Exhibit 99.1
MIDSOUTH BANCORP, INC. ANNOUNCES 2ND QUARTER EARNINGS
LAFAYETTE, La., July 26 /PRNewswire-FirstCall/ -- MidSouth Bancorp, Inc.
(Amex: MSL) announced second quarter 2005 net income of $2,040,000 a 16.9%
increase over the $1,745,000 for the second quarter of 2004 and 6.1% over the
first quarter of 2005 net income of $1,923,000. Basic earnings per share were
$.42 for the quarter ended June 30, 2005, compared to $.40 per share reported
for the second quarter of 2004, and $.39 per share earned in the first quarter
of 2005. Diluted earnings per share were $.40 for the second quarter of 2005
compared to $.38 per share for the second quarter of 2004 and $.38 for the first
quarter of 2005.
Earnings per share data have been adjusted to reflect a 10% stock dividend
on common stock to holders of record on July 29, 2005 and payable on August 19,
2005.
Year-to-date earnings as of June 30, 2005 totaled $3,964,000, a 16.4%
increase over the $3,406,000 reported for the six months ended June 30, 2004.
Basic earnings per share were $.81 for the first half of 2005 versus $.77 per
share for the first half of 2004. Diluted earnings per share were $.78 versus
$.74, respectively.
Highlights for the Quarter Ended June 30, 2005
* Return on average equity was 16.26% for the second quarter of 2005
compared to 19.78% for the second 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") acquisition of
Lamar Bancshares, Inc., the parent company of Lamar Bank ("Lamar") on
October 1, 2004. The leverage capital ratio was 9.15% at June 30, 2005
compared to 8.65% at June 30, 2004.
* Net interest income totaled $6,857,000 for the second quarter of 2005, up
35.1% from the $5,074,000 reported for the second quarter of 2004. Net
interest income increased primarily due to a 30% increase in the average
volume of earning assets, including the assets acquired from Lamar. The
impact of the earning asset volume increase was partially offset by rate
and volume increases in interest-bearing liabilities.
* Total consolidated assets increased $154.3 million or 32.3%, from $477.6
million at the end of the second quarter of 2004 to $631.9 million at the
end of the second quarter of 2005.
* Total loans grew $130.6 million or 46.7%, from $279.4 million at June 30,
2004 to $410.0 million at June 30, 2005, primarily in commercial, real
estate and agricultural credits.
* Nonperforming assets, including loans 90 days or more past due, totaled
$2.2 million at June 30, 2005. As a percentage of total assets,
nonperforming assets remained unchanged at .36% for both June 30, 2004
and June 30, 2005. Net charge-offs to total loans decreased from .08% to
.05% for the same periods, respectively. Allowance for loan loss
provisions totaling $66,000 were taken in the second quarter of 2005
compared to $190,000 in the second quarter of 2004. The low volume of
charge-offs and consistent quality within the loan portfolio supported
minimal provisions for the second quarter of 2005.
* Total deposits increased $127.5 million or 29.6%, from $431.2 million at
June 30, 2004 to $558.7 million at June 30, 2005. Other than growth
attributed to the Lamar acquisition, deposit growth has been primarily in
MidSouth's Platinum money market accounts introduced in March of 2004.
Additionally, the core non-interest bearing demand accounts have
continued to grow and remain approximately 23% of total deposits at June
30, 2005.
Most of the growth reflected in balance sheet comparison of second quarter
2005 with second quarter 2004 resulted from the Lamar merger.
Components of Second Quarter Earnings
Net interest income for the second quarter of 2005 increased $1.8 million or
35.1% compared to the second quarter of 2004. Of the $1.8 million, approximately
$1.2 million was attributed to the addition of Lamar's net interest income and
the remaining $600,000 was attributed to an increase in MidSouth Bank's net
interest income. Although MidSouth Bank's total interest income increased
approximately $1.4 million due to increased earning asset volume in the second
quarter of 2005, the increase was mostly offset by an $800,000 increase in
interest expense on deposits as compared to second quarter 2004. The increase in
interest expense resulted from a higher average volume of interest-bearing
deposits that are indexed to the 90-day Treasury bill, which increased 177 basis
points over the past 12 months. MidSouth Bank's Platinum Money Market accounts
contributed most of the increase in interest-bearing deposits and represented
approximately $115 million or 21% of total consolidated deposits.
Non-interest income for the second quarter of 2005 increased $1.1 million
compared to the second quarter 2004. Lamar contributed approximately $574,000 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 $368,000, primarily due to a
higher volume of demand deposit accounts. MidSouth Bank's other non- interest
income increased $177,000 in quarterly comparison primarily due to a $93,000
distribution received from PULSE in connection with its merger with a subsidiary
of Discover Financial Services, Inc.
Non-interest expense increased $2.6 million from the second quarter of 2004
to the second quarter of 2005, primarily due to Lamar expenses totaling $1.8
million. Lamar's expenses for the second quarter of 2005 included approximately
$128,000 in costs primarily related to its data processing conversion completed
in May of 2005. Of the remaining $.8 million increase in non-interest expenses
at MidSouth Bank, approximately $328,000 was attributed to salaries and
benefits, $125,000 to occupancy expenses, $119,000 to marketing expenses, and
$111,000 to accounting fees for a Sarbanes-Oxley internal controls review
performed in 2005. Management expects the impact of the accounting fees on
earnings to decrease during the second half of 2005 due to a deferment of the
requirement to certify its internal controls, delaying much of the testing phase
until 2006.
In year-to-date comparison, total net income increased $558,000 or 16.4%.
Lamar's contribution of approximately $265,000 to the increase was effected by
the $128,000 in conversion costs and by approximately $155,000 in related
amortization of core deposit intangibles, net of income taxes.
MidSouth Bank contributed $493,000 in additional income for the first half
of 2005 compared to 2004, as increases in net interest income of $910,000 and
non-interest income of $1,534,000 offset increased non-interest expenses of
$1,877,154. The increase in non-interest income included a total of $631,000 in
distributions received from PULSE. The increase in non-interest expenses
resulted primarily from increased salaries and benefit costs ($713,000),
accounting fees ($214,000) and occupancy ($199,000), marketing ($272,000) and
education and travel ($93,000) expenses.
At the parent company level, increased interest expense of $232,000 on trust
preferred securities partially offset the increase in consolidated net income
for the six months ended June 30, 2005.
During the second half of 2005, MidSouth expects to open four new offices.
Expected timeframes for opening start with the Baton Rouge office in August, the
River Ranch office (Lafayette) in September, and the Conroe, Texas and Houma
offices in October. The Conroe, Texas and Houma offices will replace loan
production offices currently in those markets. Management expects the impact of
fully staffing these new offices will be reflected in third and fourth quarter
expenses and any substantial contributions to income will not be reflected until
2006.
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 Qtr For The
Ended Jun. 30, Qtr Ended
----------------------- % Mar. 31, %
2005 2004 Chg 2005 Chg
---------- ---------- ---------- ---------- ----------
EARNINGS DATA
Total interest income $ 9,333 $ 6,350 47.0% $ 8,637 8.1%
Total interest expense 2,476 1,276 94.0% 2,212 11.9%
Net interest income 6,857 5,074 35.1% 6,425 6.7%
Provision for loan losses 66 190 -65.3% 314 -79.0%
Non-interest income 3,170 2,053 54.4% 3,422 -7.4%
Non-interest expense 7,187 4,569 57.3% 6,953 3.4%
Provision for income tax 734 623 17.8% 657 11.7%
Net income $ 2,040 $ 1,745 16.9% $ 1,923 6.1%
PER COMMON SHARE DATA (A)
Basic earnings per share $ 0.42 $ 0.40 5.0% $ 0.39 7.4%
Diluted earnings per share $ 0.40 $ 0.38 5.8% $ 0.38 4.8%
Book value at end of period $ 10.49 $ 7.69 36.3% $ 10.03 4.6%
Market price at end
of period $ 22.27 $ 31.82 -30.0% $ 24.45 -8.9%
Weighted avg shares
outstanding
Basic 4,897,241 4,387,392 11.6% 4,885,093 0.2%
Diluted 5,068,921 4,584,730 10.6% 5,083,027 -0.3%
AVERAGE BALANCE SHEET DATA
Total assets $ 623,095 $ 467,383 33.3% $ 615,609 1.2%
Earning assets 566,505 435,937 30.0% 557,170 1.7%
Loans and leases 401,581 272,266 47.5% 390,098 2.9%
Interest-bearing deposits 415,034 322,008 28.9% 410,083 1.2%
Total deposits 547,347 418,735 30.7% 536,747 2.0%
Total stockholders' equity 50,314 35,485 41.8% 49,380 1.9%
6/30/2005 6/30/2004 3/31/2005
---------- ---------- ----------
SELECTED RATIOS
Return on average assets 1.31% 1.50% -12.5% 1.27% 3.7%
Return on average
total equity 16.26% 19.78% -17.8% 15.79% 3.0%
Return on average
realized equity (B) 16.13% 20.90% -22.8% 15.87% 1.6%
Average equity to
average assets 8.07% 7.59% 6.4% 8.02% 0.7%
Leverage capital ratio 9.15% 8.65% 5.8% 8.96% 2.1%
CREDIT QUALITY
Allowance for loan losses
as a % of total loans 0.99% 1.06% -7.0% 1.04% -4.8%
Nonperforming assets
to total assets 0.36% 0.36% 0.0% 0.22% 63.6%
Net YTD charge-offs
to total loans 0.05% 0.08% -37.5% 0.03% 56.3%
(A) Earnings per common share data has been adjusted for a 10% stock dividend
payable on August 19, 2005 to shareholders of record on July 29, 2005.
(B) 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
Jun. 30, -----------------------
----------------------- % Mar. 31, Dec. 31,
2005 2004 Chg 2005 2004
---------- ---------- ---------- ---------- ----------
BALANCE SHEET
Assets
Cash and cash equivalents $ 25,534 $ 25,697 -0.6% $ 37,988 $ 17,397
Securities
available-for-sale 133,336 131,434 1.4% 132,693 143,261
Securities
held-to-maturity 21,180 23,133 -8.4% 21,930 22,852
Total investment
securities 154,516 154,567 0.0% 154,623 166,113
Total loans 410,030 279,434 46.7% 390,981 386,471
Allowance for loan losses (4,039) (2,974) 35.8% (4,053) (3,850)
Loans, net 405,991 276,460 46.9% 386,928 382,621
Premises and equipment 21,036 12,039 74.7% 20,273 19,338
Goodwill and other
intangibles 10,471 957 994.1% 10,604 10,644
Other assets 14,345 7,885 81.9% 12,871 13,975
Total assets $ 631,893 $ 477,605 32.3% $ 623,287 $ 610,088
Liabilities and
Stockholders' Equity
Non-interest bearing
deposits $ 130,525 $ 100,689 29.6% $ 132,131 $ 124,659
Interest bearing deposits 428,197 330,491 29.6% 415,084 405,724
Total deposits 558,722 431,180 29.6% 547,215 530,383
Securities sold under
agreements to repurchase
and FHLB borrowings 2,354 4,159 -43.4% 8,874 12,412
Junior subordinated
debentures 15,465 7,217 114.3% 15,465 15,465
Other liabilities 3,829 1,205 114.3% 2,638 3,255
Total liabilities 580,370 443,761 217.8% 574,192 561,515
Total shareholders' equity 51,523 33,844 30.8% 49,095 48,573
Total liabilities and
shareholders' equity $ 631,893 $ 477,605 32.3% $ 623,287 $ 610,088
MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
----------------------- % ----------------------- %
2005 2004 Chg 2005 2004 Change
---------- ---------- ---------- ---------- ---------- ----------
INCOME STATEMENT
Interest income $ 9,333 $ 6,350 47.0% $ 17,970 $ 12,480 44.0%
Interest expense 2,476 1,276 94.0% 4,688 2,372 97.6%
Net interest income 6,857 5,074 35.1% 13,282 10,108 31.4%
Provision for loan losses 66 190 -65.3% 380 420 -9.5%
Service charges on
deposit accounts 2,198 1,523 44.3% 4,326 2,926 47.8%
Gains on securities, net 2 -100.0% 2 -100.0%
Other charges and fees 972 528 84.1% 2,267 987 129.7%
Total non-interest
income 3,170 2,053 54.4% 6,593 3,915 68.4%
Salaries and employee
benefits 3,305 2,259 46.3% 6,508 4,410 47.6%
Occupancy expense 1,329 991 34.1% 2,584 1,972 31.0%
Goodwill and intangible
amortization 134 16 737.5% 267 33 709.1%
Other non-interest
expense 2,419 1,303 85.6% 4,781 2,552 87.3%
Total non-interest
expense 7,187 4,569 57.3% 14,140 8,967 57.7%
Income before income
taxes 2,774 2,368 17.1% 5,355 4,636 15.5%
Provision for
income taxes 734 623 17.8% 1,391 1,230 13.1%
Net income $ 2,040 $ 1,745 16.9% $ 3,964 $ 3,406 16.4%
Earnings per share,
diluted $ 0.40 $ 0.38 5.3% $ 0.78 $ 0.74 5.7%
MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
Second First Fourth Third Second
Quarter Quarter Quarter Quarter Quarter
2005 2005 2004 2004 2004
---------- ---------- ---------- ---------- ----------
INCOME STATEMENT
Quarterly Trends
Interest income $ 9,333 $ 8,637 $ 8,451 $ 6,815 $ 6,350
Interest expense 2,476 2,212 1,890 1,431 1,276
Net interest income 6,857 6,425 6,561 5,384 5,074
Provision for loan losses 66 314 321 250 190
Net interest income after
provision for loan losses 6,791 6,111 6,240 5,134 4,884
Total non-interest income 3,170 3,422 2,929 2,376 2,053
Total non-interest expense 7,187 6,953 6,959 4,934 4,569
Income before income taxes 2,774 2,580 2,210 2,576 2,368
Income taxes 734 657 591 622 623
Net income $ 2,040 $ 1,923 $ 1,619 $ 1,954 $ 1,745
Earnings per share, basic $ 0.42 $ 0.39 $ 0.33 $ 0.45 $ 0.40
Earnings per share, diluted $ 0.40 $ 0.38 $ 0.32 $ 0.43 $ 0.38
Book value per share $ 10.49 $ 10.03 $ 9.91 $ 8.33 $ 7.69
Return on Average Equity 16.26% 15.79% 13.48% 22.46% 19.78%
MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
Period Ended Period Ended
Jun. 30, -----------------------
----------------------- % Mar. 31, Dec. 31,
2005 2004 Chg 2005 2004
---------- ---------- ---------- ---------- ----------
Asset Quality Data
Nonaccrual loans $ 1,892 $ 1,003 88.6% $ 596 $ 472
Loans past due 90 days
and over 128 662 -80.7% 276 488
Total nonperforming loans 2,020 1,665 21.3% 872 960
Other real estate owned 98 77 27.3% 246 445
Other foreclosed assets 156 235 283
Total nonperforming assets $ 2,274 $ 1,742 30.5% $ 1,353 $ 1,688
Nonperforming assets to
total assets 0.36% 0.36% 0.0% 0.22% 0.28%
Nonperforming assets to
total loans + OREO + other
foreclosed assets 0.55% 0.62% -10.6% 0.35% 0.44%
ALL to nonperforming assets 177.62% 170.72% 4.0% 299.56% 228.08%
ALL to nonperforming loans 199.95% 178.62% 11.9% 464.79% 401.04%
ALL to total loans 0.99% 1.06% -7.4% 1.04% 1.00%
Year-to-date charge-offs $ 310 $ 336 -7.7% $ 144 $ 1,067
Year-to-date recoveries 119 100 19.0% 32 182
Year-to-date net charge-offs $ 191 $ 236 -19.1% $ 112 $ 885
Net YTD charge-offs to
total loans 0.05% 0.08% -41.8% 0.03% 0.23%
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./