Exhibit 99.1
MIDSOUTH BANCORP, INC. REPORTS 1ST QUARTER EARNINGS
LAFAYETTE, La., April 26 /PRNewswire-FirstCall/ -- MidSouth Bancorp, Inc.
(Amex: MSL) announced first quarter 2006 earnings of $1,819,000, a decrease of
$104,000 from the $1,923,000 earned in the first quarter of 2005 and an
increase of $143,000 from the $1,676,000 earned in the fourth quarter of 2005.
Basic earnings per share were $.37 for the quarter ended March 31, 2006,
compared to $.39 per share reported for the first quarter of 2005 and $.34 for
the fourth quarter of 2005. Diluted earnings per share were $.36 for the
first quarter of 2006 compared to $.38 per share for the first quarter of 2005
and $.33 for the fourth quarter of 2005.
Earnings decreased in the first quarter of 2006 in comparison to the first
quarter of 2005 primarily due to the net after-tax effect of non-recurring
non-interest income from a $538,000 distribution received from PULSE EFT
Association in the first quarter of 2005, partially offset by a $102,000
write-down on a branch facility in the same quarter, producing a net after-tax
effect of approximately $288,000. Net of the $288,000, first quarter 2006
earnings improved by $184,000 in quarterly comparison despite increased
expenses related to five new retail branch offices added in the past eight
months.
Highlights for the Quarter Ended March 31, 2006
* Return on average equity was 13.74% for the first quarter of 2006
compared to 15.79% for the first quarter of 2005. Net of the $288,000 after-
tax effect of non-recurring items, the first quarter 2006 return on average
equity of 13.74% reflects improvement over an adjusted return on average
equity for the first quarter of 2005 of 13.43%. The leverage capital ratio
was 8.48% at March 31, 2006 compared to 8.96% at March 31, 2005.
* Net interest income totaled $7,397,000 for the first quarter of 2006,
up 15.1% from the $6,425,000 reported for the first quarter of 2005. Net
interest income increased primarily due to a $93.1 million or 16.7% increase
in the average volume of earning assets in quarterly comparison. The impact
of increased interest income earnings from the higher volume of earning assets
was partially offset by a $58.7 million or 14.3% increase in the volume of
interest-bearing deposits coupled with a 100 basis point increase in the
average cost of interest-bearing deposits between the two quarters compared.
* Total consolidated assets increased $49.7 million or 7.1%, from
$698.8 million at December 31, 2005 to $748.6 million at March 31, 2006.
Total loans grew $8.4 million or 1.9%, from $442.8 million at December 31,
2005 to $451.2 million at March 31, 2006, primarily in commercial and real
estate credits. Total deposits grew $49.4 million or 7.9%, from
$624.9 million at December 31, 2005 to $674.3 million at March 31, 2006. Of
the $49.4 million growth in deposits, $45 million was in interest bearing
deposits, primarily in Platinum money market and checking accounts. The
Platinum money market and checking accounts offer competitive rates of
interest that adjust to changes in market rates. Additionally, the core non-
interest bearing deposits have continued to grow and approximate 27% of total
deposits at March 31, 2006.
* Nonperforming assets, including loans 90 days or more past due,
totaled $1.9 million at March 31, 2006 compared to $1.4 million at March 31,
2005 and $3.4 million at December 31, 2005. The increase of $.5 million in
the first quarter of 2006 as compared to the first quarter of 2005 resulted
primarily from an increase in loans past due 90 days and over, partially
offset by decreases in other real estate owned and other foreclosed assets in
quarterly comparison.
The improvement in nonperforming assets from December 31, 2005 to
March 31, 2006 resulted primarily from the removal of two past due government-
guaranteed loans totaling $1.1 million from the loans past due 90 days or
more. The two loans were paid out in the first quarter of 2006.
As a percentage of total assets, nonperforming assets increased to .26% at
March 31, 2006, up from .22% at March 31, 2005 and down from .49% at
December 31, 2005. Charge-off volume decreased with net charge-offs to total
loans at .01% compared to .03% and .11% for the same periods, respectively.
Components of First Quarter Earnings
Net interest income for the first quarter of 2006 increased 15% or
$972,000 over the first quarter of 2005 due primarily to a 16.7% increase in
the average volume of earning assets in quarterly comparison. Non-interest
income decreased from first quarter 2005 to first quarter 2006 by $579,000,
primarily due to the $538,000 PULSE distribution. First quarter 2006 non-
interest expenses, excluding the $102,000 write-down of a branch facility in
the first quarter of 2005, increased $645,000 or 9.4% compared to first
quarter 2005 due primarily to increases in salary and benefit costs and
occupancy expenses associated with five new retail locations. Three of the
new retail offices opened late in the third quarter of 2005, the new Houma
office opened in November 2005, and the ninth Lafayette office opened in early
March 2006.
Total interest income from loans and investment securities increased
$2.4 million for the first quarter of 2006 compared to 2005, primarily due to
a 13.7% increase in average loan volume and a 6.9% increase in the average
volume of investment securities between the two quarters compared.
Additionally, yields on loans improved 75 basis points and the taxable-
equivalent yield on investment securities increased 31 basis points in
quarterly comparison. Yields improved as the Prime rate increased 200 basis
points over the past twelve months and adjusted the rates on approximately
one-third of MidSouth Bancorp's loan portfolio that floats with changes in
Prime.
The $2.4 million increase in interest income was partially offset by a
$1.4 million increase in interest expense. Interest expense increased due to
a 100 basis point increase in the average rate paid on interest-bearing
deposits and a 14.3% increase in the average volume of interest-bearing
deposits between the two quarters reviewed. The 100 basis point increase in
the average rate paid on interest-bearing deposits reflects the competitive
rates paid on the Platinum deposit accounts that adjust to changes in market
rates of interest.
MidSouth Bancorp's investment in executing its plan to grow the franchise
is reflected in six new retail stores scheduled to open over the next twelve
months to service MidSouth Bank and Lamar Bank customers. Two 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 retail store location for the Conroe, Texas market is scheduled to open
in November 2006 and management is working on site selection for a second
retail store in the College Station market. Costs associated with opening
these six new stores, in addition to the five opened in the past eight months,
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 29 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 March 31, Dec. 31,
------------------------- % ----------- %
2006 2005 Chg 2005 Chg
----------- ----------- ----------- ----------- -----------
EARNINGS DATA
Total interest income $ 11,035 $ 8,637 27.8% $ 10,703 3.1%
Total interest expense 3,638 2,212 64.5% 3,142 15.8%
Net interest income 7,397 6,425 15.1% 7,561 -2.2%
Provision for loan losses 320 314 1.9% 300 6.7%
Non-interest income 2,843 3,422 -16.9% 2,816 1.0%
Non-interest expense 7,496 6,953 7.8% 7,867 -4.7%
Provision for income tax 605 657 -7.9% 534 13.3%
Net income $ 1,819 $ 1,923 -5.4% $ 1,676 8.5%
PER COMMON SHARE DATA
Basic earnings per share $ 0.37 $ 0.39 -5.3% $ 0.34 8.8%
Diluted earnings per share $ 0.36 $ 0.38 -5.7% $ 0.33 9.1%
Book value at end of period $ 10.84 $ 10.03 8.1% $ 10.74 0.9%
Market price at end of period $ 28.65 $ 24.45 17.2% $ 26.99 6.2%
Weighted avg shares
outstanding
Basic 4,941,290 4,885,093 1.2% 4,925,887 0.3%
Diluted 5,079,759 5,083,027 -0.1% 5,072,632 0.1%
AVERAGE BALANCE SHEET DATA
Total assets $ 717,159 $ 615,609 16.5% $ 683,183 5.0%
Earning assets 650,252 557,170 16.7% 616,347 5.5%
Loans and leases 443,610 390,098 13.7% 438,002 1.3%
Interest-bearing deposits 468,757 410,083 14.3% 444,310 5.5%
Total deposits 642,368 536,747 19.7% 608,063 5.6%
Total stockholders'
equity 53,706 49,380 8.8% 52,695 1.9%
03/31/2006 03/31/2005 12/31/2005
---------- ---------- ----------
SELECTED RATIOS
Return on average assets 1.03% 1.27% -18.8% 0.97% 5.7%
Return on average
total equity 13.74% 15.79% -13.0% 12.62% 8.9%
Return on average
realized equity (A) 13.46% 15.87% -15.2% 12.41% 8.5%
Average equity
to average assets 7.49% 8.02% -6.6% 7.71% -2.9%
Leverage capital ratio 8.48% 8.96% -5.4% 8.75% -3.1%
CREDIT QUALITY
Allowance for loan losses
as a % of total loans 1.03% 1.04% -1.0% 0.98% 5.1%
Nonperforming assets
to total assets 0.26% 0.22% 18.2% 0.49% -46.9%
Net YTD charge-offs
to total loans 0.01% 0.03% -68.8% 0.11% -90.9%
(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 2006 2005 Chg 2005 2005
- --------------------------------- ----------- ----------- ----------- ----------- -----------
Assets
Cash and cash equivalents $ 66,750 $ 52,437 27.3% $ 27,733 $ 37,988
Securities available-for-sale 165,411 139,429 18.6% 133,917 135,209
Securities held-to-
maturity 18,368 19,611 -6.3% 20,086 21,930
Total investment
securities 183,779 159,040 15.6% 154,003 157,139
Total loans 451,162 442,794 1.9% 434,478 390,981
Allowance for loan losses (4,652) (4,355) 6.8% (4,211) (4,053)
Loans, net 446,510 438,439 1.8% 430,267 386,928
Premises and equipment 27,003 23,606 14.4% 21,680 20,273
Goodwill and other
intangibles 10,174 10,257 -0.8% 10,454 10,604
Other assets 14,344 15,036 -4.6% 15,344 10,355
Total assets $ 748,560 $ 698,815 7.1% $ 659,481 $ 623,287
Liabilities and
Stockholders' Equity
Non-interest bearing
deposits $ 182,324 $ 177,946 2.5% $ 148,895 $ 132,131
Interest bearing deposits 492,055 446,992 10.1% 437,509 415,084
Total deposits 674,379 624,938 7.9% 586,404 547,215
Securities sold under
agreements to repurchase
and FHLB borrowings 2,911 1,732 68.1% 2,191 8,874
Junior subordinated
debentures 15,465 15,465 0.0% 15,465 15,465
Other liabilities 2,159 3,494 -38.2% 3,045 2,638
Total liabilities 694,914 645,629 7.6% 607,105 574,192
Total shareholders' equity 53,646 53,186 0.9% 52,376 49,095
Total liabilities and
shareholders' equity $ 748,560 $ 698,815 7.1% $ 659,481 $ 623,287
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 2006 2005 Chg 2005
- ----------------------------------- ------------ ------------ ------------ ------------
Interest income $ 11,035 $ 8,637 27.8% $ 38,555
Interest expense 3,638 2,212 64.5% 10,787
Net interest income 7,397 6,425 15.1% 27,768
Provision for loan losses 320 314 1.9% 980
Service charges on deposit accounts 1,927 2,133 -9.7% 8,283
Other charges and fees 916 1,289 -28.9% 3,967
Total non-interest income 2,843 3,422 -16.9% 12,250
Salaries and employee benefits 3,786 3,203 18.2% 13,823
Occupancy expense 1,486 1,255 18.4% 5,615
Intangible amortization 82 134 -38.8% 483
Other non-interest expense 2,142 2,361 -9.3% 9,405
Total non-interest expense 7,496 6,953 7.8% 29,326
Income before income taxes 2,424 2,580 -6.0% 9,712
Provision for income taxes 605 657 -7.9% 2,438
Net income $ 1,819 $ 1,923 -5.4% $ 7,274
Earnings per share, diluted $ 0.36 $ 0.38 -5.7% $ 1.44
MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
First Fourth Third Second First
INCOME STATEMENT Quarter Quarter Quarter Quarter Quarter
Quarterly Trends 2006 2005 2005 2005 2005
- ----------------------------------- ------------ ------------ ------------ ------------ ------------
Interest income $ 11,035 $ 10,703 $ 9,882 $ 9,333 $ 8,637
Interest expense 3,638 3,142 2,957 2,476 2,212
Net interest income 7,397 7,561 6,925 6,857 6,425
Provision for loan losses 320 300 300 66 314
Net interest income after
provision for loan losses 7,077 7,261 6,625 6,791 6,111
Total non-interest income 2,843 2,816 2,840 3,170 3,422
Total non-interest expense 7,496 7,867 7,319 7,187 6,953
Income before income taxes 2,424 2,210 2,146 2,774 2,580
Income taxes 605 534 512 734 657
Net income $ 1,819 $ 1,676 $ 1,634 $ 2,040 $ 1,923
Earnings per share, basic $ 0.37 $ 0.34 $ 0.33 $ 0.42 $ 0.39
Earnings per share, diluted $ 0.36 $ 0.33 $ 0.32 $ 0.41 $ 0.38
Book value per share $ 10.84 $ 10.74 $ 10.66 $ 10.49 $ 10.03
Return on Average Equity 13.74% 12.62% 12.51% 16.26% 15.79%
MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
Period Ended Period Ended
---------------------------- ----------------------------
Mar. 31, Mar. 31, % Dec. 31, Sept. 30,
Asset Quality Data 2006 2005 Chg 2005 2005
- ----------------------------------- ------------ ------------ ------------ ------------ ------------
Nonaccrual loans $ 672 $ 596 12.8% $ 660 $ 2,125
Loans past due 90 days
and over 1,127 276 308.3% 2,511 561
Total nonperforming loans 1,799 872 106.3% 3,171 2,686
Other real estate owned 68 246 -72.4% 98 111
Other foreclosed assets 54 235 -77.0% 176 154
Total nonperforming assets $ 1,921 $ 1,353 42.0% $ 3,445 $ 2,951
Nonperforming assets to
total assets 0.26% 0.22% 19.8% 0.49% 0.45%
Nonperforming assets to
total loans + OREO + other
foreclosed assets 0.43% 0.35% 22.9% 0.78% 0.68%
ALL to nonperforming assets 242.16% 299.56% -19.2% 126.42% 142.70%
ALL to nonperforming loans 258.59% 464.79% -44.4% 137.34% 156.78%
ALL to total loans 1.03% 1.04% -0.5% 0.98% 0.97%
Year-to-date charge-offs $ 132 $ 144 -8.3% $ 702 $ 482
Year-to-date recoveries 109 32 240.6% 226 164
Year-to-date net charge-offs $ 23 $ 112 -79.5% $ 476 $ 318
Net YTD charge-offs to
total loans 0.01% 0.03% -82.5% 0.11% 0.07%
SOURCE MidSouth Bancorp, Inc.
-0- 04/26/2006
/CONTACT: investor relations, Sally Gary, +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, or +1-337-962-9930, all of
MidSouth Bancorp, Inc./
(MSL)