ArgentBank reports 1995 second quarter profits.

THIBODAUX, La.--(BUSINESS WIRE)--July 10, 1995--Today, ArgentBank announced second quarter profits of $2.2 million, or $.74 per share, as compared to $2.0 million, or $.67 per share for the same period in 1994. An increase in loan demand and profit from securities were the major reasons for the increase in earnings in the second quarter of 1995, as compared to the same period in 1994. Year-to-date profits for 1995 were $4.1 million, or $1.38 per share, as compared to $4.8 million, or $1.60 per share in 1994. Profits on securities in the first six months of 1995 and reduced negative provisions account for the majority of the difference in 1994 and 1995 profits.

The Bank's annual return on average assets was 1.57 percent, as compared to 1.76 percent for the same period ending June 30, 1995. The return on average equity was 13.79 percent, as compared to 17.10 percent for the first six months of 1994. Total assets were $534.5 million at June 30, 1995, compared to $534.4 million at June 30, 1994.

Loans totaled $261.3 million at June 30, 1995, compared to $208.5 million a year earlier. This represents an increase of $52.8 million, or 25.32 percent. The Indirect Financing Program for automobiles which began in the fourth quarter of 1994 has grown to $14.6 million, which is up by $4.7 million, as compared to the first quarter of 1995. The loan-to-deposit ratio was 55.99 percent at June 30, 1995, as compared to 44.23 percent for June 30, 1994.

Year-to-date net interest income increased by $206 thousand, or 1.80 percent, as compared to the same period in 1994. An 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 decreased by $365 thousand, as compared to 1994, due mainly to a decrease in profits recognized on sales and calls of investment securities. Profits totaling $935 thousand were recognized on securities in the first six months of the previous year, in comparison to $577 thousand recognized in the first six months of the current year. These profits were the result of both calls of securities and sales of available-for-sale securities.

Stockholders' equity as of June 30, 1995 amounted to $63.3 million, as compared to $57.6 million at June 30, 1994. The shareholders'-equity-capital-to-total-assets ratio (excluding market fluctuations) as of June 30, 1995 was 11.73 percent, compared to 10.82 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 June 30, 1995 was 13.81 percent, as compared to 13.18 percent the prior year.

Cash dividends paid during the first six months of 1995 and 1994 were $.44 and $.34 per share respectively, reflecting an increase of 29.41 percent.

As of June 30, 1995, the allowance for possible loan losses was at $11.1 million, as compared to $12.7 million at June 30, 1994. This represents a reserve-to-loan ratio of 4.25 percent, as compared to 6.07 percent at June 30, 1994. On June 30, 1995, non-performing loans totaled $382 thousand, or .15 percent of total loans outstanding, as compared to $693 thousand or .33 percent of total loans outstanding last year.

Total non-performing assets (including non-performing loans, restructured debt and repossessed assets) were $1.0 million at June 30, 1995, representing .19 percent of total assets, down from last year's total of $1.42 million, or .27 percent of total assets. As of June 30, 1995, ArgentBank had $19 thousand of other real estate owned. The Bank recorded a net charge-off on loan losses for the first six months totaling $38 thousand. The net charge-off to loans ratio for the quarter was immaterial. The favorable ratio of non-performing assets enabled the Bank to record a negative provision of $250 thousand during the second quarter of 1995, as compared to a negative provision of $500 thousand in the second quarter of 1994.

Headquartered in Thibodaux, Louisiana, ArgentBank is traded on the Nasdaq Stock Market (symbol ARGT). At June 30, 1995, the Bank's stock reflected a market value of $38.25, as compared to $24.00 for the same period in 1994, reflecting an increase of $14.25, or 59.38 percent. Locally owned and managed, the Bank operates 18 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
                                                      (unaudited)
June 30, (in thousands except common               1995        1994
 shares of stock)
 ASSETS:
  Cash and due from banks                       $ 22,543    $ 20,889
  Federal funds sold                              10,150        --
    TOTAL CASH AND CASH EQUIVALENTS               32,693      20,889
  Interest-bearing deposits in other banks          --           130
 Investments:
   Held-to maturity securities (approximate
    market value of $117,219 and $158,302 in
    1995 and 1994, respectively)                 117,376     159,332
   Available-for-sale securities (amortized
    cost of $116,742)                            117,667     140,557
    TOTAL INVESTMENTS                            235,043     299,889
 Loans, net of unearned discount                 261,296     208,502
  Less: Allowance for loan losses                (11,117)    (12,656)
    LOANS, NET                                   250,179     195,846
 Accrued interest receivable                       3,527       3,628
 Other real estate, net                               19          34
 Bank premises and equipment, net                  7,961       8,477
 Other assets                                      5,085       5,544
    TOTAL ASSETS                                $534,507    $534,437

LIABILITIES AND SHAREHOLDERS' EQUITY
 LIABILITIES:
  Deposits:
   Non-interest bearing                         $ 71,396    $ 69,049
   Interest-bearing                              395,269     402,305
    TOTAL DEPOSITS                               466,665     471,354
  Fed Funds Purchased                               --         2,400
  Accrued interest payable                         2,664       1,887
  Other liabilities                                1,875       1,239
    TOTAL LIABILITIES                            471,204     476,880
 Commitments                                        --          --

 SHAREHOLDERS' EQUITY:
  Common stock, $.10 par value: 10,000,000
   shares authorized, 2,987,732 shares
   outstanding in 1995 and 1994                      299         299
  Capital surplus                                 25,474      15,474
 Net unrealized gain (loss) on
  available-for-sale securities                      610        (282)
 Retained earnings                                36,920      42,066
    TOTAL SHAREHOLDERS'S EQUITY                   63,303      57,557
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY      $534,507    $534,437

                      Statements of Income

Periods Ended (in thousands,        2nd Quarter        YTD Results
 except per share data)         6-30-95  6-30-94     1995      1994
INTEREST INCOME:
  Loans, including fees         $ 5,469  $ 4,438    10,459     8,712
  Investment securities:
    Taxable                       3,411    3,908     6,971     7,804
    Non-taxable                     236      228       474       467
  Federal funds sold                244       43       487       160
  Deposits in other banks             0        2         0         3
    TOTAL INTEREST INCOME         9,360    8,619    18,391    17,146
Interest expense - Deposits       3,584    2,917     6,769     5,730
    NET INTEREST INCOME           5,776    5,702    11,622    11,416
Provision for (recovery of)
 loan losses                       (250)    (500)     (500)     (980)
    NET INTEREST INCOME AFTER
    PROVISION FOR LOAN LOSSES     6,026    6,202    12,122    12,396
NON-INTEREST INCOME:
  Service charges and fee income    643      630     1,247     1,248
  Investment securities gains,
   net                              488       25       577       935
  Other                              29       19        48        54
    TOTAL NON-INTEREST INCOME     1,160      674     1,872     2,237
NON-INTEREST EXPENSE:
  Salaries and employee benefits  1,824    1,839     3,710     3,591
  Net occupancy expense             509      535     1,029     1,021
  Other                           1,597    1,563     3,218     2,957
    TOTAL NON-INTEREST EXPENSE    3,930    3,937     7,957     7,569
Income before income taxes and
 cumulative effect of accounting
 change                           3,256    2,939     6,037     7,064
Income Taxes                      1,044      946     1,904     2,292
NET INCOME                        2,212    1,993     4,133     4,772
Net Income Per Common Share       $0.74    $0.67     $1.38     $1.60

CONTACT: ArgentBank, Thibodaux

William B. Gautreaux, 504/447-0669