Exhibit 99.1
MIDSOUTH BANCORP, INC. ANNOUNCES 1ST QUARTER EARNINGS
LAFAYETTE, La., April 21 /PRNewswire-FirstCall/ -- MidSouth Bancorp, Inc.
(Amex: MSL) announced first quarter 2005 net income of $1,923,000, a 15.8%
increase over the $1,661,000 for the first quarter of 2004 and 18.8% over fourth
quarter 2004 net income of $1,619,000. Basic earnings per share were $.43 for
the quarter ended March 31, 2005, compared to $.42 per share reported for the
first quarter of 2004, and $.36 per share earned in the fourth quarter of 2004.
Diluted earnings per share were $.42 for the first quarter of 2005 and compared
to $.40 per share for the first quarter of 2004 and $.35 for the fourth quarter
of 2004.
Highlights for the Quarter Ended March 31, 2005
* Return on average equity was 15.79% for the first quarter of 2005
compared to 20.05% for the first quarter of 2004. The return on average
common equity for 2005 was affected by the issuance of stock in
connection with MidSouth Bancorp, Inc.'s ("MidSouth's") merger with
Lamar Bancshares, Inc., the parent company of Lamar Bank ("Lamar") on
October 1, 2004. The leverage capital ratio was 8.96% at both March 31,
2005 and March 31, 2004.
* Net interest income totaled $6,425,000 for the first quarter of 2005, up
27.7% from the $5,033,000 reported for the first quarter 2004. Net
interest income increased primarily due to an increase in the average
volume of earning assets, partially offset by an increase in interest
expense.
* Total consolidated assets increased $168.2 million or 36.9%, from $455.1
million at the end of the first quarter of 2004 to $623.3 million at the
end of the first quarter of 2005.
* Total loans grew $126.8 million or 48.0%, from $264.2 million at March
31, 2004 to $391.0 million at March 31, 2005, primarily in commercial
and real estate loans.
* Nonperforming assets, including loans 90 days or more past due, totaled
$1.4 million at March 31, 2005. As a percentage of total assets,
nonperforming assets decreased from .35% at March 31, 2004 to .22% at
March 31, 2005. Net charge-offs to total loans decreased from .04% to
.03% for the same periods, respectively.
* Total deposits increased $139.7 million or 34.3%, from $407.5 million at
March 31, 2004 to $547.2 million at March 31, 2005. Other than the Lamar
acquisition, deposit growth has been primarily in MidSouth's new
Platinum money market accounts introduced in March of 2004.
Additionally, the core non-interest bearing demand accounts have
continued to grow and remain approximately 24% of total deposits at
March 31, 2005.
Most of the growth reflected in balance sheet comparison of first quarter
2005 with first quarter 2004 resulted from the Lamar merger.
Components of First Quarter Earnings
Included in MidSouth's earnings for the first quarter of 2005 is a $538,000
distribution received by its subsidiary MidSouth Bank, N.A. ("MidSouth Bank")
from PULSE EFT Association. MidSouth Bank was entitled to the distribution as
consideration in a merger between PULSE and a subsidiary of Discover Financial
Services, Inc. The increased earnings from the distribution were partially
offset by a charge to earnings at MidSouth Bank due to a $102,000 write-down on
a branch facility that was removed and replaced with a new building. The net
after-tax effect of these non-recurring income and expense charges to first
quarter 2005 earnings was an increase of approximately $288,000.
Also included in first quarter 2005 earnings are the financial results of
Lamar, MidSouth's newest subsidiary acquired on October 1, 2004. Lamar
contributed net interest income of approximately $1.1 million, non-interest
income of approximately $530,000 and non-interest expenses of approximately $1.6
million to consolidated net income for the first quarter of 2005. Consolidated
earnings were impacted by the related amortization of core deposit intangibles
of approximately $77,000, net of income taxes.
Net interest income for the first quarter of 2005 increased $1.4 million or
27.7% compared to the first quarter of 2004. Of the $1.4 million, approximately
$1.1 million was attributed to the addition of Lamar's net interest income and
the remaining $300,000 attributed to an increase in MidSouth Bank's net interest
income. Although MidSouth Bank's total interest income increased approximately
$1 million in comparing first quarter 2005 to first quarter 2004, the increase
was mostly offset by a $700,000 increase in interest expense on deposits. The
increase in interest expense resulted from a higher average volume of
interest-bearing deposits that began adjusting to market rates weekly on January
1, 2005. The increase in the costs of these market-indexed deposits also
contributed to the $136,000 decrease in net interest income in comparing first
quarter 2005 with fourth quarter 2004.
Non-interest income for the first quarter 2005 compared to the first quarter
2004, net of the $538,000 distribution from PULSE, increased $1.0 million. Lamar
contributed approximately $530,000 to the increase in non-interest income,
primarily in service charges on deposit accounts inclusive of insufficient funds
fees. Additionally, MidSouth Bank's service charges on deposit accounts
increased $402,000, primarily due to a higher volume of demand deposit accounts.
Non-interest expense increased $2.6 million from first quarter 2004 to first
quarter 2005, primarily due to Lamar expenses totaling $1.6 million. Of the
remaining $1 million increase in non-interest expenses, approximately $385,000
was attributed to salaries and benefits, $169,000 to occupancy expenses,
$149,000 to marketing expenses, and $106,000 to accounting fees accrued for
Sarbanes-Oxley internal controls review scheduled in 2005. The $102,000
write-down on a branch facility was also included in the increase.
MidSouth Bancorp, Inc. is a two-bank holding company headquartered in
Lafayette, Louisiana whose wholly-owned active subsidiaries are MidSouth Bank,
N.A., also headquartered in Lafayette, and Lamar Bank, headquartered in
Beaumont, Texas. The MidSouth franchise consists of 24 banking offices and two
loan production offices throughout south Louisiana and southwest Texas.
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 Quarter For The
Ended March 31, Qtr Ended
----------------------- % Dec. 31, %
2005 2004 Chg 2004 Chg
---------- ---------- ---------- ---------- ----------
EARNINGS DATA
Total interest
income $ 8,637 $ 6,130 40.9% $ 8,451 2.2%
Total interest
expense 2,212 1,097 101.6% 1,890 17.0%
Net interest
income 6,425 5,033 27.7% 6,561 -2.1%
Provision for
loan losses 314 230 36.5% 321 -2.2%
Non-interest
income 3,422 1,861 83.9% 2,929 16.8%
Non-interest
expense 6,953 4,397 58.1% 6,959 -0.1%
Provision for
income tax 657 606 8.4% 591 11.2%
Net income $ 1,923 $ 1,661 15.8% $ 1,619 18.8%
PER COMMON SHARE DATA
Basic earnings
per share $ 0.43 $ 0.42 2.4% $ 0.36 19.4%
Diluted earnings
per share $ 0.42 $ 0.40 5.0% $ 0.35 20.0%
Book value at end
of period $ 11.03 $ 8.52 29.5% $ 10.90 1.2%
Market price at
end of period $ 26.90 $ 26.88 0.1% $ 27.00 -0.4%
Weighted avg
shares
outstanding
Basic 4,440,994 3,980,421 11.6% 4,439,162 0.0%
Diluted 4,620,934 4,167,691 10.9% 4,617,552 0.1%
AVERAGE BALANCE
SHEET DATA
Total assets $ 615,609 $ 436,634 41.0% $ 613,437 0.4%
Earning assets 557,170 408,188 36.5% 557,392 0.0%
Loans and leases 390,098 260,564 49.7% 379,164 2.9%
Interest-bearing
deposits 410,083 294,097 39.4% 411,023 -0.2%
Total deposits 536,747 387,864 38.4% 536,000 0.1%
Total stockholders'
equity 49,380 33,319 48.2% 47,765 3.4%
03/31/2005 03/31/2004 12/31/2004
---------- ---------- ----------
SELECTED RATIOS
Return on average
assets 1.27% 1.53% -17.2% 1.05% 20.7%
Return on average
total equity 15.79% 20.05% -21.2% 13.48% 17.1%
Return on average
realized equity (A) 15.87% 20.92% -24.1% 13.82% 14.8%
Average equity to
average assets 8.02% 7.63% 5.1% 7.79% 3.0%
Leverage capital
ratio 8.96% 8.96% 0.0% 8.73% 2.6%
CREDIT QUALITY
Allowance for loan
losses as a %
of total loans 1.04% 1.10% -5.5% 1.00% 4.0%
Nonperforming assets
to total assets 0.22% 0.35% -37.1% 0.28% -21.4%
Net YTD charge-offs
to total loans 0.03% 0.04% -20.0% 0.23% -86.1%
(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
----------------------- -----------------------
Mar. 31, Dec. 31, % Sept. 30, Mar. 31,
BALANCE SHEET 2005 2004 Chg 2004 2004
- ---------------------------------------- ---------- ---------- ---------- ---------- ----------
Assets
Cash and cash equivalents $ 37,988 $ 17,397 118.4% $ 33,226 $ 34,111
Securities available-for-
sale 135,209 145,814 -7.3% 135,137 118,562
Securities held-to-
maturity 21,930 22,852 -4.0% 23,133 23,368
Total investment
securities 157,139 168,666 -6.8% 158,270 141,930
Total loans 390,981 386,471 1.2% 294,062 264,193
Allowance for loan losses (4,053) (3,850) 5.3% (2,949) (2,906)
Loans, net 386,928 382,621 1.1% 291,113 261,287
Premises and equipment 20,273 19,338 4.8% 12,553 11,791
Goodwill and other
intangibles 10,604 10,644 -0.4% 941 974
Other assets 10,355 11,422 -9.3% 6,593 5,036
Total assets $ 623,287 $ 610,088 2.2% $ 502,696 $ 455,129
Liabilities and
Stockholders' Equity
Non-interest bearing
deposits $ 132,131 $ 124,659 6.0% $ 100,296 $ 95,748
Interest bearing deposits 415,084 405,724 2.3% 343,454 311,778
Total deposits 547,215 530,383 3.2% 443,750 407,526
Securities sold under
agreements to repurchase
and FHLB borrowings 8,874 12,412 -28.5% 5,213 4,621
Junior subordinated
debentures 15,465 15,465 0.0% 15,465 7,217
Other liabilities 2,638 3,255 -19.0% 1,710 1,608
Total liabilities 574,192 561,515 2.3% 466,138 420,972
Total shareholders' equity 49,095 48,573 1.1% 36,558 34,157
Total liabilities and
shareholders'
equity $ 623,287 $ 610,088 2.2% $ 502,696 $ 455,129
MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
Three Months Ended
March 31, Year Ended
----------------------- % Dec. 31,
INCOME STATEMENT 2005 2004 Chg 2004
- ---------------------------------------- ---------- ---------- ---------- ----------
Interest income $ 8,637 $ 6,130 40.9% $ 27,745
Interest expense 2,212 1,097 101.6% 5,693
Net interest income 6,425 5,033 27.7% 22,052
Provision for loan losses 314 230 36.5% 991
Service charges on deposit accounts 2,133 1,403 52.0% 6,932
Gains on securities, net 132
Other charges and fees 1,289 458 181.4% 2,157
Total non-interest income 3,422 1,861 83.9% 9,221
Salaries and employee benefits 3,203 2,151 48.9% 10,220
Occupancy expense 1,255 980 28.1% 4,326
Goodwill and intangible amortization 134 16 737.5% 183
Other non-interest expense 2,361 1,250 88.9% 6,131
Total non-interest expense 6,953 4,397 58.1% 20,860
Income before income taxes 2,580 2,267 13.8% 9,422
Provision for income taxes 657 606 8.4% 2,442
Net income $ 1,923 $ 1,661 15.8% $ 6,980
Earnings per share, diluted $ 0.42 $ 0.40 5.0% $ 1.63
MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
INCOME STATEMENT 2005 2004 2004 2004 2004
- ---------------------------------------- ---------- ---------- ---------- ---------- ----------
Quarterly Trends
Interest income $ 8,637 $ 8,451 $ 6,815 $ 6,350 $ 6,130
Interest expense 2,212 1,890 1,431 1,276 1,097
Net interest income 6,425 6,561 5,384 5,074 5,033
Provision for loan losses 314 321 250 190 230
Net interest income after
provision for loan losses 6,111 6,240 5,134 4,884 4,803
Total non-interest income 3,422 2,929 2,376 2,053 1,861
Total non-interest expense 6,953 6,959 4,934 4,569 4,397
Income before income taxes 2,580 2,210 2,576 2,368 2,267
Income taxes 657 591 622 623 606
Net income $ 1,923 $ 1,619 $ 1,954 $ 1,745 $ 1,661
Earnings per share, basic $ 0.43 $ 0.36 $ 0.49 $ 0.44 $ 0.42
Earnings per share, diluted $ 0.42 $ 0.35 $ 0.47 $ 0.42 $ 0.40
Book value per share $ 11.03 $ 10.90 $ 9.16 $ 8.46 $ 8.52
Return on Average Equity 15.79% 13.48% 22.46% 19.78% 20.05%
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
Period Ended Period Ended
----------------------- -----------------------
Mar. 31, Mar. 31, % Dec. 31, Sept. 30,
2005 2004 Chg 2004 2004
---------- ---------- ---------- ---------- ----------
Asset Quality Data
Nonaccrual loans $ 596 $ 860 -30.7% $ 472 $ 482
Loans past due 90 days
and over 276 487 -43.3% 488 283
Total nonperforming loans 872 1,347 -35.3% 960 765
Other real estate owned 246 247 -0.4% 445 86
Other foreclosed assets 235 100.0% 283
Total nonperforming assets $ 1,353 $ 1,594 -15.1% $ 1,688 $ 851
Nonperforming assets to
total assets 0.22% 0.35% -38.0% 0.28% 0.17%
Nonperforming assets to
total loans + OREO + other
foreclosed assets 0.35% 0.60% -41.9% 0.44% 0.29%
ALL to nonperforming assets 299.56% 182.37% 64.3% 228.08% 346.53%
ALL to nonperforming loans 464.79% 215.81% 115.4% 401.04% 385.49%
ALL to total loans 1.04% 1.10% -5.8% 1.00% 1.00%
Year-to-date charge-offs $ 144 $ 171 -15.8% $ 1,067 $ 644
Year-to-date recoveries 32 55 -41.8% 182 133
Year-to-date net charge-offs $ 112 116 -3.4% $ 885 $ 511
Net YTD charge-offs to total
loans 0.03% 0.04% -34.8% 0.23% 0.17%
SOURCE MidSouth Bancorp, Inc.
-0- 04/21/2005
/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./
_