $42.9 million in
loan growth was primarily in commercial and real estate credits at
MidSouth Bank.
* Nonperforming assets, including loans 90 days or more past due, as a
percentage of total assets decreased from .36% at December 31, 2003 to
.28% at December 31, 2004. Net charge-offs to total loans decreased
slightly from .25% to .23% for the same periods, respectively.
* Total consolidated assets increased $176.9 million or 40.9%, from $432.7
million at the end of the fourth quarter of 2003 to $609.6 million at the
end of the fourth quarter of 2004. Assets acquired through the Lamar Bank
merger totaled $115.8 million on October 1, 2004.
* Total deposits increased $156.0 million or 41.7%, from $374.4 million at
year-end 2003 to $530.4 million at year-end 2004. Of the $156 million in
growth, $96.7 million was acquired through the merger with Lamar. An
additional $59.3 million in deposit growth resulted primarily from
deposits associated with a MidSouth Bank deposit growth campaign that
began in March 2004. The campaign introduced MidSouth's new Platinum
Money Market account for both retail and commercial customers.
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)
EARNINGS DATA
For The Quarter For The
Ended December 31, Qtr Ended
------------------------- % Sept. 30, %
2004 2003 Chg 2004 Chg
----------- ----------- ----------- ----------- -----------
Total interest income $ 8,451 $ 6,196 36.4% $ 6,815 24.0%
Total interest expense 1,890 1,089 73.6% 1,431 32.1%
Net interest income 6,561 5,107 28.5% 5,384 21.9%
Provision for loan losses 321 0 100.0% 250 28.4%
Non-interest income 2,929 1,866 57.0% 2,376 23.3%
Non-interest expense 6,959 4,717 47.5% 4,934 41.0%
Provision for income tax 591 591 0.0% 622 -5.0%
Net income $ 1,619 $ 1,665 -2.8% $ 1,954 -17.1%
PER COMMON SHARE DATA
Basic earnings per share $ 0.36 $ 0.42 -13.5% $ 0.49 -26.5%
Diluted earnings per share $ 0.35 $ 0.40 -12.5% $ 0.47 -25.5%
Book value at end
of period $ 10.90 $ 8.07 35.0% $ 9.16 19.0%
Market price at end
of period $ 27.00 $ 25.20 7.1% $ 26.40 2.3%
Weighted avg shares
outstanding
Basic 4,439,162 3,969,033 11.8% 3,978,821 11.6%
Diluted 4,617,552 4,163,319 10.9% 4,158,808 11.0%
AVERAGE BALANCE SHEET DATA
Total assets $ 613,437 $ 424,911 44.4% $ 483,738 26.8%
Earning assets 557,392 392,963 41.8% 453,758 22.8%
Loans and leases 379,164 250,964 51.1% 284,840 33.1%
Interest-bearing
deposits 411,023 282,581 45.5% 335,087 22.7%
Total deposits 536,000 374,237 43.2% 433,976 23.5%
Total stockholders'
equity 47,765 32,669 46.2% 34,613 38.0%
SELECTED RATIOS 12/31/2004 12/31/2003 09/30/2004
Return on average assets 1.05% 1.55% -32.5% 1.61% -34.7%
Return on average
total equity 13.48% 20.22% -33.3% 22.46% -40.0%
Return on average
realized equity (A) 13.82% 21.48% -35.7% 22.19% -37.7%
Average equity to
average assets 7.79% 7.69% 1.3% 7.16% 8.8%
Leverage capital ratio 8.73% 8.86% -1.5% 9.66% -9.6%
CREDIT QUALITY
Allowance for loan losses
as a % of total loans 1.00% 1.07% -6.5% 1.00% -0.3%
Nonperforming assets
to total assets 0.28% 0.36% -22.2% 0.17% 64.7%
Net YTD charge-offs
to total loans 0.23% 0.25% -8.0% 0.17% 35.3%
(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)
BALANCE SHEET
Period Ended Period Ended
-------------------------- --------------------------
Dec. 31, Sept. 30, % Jun. 30, Dec. 31,
2004 2004 Chg 2004 2003
----------- ----------- ----------- ----------- -----------
Assets
Cash and cash equivalents $ 17,397 $ 33,226 -47.6% $ 25,697 $ 13,840
Securities available-
for-sale 145,814 135,137 7.9% 132,950 118,227
Securities held-
to-maturity 22,852 23,133 -1.2% 23,133 23,367
Total investment
securities 168,666 158,270 6.6% 156,083 141,594
Total loans 386,471 294,062 31.4% 279,434 261,873
Allowance for loan losses (3,850) (2,949) 30.6% (2,974) (2,790)
Loans, net 382,621 291,113 31.4% 276,460 259,083
Premises and equipment 19,338 12,553 54.1% 12,039 11,984
Goodwill and other
intangibles 10,644 941 1031.1% 957 990
Other assets 10,957 6,128 78.8% 6,152 5,206
Total assets $ 609,623 $ 502,231 21.4% $ 477,388 $ 432,697
Liabilities and
Stockholders' Equity
Non-interest bearing
deposits $ 124,659 $ 100,296 24.3% $ 100,689 $ 96,949
Interest bearing deposits 405,724 343,454 18.1% 330,491 277,440
Total deposits 530,383 443,750 19.5% 431,180 374,389
Securities sold under
agreements to repurchase
and FHLB borrowings 12,412 5,213 138.1% 4,159 17,567
Junior subordinated
debentures 15,000 15,000 0.0% 7,000 7,000
Other liabilities 3,255 1,710 90.4% 1,205 1,513
Total liabilities 561,050 465,673 20.5% 443,544 400,469
Total shareholders'
equity 48,573 36,558 32.9% 33,844 32,228
Total liabilities and
shareholders' equity $ 609,623 $ 502,231 21.4% $ 477,388 $ 432,697
MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
INCOME STATEMENT
Three Months Ended Year Ended
December 31, December 31,
------------------- % ------------------- %
2004 2003 Chg 2004 2003 Change
-------- -------- -------- -------- -------- --------
Interest income $ 8,451 $ 6,196 36.4% $ 27,745 $ 24,230 14.5%
Interest expense 1,890 1,089 73.6% 5,693 4,680 21.6%
Net interest
income 6,561 5,107 28.5% 22,052 19,550 12.8%
Provision for
loan losses 321 100.0% 991 550 80.2%
Service charges on
deposit accounts 2,267 1,388 63.3% 6,932 5,273 31.5%
Gains on securities, net 132 98 34.7%
Other charges and fees 662 478 38.5% 2,157 2,227 -3.1%
Total non-interest
income 2,929 1,866 57.0% 9,221 7,598 21.4%
Salaries and employee
benefits 3,391 2,276 49.0% 10,220 8,649 18.2%
Occupancy expense 1,323 1,034 27.9% 4,326 3,882 11.4%
Goodwill and intangible
amortization 134 16 737.5% 183 66 177.3%
Other non-interest
expense 2,111 1,391 51.8% 6,131 5,374 14.1%
Total non-interest
expense 6,959 4,717 47.5% 20,860 17,971 16.1%
Income before
income taxes 2,210 2,256 -2% 9,422 8,627 9.2%
Provision for
income taxes 591 591 0% 2,442 2,294 6.5%
Net income $ 1,619 $ 1,665 -2.8% $ 6,980 $ 6,333 10.2%
Earnings per share,
diluted $ 0.35 $ 0.40 -12.5% $ 1.63 $ 1.53 6.5%
MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
INCOME STATEMENT
Quarterly Trends
Fourth Third Second First Fourth
Quarter Quarter Quarter Quarter Quarter
2004 2004 2004 2004 2003
-------- -------- -------- -------- --------
Interest income $ 8,451 $ 6,815 $ 6,350 $ 6,130 $ 6,196
Interest expense 1,890 1,431 1,276 1,097 1,089
Net interest income 6,561 5,384 5,074 5,033 5,107
Provision for loan losses 321 250 190 230 ---
Net interest income after
provision for loan losses 6,240 5,134 4,884 4,803 5,107
Total non-interest income 2,929 2,376 2,053 1,861 1,866
Total non-interest expense 6,959 4,934 4,569 4,397 4,717
Income before income taxes 2,210 2,576 2,368 2,267 2,256
Income taxes 591 622 623 606 591
Net income $ 1,619 $ 1,954 $ 1,745 $ 1,661 $ 1,665
Earnings per share, basic $ 0.36 $ 0.49 $ 0.44 $ 0.42 $ 0.42
Earnings per share, diluted $ 0.35 $ 0.47 $ 0.42 $ 0.40 $ 0.40
Book value per share $ 10.90 $ 9.16 $ 8.46 $ 8.52 $ 8.07
Return on Average Equity 13.48% 22.46% 19.78% 20.05% 20.22%
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, Sept. 30, % Jun. 30, Dec. 31,
2004 2004 Chg 2004 2003
--------- --------- --------- -------- ---------
Nonaccrual loans $ 472 $ 482 -2.1% $ 1,003 $ 829
Loans past due 90 days
and over 488 283 72.4% 662 503
Total nonperforming loans 960 765 25.5% 1,665 1,332
Other real estate owned 445 86 417.4% 77 218
Other foreclosed assets 283 100.0%
Total nonperforming assets $ 1,688 $ 851 98.4% $ 1,742 $ 1,550
Nonperforming assets to
total assets 0.28% 0.17% 63.4% 0.36% 0.36%
Nonperforming assets to total
loans + OREO + other
foreclosed assets 0.44% 0.29% 50.7% 0.62% 0.59%
ALL to nonperforming
assets 228.08% 346.53% -34.2% 170.72% 180.00%
ALL to nonperforming
loans 401.04% 385.49% 4.0% 178.62% 209.46%
ALL to total loans 1.00% 1.00% -0.7% 1.06% 1.07%
Year-to-date charge-offs $ 1,067 $ 644 65.7% $ 336 $ 904
Year-to-date recoveries 182 133 36.8% 100 253
Year-to-date net
charge-offs $ 885 $ 511 73.2% $ 236 $ 651
Net YTD charge-offs
to total loans 0.23% 0.17% 31.8% 0.08% 0.25%
SOURCE MidSouth Bancorp, Inc.
-0- 01/25/2005
/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)