ArgentBank Reports 1994 Fourth Quarter Profits.

THIBODAUX, La.--(BUSINESS WIRE)--Jan. 17, 1995--Today, ArgentBank announced fourth quarter profits of $1.3 million, or $.45 per share, as compared to $1.8 million, or $.61 per share for the same period in 1993.

Non-recurring operating expenses for various consultant fees, write-downs on bank real estate, and the sale of various securities to reposition the investment portfolio were the major reasons for the decrease in earnings in the fourth quarter. Year-to-date income for 1994 was $8.0 million as compared to $7.5 million a year earlier, or a 6.27 percent increase.

The Bank's annual return on average assets was 1.47 percent, as compared to 1.41 percent for the same period ending December 31, 1993. The annual return on average equity was 13.97 percent, as compared to 14.85 percent a year earlier. Total assets were $549.2 million at December 31, 1994, compared to $545.1 million at December 31, 1993.

Loans totaled $231.5 million at December 31, 1994, compared to $199.9 million a year earlier, an increase of 15.80 percent. The increased loan volume was due in part to the new indirect loan program, which originated more than 6 million dollars in automobile loans in the fourth quarter.

Net interest income for the quarter ending December 31, 1994, decreased by $217 thousand, or 3.61 percent, as compared to the same period in 1993. Net interest income for the twelve months ending December 31, 1994 decreased by 1.7 million, or 6.97 percent, as compared to the prior year.

Non-interest expense increased by $433 thousand in the fourth quarter as result of non-recurring operating expenses for various consultant fees and write-downs on bank real estate. During the fourth quarter the sales and calls of various securities resulted in net losses of $440 thousand. Securities were sold to take advantage of rising interest rates.

Stockholders' equity as of December 31, 1994 amounted to $59.0 million, as compared to $54.1 million at December 31, 1993. The shareholders'-equity-capital-to-total-assets ratio (excluding market fluctuations) as of December 31, 1994 was 10.89 percent, compared to 9.92 percent the prior year (by comparison, the regulatory minimum capital ratio is 3.00 percent). The ratio of primary capital (equity capital plus allowance for possible loan losses, excluding market fluctuations) to total assets as of December 31, 1994 was 13.00 percent, as compared to 12.32 percent the prior year.

Cash dividends paid during the fourth quarter of 1994 and 1993 were $.20 and $.12 respectively, reflecting an increase of 66.67 percent. Annual cash dividends paid in 1994 were .74, compared to .45 a year earlier, reflecting an increase of 64.44 percent.

As of December 31, 1994, the allowance for possible loan losses stood at $11.7 million, as compared to $13.1 million at December 31, 1993. This represents a reserve-to-loan ratio of 5.04 percent, as compared to 6.55 percent at December 31, 1993. On December 31, 1994, non-performing loans totaled $1.1 million, or .50 percent of total loans outstanding.

Total non-performing assets (including non-performing loans, restructured debt and repossessed assets) were $1.8 million at December 31, 1994, representing .32 percent of total assets. As of December 31, 1994, the Bank had only $19 thousand of other real estate owned. The Bank experienced net recoveries of $654 thousand in 1994 as compared to net charge-offs of $61 thousand for 1993. The net charge-offs-to-average-loans for 1994 was a negative (.31) percent as compared to .03 percent a year earlier. The favorable net recoveries and a continual low level of non-performing assets in 1994 enabled the Bank to record a negative provision totaling $2.1 million for the year.

Headquartered in Thibodaux, Louisiana, ArgentBank is traded on the Nasdaq Stock Market (symbol ARGT). Locally owned and managed, the Bank operates 18 full-service offices in New Orleans, Baton Rouge, Houma, Pierre Part, Napoleonville and throughout Lafourche Parish, with Loan Production Offices in Lafayette and Mandeville.

-0-

                            ARGENTBANK
                     Statements of Conditions

                                                       (unaudited)
December 31 (in thousands except common share stock) 1994      1993
Assets:
 Cash and due from banks                          $ 25,618  $ 22,972
 Federal funds sold and securities purchased
  under agreements to resell                         7,750     5,500
    Total cash and cash equivalents                 33,368    28,472
 Interest-bearing deposits in other banks                -       130
Investments:
   Held-to-Maturity (approximately market value
    of $140,522 and $318,031 in 1994 and 1993,
    respectively)                                  144,262   312,371
   Available-for-Sale                              134,075         -
    Total Investments                              278,337   312,371
Loans, net of unearned discount                    231,458   199,872
 Less: Reserve for possible loan losses            (11,655)  (13,092)
    Loans, Net                                     219,803   186,780
Accrued interest receivable                          3,639     4,196
Other real estate, net                                  19        21
Bank premises and equipment, net                     8,013     8,111
Other assets                                         5,998     5,052
    Total Assets                                  $549,177  $545,133

Liabilities and Shareholders' Equity:
Liabilities:
 Deposits:
  Demand, non-interest-bearing                    $ 75,697  $ 64,219
  Interest-bearing                                 411,226   424,295
    Total Deposits                                 486,923   488,514
 Fed Funds Purchased                                     -
 Accrued interest payable                            2,102     1,734
 Other liabilities                                   1,130       802
    Total Liabilities                              490,155   491,050
Commitments                                              -         -
Shareholders' Equity:
 Common stock, $.10 par value: 10,000,000 shares
  authorized, 2,987,732 shares outstanding in 1994
  and 1993                                             299       299
 Capital surplus                                    25,474    15,475
 Net unrealized gain (loss) on available-for-sale
  securities                                          (852)        -
 Retained earnings                                  34,101    38,309
    Total Shareholders' Equity                      59,022    54,083
Total liabilities and shareholders' equity        $549,177  $545,133

                         Statements of Income

Periods Ended (in thousands      4th Quarter        Y T D Results
 except per share)           12/31/94   12/31/93    1994      1993
Interest Income:
Loans, including fees         $ 4,799    $ 4,405   $18,106   $17,199
Investment securities:
 Taxable                        3,606      4,117    15,185    17,695
 Non-taxable                      236        247       936       980
Federal funds sold                229         94       451       498
Deposits in other banks             0          1         3         4
Total interest income           8,870      8,864    34,681    36,376
Interest expense                3,083      2,860    11,888    11,875
Net interest income             5,787      6,004    22,793    24,501
Provision for loan losses        (511)       105    (2,091)    1,870
Net interest income after
 provision for loan losses      6,298      5,899    24,884    22,631
Non-interest income:
 Service charges and fee
  income                          648        601     2,518     2,582
 Investment securities gains     (440)       239       496       474
 Other                             22         69       105        69
Total non-interest income         230        909     3,119     3,125
Non-interest expense:
 Salaries and employee benefits 1,936      1,994     7,500     7,092
 Net occupancy expense            824        569     2,477     1,998
 Other                          1,841      1,605     6,304     6,161
Total non-interest expense      4,601      4,168    16,281    15,251
Income before income taxes and
 cumulative effect of
 accounting change              1,927      2,640    11,722    10,505
Income taxes                      583        809     3,720     3,235
Income before cumulative
 effect of accounting change    1,344      1,831     8,002     7,270
Cumulative effect of
 accounting change                  -          -         -       260
Net income                    $ 1,344    $ 1,831   $ 8,002   $ 7,530
Per share data:
 Income before cumulative
   effect                        0.45       0.61      2.68      2.43
 Cumulative effect of
   accounting change                -          -         -      0.09
Net income                      $0.45      $0.61     $2.68     $2.52

    Note:  Per share figures give effect to the 4 for 1 stock split
           effective Aug. 13, 1993.

CONTACT: ArgentBank, Thibodaux

William B. Gautreaux, 504/447-0669