Exhibit 99.1
MIDSOUTH BANCORP, INC. REPORTS 4TH QUARTER EARNINGS
LAFAYETTE, La., Jan. 27 /PRNewswire-FirstCall/ -- MidSouth Bancorp, Inc.
(Amex: MSL) announced fourth quarter 2005 net income of $1,676,000, an increase
of $57,000 from the $1,619,000 earned in the fourth quarter of 2004 and an
increase of $42,000 from the $1,634,000 earned in the third quarter of 2005.
Basic earnings per share were $.34 for the quarter ended December 31, 2005,
compared to $.33 per share reported for both the fourth quarter of 2004 and the
third quarter of 2005. Diluted earnings per share were $.33 for the fourth
quarter of 2005 compared to $.32 per share for both the fourth quarter of 2004
and the third quarter of 2005.
A 15.2% improvement in net interest income for the fourth quarter of 2005
compared to the fourth quarter of 2004 was offset by a 13% increase in non-
interest expenses and a 3.9% decrease in non-interest income. Fourth quarter
2005 non-interest expenses were impacted by increases in salary and benefit
costs, marketing costs and occupancy expenses, including approximately $448,000
in start-up costs for four new retail locations. Three of the new retail offices
opened late in the third quarter of 2005 and the new Houma office opened in late
November 2005, following construction delays resulting from Hurricane Katrina.
Non-interest income for the fourth quarter of 2005 was impacted by a decrease in
service charge income of approximately $300,000 resulting from Hurricanes
Katrina and Rita. In January 2006, service charge income returned to normal
levels and the Company's management anticipates no further declines in service
charge income resulting from the hurricanes.
During the fourth quarter of 2005, the Company's lending officers continued
to consult with their customers and further credit analysis was performed to
assess credit-related risks from the two hurricanes. After completing the
assessment, a provision totaling $300,000 was added to the Allowance for Loan
Losses ("ALL"), primarily to cover probable losses in agricultural credits as a
result of the storms. No additional credit risks from the hurricanes have been
identified other than those allowed for in the ALL.
Year-to-date earnings as of December 31, 2005 totaled $7,274,000, a 4.2%
increase over the $6,980,000 reported for the year ended December 31, 2004.
Basic earnings per share were $1.48 at December 31, 2005 versus $1.55 per share
at December 31, 2004. Diluted earnings per share were $1.44 versus $1.48,
respectively. The decrease in per share data despite increased earnings resulted
primarily from the dilutive effect of approximately 461,000 shares issued with
the merger and acquisition of Lamar Bancshares, Inc. on October 1, 2004,
adjusted for a 25% stock dividend paid on November 30, 2004 to shareholders of
record on October 29, 2004.
Highlights for the Quarter Ended December 31, 2005
* Return on average equity was 12.62% for the fourth quarter of 2005
compared to 13.48% for the fourth quarter of 2004. The return on average
common equity was affected by the issuance of stock in connection with
the Company's acquisition of Lamar Bancshares, Inc., the parent company
of Lamar Bank, on October 1, 2004. The leverage capital ratio was 8.75%
at December 31, 2005 compared to 8.73% at December 31, 2004.
* Net interest income totaled $7,561,000 for the fourth quarter of 2005,
up 15.2% from the $6,561,000 reported for the fourth quarter of 2004.
Net interest income increased primarily due to a 10.6% increase in the
average volume of earning assets.
* Total consolidated assets increased $88.7 million or 14.5%, from $610.1
million at December 31, 2004 to $698.8 million at December 31, 2005.
Total loans grew $56.3 million or 14.6%, from $386.5 million at December
31, 2004 to $442.8 million at December 31, 2005, primarily in commercial
and real estate credits. Total deposits grew $94.5 million or 17.8%,
from $530.4 million at December 31, 2004 to $624.9 million at December
31, 2005. Of the $94.5 million growth in deposits, $53.2 million was in
non-interest bearing deposits, which increased that portfolio to 28% of
total deposits at December 31, 2005. Interest- bearing deposits
increased $41.3 million, primarily in the Company's Platinum money
market accounts.
* Nonperforming assets, including loans 90 days or more past due, totaled
$3.4 million at December 31, 2005 compared to $1.7 million at December
31, 2004. The increase resulted primarily from a $1.5 million increase
in loans past due 90 days or more. Two past due government-guaranteed
loans totaling $1.1 million and a commercial loan totaling $420,000
increased the loans past due 90 days or more for the year ended December
31, 2005. One government-guaranteed loan subsequently paid in full in
January 2006 and payment on the second loan is expected during the first
quarter of 2006. Management expects the commercial loan to be returned
to a current status during the first quarter of 2006. As a percentage of
total assets, nonperforming assets increased to .49% at December 31,
2005, up from .28% at December 31, 2004. Charge-off volume decreased
with net charge-offs to total loans at .11% compared to .23% for the
same periods, respectively.
Components of Fourth Quarter Earnings
Net interest income for the fourth quarter of 2005 increased $1.0 million or
15.2% compared to the fourth quarter of 2004. Total interest income from loans
and investment securities increased $2.25 million for the same period, primarily
due to a 15.5% increase in average loan volume between the two quarters
reviewed. The Company continues to be asset sensitive to changes in interest
rates and as a result, increases in New York Prime ("Prime") generated improved
margins for the fourth quarter of 2005. The increase in interest income was
partially offset by a $1.25 million increase in interest expense resulting from
higher rates paid on interest-bearing liabilities and a 8.1% increase in the
average volume of interest-bearing deposits between the two quarters reviewed.
Non-interest income for the fourth quarter of 2005 decreased $113,000 or
3.9% in comparison to the fourth quarter of 2004. A $416,000 or 18.2% decrease
resulted in service charges on deposit accounts primarily due to the
hurricane-related decrease of approximately $300,000. Other non-interest charges
and fees increased $303,000 or 47%, primarily from an increase in ATM and Debit
Card fees resulting from an increased volume of transactions.
Non-interest expense increased $908,000 or 13% in quarterly comparison,
primarily due to increases of $272,000 in salary and benefit costs, $271,000 in
marketing costs and $256,000 in occupancy expenses, including approximately
$448,000 in start-up costs for four new retail locations. The increases reflect
the growth of the franchise over the past year.
In year-to-date comparison, total net income increased $294,000 or 4.2%. The
2005 results include the impact of twelve months of income and expenses
associated with Lamar Bank compared to the three months of Lamar Bank income and
expenses included in 2004. Net interest income increased $5.7 million or 25.9%
and non-interest income increased $3.0 million or 32.8% to contribute a total
increase of $8.7 million to revenues for the year ended December 31, 2005
compared to the year ended December 31, 2004. The Company invested the increased
revenues in the franchise through market development, staff development and
system upgrades which resulted in increased non-interest expenses of $8.4
million for 2005.
The Company's investment in growing the franchise is also reflected in seven
new retail stores scheduled to open over the next twelve months to service
MidSouth Bank and Lamar Bank customers. MidSouth Bank's ninth Lafayette store is
scheduled to open in February of 2006. Two additional retail stores are planned
for the Baton Rouge market and scheduled for September and December 2006. A new
retail store in Thibodaux and a second store in Lake Charles are scheduled for
October 2006. In the Texas markets, a second Lamar Bank location in Conroe,
Texas is scheduled to open in November 2006 and management is working on site
selection for a second retail store in College Station. Costs associated with
opening the new stores will directly impact earnings throughout 2006 and any
substantial contributions to income will not be reflected until 2007.
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 28 banking offices
throughout south Louisiana and southeast 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
For The Quarter Qtr Ended
Ended December 31, Sept. 30,
------------------------ % ---------- %
2005 2004 Chg 2005 Chg
---------- ---------- ---------- ---------- ----------
EARNINGS DATA
Total interest income $ 10,703 $ 8,451 26.6% $ 9,882 8.3%
Total interest expense 3,142 1,890 66.2% 2,957 6.3%
Net interest income 7,561 6,561 15.2% 6,925 9.2%
Provision for loan losses 300 321 -6.5% 300 0.0%
Non-interest income 2,816 2,929 -3.9% 2,840 -0.8%
Non-interest expense 7,867 6,959 13.0% 7,319 7.5%
Provision for income tax 534 591 -9.6% 512 4.3%
Net income $ 1,676 $ 1,619 3.5% $ 1,634 2.6%
PER COMMON SHARE DATA
Basic earnings per share $ 0.34 $ 0.33 3.0% $ 0.33 3.0%
Diluted earnings per share $ 0.33 $ 0.32 3.1% $ 0.32 3.1%
Book value at end of period $ 10.74 $ 9.91 8.4% $ 10.66 0.8%
Market price at end of period $ 26.99 $ 24.55 9.9% $ 30.40 -11.2%
Weighted avg shares outstanding
Basic 4,925,887 4,883,076 0.9% 4,905,783 0.4%
Diluted 5,072,632 5,079,305 -0.1% 5,086,647 -0.3%
AVERAGE BALANCE SHEET DATA
Total assets $ 683,183 $ 613,437 11.4% $ 650,219 5.1%
Earning assets 616,347 557,392 10.6% 587,787 4.9%
Loans and leases 438,002 379,164 15.5% 422,588 3.6%
Interest-bearing deposits 444,310 411,023 8.1% 438,058 1.4%
Total deposits 608,063 536,000 13.4% 574,754 5.8%
Total stockholders' equity 52,695 47,765 10.3% 51,813 1.7%
SELECTED RATIOS 12/31/2005 12/31/2004 09/30/2005
Return on average assets 0.97% 1.05% -7.3% 1.00% -2.4%
Return on average total equity 12.62% 13.48% -6.4% 12.51% 0.9%
Return on average realized
equity (A) 12.41% 13.82% -10.2% 12.42% -0.1%
Average equity to average assets 7.71% 7.79% -0.9% 7.97% -3.2%
Leverage capital ratio 8.75% 8.73% 0.2% 8.97% -2.5%
CREDIT QUALITY
Allowance for loan losses as a %
of total loans 0.98% 1.00% -2.0% 0.97% 1.0%
Nonperforming assets to
total assets 0.49% 0.28% 75.0% 0.45% 8.9%
Net YTD charge-offs to
total loans 0.11% 0.23% -52.2% 0.07% 57.1%
(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
------------------------- ------------------------
Dec. 31, Dec. 31, % Sept. 30, Jun. 30,
2005 2004 Chg 2005 2005
----------- ---------- ---------- ---------- ----------
BALANCE SHEET
Assets
Cash and cash equivalents $ 52,437 $ 17,397 201.4% $ 27,733 $ 25,534
Securities available-for-
sale 139,429 143,261 -2.7% 133,917 133,336
Securities held-to-maturity 19,611 22,852 -14.2% 20,086 21,180
Total investment
securities 159,040 166,113 -4.3% 154,003 154,516
Total loans 442,794 386,471 14.6% 434,478 410,030
Allowance for loan losses (4,355) (3,850) 13.1% (4,211) (4,039)
Loans, net 438,439 382,621 14.6% 430,267 405,991
Premises and equipment 23,606 19,338 22.1% 21,680 21,036
Goodwill and other
intangibles 10,257 10,644 -3.6% 10,454 10,471
Other assets 15,036 13,975 7.6% 15,344 14,345
Total assets $ 698,815 $ 610,088 14.5% $ 659,481 $ 631,893
Liabilities and
Stockholders' Equity
Non-interest bearing
deposits $ 177,946 $ 124,659 42.7% $ 148,895 $ 130,525
Interest bearing deposits 446,992 405,724 10.2% 437,509 428,197
Total deposits 624,938 530,383 17.8% 586,404 558,722
Securities sold under
agreements to repurchase
and FHLB borrowings 1,732 12,412 -86.0% 2,191 2,354
Junior subordinated
debentures 15,465 15,465 0.0% 15,465 15,465
Other liabilities 3,494 3,255 7.3% 3,045 3,829
Total liabilities 645,629 561,515 15.0% 607,105 580,370
Total shareholders' equity 53,186 48,573 9.5% 52,376 51,523
Total liabilities and
shareholders' equity $ 698,815 $ 610,088 14.5% $ 659,481 $ 631,893
MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
Three Months Ended Year Ended
December 31, December 31,
------------------------- % ------------------------ %
2005 2004 Chg 2005 2004 Change
----------- ---------- ---------- ---------- ---------- ----------
INCOME STATEMENT
Interest income $ 10,703 $ 8,451 26.6% $ 38,555 $ 27,745 39.0%
Interest expense 3,142 1,890 66.2% 10,787 5,693 89.5%
Net interest income 7,561 6,561 15.2% 27,768 22,052 25.9%
Provision for loan
losses 300 321 -6.5% 980 991 -1.1%
Service charges on
deposit accounts 1,868 2,284 -18.2% 8,283 6,949 19.2%
Gains on securities,
net 132 -100.0%
Other charges and fees 948 645 47.0% 3,967 2,140 85.4%
Total non-interest
income 2,816 2,929 -3.9% 12,250 9,221 32.8%
Salaries and employee
benefits 3,662 3,391 8.0% 13,823 10,220 35.3%
Occupancy expense 1,568 1,312 19.5% 5,615 4,315 30.1%
Intangible amortization 82 134 -38.8% 483 183 163.9%
Other non-interest
expense 2,555 2,122 20.4% 9,405 6,142 53.1%
Total non-interest
expense 7,867 6,959 13.0% 29,326 20,860 40.6%
Income before income
taxes 2,210 2,210 0.0% 9,712 9,422 3.1%
Provision for income
taxes 534 591 -9.6% 2,438 2,442 -0.2%
Net income $ 1,676 $ 1,619 3.5% $ 7,274 $ 6,980 4.2%
Earnings per share,
diluted $ 0.33 $ 0.32 3.1% $ 1.44 $ 1.48 -2.7%
MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
Fourth Third Second First Fourth
Quarter Quarter Quarter Quarter Quarter
2005 2005 2005 2005 2004
-------- -------- -------- -------- --------
INCOME STATEMENT
Quarterly Trends
Interest income $ 10,703 $ 9,882 $ 9,333 $ 8,637 $ 8,451
Interest expense 3,142 2,957 2,476 2,212 1,890
Net interest income 7,561 6,925 6,857 6,425 6,561
Provision for loan losses 300 300 66 314 321
Net interest income after
provision for loan losses 7,261 6,625 6,791 6,111 6,240
Total non-interest income 2,816 2,840 3,170 3,422 2,929
Total non-interest expense 7,867 7,319 7,187 6,953 6,959
Income before income taxes 2,210 2,146 2,774 2,580 2,210
Income taxes 534 512 734 657 591
Net income $ 1,676 $ 1,634 $ 2,040 $ 1,923 $ 1,619
Earnings per share, basic $ 0.34 $ 0.33 $ 0.42 $ 0.39 $ 0.33
Earnings per share, diluted $ 0.33 $ 0.32 $ 0.40 $ 0.38 $ 0.32
Book value per share $ 10.74 $ 10.66 $ 10.49 $ 10.03 $ 9.91
Return on Average Equity 12.62% 12.51% 16.26% 15.79% 13.48%
MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
Period Ended Period Ended
------------------------- ------------------------
Dec. 31, Dec. 31, % Sept. 30, Jun. 30,
2005 2004 Chg 2005 2005
----------- ---------- ---------- ---------- ----------
Asset Quality Data
Nonaccrual loans $ 660 $ 472 39.8% $ 2,125 $ 1,892
Loans past due 90 days and over 2,511 488 414.5% 561 128
Total nonperforming loans 3,171 960 230.3% 2,686 2,020
Other real estate owned 98 445 -78.0% 111 98
Other foreclosed assets 176 283 -37.8% 154 156
Total nonperforming assets $ 3,445 $ 1,688 104.1% $ 2,951 $ 2,274
Nonperforming assets to
total assets 0.49% 0.28% 75.0% 0.45% 0.36%
Nonperforming assets to
total loans + OREO + other
foreclosed assets 0.78% 0.44% 77.3% 0.68% 0.55%
ALL to nonperforming assets 126.42% 228.08% -44.6% 142.70% 177.62%
ALL to nonperforming loans 137.34% 401.04% -65.8% 156.78% 199.95%
ALL to total loans 0.98% 1.00% -2.0% 0.97% 0.99%
Year-to-date charge-offs $ 702 $ 1,067 -34.2% $ 482 $ 310
Year-to-date recoveries 226 182 24.2% 164 119
Year-to-date net charge-offs $ 476 $ 885 -46.2% $ 318 $ 191
Net YTD charge-offs to total
loans 0.11% 0.23% -52.2% 0.07% 0.05%
SOURCE MidSouth Bancorp, Inc.
-0- 01/27/2006
/CONTACT: C. R. Rusty Cloutier, President of MidSouth Bancorp, Inc.,
+1-337-267-4201, or +1-337-962-9900/
(MSL)