ArgentBank reports 1996 first quarter profits.

THIBODAUX, La.--(BUSINESS WIRE)--April 10, 1996--Today, ArgentBank (NASDAQ:ARGT) announced first quarter profits of $2.2 million, or $.36 per share, as compared to $1.9 million, or $.32 per share for the same period in 1995.

First quarter 1996 operating results are attributable to an increase in net interest income and a reduction in non-interest expense, in comparison to the same period in 1995. The 1996 first quarter profits were 14.97 percent higher than 1995 fourth quarter profits. A reduction in non-interest expense in the first quarter of 1996 was the major contributing factor to increased quarterly profits, in comparison to 1995 fourth quarter profits.

The Bank's return on average assets for the quarter was 1.52 percent, as compared to 1.46 percent for the same period ending March 31, 1995. The return on average equity was 12.89 percent, as compared to 13.13 percent for the same period in 1995. Total assets were $581.2 million at March 31, 1996, compared to $535.8 million at March 31, 1995, an increase of 8.47 percent.

Loans totaled $288.1 million at March 31, 1996, compared to $239.9 million a year earlier. This represents an increase of $48.1 million, or 20.06 percent. Commercial and real estate loans increased as the economy in all regions showed signs of improvement. The increase in loan volume was also due in part to the Indirect Loan Program, which totaled $26.2 million at March 31, 1996, compared to $9.9 million at March 31, 1995, an increase of $16.3 million. The Bank's loan-to-deposit ratio was 58.53 percent at March 31, 1996, as compared to 49.86 percent for March 31, 1995.

Net interest income increased by $139 thousand, or 2.38 percent, as compared to the same period in 1995. The increase is attributable to the shifting of earning assets from securities to loans due to increased loan demand.

Total non-interest income decreased by $77 thousand due mainly to a decrease in income recognized on sales of securities. No gain was recognized in the first quarter of 1996, in comparison to an $89 thousand gain recognized in the first quarter of the previous year.

Non-interest expenses for the quarter ending March 31, 1996 decreased by $256 thousand, as compared to the same period in 1995. This decrease is mainly attributable to a decrease in the FDIC assessment rate and associated fees. Compared to the fourth quarter of 1995, non-interest expenses decreased by $355 thousand. This decrease was due to reduced FDIC fees in the first quarter of 1996 and increased legal fees in the fourth quarter of 1995 which were associated with the new Greenwich Loan Product. The Bank's efficiency ratio, which measures the cost to generate revenue, was 56.05 percent at March 31, 1996, as compared to 61.08 at March 31, 1995.

Shareholders' equity as of March 31, 1996 amounted to $67.0 million, as compared to $61.0 million at March 31, 1995. The shareholders'-equity-capital-to-total-assets ratio (excluding market fluctuations) as of March 31, 1996 was 11.44 percent, compared to 11.41 percent the prior year (by comparison, the regulatory minimum capital ratio is 3 percent). The ratio of primary capital (equity capital plus allowance for loan losses, excluding market fluctuations) to total assets as of March 31, 1996 was 13.26 percent, as compared to 13.53 percent the prior year.

Cash dividends paid during the first quarter of 1996 and 1995 were $.13 and $.11 per share respectively, reflecting an increase of 18.18 percent. All per-share figures give effect to the two-for-one stock split effective October 31, 1995.

As of March 31, 1996, the allowance for loan losses was at $10.6 million, as compared to $11.4 million at March 31, 1995. This represents a reserve-to-loan ratio of 3.67 percent, as compared to 4.74 percent at March 31, 1995. On March 31, 1996, non-performing loans totaled $231 thousand, or .08 percent of total loans outstanding, as compared to $701 thousand or .29 percent of total loans outstanding last year.

Total non-performing assets (including non-performing loans, restructured debt and repossessed assets) were $980 thousand at March 31, 1996, representing .17 percent of total assets, down from last year's total of $1.5 million, or .27 percent of total assets. As of March 31, 1996, ArgentBank had no other real estate owned. The Bank recorded a net recovery on loan losses for the quarter totaling $324 thousand. The net charge-offs to loans ratio for the quarter was a negative .11 percent. The favorable net charge-offs and a continual low level of non-performing assets enabled the Bank to record a negative provision of $300 thousand, as compared to a negative provision of $250 thousand during the first quarter of 1995.

Headquartered in Thibodaux, La., ArgentBank is traded on the NASDAQ Stock Market (symbol ARGT). At March 31, 1996, the Bank's stock reflected a market value of $22.00, as compared to $13.88 for the same period in 1995, reflecting an increase of $8.12, or 58.5 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. The Bank plans to open two new full-service branches in Terrebonne Parish in 1996. -0-

                            ArgentBank
                        Statements of Condition

March 31, (in thousands except shares              (unaudited)
of stock)                                     1996            1995
ASSETS:
 Cash and due from banks                   $ 19,856        $ 20,556
 Federal funds sold                          13,000          29,150
  TOTAL CASH AND CASH EQUIVALENTS            32,856          49,706
Securities
 Held-to-maturity securities (approximate
  market value of $78,186 and $128,864
  in 1996 and 1995, respectively)            78,390         130,606
 Available-for-sale securities (amortized
  cost of $172,301 and $110,099 in 1996
  and 1995, respectively)                   173,026         109,966
  TOTAL SECURITIES                          251,416         240,572
Loans, net of unearned discount             288,091         239,948
 Less: Allowance for loan losses            (10,577)        (11,377)
  LOANS, NET                                277,514         228,571
Accrued interest receivable                   4,838           3,366
Other real estate, net                           --             164
Bank premises and equipment, net              8,760           7,886
Other assets                                  5,824           5,582
  TOTAL ASSETS                             $581,208        $535,847

LIABILITIES AND SHAREHOLDERS' EQUITY:
LIABILITIES:
 Deposits:
  Non-interest-bearing                     $ 71,183        $ 73,128
  Interest-bearing                          427,209         397,665
  TOTAL DEPOSITS                            498,392         470,793
 Accrued interest payable                     3,159           2,166
 Security purchase commitments                9,928             ---
 Other liabilities                            2,767           1,838
  TOTAL LIABILITIES                         514,246         474,797
Commitments                                     ---             ---

SHAREHOLDERS' EQUITY:
 Common stock, $.10 par value: 10,000,000
  shares authorized, 5,975,464 shares
  outstanding in 1996, and 2,987,732
  shares outstanding in 1995                    598             299
 Capital surplus                             25,176          25,474
 Net unrealized gain (loss) on available-
  for-sale securities, net of tax               479             (88)
 Retained earnings                           40,709          35,365
  TOTAL SHAREHOLDERS' EQUITY                 66,962          61,050
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $581,208        $535,847

                       Statements of Income

                                    1st Quarter            4th Quarter
Periods Ended (in thousands,
 except per share data)         03-31-96  03-31-95    + or -  12-31-95
INTEREST INCOME:
 Loans, including fees           $6,350    $4,990    $ 1,360   $ 6,319
 Securities:
  Taxable                         3,318     3,560       (242)    3,337
  Non-taxable                       211       238        (27)      230
 Federal funds sold                 185       243        (58)      166
 Deposits in other banks            ---       ---        ---       ---
  TOTAL INTEREST INCOME          10,064     9,031      1,033    10,052
Interest expense - Deposits       4,079     3,185        894     4,089
  NET INTEREST INCOME             5,985     5,846        139     5,963
Provision for (recovery of) loan
 losses                            (300)     (250)       (50)     (250)
  NET INTEREST INCOME AFTER
   PROVISION FOR LOAN LOSSES      6,285     6,096        189     6,213
NON-INTEREST INCOME:
 Service charges and fee income     620       604         16       636
 Securities gains, net              ---        89        (89)      ---
 Other                               15        19         (4)       17
  TOTAL NON-INTEREST INCOME         635       712        (77)      653
NON-INTEREST EXPENSE:
 Salaries and employee benefits   1,823     1,886        (63)    1,811
 Net occupancy expense              551       520         31       563
 Other                            1,397     1,621       (224)    1,752
  TOTAL NON-INTEREST EXPENSE      3,771     4,027       (256)    4,126
Income before income taxes        3,149     2,781        368     2,740
Income Taxes                        999       860        139       870
NET INCOME                        2,150     1,921        229     1,870
Net Income Per Common Share       $0.36     $0.32      $0.04     $0.31

    (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