Exhibit 99.1
MIDSOUTH BANCORP, INC. ANNOUNCES THIRD QUARTER EARNINGS RESULTS
LAFAYETTE, La., Oct. 25 /PRNewswire-FirstCall/ -- MidSouth Bancorp, Inc.
(Amex: MSL) announced earnings of $2,417,000 for the quarter ended September 30,
2006, a 47.9% increase over earnings of $1,634,000 for the same period in 2005,
and an 8.1% increase over earnings of $2,235,000 for the quarter ended June 30,
2006. Diluted earnings per share were $.38 for the third quarter of 2006,
compared to $.26 per share for the third quarter of 2005 and $.35 for the second
quarter of 2006. Earnings per share data have been adjusted to reflect a
five-for-four (25%) stock split of the Company's common stock to holders of
record as of September 29, 2006, paid on October 23, 2006.
For the nine months ended September 30, 2006, the Company earned $6,471,000,
a 15.6% increase over the $5,598,000 reported for the nine months ended
September 30, 2005. Diluted earnings per share were $1.02 for the first nine
months of 2006 versus $.88 per share for the first nine months of 2005. The
first nine months of 2005 included a $631,000 pre-tax special distribution of
proceeds to the Company from the merger of Pulse EFT Association and Discover
Financial Services, Inc. Additionally, the first nine months of 2005 included a
$102,000 pre-tax write-down of a branch facility. Excluding the $349,000
after-tax effect of these non-recurring transactions, the Company's earnings for
the nine months ended September 30, 2006, improved by $1,222,000, or 23.3%, over
2005.
In linked-quarter comparison, earnings increased $182,000, or 8.1%, from
$2,235,000 for the quarter-ended June 30, 2006 to $2,417,000 for the quarter-
ended September 30, 2006, with improvement in net interest and non-interest
income offset by increased non-interest expenses incurred in connection with
branch expansion initiatives. Additionally, the provision for loan losses
decreased $250,000, from $300,000 for the second quarter of 2006 to $50,000 for
the third quarter of 2006, primarily due to minimal net charge-offs and improved
asset quality ratios.
"We are pleased that our strong third quarter results reflect a stable net
interest margin, despite a relatively flat yield curve and highly competitive
rate environment," said Rusty Cloutier, President and Chief Executive Officer.
"Delays on franchise expansion projects lessened the impact of non-interest
expenses on third quarter 2006 earnings. We continue to execute our plan to
complete seven new retail stores over the next twelve months."
Highlights for the Quarter Ended September 30, 2006
* Return on average equity was 16.98% for the third quarter of
2006 compared to 12.51% for the third quarter of 2005.
* The leverage capital ratio was 8.50% at September 30, 2006
compared to 8.97% at September 30, 2005.
* Net interest income for the third quarter of 2006 increased 21.9% to
$8,442,000 compared to $6,925,000 for the third quarter of 2005. Net
interest margin, on a fully taxable-equivalent basis, was 4.97% in the
third quarter of 2006, an improvement of 10 basis points from 4.87% in
the third quarter of 2005.
* Total consolidated assets increased $113.6 million or 17.2%, from $659.5
million at the end of the third quarter of 2005 to $773.1 million at the
end of the third quarter of 2006.
* Total loans grew $60.9 million, or 14.0%, from $434.5 million at
September 30, 2005, to $495.4 million at September 30, 2006, primarily in
commercial and industrial loans, real estate and construction loans.
* Nonperforming assets, including loans 90 days or more past due, totaled
$2.4 million at September 30, 2006, compared to $3.0 million at September
30, 2005. As a percentage of total assets, nonperforming assets were .31%
and .45% for September 30, 2006 and 2005, respectively. Included in
nonperforming assets for September 30, 2006, is approximately $1.2
million in government-guaranteed loans past due 90 days or over. Net
charge-offs to total loans decreased to .02% for the third quarter of
2006 compared to .07% for the third quarter of 2005. Allowance for loan
loss provisions totaling $50,000 were taken in the third quarter of 2006
compared to $300,000 in the third quarter of 2005. As a percentage to
total loans, the allowance for loan losses for the quarters ended
September 30, 2006 and 2005 was .99% and .97%, respectively. The Company
has not experienced an increase in delinquencies or charge-offs due to
Hurricanes Katrina and Rita although management continues to monitor the
rebuilding process in the Company's affected market area.
* Total deposits increased $104.9 million, or 17.9%, from $586.4 million at
September 30, 2005 to $691.3 million at September 30, 2006. Deposit
growth has been primarily in the Company's Platinum money market and
checking accounts, which represented 34.8% of total deposits at September
30, 2006. The Platinum money market and checking accounts offer
competitive rates of interest that adjust to changes in market rates and
are more economically beneficial to the Company than certificates of
deposit.
Net Interest Income
Net interest income for the third quarter of 2006 increased $1,517,000 to
$8,442,000, or 21.9%, compared to $6,925,000 in the third quarter of 2005. The
taxable-equivalent net interest margin increased 10 basis points to 4.97% in the
same period, primarily due to a 19.8% increase in the average volume of earning
assets, which included a 15.7% increase in average loan volume. The improvement
in interest income was partially offset by increased interest expense resulting
primarily from a $77.3 million, or 17.6%, increase in the average volume of
interest-bearing deposits and a 90 basis point increase in the average cost of
interest-bearing deposits, from 2.39% in the third quarter of 2005 to 3.29% in
the third quarter of 2006. The cost of interest-bearing deposits increased due
to a higher volume of Platinum money market and checking account balances and
the competitive rates paid on those balances.
For the nine months ended September 30, 2006, net interest income increased
$3,928,000, or 19.4%, from $20,207,000 in 2005 to $24,135,000 in 2006. The
taxable-equivalent net interest margin remained constant at 4.93% in comparison
to the nine months ended September 30, 2005. The impact on the net interest
margin of a $112.0 million increase in the average volume of earning assets and
a 69 basis point improvement in the average yield on earning assets in
nine-month comparison was offset by a $76.9 million increase in average
interest-bearing deposits and a 101 basis point increase in the average rate
paid on interest-bearing deposits.
Non-Interest Income
Non-interest income for the third quarter of 2006 increased $574,000, to
$3,414,000 compared to $2,840,000 in the third quarter of 2005, primarily due to
an increase of $372,000 in service fees on deposit accounts. Revenues from
service fees increased in quarterly and nine-month comparisons due to an
increase in the number of deposit accounts.
In nine-month comparison, non-interest income decreased $106,000 due to the
$631,000 pre-tax special distribution of proceeds to the Company from the merger
of Pulse EFT Association and Discover Financial Services, Inc. included in
non-interest income for the nine months ended September 30, 2005. Net of the
distribution, non-interest income increased $525,000, from $8,803,000 at
September 30, 2005 to $9,328,000 at September 30, 2006. ATM and debit card fees
contributed approximately $375,000 of the $525,000 increase in non- interest
income; however, costs associated with ATM and debit card processing increased
non-interest expenses in the same period by $215,000.
Non-Interest Expense
Non-interest expense increased $1,170,000, or 16.0%, in quarterly
comparison, from $7,319,000 to $8,489,000, primarily due to a $597,000, or
16.3%, increase in salaries and employee benefits associated with an increase of
41 full-time equivalent employees, from 323 in September 2005 to 364 in
September 2006. Staffing for five new retail offices added over the past twelve
months contributed to the increase in salaries and benefit costs. The additional
retail offices also contributed to a $260,000, or 17.8%, increase in occupancy
expenses in quarterly comparison. In nine-month comparison, non-interest
expenses increased $2,595,000, or 12.1%, from $21,459,000 to $24,054,000, due
primarily to costs associated with the new retail offices.
Franchise Growth
In addition to the five retail stores opened over the past twelve months,
seven new stores are scheduled to open through the third quarter of 2007. A new
retail store in Thibodaux is under construction and should be completed during
the fourth quarter of this year. A second store in Lake Charles is scheduled for
completion in April 2007. Two retail stores are planned for the Baton Rouge
market and are scheduled to open in the first half of 2007. In the Texas
markets, a Woodlands retail store is expected to open in February 2007 and a
full service retail store location for the Conroe market is scheduled to open in
May 2007. Site selection is underway for a full service retail store in the
College Station market. Costs associated with opening these new stores will
continue to impact earnings throughout 2006, and any substantial contributions
to income will not be reflected until the second half of 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 Company recently announced a name change for the Texas
subsidiary from Lamar Bank to MidSouth Bank. The name change is expected to be
fully executed late in the fourth quarter of 2006. The Company's franchise
consists of 29 banking offices throughout south Louisiana and southeast Texas.
The Company'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, the Company'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 Qtr Qtr Ended
Ended Sept. 30, Jun. 30,
--------------------------- % ------------ %
EARNINGS DATA 2006 2005 Chg 2006 Chg
- ----------------------------------- ------------ ------------ ------------ ------------ ------------
Total interest income $ 13,104 $ 9,882 32.6% $ 12,691 3.3%
Total interest expense 4,662 2,957 57.7% 4,396 6.1%
Net interest income 8,442 6,925 21.9% 8,295 1.8%
Provision for loan losses 50 300 -83.3% 300 -83.3%
Non-interest income 3,414 2,840 20.2% 3,071 11.2%
Non-interest expense 8,489 7,319 16.0% 8,069 5.2%
Provision for income tax 900 512 75.8% 762 18.1%
Net income $ 2,417 $ 1,634 47.9% $ 2,235 8.1%
PER COMMON SHARE DATA (A)
Basic earnings per share $ 0.39 $ 0.27 44.4% $ 0.36 8.3%
Diluted earnings per share $ 0.38 $ 0.26 48.4% $ 0.35 8.0%
Book value at end of period $ 9.41 $ 8.53 10.3% $ 8.78 7.2%
Market price at end of
period $ 26.78 $ 24.32 10.1% $ 24.16 10.9%
Weighted avg shares
outstanding
Basic 6,235,994 6,132,229 1.7% 6,198,511 0.6%
Diluted 6,346,270 6,358,309 -0.2% 6,319,424 0.4%
AVERAGE BALANCE SHEET DATA
Total assets $ 771,891 $ 650,219 18.7% $ 761,294 1.4%
Earning assets 704,115 587,787 19.8% 692,869 1.6%
Loans and leases 489,069 422,588 15.7% 465,954 5.0%
Interest-bearing deposits 515,358 438,058 17.6% 509,732 1.1%
Total deposits 691,640 574,754 20.3% 684,896 1.0%
Total stockholders' equity 56,485 51,813 9.0% 54,408 3.8%
SELECTED RATIOS 09/30/2006 09/30/2005 06/30/2006
- ----------------------------------- ------------ ------------ ------------
Return on average assets 1.24% 1.00% 24.6% 1.18% 5.5%
Return on average total
equity 16.98% 12.51% 35.7% 16.48% 3.0%
Return on average
realized equity (A) 16.34% 12.42% 31.6% 15.91% 2.7%
Average equity to average
assets 7.32% 7.97% -8.2% 7.15% 2.4%
Leverage capital ratio 8.50% 8.97% -5.2% 8.32% 2.2%
CREDIT QUALITY
Allowance for loan losses
as a % of total loans 0.99% 0.97% 2.1% 1.00% -1.0%
Nonperforming assets to
total assets 0.31% 0.45% -31.1% 0.35% -11.4%
Net YTD charge-offs to
total loans 0.02% 0.07% -71.4% 0.02% 0.0%
(A) Excluding net unrealized gain (loss) on securities available for sale. Per
share data has been adjusted for a 25% stock split on the Company's common
stock to holders of record on September 29, 2006 and payable October 23,
2006.
MIDSOUTH BANCORP, INC. AND SUBSIDIARIES
BALANCE SHEET DATA (UNAUDITED)
(in thousands)
Period Ended
Sept. 30, Period Ended
--------------------------- ---------------------------
% Jun. 30, Dec. 31,
2006 2005 Chg 2006 2005
------------ ------------ ------------ ------------ ------------
Assets
Cash and cash equivalents $ 26,203 $ 27,733 -5.5% $ 34,070 $ 52,437
Securities available-for-
sale 184,536 133,917 37.8% 188,344 139,429
Securities held-to-
maturity 16,400 20,086 -18.4% 17,519 19,611
Total investment
securities 200,936 154,003 30.5% 205,863 159,040
Total loans and leases 495,385 434,478 14.0% 489,475 442,794
Allowance for loan losses (4,910) (4,211) 16.6% (4,887) (4,355)
Loans, net 490,475 430,267 14.0% 484,588 438,439
Premises and equipment 29,113 21,680 34.3% 28,572 23,606
Goodwill and other
intangibles 10,010 10,454 -4.2% 10,092 10,257
Other assets 16,356 15,344 6.6% 16,663 15,036
Total assets $ 773,093 $ 659,481 17.2% $ 779,848 $ 698,815
Liabilities and
Stockholders' Equity
Non-interest bearing
deposits $ 179,920 $ 148,895 20.8% $ 186,292 $ 177,946
Interest bearing deposits 511,426 437,509 16.9% 517,812 446,992
Total deposits 691,346 586,404 17.9% 704,104 624,938
Securities sold under
agreements to repurchase
and other borrowings 3,913 2,191 78.6% 2,797 1,732
Junior subordinated
debentures 15,465 15,465 0.0% 15,465 15,465
Other liabilities 3,333 3,045 9.5% 2,664 3,494
Total liabilities 714,057 607,105 17.6% 725,030 645,629
Total shareholders' equity 59,036 52,376 12.7% 54,818 53,186
Total liabilities and
shareholders' equity $ 773,093 $ 659,481 17.2% $ 779,848 $ 698,815
MIDSOUTH BANCORP, INC. AND SUBSIDIARIES
INCOME STATEMENT (UNAUDITED)
(in thousands)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
------------------------ % ----------------------- %
2006 2005 Chg 2006 2005 Chg
---------- ---------- ---------- ---------- ---------- ----------
Interest income $ 13,104 $ 9,882 32.6% $ 36,830 $ 27,853 32.2%
Interest expense 4,662 2,957 57.7% 12,695 7,646 66.0%
Net interest income 8,442 6,925 21.9% 24,135 20,207 19.4%
Provision for loan losses 50 300 -83.3% 670 680 -1.5%
Service charges on
deposit accounts 2,460 2,088 17.8% 6,560 6,415 2.3%
Losses on sales of
securities, net (8) (8)
Other charges and fees 962 752 27.9% 2,776 3,019 -8.0%
Total non-interest income 3,414 2,840 20.2% 9,328 9,434 -1.1%
Salaries and employee
benefits 4,250 3,653 16.3% 11,972 10,161 17.8%
Occupancy expense 1,723 1,463 17.8% 4,833 4,047 19.4%
Intangible amortization 66 134 -50.7% 247 401 -38.4%
Other non-interest expense 2,450 2,069 18.4% 7,002 6,850 2.2%
Total non-interest
expense 8,489 7,319 16.0% 24,054 21,459 12.1%
Income before income taxes 3,317 2,146 54.6% 8,739 7,502 16.5%
Provision for income taxes 900 512 75.8% 2,268 1,904 19.1%
Net income $ 2,417 $ 1,634 47.9% $ 6,471 $ 5,598 15.6%
Earnings per share,
diluted $ 0.38 $ 0.26 48.4% $ 1.02 $ 0.88 15.9%
MIDSOUTH BANCORP, INC. AND SUBSIDIARIES
INCOME STATEMENT DATA (UNAUDITED)
(in thousands)
Third Second First Fourth Third
Quarter Quarter Quarter Quarter Quarter
Quarterly Trends 2006 2006 2006 2005 2005
- ------------------------------ ---------- ---------- ---------- ---------- ----------
Interest income $ 13,104 $ 12,691 $ 11,035 $ 10,703 $ 9,882
Interest expense 4,662 4,396 3,638 3,142 2,957
Net interest income 8,442 8,295 7,397 7,561 6,925
Provision for loan losses 50 300 320 300 300
Net interest income after
provision for loan losses 8,392 7,995 7,077 7,261 6,625
Total non-interest income 3,414 3,071 2,843 2,816 2,840
Total non-interest expense 8,489 8,069 7,496 7,867 7,319
Income before income taxes 3,317 2,997 2,424 2,210 2,146
Income taxes 900 762 605 534 512
Net income $ 2,417 $ 2,235 $ 1,819 $ 1,676 $ 1,634
Earnings per share, basic $ 0.39 $ 0.36 $ 0.29 $ 0.27 $ 0.27
Earnings per share, diluted $ 0.38 $ 0.35 $ 0.29 $ 0.26 $ 0.26
Book value per share $ 9.41 $ 8.78 $ 8.67 $ 8.59 $ 8.53
Return on Average Equity 16.98% 16.48% 13.74% 12.62% 12.51%
MIDSOUTH BANCORP, INC. AND SUBSIDIARIES
ASSET QUALITY DATA (UNAUDITED)
(in thousands)
Quarter ended Quarter ended
Sept. 30, ------------------------
------------------------ % Jun. 30, Dec. 31,
2006 2005 Chg 2006 2005
---------- ---------- ---------- ---------- ----------
Nonaccrual loans $ 501 $ 2,125 -76.4% $ 543 $ 660
Loans past due 90
days and over 1,789 561 218.9% 2,104 2,511
Total nonperforming loans 2,290 2,686 -14.7% 2,647 3,171
Other real estate owned 24 111 -78.4% 32 98
Other foreclosed assets 58 154 -62.3% 25 176
Total nonperforming assets $ 2,372 $ 2,951 -19.6% $ 2,704 $ 3,445
Nonperforming assets to
total assets 0.31% 0.45% -31.1% 0.35% 0.49%
Nonperforming assets to
total loans + OREO + other
foreclosed assets 0.48% 0.68% -29.4% 0.55% 0.78%
ALL to nonperforming assets 207.00% 142.70% 45.1% 180.73% 126.42%
ALL to nonperforming loans 214.41% 156.78% 36.8% 184.62% 137.34%
ALL to total loans 0.99% 0.97% 2.1% 1.00% 0.98%
Year-to-date charge-offs $ 381 $ 482 -21.0% $ 310 $ 702
Year-to-date recoveries 266 164 62.2% 223 226
Year-to-date net charge-offs $ 115 $ 318 -63.8% $ 87 $ 476
Net YTD charge-offs to total
loans 0.02% 0.07% -71.4% 0.02% 0.11%
MIDSOUTH BANCORP, INC. AND SUBSIDIARIES
YIELD ANALYSIS (UNAUDITED)
(in thousands)
Three Months Ended
Sept. 30, 2006
Tax
-------------------------------------
Average Equivalent Yield/
Balance Interest Rate
---------- ---------- ----------
Interest earning assets:
Interest-bearing deposits in banks $ 100 $ 1 5.40%
Federal funds sold 5,157 68 5.24%
Taxable securities 108,637 1,251 4.60%
Tax-exempt securities 98,710 1,271 5.15%
Equity securities 2,442 22 3.69%
Loans and leases 489,069 10,861 8.81%
Total interest earning assets 704,115 13,474 7.59%
Noninterest earning assets 67,776
Total assets $ 771,891
Interest bearing liabilities:
Deposits $ 515,358 $ 4,268 3.29%
Federal funds purchased and other
short term borrowings 4,686 58 4.94%
Junior subordinated debentures 15,465 335 8.59%
Total interest bearing liabilities 535,509 4,661 3.45%
Noninterest bearing liabilities 179,897
Shareholders' equity
Total interest bearing liabilities 56,485
and shareholders' equity $ 771,891
Net interest income (TE) and margin $ 8,813 4.97%
Nine Months Ended
Sept. 30, 2006
Tax
-------------------------------------
Average Equivalent Yield/
Balance Interest Rate
---------- ---------- ----------
Interest earning assets:
Interest-bearing deposits in banks $ 260 $ 10 5.35%
Federal funds sold 22,045 768 4.66%
Taxable securities 100,609 3,379 4.48%
Tax-exempt securities 91,047 3,480 5.10%
Equity securities 2,271 62 3.62%
Loans and leases 466,378 30,143 8.64%
Total interest earning assets 682,610 37,842 7.41%
Noninterest earning assets 67,298
Total assets $ 749,908
Interest bearing liabilities:
Deposits $ 498,037 $ 11,604 3.12%
Federal funds purchased and other
short term borrowings 3,159 107 4.54%
Junior subordinated debentures 15,465 984 8.51%
Total interest bearing liabilities 516,661 12,695 3.29%
Noninterest bearing liabilities 178,370
Shareholders' equity 54,877
Total interest bearing liabilities
and shareholders' equity $ 749,908
Net interest income (TE) and margin $ 25,147 4.93%
SOURCE MidSouth Bancorp, Inc.
-0- 10/25/2006
/CONTACT: C. R. Rusty Cloutier, President, +1-337-267-4201, or
+1-337-962-9900, or J. E. Corrigan, Jr., Chief Financial Officer,
+1-337-291-4984, both of MidSouth Bancorp, Inc./
(MSL)