EX-99.1 2 is1877ex991.txt Exhibit 99.1 MIDSOUTH BANCORP, INC. REPORTS 4TH QUARTER EARNINGS LAFAYETTE, La., Jan. 25 /PRNewswire-FirstCall/ -- MidSouth Bancorp, Inc. (Amex: MSL) ("MidSouth") announced fourth quarter 2004 net income of $1,619,000, a 3% decrease from the $1,665,000 for the fourth quarter of 2003 and a decrease of 17% from third quarter net income of $1,954,000. Basic earnings per share were $.36 for the quarter ended December 31, 2004, a decrease of six cents from the $.42 per share reported for the fourth quarter of 2003, and thirteen cents less than the $.49 per share earned in the third quarter of 2004. Diluted earnings per share were $.35 for the fourth quarter of 2004 compared to $.40 per share for the fourth quarter of 2003 and $.47 per share for the third quarter of 2004. On November 30, 2004, MidSouth paid a 25% stock dividend on its common stock to holders of record on October 29, 2004. Earnings per common share data have been adjusted accordingly. Earnings for the year-end December 31, 2004 were $6,980,000, a 10% increase over the $6,333,000 for the year-end December 31, 2003. Basic earnings per share were $1.70 for 2004 compared to $1.60 for 2003. Diluted earnings per share were $1.63 and $1.53, respectively. Fourth quarter 2004 data includes the financial results of Lamar Bank ("Lamar"), MidSouth's newest subsidiary acquired on October 1, 2004. Lamar added $146,000 to consolidated net income for the fourth quarter of 2004. Consolidated earnings were impacted by the related amortization of core deposit intangibles of approximately $70,000, net of income taxes. In fourth quarter comparison, increases in net interest income and non- interest income were offset by increases in the provision for loan losses and non-interest expenses, primarily salaries and benefits, marketing costs, ATM and debit card processing expenses, and occupancy expenses. Net interest income increased due to a higher volume of earning assets. Non-interest income increased primarily in service charges on deposit accounts, including NSF fees, due to a higher volume of transaction accounts. The provision for loan losses totaled $321,000 for the fourth quarter of 2004 compared to no provision taken in the fourth quarter of 2003. Sustained loan growth throughout 2004 and loan concentrations in the commercial real estate and oil and gas loan portfolios supported the provision taken in the fourth quarter of 2004. In year-to-date comparison, increases in net interest income and non- interest income offset increased loan loss provisions, non-interest expenses and merger-related accounting charges and resulted in a 10% improvement in net income for 2004. Highlights for the Quarter Ended December 31, 2004 * Return on average equity was 13.48% for the fourth quarter of 2004 compared to 20.22% for the fourth quarter of 2003. The leverage capital ratio was 8.73% at December 31, 2004 compared to 8.86% at December 31, 2003. In September 2004, MidSouth issued $8 million in additional junior subordinated debentures, the proceeds of which were used to fund the Lamar merger and other general corporate needs. * MidSouth increased dividends paid on its common stock with a 25% stock dividend paid on November 30, 2004 and paid a special cash dividend of 6 cents per share in addition to the regular quarterly 6 cents per share cash dividend paid on its common stock on January 4, 2005 to holders of record as of December 15, 2004. * Net interest income totaled $6,561,000 for the fourth quarter of 2004, up 28.5% from the $5,107,000 reported for the fourth quarter 2003. Net interest income increased primarily due to an increase in the average volume of earning assets. * Total loans grew $124.6 million or 47.6%, from $261.9 million at December 31, 2003 to $386.5 million at December 31, 2004, of which $81.7 million was acquired through the Lamar merger. The remaining $42.9 million in loan growth was primarily in commercial and real estate credits at MidSouth Bank. * Nonperforming assets, including loans 90 days or more past due, as a percentage of total assets decreased from .36% at December 31, 2003 to .28% at December 31, 2004. Net charge-offs to total loans decreased slightly from .25% to .23% for the same periods, respectively. * Total consolidated assets increased $176.9 million or 40.9%, from $432.7 million at the end of the fourth quarter of 2003 to $609.6 million at the end of the fourth quarter of 2004. Assets acquired through the Lamar Bank merger totaled $115.8 million on October 1, 2004. * Total deposits increased $156.0 million or 41.7%, from $374.4 million at year-end 2003 to $530.4 million at year-end 2004. Of the $156 million in growth, $96.7 million was acquired through the merger with Lamar. An additional $59.3 million in deposit growth resulted primarily from deposits associated with a MidSouth Bank deposit growth campaign that began in March 2004. The campaign introduced MidSouth's new Platinum Money Market account for both retail and commercial customers. 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) EARNINGS DATA
For The Quarter For The Ended December 31, Qtr Ended ------------------------- % Sept. 30, % 2004 2003 Chg 2004 Chg ----------- ----------- ----------- ----------- ----------- Total interest income $ 8,451 $ 6,196 36.4% $ 6,815 24.0% Total interest expense 1,890 1,089 73.6% 1,431 32.1% Net interest income 6,561 5,107 28.5% 5,384 21.9% Provision for loan losses 321 0 100.0% 250 28.4% Non-interest income 2,929 1,866 57.0% 2,376 23.3% Non-interest expense 6,959 4,717 47.5% 4,934 41.0% Provision for income tax 591 591 0.0% 622 -5.0% Net income $ 1,619 $ 1,665 -2.8% $ 1,954 -17.1% PER COMMON SHARE DATA Basic earnings per share $ 0.36 $ 0.42 -13.5% $ 0.49 -26.5% Diluted earnings per share $ 0.35 $ 0.40 -12.5% $ 0.47 -25.5% Book value at end of period $ 10.90 $ 8.07 35.0% $ 9.16 19.0% Market price at end of period $ 27.00 $ 25.20 7.1% $ 26.40 2.3% Weighted avg shares outstanding Basic 4,439,162 3,969,033 11.8% 3,978,821 11.6% Diluted 4,617,552 4,163,319 10.9% 4,158,808 11.0% AVERAGE BALANCE SHEET DATA Total assets $ 613,437 $ 424,911 44.4% $ 483,738 26.8% Earning assets 557,392 392,963 41.8% 453,758 22.8% Loans and leases 379,164 250,964 51.1% 284,840 33.1% Interest-bearing deposits 411,023 282,581 45.5% 335,087 22.7% Total deposits 536,000 374,237 43.2% 433,976 23.5% Total stockholders' equity 47,765 32,669 46.2% 34,613 38.0% SELECTED RATIOS 12/31/2004 12/31/2003 09/30/2004 Return on average assets 1.05% 1.55% -32.5% 1.61% -34.7% Return on average total equity 13.48% 20.22% -33.3% 22.46% -40.0% Return on average realized equity (A) 13.82% 21.48% -35.7% 22.19% -37.7% Average equity to average assets 7.79% 7.69% 1.3% 7.16% 8.8% Leverage capital ratio 8.73% 8.86% -1.5% 9.66% -9.6% CREDIT QUALITY Allowance for loan losses as a % of total loans 1.00% 1.07% -6.5% 1.00% -0.3% Nonperforming assets to total assets 0.28% 0.36% -22.2% 0.17% 64.7% Net YTD charge-offs to total loans 0.23% 0.25% -8.0% 0.17% 35.3%
(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) BALANCE SHEET
Period Ended Period Ended -------------------------- -------------------------- Dec. 31, Sept. 30, % Jun. 30, Dec. 31, 2004 2004 Chg 2004 2003 ----------- ----------- ----------- ----------- ----------- Assets Cash and cash equivalents $ 17,397 $ 33,226 -47.6% $ 25,697 $ 13,840 Securities available- for-sale 145,814 135,137 7.9% 132,950 118,227 Securities held- to-maturity 22,852 23,133 -1.2% 23,133 23,367 Total investment securities 168,666 158,270 6.6% 156,083 141,594 Total loans 386,471 294,062 31.4% 279,434 261,873 Allowance for loan losses (3,850) (2,949) 30.6% (2,974) (2,790) Loans, net 382,621 291,113 31.4% 276,460 259,083 Premises and equipment 19,338 12,553 54.1% 12,039 11,984 Goodwill and other intangibles 10,644 941 1031.1% 957 990 Other assets 10,957 6,128 78.8% 6,152 5,206 Total assets $ 609,623 $ 502,231 21.4% $ 477,388 $ 432,697 Liabilities and Stockholders' Equity Non-interest bearing deposits $ 124,659 $ 100,296 24.3% $ 100,689 $ 96,949 Interest bearing deposits 405,724 343,454 18.1% 330,491 277,440 Total deposits 530,383 443,750 19.5% 431,180 374,389 Securities sold under agreements to repurchase and FHLB borrowings 12,412 5,213 138.1% 4,159 17,567 Junior subordinated debentures 15,000 15,000 0.0% 7,000 7,000 Other liabilities 3,255 1,710 90.4% 1,205 1,513 Total liabilities 561,050 465,673 20.5% 443,544 400,469 Total shareholders' equity 48,573 36,558 32.9% 33,844 32,228 Total liabilities and shareholders' equity $ 609,623 $ 502,231 21.4% $ 477,388 $ 432,697
MIDSOUTH BANCORP, INC. and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands except per share data) INCOME STATEMENT
Three Months Ended Year Ended December 31, December 31, ------------------- % ------------------- % 2004 2003 Chg 2004 2003 Change -------- -------- -------- -------- -------- -------- Interest income $ 8,451 $ 6,196 36.4% $ 27,745 $ 24,230 14.5% Interest expense 1,890 1,089 73.6% 5,693 4,680 21.6% Net interest income 6,561 5,107 28.5% 22,052 19,550 12.8% Provision for loan losses 321 100.0% 991 550 80.2% Service charges on deposit accounts 2,267 1,388 63.3% 6,932 5,273 31.5% Gains on securities, net 132 98 34.7% Other charges and fees 662 478 38.5% 2,157 2,227 -3.1% Total non-interest income 2,929 1,866 57.0% 9,221 7,598 21.4% Salaries and employee benefits 3,391 2,276 49.0% 10,220 8,649 18.2% Occupancy expense 1,323 1,034 27.9% 4,326 3,882 11.4% Goodwill and intangible amortization 134 16 737.5% 183 66 177.3% Other non-interest expense 2,111 1,391 51.8% 6,131 5,374 14.1% Total non-interest expense 6,959 4,717 47.5% 20,860 17,971 16.1% Income before income taxes 2,210 2,256 -2% 9,422 8,627 9.2% Provision for income taxes 591 591 0% 2,442 2,294 6.5% Net income $ 1,619 $ 1,665 -2.8% $ 6,980 $ 6,333 10.2% Earnings per share, diluted $ 0.35 $ 0.40 -12.5% $ 1.63 $ 1.53 6.5%
MIDSOUTH BANCORP, INC. and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands except per share data) INCOME STATEMENT Quarterly Trends
Fourth Third Second First Fourth Quarter Quarter Quarter Quarter Quarter 2004 2004 2004 2004 2003 -------- -------- -------- -------- -------- Interest income $ 8,451 $ 6,815 $ 6,350 $ 6,130 $ 6,196 Interest expense 1,890 1,431 1,276 1,097 1,089 Net interest income 6,561 5,384 5,074 5,033 5,107 Provision for loan losses 321 250 190 230 --- Net interest income after provision for loan losses 6,240 5,134 4,884 4,803 5,107 Total non-interest income 2,929 2,376 2,053 1,861 1,866 Total non-interest expense 6,959 4,934 4,569 4,397 4,717 Income before income taxes 2,210 2,576 2,368 2,267 2,256 Income taxes 591 622 623 606 591 Net income $ 1,619 $ 1,954 $ 1,745 $ 1,661 $ 1,665 Earnings per share, basic $ 0.36 $ 0.49 $ 0.44 $ 0.42 $ 0.42 Earnings per share, diluted $ 0.35 $ 0.47 $ 0.42 $ 0.40 $ 0.40 Book value per share $ 10.90 $ 9.16 $ 8.46 $ 8.52 $ 8.07 Return on Average Equity 13.48% 22.46% 19.78% 20.05% 20.22%
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, Sept. 30, % Jun. 30, Dec. 31, 2004 2004 Chg 2004 2003 --------- --------- --------- -------- --------- Nonaccrual loans $ 472 $ 482 -2.1% $ 1,003 $ 829 Loans past due 90 days and over 488 283 72.4% 662 503 Total nonperforming loans 960 765 25.5% 1,665 1,332 Other real estate owned 445 86 417.4% 77 218 Other foreclosed assets 283 100.0% Total nonperforming assets $ 1,688 $ 851 98.4% $ 1,742 $ 1,550 Nonperforming assets to total assets 0.28% 0.17% 63.4% 0.36% 0.36% Nonperforming assets to total loans + OREO + other foreclosed assets 0.44% 0.29% 50.7% 0.62% 0.59% ALL to nonperforming assets 228.08% 346.53% -34.2% 170.72% 180.00% ALL to nonperforming loans 401.04% 385.49% 4.0% 178.62% 209.46% ALL to total loans 1.00% 1.00% -0.7% 1.06% 1.07% Year-to-date charge-offs $ 1,067 $ 644 65.7% $ 336 $ 904 Year-to-date recoveries 182 133 36.8% 100 253 Year-to-date net charge-offs $ 885 $ 511 73.2% $ 236 $ 651 Net YTD charge-offs to total loans 0.23% 0.17% 31.8% 0.08% 0.25%
SOURCE MidSouth Bancorp, Inc. -0- 01/25/2005 /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)