LAFAYETTE, La., July 24 /PRNewswire-FirstCall/ -- MidSouth Bancorp, Inc. announced earnings of $2,235,000 for the quarter ended June 30, 2006, a 9.6% increase over earnings of $2,040,000 for the same period in 2005, and a 22.9% increase over the quarter ended March 31, 2006. Basic earnings per share were $.45 for the quarter ended June 30, 2006, compared to $.42 per share reported for the second quarter of 2005, and $.37 per share earned in the first quarter of 2006. Diluted earnings per share were $.44 for the second quarter of 2006, compared to $.40 per share for the second quarter of 2005 and $.36 for the first quarter of 2006.
For the first six months of 2006, MidSouth Bancorp earned $4,054,000, a 2.3% increase over the $3,964,000 reported for the first six months of 2005. Basic earnings per share were $.82 for the first half of 2006 versus $.81 per share for the first half of 2005. Diluted earnings per share were $.80 versus $.78, respectively. The first six 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 six 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 year-to-date earnings for 2006 improved by $439,000, or 12%, over 2005.
Highlights for the Quarter Ended June 30, 2006
* Return on average equity was 16.48% for the second quarter of 2006
compared to 16.26% for the second quarter of 2005. The leverage
capital ratio was 8.32% at June 30, 2006, compared to 9.15% at June 30,
2005.
* Net interest income totaled $8,295,000 for the second quarter of 2006,
up 21.0% from the $6,857,000 reported for the second quarter of 2005.
Net interest income increased primarily due to a 22.3% increase in the
average volume of earning assets, including a 16.0% increase in average
loan volume. Additionally, the average yield on earning assets
improved 75 basis points, from 6.80% for the second quarter of 2005 to
7.55% for the second quarter of 2006. The impact of the improvement in
average earning asset volume and yield was partially offset by volume
and rate increases in interest-bearing liabilities.
* Total consolidated assets increased $148.0 million, or 23.4%, from
$631.9 million at the end of the second quarter of 2005 to $779.9
million at the end of the second quarter of 2006.
* Total loans grew $79.5 million, or 19.4%, from $410.0 million at
June 30, 2005 to $489.5 million at June 30, 2006, primarily in
commercial and real estate credits.
* Nonperforming assets, including loans 90 days or more past due, totaled
$2.7 million at June 30, 2006, compared to $2.3 million at June 30,
2005. As a percentage of total assets, nonperforming assets were .35%
and .36% for June 30, 2006 and 2005, respectively. Included in
nonperforming assets for June 30, 2006, is approximately $1.6 million
in government-guaranteed loans. Net charge-offs to total loans
decreased to .02% for the second quarter of 2006 compared to .05% for
the second quarter of 2005. Allowance for loan loss provisions
totaling $300,000 were taken in the second quarter of 2006 compared to
$66,000 in the second quarter of 2005. As a percentage to total loans,
the allowance for loan losses for the quarters ended June 30, 2006 and
2005 were 1.00% and .99%, respectively. The Company has not
experienced an increase in delinquencies or charge-offs due to
Hurricanes Katrina and Rita.
* Total deposits increased $145.4 million, or 26.0%, from $558.7 million
at June 30, 2005 to $704.1 million at June 30, 2006. Deposit growth
has been primarily in the Company's Platinum money market and checking
accounts, which represent 31.5% of total deposits at June 30, 2006.
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 demand accounts have continued to grow and
represent 26.5% of total deposits at June 30, 2006.
Components of Second Quarter Earnings
Net interest income for the second quarter of 2006 increased $1.4 million, or 21.0%, compared to the second quarter of 2005 due to a 22.3% increase in the average volume of earning assets and a 75 basis point improvement in the average yield on earning assets. Average loan volume increased $64.4 million and the average yield on loans increased 107 basis points, from 7.81% in the second quarter of 2005 to 8.88% in the second quarter of 2006. The improvement in interest income was partially offset by increased interest expense resulting from a $94.7 million increase in the average volume of interest-bearing deposits and a 110 basis point increase in the average cost of interest-bearing deposits, from 2.07% in the second quarter of 2005 to 3.17% in the second quarter of 2006. The taxable-equivalent net yield on earning assets decreased 4 basis points in quarterly comparison, from 5.04% in the second quarter of 2005 to 5.00% in the second quarter of 2006.
Non-interest income for the second quarter of 2006 decreased $99,000 compared to the second quarter of 2005, primarily due to $93,000 in Pulse proceeds received in the second quarter of 2005.
Non-interest expense increased 882,000, or 12.3%, in quarterly comparison, primarily due to a $632,000, or 19.1%, increase in salaries and employee benefits associated with an increase in the number of full-time equivalent employees from 305 in June 2005 to 349 in June 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 $295,000, or 22.2%, increase in occupancy expenses in quarterly comparison.
In linked-quarter comparison, earnings increased $416,000, or 22.9%, from $1,819,000 for the quarter-ended March 31, 2006 to $2,235,000 for the quarter- ended June 30, 2006. Volume and rate increases in earning assets drove improvement in net interest income of $898,000 and non-interest income increased $228,000. The increased net interest income and non-interest income was partially offset by increased non-interest expenses of $573,000.
Year-to-Date Earnings and Franchise Growth
In year-to-date comparison, net of the $349,000 after-tax effect of the Pulse proceeds and the branch write-down, earnings increased $439,000. Net interest income for the six months ended June 30, 2006, increased $2.4 million or 18.1% compared to the six months ended June 20, 2005. The $2.4 million improvement in net interest income was mostly offset by a $1.4 million, or 10.1%, increase in non-interest expenses combined with a $240,000 increase in the provision for loan losses in year-to-date comparison. The increased non- interest expenses reflect the Company's investment in executing its plan to grow the franchise.
In addition to the five retail offices opened over the past twelve months, six new offices are scheduled to open through mid-year 2007. Two retail stores are planned for the Baton Rouge market and scheduled to open in the first half of 2007. A new retail store in Thibodaux is under construction and a second store in Lake Charles is scheduled to begin construction in the fourth quarter of 2006. In the Texas markets, a full service retail store location for the Conroe, Texas market is scheduled to open in April 2007 and management is working on site selection for a full service retail store in the College Station market. Costs associated with opening these six 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 executed during 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 Jun. 30, % Mar. 31, %
2006 2005 Chg 2006 Chg
EARNINGS DATA
Total interest income $12,691 $9,333 36.0% $11,035 15.0%
Total interest expense 4,396 2,476 77.5% 3,638 20.8%
Net interest income 8,295 6,857 21.0% 7,397 12.1%
Provision for loan losses 300 66 354.5% 320 -6.3%
Non-interest income 3,071 3,170 -3.1% 2,843 8.0%
Non-interest expense 8,069 7,187 12.3% 7,496 7.6%
Provision for income tax 762 734 3.8% 605 26.0%
Net income $2,235 $2,040 9.6% $1,819 22.9%
PER COMMON SHARE DATA (A)
Basic earnings per share $0.45 $0.42 7.1% $0.37 21.6%
Diluted earnings per share $0.44 $0.40 10.0% $0.36 22.2%
Book value at end of period $10.97 $10.49 4.6% $10.84 1.2%
Market price at end of
period $30.20 $22.27 35.6% $28.65 5.4%
Weighted avg shares
outstanding
Basic 4,958,809 4,897,241 1.3% 4,941,290 0.4%
Diluted 5,055,539 5,068,921 -0.3% 5,079,759 -0.5%
AVERAGE BALANCE SHEET DATA
Total assets $761,294 $623,095 22.2% $717,159 6.2%
Earning assets 692,869 566,505 22.3% 650,252 6.6%
Loans and leases 465,954 401,581 16.0% 443,610 5.0%
Interest-bearing deposits 509,732 415,034 22.8% 468,757 8.7%
Total deposits 684,896 547,347 25.1% 642,368 6.6%
Total stockholders' equity 54,408 50,314 8.1% 53,706 1.3%
SELECTED RATIOS 06/30/2006 06/30/2005 03/31/2006
Return on average assets 1.18% 1.31% -10.3% 1.03% 14.5%
Return on average total
equity 16.48% 16.26% 1.3% 13.74% 20.0%
Return on average realized
equity (A) 15.91% 16.13% -1.4% 13.46% 18.2%
Average equity to average
assets 7.15% 8.07% -11.5% 7.49% -4.6%
Leverage capital ratio 8.32% 9.15% -9.1% 8.48% -1.9%
CREDIT QUALITY
Allowance for loan losses
as a % of total loans 1.00% 0.99% 1.0% 1.03% -2.9%
Nonperforming assets to
total assets 0.35% 0.36% -2.8% 0.26% 34.6%
Net YTD charge-offs to
total loans 0.02% 0.05% -60.0% 0.01% 100.0%
(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
BALANCE SHEET Jun. 30, Chg Mar. 31, Dec. 31,
Assets 2006 2005 2006 2005
Cash and cash equivalents $34,070 $25,534 33.4% $66,750 $52,437
Securities available-for-
sale 188,344 133,336 41.3% 165,411 139,429
Securities held-to-
maturity 17,519 21,180 -17.3% 18,368 19,611
Total investment
securities 205,863 154,516 33.2% 183,779 159,040
Total loans 489,475 410,030 19.4% 451,162 442,794
Allowance for loan losses (4,887) (4,039) 21.0% (4,652) (4,355)
Loans, net 484,588 405,991 19.4% 446,510 438,439
Premises and equipment 28,572 21,036 35.8% 27,003 23,606
Goodwill and other
intangibles 10,092 10,471 -3.6% 10,174 10,257
Other assets 16,663 14,345 16.2% 14,344 15,036
Total assets $779,848 $631,893 23.4% $748,560 $698,815
Liabilities and
Stockholders' Equity
Non-interest bearing
deposits $186,292 $130,525 42.7% $182,324 $177,946
Interest bearing deposits 517,812 428,197 20.9% 492,055 446,992
Total deposits 704,104 558,722 26.0% 674,379 624,938
Securities sold under
agreements to repurchase
and FHLB borrowings 2,797 2,354 18.8% 2,911 1,732
Junior subordinated
debentures 15,465 15,465 0.0% 15,465 15,465
Other liabilities 2,664 3,829 0.0% 2,159 3,494
Total liabilities 725,030 580,370 -30.4% 694,914 645,629
Total shareholders' equity 54,818 51,523 24.9% 53,646 53,186
Total liabilities and
shareholders'
equity $779,848 $631,893 23.4% $748,560 $698,815
MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
Three Months Ended Six Months Ended
INCOME STATEMENT June 30, % June 30, %
2006 2005 Chg 2006 2005 Change
Interest income $12,691 $9,333 36.0% $23,726 $17,970 32.0%
Interest expense 4,396 2,476 77.5% 8,034 4,688 71.4%
Net interest
income 8,295 6,857 21.0% 15,692 13,282 18.1%
Provision for
loan losses 300 66 354.5% 620 380 63.2%
Service charges on
deposit accounts 2,174 2,198 -1.1% 4,100 4,326 -5.2%
Other charges and
fees 897 972 -7.7% 1,814 2,267 -20.0%
Total non-
interest income 3,071 3,170 -3.1% 5,914 6,593 -10.3%
Salaries and
employee benefits 3,937 3,305 19.1% 7,723 6,508 18.7%
Occupancy expense 1,624 1,329 22.2% 3,110 2,584 20.4%
Intangible
amortization 83 134 -38.1% 165 267 -38.2%
Other non-interest
expense 2,425 2,419 0.2% 4,567 4,781 -4.5%
Total non-interest
expense 8,069 7,187 12.3% 15,565 14,140 10.1%
Income before income
taxes 2,997 2,774 8.0% 5,421 5,355 1.2%
Provision for income
taxes 762 734 3.8% 1,367 1,391 -1.7%
Net income $2,235 $2,040 9.6% $4,054 $3,964 2.3%
Earnings per share,
diluted $0.44 $0.40 10.0% $0.80 $0.78 2.3%
MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
INCOME STATEMENT Second First Fourth Third Second
Quarterly Trends Quarter Quarter Quarter Quarter Quarter
2006 2006 2005 2005 2005
Interest income $12,691 $11,035 $10,703 $9,882 $9,333
Interest expense 4,396 3,638 3,142 2,957 2,476
Net interest income 8,295 7,397 7,561 6,925 6,857
Provision for loan losses 300 320 300 300 66
Net interest income after
provision for loan losses 7,995 7,077 7,261 6,625 6,791
Total non-interest income 3,071 2,843 2,816 2,840 3,170
Total non-interest expense 8,069 7,496 7,867 7,319 7,187
Income before income taxes 2,997 2,424 2,210 2,146 2,774
Income taxes 762 605 534 512 734
Net income $2,235 $1,819 $1,676 $1,634 $2,040
Earnings per share, basic $0.45 $0.37 $0.34 $0.33 $0.42
Earnings per share, diluted $0.44 $0.36 $0.33 $0.32 $0.41
Book value per share $10.97 $10.84 $10.74 $10.66 $10.49
Return on Average Equity 16.48% 13.74% 12.62% 12.51% 16.26%
MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
Asset Quality Data Period Ended % Period Ended
Jun. 30, Chg Mar. 31, Dec. 31,
2006 2005 2006 2005
Nonaccrual loans $543 $1,892 -71.3% $672 $660
Loans past due 90
days and over 2,104 128 1543.8% 1,127 2,511
Total nonperforming loans 2,647 2,020 31.0% 1,799 3,171
Other real estate owned 32 98 -67.3% 68 98
Other foreclosed assets 25 156 -84.0% 54 176
Total nonperforming assets $2,704 $2,274 18.9% $1,921 $3,445
Nonperforming assets to
total assets 0.35% 0.36% -3.7% 0.26% 0.49%
Nonperforming assets to
total loans + OREO + other
foreclosed assets 0.55% 0.55% -0.3% 0.43% 0.78%
ALL to nonperforming assets 180.73% 177.62% 1.8% 242.16% 126.42%
ALL to nonperforming loans 184.62% 199.95% -7.7% 258.59% 137.34%
ALL to total loans 1.00% 0.99% 1.4% 1.03% 0.98%
Year-to-date charge-offs $310 $310 0.0% $132 $702
Year-to-date recoveries 223 119 87.4% 109 226
Year-to-date net charge-offs $87 $191 -54.5% $23 $476
Net YTD charge-offs to total
loans 0.02% 0.05% -57.1% 0.01% 0.11%
