ArgentBank releases 1995 profits.

THIBODAUX, La.--(BUSINESS WIRE)--Jan. 16, 1996--Today ArgentBank announced fourth quarter profits of $1.9 million, or $.31 per share, as compared to $1.3 million, or $.23 per share for the same period in 1994.

Increased loan demand, increased non-interest income, and decreased non-interest expenses contributed to increased earnings in the fourth quarter of 1995, as compared to the same period in 1994. Year-to-date profits for 1995 were $8.1 million, or $1.35 per share, as compared to $8.0 million, or $1.34 per share in 1994. The increase in net interest income, reduced negative provisions, increased profits on securities, and a reduction in non-interest expenses accounted for the majority of the difference in 1994 and 1995 profits.

The Bank's annual return on average assets was 1.49 percent, as compared to 1.47 percent for the same period ending December 31, 1994. The return on average equity was 12.94 percent, as compared to 13.97 percent a year earlier. Total assets were $562.1 million at December 31, 1995, compared to $549.2 million at December 31, 1994. This represents an increase of $12.9 million, or 2.35 percent.

Loans totaled $288.5 million at December 31, 1995, compared to $231.5 million a year earlier. This represents an increase of $57.0 million, or 24.6 percent. The Indirect Financing Program for automobiles, which began in the fourth quarter of 1994, has grown to $21.0 million, an increase of $3.5 million since the third quarter of 1995. The loan-to-deposit ratio was 58.88 percent at December 31, 1995, as compared to 47.73 percent for December 31, 1994.

Year-to-date net interest income increased by $542 thousand, or 2.37 percent, as compared to the same period in 1994. A significant increase in loan volume and rates, partially offset by rising interest rates on deposits, were contributing factors to the increase in net interest income.

Total non-interest income increased by $72 thousand, as compared to 1994, due mainly to an increase in profits recognized on sales and calls of investment securities. Profits totaling $579 thousand were recognized on securities in 1995, in comparison to $476 thousand recognized in the previous year. These profits were the result of both calls of securities and sales of available-for-sale securities.

Total non-interest expense for the fourth quarter of 1995 decreased by $475 thousand in comparison to the fourth quarter of 1994. Salaries and employee benefits, net occupancy expenses, and a reduction in FDIC fees were the major contributing factors to the decrease in non-interest expenses. The FDIC assessment rate reduction benefit amounted to $223 thousand in comparing the fourth quarter of 1995 to the same period in 1994.

Stockholders' equity as of December 31, 1995 amounted to $66.5 million, as compared to $59.0 million at December 31, 1994. The shareholders'-equity-capital-to-total-assets ratio (excluding market fluctuations) as of December 31, 1995 was 11.61 percent, compared to 10.89 percent the prior year (by comparison, the regulatory minimum capital ratio is 3 percent). The ratio of primary capital (equity capital plus allowance for possible loan losses, excluding market fluctuations) to total assets as of December 31, 1995 was 13.49 percent, as compared to 13.00 percent the prior year.

Annual cash dividends paid in 1995 and 1994 were $.475 and $.37 per share respectively, reflecting an increase of 28.38 percent. On October 18, 1995, a stock split was declared, giving each shareholder one share of stock for each share owned. All information presented has been adjusted to reflect this 2 for 1 stock split for comparability purposes.

As of December 31, 1995, the allowance for possible loan losses was $10.6 million, as compared to $11.7 million at December 31, 1994. This represents a reserve-to-loan ratio of 3.66 percent, as compared to 5.04 percent at December 31, 1994. On December 31, 1995, non-performing loans totaled $130 thousand, or .045 percent of total loans outstanding, as compared to $1.1 million, or .50 percent of total loans outstanding last year.

Total non-performing assets (including non-performing loans, restructured debt and repossessed assets) were $941 thousand at December 31, 1995, representing .17 percent of total assets, down from last year's total of $1.8 million, or .32 percent of total assets. As of December 31, 1995, ArgentBank had other real estate owned of $54 thousand. The Bank recorded a net charge-off on loan losses in 1995 of $103 thousand. The net charge-off to loans ratio for the quarter was immaterial. The favorable ratio of non-performing assets enable the Bank to record a negative provision of $250 thousand during the fourth quarter of 1995, as compared to a negative provision of $511 thousand in the fourth quarter of 1994.

Headquartered in Thibodaux, Louisiana, ArgentBank is traded on the Nasdaq Stock Market (symbol ARGT). At December 31, 1995, the Bank's stock reflected a market value of $24.50, as compared to $13.00 for the same period in 1994, reflecting an increase of $11.50, or 88.46 percent. Locally owned and managed, the Bank operates 17 full-service offices throughout Lafourche Parish, Terrebonne Parish, Assumption Parish, in New Orleans, and in Baton Rouge, with a Loan Production Office in Mandeville.

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                            ArgentBank
                        Statements of Condition

Dec. 31, (in thousands except common               unaudited
shares of stock)                              1995            1994
ASSETS:
 Cash and due from banks                   $ 25,436        $ 25,618
 Federal funds sold                           7,350           7,750
  TOTAL CASH AND CASH EQUIVALENTS            32,786          33,368
 Interest-bearing deposits in other banks       ---             ---
Investments:
 Held-to-maturity securities (approximate
  market value of $86,346 and $140,522
  in 1995 and 1994, respectively)            86,461         144,262
 Available-for-sale securities (amortized
  cost of $144,741)                         146,851         134,075
  TOTAL INVESTMENTS                         233,312         278,337
Loans, net of unearned discount             288,479         231,458
 Less: Allowance for loan losses            (10,553)        (11,655)
  LOANS, NET                                277,926         219,803
Accrued interest receivable                   4,470           3,639
Other real estate, net                           54              19
Bank premises and equipment, net              8,496           8,013
Other assets                                  5,043           5,998
  TOTAL ASSETS                             $562,087        $549,177
LIABILITIES AND SHAREHOLDERS' EQUITY:
LIABILITIES:
 Deposits:
  Non-interest-bearing                     $ 77,291        $ 75,697
  Interest-bearing                          412,877         411,226
  TOTAL DEPOSITS                            490,168         486,923
 Fed Funds Purchased                            ---             ---
 Accrued interest payable                     3,803           2,102
 Other liabilities                            1,613           1,130
  TOTAL LIABILITIES                         495,584         490,155
Commitments                                     ---             ---
SHAREHOLDERS' EQUITY:
 Common stock, $.10 par value: 10,000,000
  shares authorized, 5,975,464 shares
  outstanding in 1995, and 2,987,732
  shares outstanding in 1994                    598             299
 Capital surplus                             25,176          25,474
 Net unrealized gain (loss) on available-
  for-sale securities                         1,392            (852)
 Retained earnings                           39,337          34,101
  TOTAL SHAREHOLDERS' EQUITY                 66,503          59,022
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $562,087        $549,177

                       Statements of Income

                                   4th Quarter         YTD Results
Periods Ended (in thousands,
 except per share data)         12-31-95  12-31-94     1995      1994
INTEREST INCOME:
 Loans, including fees           $6,319    $4,799    $22,722   $18,067
 Investment securities:
  Taxable                         3,337     3,606     13,596    15,185
  Non-taxable                       230       236        947       936
 Federal funds sold                 166       229        904       451
 Deposits in other banks              0         0          0         3
  TOTAL INTEREST INCOME          10,052     8,870     38,169    34,642
Interest expense - Deposits       4,089     3,083     14,834    11,849
  NET INTEREST INCOME             5,963     5,787     23,335    22,793
Provision for (recovery of) loan
 losses                            (250)     (511)    (1,000)   (2,091)
  NET INTEREST INCOME AFTER
   PROVISION FOR LOAN LOSSES      6,213     6,298     24,335    24,884
NON-INTEREST INCOME:
 Service charges and fee income     636       648      2,531     2,518
 Investment securities gains, net     0      (440)       579       496
 Other                               17        22         81       105
  TOTAL NON-INTEREST INCOME         653       230      3,191     3,119
NON-INTEREST EXPENSE:
 Salaries and employee benefits   1,811     1,936      7,336     7,500
 Net occupancy expense              563       824      2,132     2,477
 Other                            1,752     1,841      6,268     6,304
  TOTAL NON-INTEREST EXPENSE      4,126     4,601     15,736    16,281
Income before income taxes and
 cumulative effect of accounting
 change                           2,740     1,927     11,790    11,722
Income Taxes                        870       583      3,716     3,720
NET INCOME                        1,870     1,344      8,074     8,002
Net Income Per Common Share       $0.31     $0.23      $1.35     $1.34

(Per share data has been restated to reflect 2 for 1 stock split
effective October 18, 1995).

CONTACT: ArgentBank, Thibodaux

William B. Gautreaux, 504/447-0669