ArgentBank reports 1996 second quarter profits.

THIBODAUX, La.--(BUSINESS WIRE)--July 15, 1996--Today, ArgentBank (NASDAQ:ARGT) announced second quarter profits of $2.0 million, or $.35 per share, as compared to $2.2 million, or $.37 per share for the same period in 1995.

The decrease in profits is attributable to the recognition of security gains and a negative provision recorded in the prior year. Second quarter 1996 operating results reflect an increase in net interest income, in comparison to the same period in 1995.

The Bank's return on average assets at the end of the quarter was 1.47 percent, as compared to 1.57 percent for the same period ending June 30, 1995. The return on average equity for the first six months of 1996 was 12.62 percent, as compared to 13.79 percent for the same period in 1995. Total assets were $571.6 million at June 30, 1996, compared to $534.5 million at June 30, 1995, an increase of 6.94 percent.

Loans totaled $313.4 million at June 30, 1996, compared to $261.3 million a year earlier. This represents an increase of $52.1 million, or 19.94 percent. Commercial and real estate loans increased as the economy in all of the markets served by the Bank showed signs of improvement. The increase in loan volume was also due in part to the Indirect Loan Program, which totaled $31.7 million at June 30, 1996, compared to $14.6 million at June 30, 1995, an increase of $16.4 million. The Bank's loan-to-deposit ratio was 62.80 percent at June 30, 1996, as compared to 55.99 percent for June 30, 1995.

Net interest increased by $266 thousand, or 4.61 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 consumer and commercial loan demand.

Total non-interest income decreased by $124 thousand due mainly to a decrease in income recognized on sales of securities. A $53 thousand gain was recognized in the second quarter of 1996, in comparison to a $488 thousand gain recognized in the second quarter of the previous year, resulting in a $435 thousand decrease in income. This decrease was partially offset by $308 thousand of income recognized on the sale of Baton Rouge Branch's deposits and capital assets.

Non-interest expenses for the quarter ending June 30, 1996 increased by $153 thousand, as compared to the same period in 1995. The Bank's efficiency ratio, which measures the cost to generate revenue, was 56.65 percent at June 30, 1996, as compared to 60.42 at June 30, 1995.

Shareholders' equity as of June 30, 1996 amounted to $63.6 million, as compared to $63.3 million at June 30, 1995. The retirement of 109,296 shares of stock during the second quarter of 1996 resulted in a $2.2 million decrease in shareholders' equity. The shareholders'-equity-capital-to-total-assets ratio (excluding market fluctuations) as of June 30, 1996 was 11.44 percent, compared to 11.73 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 June 30, 1996 was 13.28 percent, as compared to 13.81 percent the prior year.

Cash dividends paid during the second 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 June 30, 1996, the allowance for loan losses was $10.6 million, as compared to $11.1 million at June 30, 1995. This represents a reserve-to-loan ratio of 3.37 percent, as compared to 4.25 percent at June 30, 1995. On June 30, 1996, non-performing loans totaled $231 thousand, or .07 percent of total loans outstanding, as compared to $382 thousand or .15 percent of total loans outstanding last year.

Total non-performing assets (including non-performing loans, restructured debt and repossessed assets) were $994 thousand at June 30, 1996, representing .17 percent of total assets, down from last year's total of $1.0 million, or .19 percent of total assets. As of June 30, 1996, ArgentBank had no other real estate owned. The Bank recorded a net recovery on loan losses for the first six months of 1996 totaling $316 thousand. The net charge-offs to loans ratio for the first six months of 1996 was a negative .11 percent. A $300 thousand negative provision was recorded in the first six months of 1996, and a $500 thousand negative provision was recorded in the first six months of 1995 due to favorable net charge-offs and a low level of non-performing assets.

Headquartered in Thibodaux, La., ArgentBank is traded on the NASDAQ Stock Market (symbol ARGT). At June 30, 1996, the Bank's stock reflected a market value of $18.50, as compared to $19.12 for the same period in 1995. Locally owned and managed, the Bank operates 16 full-service offices throughout Lafourche Parish, Terrebonne Parish, Assumption Parish, in New Orleans, with Loan Production Offices in Baton Rouge, Mandeville and in New Orleans. During the third quarter of 1996, the Bank plans to close the full service office in New Orleans. The Bank also plans to open two new full-service branches in Terrebonne Parish during the third quarter of 1996. -0-

                            ArgentBank
                        Statements of Condition

June 30, (in thousands except shares              (unaudited)
of stock)                                     1996            1995
ASSETS:
 Cash and due from banks                   $ 20,546        $ 22,543
 Federal funds sold                             550          10,150
  TOTAL CASH AND CASH EQUIVALENTS            21,096          32,693
Interest-bearing deposits in other banks        ---             ---
Securities
 Held-to-maturity securities (approximate
  market value of $65,568 and $117,219
  in 1996 and 1995, respectively)            66,026         117,376
 Available-for-sale securities (amortized
  cost of $163,579 and $116,742 in 1996
  and 1995, respectively)                   160,561         117,667
  TOTAL SECURITIES                          226,587         235,043
Loans, net of unearned discount             313,391         261,296
 Less: Allowance for loan losses            (10,569)        (11,117)
  LOANS, NET                                302,822         250,179
Accrued interest receivable                   4,467           3,527
Other real estate, net                          ---              19
Bank premises and equipment, net              9,371           7,961
Other assets                                  7,238           5,085
  TOTAL ASSETS                             $571,581        $534,507

LIABILITIES AND SHAREHOLDERS' EQUITY:
LIABILITIES:
 Deposits:
  Non-interest-bearing                     $ 68,979        $ 71,396
  Interest-bearing                          430,075         395,269
  TOTAL DEPOSITS                            499,054         466,665
 Federal funds purchased                      3,000             ---
 Accrued interest payable                     3,600           2,664
 Other liabilities                            2,329           1,875
  TOTAL LIABILITIES                         507,983         471,204
Commitments                                     ---             ---

SHAREHOLDERS' EQUITY:
 Common stock, $.10 par value: 10,000,000
  shares authorized, 5,866,168 shares
  outstanding in 1996, and 2,987,732
  shares outstanding in 1995                    587             299
 Capital surplus                             25,081          25,474
 Net unrealized gain (loss) on available-
  for-sale securities, net of tax            (1,992)            610
 Retained earnings                           39,922          36,920
  TOTAL SHAREHOLDERS' EQUITY                 63,598          63,303
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $571,581        $534,507

                       Statements of Income

                                    2nd Quarter         Y T D Results
Periods Ended (in thousands,
 except per share data)         06-30-96  06-30-95     1996      1995
INTEREST INCOME:
 Loans, including fees           $6,542    $5,469    $12,892   $10,459
 Securities:
  Taxable                         3,359     3,411      6,677     6,971
  Non-taxable                       200       236        411       474
 Federal funds sold                 154       244        339       487
 Deposits in other banks            ---       ---        ---       ---
  TOTAL INTEREST INCOME          10,255     9,360     20,319    18,391
Interest expense - Deposits       4,213     3,584      8,292     6,769
  NET INTEREST INCOME             6,042     5,776     12,027    11,622
Provision for (recovery of) loan
 losses                             ---      (250)      (300)     (500)
  NET INTEREST INCOME AFTER
   PROVISION FOR LOAN LOSSES      6,042     6,026     12,327    12,122
NON-INTEREST INCOME:
 Service charges and fee income     636       643      1,256     1,247
 Securities gains, net               53       488         53       577
 Other                              347        29        362        48
  TOTAL NON-INTEREST INCOME       1,036     1,160      1,671     1,872
NON-INTEREST EXPENSE:
 Salaries and employee benefits   1,892     1,824      3,715     3,710
 Net occupancy expense              578       509      1,129     1,029
 Other                            1,613     1,597      3,010     3,218
  TOTAL NON-INTEREST EXPENSE      4,083     3,930      7,854     7,957
Income before income taxes        2,995     3,256      6,144     6,037
Income Taxes                        953     1,044      1,952     1,904
NET INCOME                        2,042     2,212      4,192     4,133
Net Income Per Common Share       $0.35     $0.37      $0.70     $0.69

    (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