EX-99.1 2 mb4629ex991.txt EXHIBIT 99.1 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)