EX-99.1 3 e16687ex99_1.txt PRESS RELEASE Exhibit 99.1 MidSouth Bancorp, Inc. Reports 4th Quarter Earnings Up 30% and Annual Earnings Up 43% LAFAYETTE, La., Jan. 26 /PRNewswire-FirstCall/ -- MidSouth Bancorp, Inc. (Amex: MSL) ("MidSouth") announced net income of $1,665,053, a 30% increase over the $1,282,034 for the fourth quarter of 2002 and a decrease of 4% from the third quarter net income of $1,734,567. Basic earnings per share were $.52 for the quarter ended December 31, 2003, a significant increase from the $.40 per share reported for the fourth quarter of 2002, and three cents less than the $.55 per share earned in the third quarter of 2003. Diluted earnings per share were $.50 for the fourth quarter of 2003 compared to $.39 per share for the fourth quarter of 2002 and $.52 per share for the third quarter of 2003. On August 29, 2003, MidSouth paid a 10% stock dividend on its common stock to holders of record on July 31, 2003. Earnings per common share data have been adjusted accordingly. Substantial declines in interest expense and loan loss provisions accounted for the increase in fourth quarter comparison. Net income decreased from the third quarter 2003 despite a decrease of $250,000 in loan loss provisions. The decrease in net income resulted primarily from a $124,000 decrease in non-interest income and a $213,000 increase in non-interest expense. The decrease in non-interest income resulted primarily from a $107,000 decrease in mortgage origination fees. The increase in non-interest expense resulted primarily from additional incentive costs of $76,000 as a result of outstanding earnings for the year and from a $60,000 increase in costs associated with group benefit plans, including the Employee Stock Ownership Plan ("ESOP"). Earnings for the year-end December 31, 2003 were $6,333,313, a $1,904,230 or 43% increase over the $4,429,083 for the year-end December 31, 2002. Basic earnings per share were $1.99 for 2003 compared to $ 1.39 for 2002. Diluted earnings per share were $1.91 and $1.36, respectively. Substantial declines in interest expense and loan loss provisions also accounted for the increase in year-to-date earnings. Highlights for the Quarter Ended December 31, 2003 -- Return on average equity was 20.22% for the fourth quarter of 2003 compared to 18.41% for the fourth quarter of 2002. The leverage capital ratio was 8.86% at December 31, 2003 compared to 8.45% at December 31, 2002. Market cap exceeded the $100 million mark at December 31, 2003 with a closing market price of $31.50 per common share. -- MidSouth increased dividends paid on its common stock by 35% with a 10% stock dividend paid on August 29, 2003 and an increase in cash dividends from 25 cents ($.25) per common share in 2002 to 32 cents ($.32) per common share in 2003. -- Net interest income totaled $5,107,141 for the fourth quarter of 2003, up 15% from the $4,447,943 reported for the fourth quarter 2002. Net interest income increased primarily due to a substantial decline in interest expense combined with a slight increase in interest income due to an increase in the average volume of earning assets. -- With no provision for loan losses expensed in the fourth quarter of 2003, quarterly earnings were boosted $275,000 over the fourth quarter of 2002. -- Total loans grew $34.8 million or 15%, from $227.0 million at December 31, 2002 to $261.8 million at December 31, 2003, primarily in commercial and real estate loans. -- Nonperforming assets, including loans 90 days or more past due, as a percentage of total assets decreased from .46% at December 31, 2002 to .36% at December 31, 2003. Net charge-offs to total loans decreased from .53% to .25% for the same periods, respectively. -- Total consolidated assets increased $50.0 million or 13%, from $382.7 million at the end of the fourth quarter of 2002 to $432.7 million at the end of the fourth quarter of 2003. -- Total deposits increased $30.9 million or 9%, from $343.5 million at year-end 2002 to $374.4 million at year-end 2003. The increase resulted primarily from deposits associated with a public fund contract. The contracted funds were deposited on July 1, 2003 and averaged $26.6 million for the second half of 2003. -- MidSouth completed its first full quarter in the Houma/Terrebonne market, offering commercial lending and mortgage financing services to the area. A full service facility planned for construction in 2004 will allow MidSouth to offer quality banking services as well as financing activities that contribute to the economic development of the Houma market. 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 Condensed Consolidated Financial Information (unaudited) (in thousands except per share data) Asset Quality Data Period Ended % Period Ended Dec. 31, Chg Sept. 30, Jun. 30, 2003 2002 2003 2003 Nonaccrual loans $829 $710 17% $704 $852 Loans past due 90 days and over 503 819 -39% 489 477 Total nonperforming loans 1,332 1,529 -13% 1,193 1,329 Other real estate owned 218 175 25% 233 175 Other foreclosed assets --- 45 --- --- Total nonperforming assets $1,550 $1,749 -11% $1,426 $1,504 Nonperforming assets to total assets 0.36% 0.46% -43% 0.34% 0.37% Nonperforming assets to total loans + OREO + other foreclosed assets 0.59% 0.77% -41% 0.58% 0.62% ALL to nonperforming assets 180.00% 165.30% 61% 212.54% 196.22% ALL to nonperforming loans 209.46% 189.07% 69% 254.05% 222.03% ALL to total loans 1.07% 1.27% -4% 1.23% 1.22% Year-to-date charge-offs $904 $1,364 -34% $599 $348 Year-to-date recoveries 253 152 66% 190 108 Year-to-date net charge-offs 651 1,212 -46% 409 240 Net charge-offs to total loans 0.25% 0.53% -53% 0.17% 0.10% MIDSOUTH BANCORP, INC. and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands except per share data) Fourth Third Second First Fourth INCOME STATEMENT Quarter Quarter Quarter Quarter Quarter 2003 2003 2003 2003 2002 Interest income $6,196 $6,269 $5,912 $5,853 $5,989 Interest expense 1,089 1,156 1,169 1,266 1,541 Net interest income 5,107 5,113 4,743 4,587 4,448 Provision for loan losses --- 250 100 200 275 Net interest income after provision for loan losses 5,107 4,863 4,643 4,387 4,173 Total non-interest income 1,866 1,990 2,029 1,713 1,932 Total non-interest expense 4,717 4,504 4,438 4,311 4,494 Income before income taxes 2,256 2,349 2,234 1,789 1,611 Income taxes 591 614 610 479 329 Net income $1,665 $1,735 $1,624 $1,310 $1,282 Earnings per share, basic $0.52 $0.55 $0.51 $0.41 $0.40 Earnings per share, diluted $0.50 $0.52 $0.49 $0.40 $0.39 Book value per share $10.09 $9.73 $9.37 $8.83 $8.50 Return on Average Equity 20.22% 21.90% 22.15% 18.76% 18.41% MIDSOUTH BANCORP, INC. and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands except per share data) Three Months Ended Twelve Months Ended INCOME STATEMENT December 31, % December 31, % 2003 2002 Chg 2003 2002 Chg Interest income $6,196 $5,989 3% $24,230 $24,125 0% Interest expense 1,089 1,541 -29% 4,680 6,709 -30% Net interest income 5,107 4,448 15% 19,550 17,416 12% Provision for loan losses --- 275 -100% 550 1,398 -61% Service charges on deposit accounts 1,388 1,267 10% 5,273 4,707 12% Gains on securities, net --- 155 -100% 98 156 -37% Other charges and fees 478 510 -6% 2,227 2,058 8% Total non-interest income 1,866 1,932 -3% 7,598 6,921 10% Salaries and employee benefits 2,276 2,108 8% 8,649 8,103 7% Occupancy expense 1,034 979 6% 3,882 3,709 5% Goodwill and intangible amortization 16 16 0% 66 33 100% Other non-interest expense 1,391 1,391 0% 5,374 5,237 3% Total non-interest expense 4,717 4,494 5% 17,971 17,082 5% Income before income taxes 2,256 1,611 40% 8,627 5,857 47% Net income $1,665 $1,282 30% $6,333 $4,429 43% Earnings per share, diluted $0.50 $0.39 28% $1.91 $1.36 40% MIDSOUTH BANCORP, INC. and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands except per share data) Period Ended % Period Ended BALANCE SHEET Dec. 31, Chg Sept. 30, June 30, Assets 2003 2002 2003 2003 Cash and cash equivalents $13,840 $27,468 -50% $18,509 $23,218 Securities available-for-sale 118,227 89,576 32% 115,881 98,602 Securities held-to-maturity 23,367 23,398 0% 23,397 23,397 Total investment securities 141,594 112,974 25% 139,278 121,999 Total loans 261,873 227,052 15% 246,867 241,827 Allowance for loan losses (2,790) (2,891) -3% (3,032) (2,951) Loans, net 259,083 224,161 16% 243,835 238,876 Premises and equipment 11,984 12,322 -3% 12,018 12,122 Goodwill and other intangibles 990 1,055 -6% 1,007 1,023 Other assets 5,206 4,707 11% 5,233 5,002 Total assets $432,697 $382,687 13% $419,880 $402,240 Liabilities and Stockholders' Equity Non-interest bearing deposits $96,949 $94,452 3% $88,923 $91,602 Interest bearing deposits 277,440 249,022 11% 285,161 266,598 Total deposits 374,389 343,474 9% 374,084 358,200 Securities sold under agreements to repurchase and FHLB borrowings 17,567 2,979 490% 6,332 5,066 Long-term debt --- 568 -100% --- 421 Junior subordinated debenture 7,000 7,000 0% 7,000 7,000 Other liabilities 1,513 1,547 -2% 1,477 1,654 Total liabilities 400,469 355,568 13% 388,893 372,341 Total shareholders' equity 32,228 27,119 19% 30,987 29,899 Total liabilities and shareholders' equity $432,697 $382,687 13% $419,880 $402,240 MIDSOUTH BANCORP, INC. AND SUBSIDIARIES FINANCIAL HIGHLIGHTS (UNAUDITED) (in thousands except per share data) For The For The Qtr Qtr Ended Ended Dec. 31, % Sept. 30, % EARNINGS DATA 2003 2002 Chg 2003 Chg Total interest income $6,196 $5,989 3% $6,269 -1% Total interest expense 1,089 1,541 -29% 1,156 -6% Net interest income 5,107 4,448 15% 5,113 0% Provision for loan losses --- 275 -100% 250 100% Non-interest income 1,866 1,932 -3% 1,990 -6% Non-interest expense 4,717 4,494 5% 4,504 5% Provision for income tax 591 329 80% 614 -4% Net income $1,665 $1,282 30% $1,735 -4% PER COMMON SHARE DATA (A) Basic earnings per share $0.52 $0.40 30% $0.55 -5% Diluted earnings per share $0.50 $0.39 28% $0.52 -4% Book value at end of period $10.09 $8.50 19% $9.73 4% Market price at end of period $31.50 $15.73 100% $31.70 -1% Weighted avg shares outstanding Basic 3,175,226 3,177,726 0% 3,173,579 0% Diluted 3,330,674 3,265,707 2% 3,325,503 0% AVERAGE BALANCE SHEET DATA Total assets $424,911 $380,072 12% $426,035 0% Earning assets 392,963 347,904 13% 393,919 0% Loans and leases 250,964 230,039 9% 244,988 2% Interest-bearing deposits 282,581 255,160 11% 291,936 -3% Total deposits 374,237 339,745 10% 380,325 -2% Total stockholders' equity 32,669 27,625 18% 31,431 4% SELECTED RATIOS 12/31/2003 12/31/2002 09/30/2003 Return on average assets 1.55% 1.34% 16% 1.62% -4% Return on average total equity 20.22% 18.41% 10% 21.90% -8% Return on average realized equity (B) 21.48% 20.21% 6% 23.51% -9% Average equity to average assets 7.69% 7.27% 6% 7.38% 4% Leverage capital ratio 8.86% 8.45% 5% 8.51% 4% CREDIT QUALITY Allowance for loan losses as a % of total loans 1.07% 1.27% -16% 1.23% -13% Nonperforming assets to total assets 0.36% 0.46% -22% 0.34% 6% Net charge-offs to total loans 0.25% 0.53% -53% 0.17% 51% (A) On August 29, 2003, MidSouth paid a 10% stock dividend on its common stock to holders of record on July 31, 2003. Per common share data has been adjusted accordingly. (B) Excluding net unrealized gain (loss) on securities available for sale. SOURCE MidSouth Bancorp, Inc. -0- 01/26/2004 /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./ (MSL) CO: MidSouth Bancorp, Inc. ST: Louisiana IN: FIN SU: ERN