LAFAYETTE, La., July 27, 2016 /PRNewswire/ -- MidSouth Bancorp,
Inc. ("MidSouth") (NYSE:MSL) today reported quarterly net earnings
available to common shareholders of $1.7
million for the second quarter of 2016, compared to net
earnings available to common shareholders of $4.9 million reported for the second quarter of
2015 and $1.9 million in net earnings
available to common shareholders for the first quarter of
2016. Diluted earnings for the second quarter of 2016 were
$0.15 per common share, compared to
$0.42 per common share reported for
the second quarter of 2015 and $0.17
per common share reported for the first quarter of 2016. The
second quarter of 2015 included approximately $1.1 million of securities gains, or
approximately $0.06 per share after
tax.
C. R. Cloutier, President and
CEO, commenting on second quarter earnings remarked, "Our energy
portfolio continues to show signs of stabilizing. There were
no new energy-related impairments identified during the quarter and
our loss content since the beginning of this cycle in late 2014 has
been modest with cycle-to-date charge-offs of 1.08% of energy
loans. Furthermore, our commercial real estate loan
concentration is low at 148% of our risk based capital, well below
the regulatory guidance of 300%."
Cloutier added, "Given the current environment, we continue to
believe it is prudent to conserve capital and to delay our original
plans to repay our SBLF capital. During the quarter we
continued to build capital, and we remain well capitalized."
Energy Lending Update
MidSouth Bank defines an energy loan as any loan where the
borrower's ability to repay is disproportionately impacted by a
prolonged downturn in energy prices. Under this definition,
the Bank includes direct Commercial and Industrial (C&I) loans
to energy borrowers, as well as Commercial Real Estate (CRE) loans,
Residential Real Estate loans and loans to energy-related borrowers
where the loan's primary collateral is cash and marketable
securities. Although this definition has resulted in a lack
of comparability with some other energy-related banks, management
believes it to be the prudent approach to monitoring and managing
the Bank's energy exposure.
Other comments on the Bank's energy lending:
- Total energy loans, as defined above, decreased $2.7 million during 2Q16 to $249.8 million, or 19.8% of total loans, from
20.2% at March 31, 2016.
- Direct C&I energy loans were $200.5
million or 15.9% of total loans and had a weighted average
maturity of 3.7 years at June 30,
2016.
- Energy-related CRE and residential real estate loans were
$48.8 million or 3.9% of total loans
at June 30, 2016.
- Unfunded commitments on energy-related lines totaled
$79 million at June 30, 2016.
- Utilization rate on energy-related lines was 42.3% at
June 30, 2016, compared to 42.1% at
March 31, 2016.
- Nine energy loan relationships had rating changes during the
quarter.
- Seven loan relationships totaling $17.2
million were downgraded to Special Mention
- Two loan relationships totaling $5.1
million were downgraded to Substandard
- Total criticized energy-related loans increased $16.0 million during 2Q16 to $92.9 million and represented 37.2% of energy
loans at June 30, 2016, versus 30.4%
at March 31, 2016.
- Energy-related past due loans were $42.6
million, or 17.0%, with 11.7% of energy-related loans on
nonaccrual status at June 30,
2016.
- One energy-related charge-off totaled $400,000 during 2Q16 and YTD energy-related
charge-offs totaled $1.2 million, or
approximately 47 basis points of average energy loans.
- Cycle to date net charge-offs totaled $2.9 million, or 1.08% of December 31, 2014 energy loans, which was when
the effects of declining oil prices began to surface.
- No new energy-related impairments identified during 2Q16.
- The energy reserve as a percentage of total energy loans, as
defined, was 3.3% at June 30, 2016.
The reserve attributable to C&I energy loans was approximately
3.8%. The reserve on all other energy loans was 1.5%.
- One energy relationship totaling $8.5
million is the only Shared National Credit (SNC) in the
energy portfolio at June 30,
2016.
- The Bank has no reserve-based energy loans and therefore does
not conduct periodic borrowing base redeterminations associated
with reserve based loans.
- The Bank has determined its loan loss reserves using a
pre-defined methodology consistently applied, which takes into
account historical losses, migrations of credits using its internal
loan grading system and other qualitative factors.
- To date, during the month of July
2016, the Bank had 2 rating related changes to its energy
portfolio:
- One credit in the amount of $3.4
million was upgraded from Special Mention to Pass
- One credit in the amount of $941,000 was downgraded from Pass to Special
Mention
More information on our energy loan portfolio can be found on
our website at MidSouthBank.com under Investor
Relations/Presentations.
Balance Sheet
Total consolidated assets remained constant at $1.9 billion for the quarters ended June 30, 2016 and 2015 and December 31, 2015. Our stable core deposit
base, which excludes time deposits, totaled $1.4 billion at June 30,
2016 and March 31, 2016 and
accounted for 89.5% of deposits compared to 89.3% of deposits,
respectively. Net loans totaled $1.2
billion at June 30, 2016 and
March 31, 2016, compared to
$1.3 billion at June 30, 2015.
MidSouth's Tier 1 leverage capital ratio was 10.25% at
June 30, 2016, compared to 10.17% at
March 31, 2016. Tier 1
risk-based capital and total risk-based capital ratios were 13.14%
and 14.39% at June 30, 2016, compared
to 13.28% and 14.53% at March 31,
2016, respectively. Tier 1 common equity to total
risk-weighted assets at June 30, 2016
was 8.86%, compared to 8.90% at March
31, 2016. Tangible common equity totaled $129.5 million at June 30,
2016, compared to $127.1
million at March 31,
2016. Tangible book value per share at June 30, 2016 was $11.40 versus $11.19 at March 31,
2016.
Asset Quality
Nonperforming assets totaled $62.9
million at June 30, 2016, an
increase of $4.8 million compared to
$58.1 million reported at
March 31, 2016. The increase
resulted primarily from a $6.5
million energy-related credit that was placed on nonaccrual
status during the quarter, which was partially offset by a
$1.2 million decrease in other real
estate owned. Allowance coverage for nonperforming loans was
35.68% at June 30, 2016, compared to
37.70% at March 31, 2016. The
ALLL/total loans ratio was 1.69% at June 30,
2016 and 1.63% at March 31,
2016. Including valuation accounting adjustments on acquired
loans, the total valuation accounting adjustment plus ALLL was
1.92% of loans at June 30,
2016. The ratio of annualized net charge-offs to total loans
decreased to 0.40% for the three months ended June 30, 2016 compared to 0.47% for the three
months ended March 31, 2016.
Total nonperforming assets to total loans plus ORE and other
assets repossessed was 4.97% at June 30,
2016 compared to 4.64% at March
31, 2016. Loans classified as troubled debt
restructurings, accruing ("TDRs, accruing") decreased to
$154,000 at June 30, 2016 compared to $5.7 million at March
31, 2016. The $5.5
million decrease resulted from a single, energy-related
relationship that was placed on non-accrual status during the
second quarter of 2016. Classified assets, including ORE,
increased $2.6 million, or 2.8%, to
$95.5 million at June 30, 2016 compared to $92.9 million at March
31, 2016. The increase in classified assets during the
quarter ended June 30, 2016 is
primarily due to the downgrade of one energy-related credit
totaling $2.8 million.
Second Quarter 2016 vs. Second Quarter 2015 Earnings
Comparison
Second quarter 2016 net earnings available to common
shareholders totaled $1.7 million
compared to $4.9 million for the
second quarter of 2015. The second quarter of 2016 included
$20,000 of gain on sales of
securities, and the second quarter of 2015 included $1.1 million of gain on sales of securities and
$160,000 of income from a death
benefit on bank owned life insurance. Excluding these
non-operating revenues, revenues from consolidated operations
decreased $1.4 million in quarterly
comparison, from $24.2 million for
the three months ended June 30, 2015
to $22.8 million for the three months
ended June 30, 2016. Net
interest income decreased $1.4
million in quarterly comparison primarily due to a
$1.4 million decrease in interest
income earned on loans. Excluding non-operating income of
$20,000 for the second quarter of
2016 and $1.3 million for the second
quarter of 2015, noninterest income increased $4,000 in quarterly comparison.
Noninterest expenses increased $65,000 in quarterly comparison and consisted
primarily of a $99,000 increase in
ATM and debit card processing fees, an $89,000 increase in FDIC premiums and a
$54,000 increase in legal and
professional fees, which were partially offset by a $198,000 decrease in occupancy expense. The
provision for loan losses increased $1.2
million in quarterly comparison, from $1.1 million for the three months ended
June 30, 2015 to $2.3 million for the three months ended
June 30, 2016. Income tax
expense decreased $1.3 million in
quarterly comparison.
Dividends on the Series B Preferred Stock issued to the Treasury
as a result of our participation in the Small Business Lending Fund
("SBLF") totaled $720,000 for the
second quarter of 2016 based on a dividend rate of 9%. The
dividend rate increased to 9% on February
25, 2016. Dividends on the Series C Preferred Stock
issued with the December 28, 2012
acquisition of PSB Financial Corporation ("PSB") totaled
$91,000 for the three months ended
June 30, 2016.
Fully taxable-equivalent ("FTE") net interest income totaled
$18.2 million and $19.7 million for the quarters ended June 30, 2016 and 2015,
respectively. The FTE net interest income decreased
$1.5 million in prior year quarterly
comparison primarily due to a $1.4
million decrease in interest income on loans. Interest
income on loans decreased due to a $56.2
million decrease in the average balance of loans, as well a
decrease in the average yield on loans of 19 basis points, from
5.58% to 5.39%. The purchase accounting adjustments added 9
basis points to the average yield on loans for the second quarter
of 2016 and 19 basis points to the average yield on loans for the
second quarter of 2015. Excluding the impact of the purchase
accounting adjustments, average loan yields declined 9 basis points
in prior year quarterly comparison, from 5.39% to 5.30%. Loan
yields have declined primarily as the result of a sustained low
interest rate environment and a higher volume of loans on
nonaccrual status.
Investment securities totaled $427.7
million, or 22.2% of total assets at June 30, 2016, versus $426.9 million, or 21.9% of total assets at
June 30, 2015. The investment
portfolio had an effective duration of 2.9 years and a net
unrealized gain of $5.6 million at
June 30, 2016. The average
volume of investment securities decreased $11.1 million in prior year quarterly
comparison. The average tax equivalent yield on investment
securities decreased 5 basis points, from 2.57% to 2.52%.
The average yield on all earning assets decreased 20 basis
points in prior year quarterly comparison, from 4.69% for the
second quarter of 2015 to 4.49% for the second quarter of 2016.
Excluding the impact of purchase accounting adjustments, the
average yield on total earning assets decreased 12 basis points,
from 4.55% to 4.43% for the three month periods ended June 30, 2015 and 2016, respectively.
Interest expense decreased $20,000
in prior year quarterly comparison. Decreases in interest
expenses included an $18,000 decrease
in interest expense on deposits, a $13,000 increase in short-term FHLB advances and
a $9,000 decrease in securities sold
under agreements to repurchase. These decreases were
partially offset by a $19,000
increase in interest expense on junior subordinated
debentures. Excluding purchase accounting adjustments on
acquired certificates of deposit and FHLB borrowings, the average
rate paid on interest-bearing liabilities was 0.46% for the three
months ended June 30, 2016 and
2015.
As a result of these changes in volume and yield on earning
assets and interest-bearing liabilities, the FTE net interest
margin decreased 21 basis points, from 4.38% for the second quarter
of 2015 to 4.17% for the second quarter of 2016. Excluding
purchase accounting adjustments on loans, deposits and FHLB
borrowings, the FTE margin decreased 13 basis points, from 4.21%
for the second quarter of 2015 to 4.08% for the second quarter of
2016.
Second Quarter 2016 vs. First Quarter 2016 Earnings
Comparison
In sequential-quarter comparison, net earnings available to
common shareholders decreased $240,000, from $1.9
million for the three months ended March 31, 2016 to $1.7
million for the three months ended June 30, 2016. Net interest income
decreased $393,000 in
sequential-quarter comparison, primarily due to a $222,000 decrease in purchase accounting
adjustments on acquired loans and a $134,000 reduction in interest income on
investment securities. The second quarter of 2016 included
$20,000 of gain on sales of
securities. Excluding this noninterest income, noninterest
income increased $366,000 in
sequential-quarter comparison and consisted primarily of increase
of $165,000 of safe deposit box
income, $78,000 of services charges
on deposit accounts and $59,000 of
ATM and debit card income.
Noninterest expense increased $282,000 in sequential-quarter comparison.
The increase in noninterest expense consisted primarily of
increases of $192,000 in salaries and
benefits costs, $84,000 in
corporate development expense, $70,000 in occupancy expense and $53,000 in legal and professional fees, which
were partially offset by a $158,000
decrease in net expenses on ORE. The provision for loan
losses decreased $500,000 in
sequential-quarter comparison.
An increase in the dividend rate paid on the Series B Preferred
Stock issued in connection with SBLF resulted in a $384,000 increase in dividends on preferred stock
in sequential-quarter comparison.
FTE net interest income decreased $413,000 in sequential-quarter comparison
primarily due to a $285,000 decrease
in interest income on loans. The decrease in interest income
on loans resulted from a decrease in the average yield on loans of
11 basis points, from 5.50% for the first quarter of 2016 to 5.39%
for the second quarter of 2016. The average volume of loans
increased $3.4 million in
sequential-quarter comparison. Excluding purchase accounting
adjustments, the loan yield increased 4 basis points, from 5.26% to
5.30% during the same period. The average yield on total
earning assets decreased 8 basis points for the same period, from
4.57% to 4.49%, respectively. As a result of these changes in
volume and yield on earning assets, the FTE net interest margin
decreased 7 basis points, from 4.24% to 4.17%. Excluding
purchase accounting adjustments, the FTE net interest margin
decreased 3 basis points, from 4.11% for the first quarter of 2016
to 4.08% for the second quarter of 2016.
Year-To-Date Earnings Comparison
In year-to-date comparison, net earnings available to common
shareholders decreased $2.6 million,
from $6.2 million at June 30, 2015 to $3.6
million at June 30,
2016. The first six months of 2016 included $20,000 in gain on sales of securities. The
first six months of 2015 included $1.2
million in gain on sales of securities and $160,000 of income from a death benefit on bank
owned life insurance. Excluding these non-operating revenues,
net earnings available to common shareholders decreased
$1.3 million in year-to-date
comparison. The $1.3 million
decrease in operating earnings in year-to-date comparison resulted
primarily from a $2.3 million
decrease in net interest income. A decrease of $235,000 in operating noninterest income, an
increase of $663,000 of noninterest
expense and an increase of $893,000
in dividends on preferred stock also contributed to the decrease in
operating earnings. These were partially offset by a
$2.0 million decrease in the
provision for loan losses and a $796,000
million decrease in income tax expense.
Excluding non-operating income, decreases in noninterest income
consisted primarily of $66,000 in
mortgage banking fees and $88,000 in
letter of credit income. Increases in noninterest expense
primarily included $221,000 in ATM
and debit card processing fees, $237,000 in FDIC premiums, $92,000 in legal and professional fees and
$132,000 in net expenses on ORE.
In year-to-date comparison, FTE net interest income decreased
$2.4 million primarily due to a
$2.4 million decrease in interest
income on loans. The average volume of loans decreased
$50.9 million in year-over-year
comparison, and the average yield on loans decreased 17 basis
points, from 5.61% to 5.44%. The average volume of investment
securities decreased $1.4 million in
year-over-year comparison, and the average yield on investment
securities decreased 9 basis points for the same period. The
average yield on earning assets decreased in year-over-year
comparison, from 4.73% at June 30,
2015 to 4.53% at June 30,
2016. The purchase accounting adjustments added 16 basis
points to the average yield on loans for the six months ended
June 30, 2015 and 12 basis points for
the six months ended June 30,
2016. Net of purchase accounting adjustments, the average
yield on earning assets decreased 17 basis points, from 4.61% at
June 30, 2015 to 4.44% at
June 30, 2016.
Interest expense decreased $24,000
in year-over-year comparison. A $58,000 decrease in interest expense on deposits
was partially offset by a $36,000
increase in interest expense on junior subordinated
debentures. The average rate paid on interest-bearing
liabilities remained unchanged at 0.43% for the six months ended
June 30, 2016 and 2015. Net of
purchase accounting adjustments, the average rate paid on
interest-bearing liabilities remained unchanged at 0.46% for the
same period. The FTE net interest margin decreased 20 basis
points, from 4.41% for the six months ended June 30, 2015 to 4.21% for the six months ended
June 30, 2016. Net of purchase
accounting adjustments, the FTE net interest margin decreased 18
basis points, from 4.27% to 4.09% for the six months ended
June 30, 2015 and 2016, respectively,
primarily due to a decline in the average rate earned on loans.
Dividends
MidSouth's Board of Directors announced a cash dividend was
declared in the amount of $0.09 per
share to be paid on its common stock on October 3, 2016 to shareholders of record as of
the close of business on September
15, 2016. Additionally, a quarterly cash dividend of
1.00% per preferred share on its 4.00% Non-Cumulative Perpetual
Convertible Preferred Stock, Series C was declared payable on
October 17, 2016 to shareholders of
record as of the close of business on October 3, 2016.
About MidSouth Bancorp, Inc.
MidSouth Bancorp, Inc. is a financial holding company
headquartered in Lafayette,
Louisiana, with assets of $1.9
billion as of June 30, 2016.
MidSouth Bancorp, Inc. trades on the NYSE under the symbol "MSL."
Through its wholly owned subsidiary, MidSouth Bank, N.A., MidSouth
offers a full range of banking services to commercial and retail
customers in Louisiana and
Texas. MidSouth Bank currently has
57 locations in Louisiana and
Texas and is connected to a
worldwide ATM network that provides customers with access to more
than 55,000 surcharge-free ATMs. Additional corporate information
is available at MidSouthBank.com.
Forward-Looking Statements
Certain statements contained herein are forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934 and
subject to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, which involve risks and
uncertainties. These statements include, among others, the
expected loan loss provision and future operating results.
Actual results may differ materially from the results anticipated
in these forward-looking statements. Factors that might cause
such a difference include, among other matters, changes in interest
rates and market prices that could affect the net interest margin,
asset valuation, and expense levels; changes in local economic and
business conditions, including, without limitation, changes related
to the oil and gas industries, that could adversely affect
customers and their ability to repay borrowings under agreed upon
terms, adversely affect the value of the underlying collateral
related to their borrowings, and reduce demand for loans; the
timing and ability to reach any agreement to restructure nonaccrual
loans; increased competition for deposits and loans which
could affect compositions, rates and terms; the timing and impact
of future acquisitions, the success or failure of integrating
operations, and the ability to capitalize on growth opportunities
upon entering new markets; loss of critical personnel and the
challenge of hiring qualified personnel at reasonable compensation
levels; legislative and regulatory changes, including changes in
banking, securities and tax laws and regulations and their
application by our regulators, changes in the scope and cost of
FDIC insurance and other coverage; and other factors discussed
under the heading "Risk Factors" in MidSouth's Annual Report on
Form 10-K for the year ended December 31,
2015 filed with the SEC on March 15,
2016 and in its other filings with the SEC. MidSouth
does not undertake any obligation to publicly update or revise any
of these forward-looking statements, whether to reflect new
information, future events or otherwise, except as required by
law.
|
MIDSOUTH BANCORP,
INC. and
SUBSIDIARIES
|
Condensed
Consolidated Financial Information
(unaudited)
|
(in thousands
except per share
data)
|
|
|
|
|
|
|
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
|
Ended
|
|
Ended
|
|
Ended
|
|
Ended
|
|
Ended
|
EARNINGS
DATA
|
|
6/30/2016
|
|
3/31/2016
|
|
12/31/2015
|
|
9/30/2015
|
|
6/30/2015
|
Total interest
income
|
|
$
19,388
|
|
$
19,804
|
|
$
19,886
|
|
$
20,532
|
|
$
20,798
|
Total interest
expense
|
|
1,397
|
|
1,420
|
|
1,349
|
|
1,391
|
|
1,417
|
Net interest income
|
|
17,991
|
|
18,384
|
|
18,537
|
|
19,141
|
|
19,381
|
FTE net interest
income
|
|
18,212
|
|
18,625
|
|
18,806
|
|
19,423
|
|
19,676
|
Provision for loan
losses
|
|
2,300
|
|
2,800
|
|
3,000
|
|
3,800
|
|
1,100
|
Non-interest
income
|
|
4,873
|
|
4,487
|
|
4,575
|
|
4,768
|
|
6,137
|
Non-interest
expense
|
|
17,041
|
|
16,759
|
|
17,508
|
|
16,492
|
|
16,976
|
Earnings
before income taxes
|
|
3,523
|
|
3,312
|
|
2,604
|
|
3,617
|
|
7,442
|
Income tax
expense
|
|
1,030
|
|
963
|
|
766
|
|
1,028
|
|
2,343
|
Net
earnings
|
|
2,493
|
|
2,349
|
|
1,838
|
|
2,589
|
|
5,099
|
Dividends on preferred
stock
|
|
811
|
|
427
|
|
171
|
|
172
|
|
172
|
Net earnings available to common shareholders
|
|
$
1,682
|
|
$
1,922
|
|
$
1,667
|
|
$
2,417
|
|
$
4,927
|
|
|
|
|
|
|
|
|
|
|
|
PER COMMON SHARE
DATA
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
0.15
|
|
$
0.17
|
|
$
0.15
|
|
$
0.21
|
|
$
0.43
|
Diluted earnings per
share
|
|
0.15
|
|
0.17
|
|
0.15
|
|
0.21
|
|
0.42
|
Diluted earnings per share,
operating (Non-GAAP)(*)
|
|
0.15
|
|
0.17
|
|
0.15
|
|
0.21
|
|
0.35
|
Quarterly dividends per
share
|
|
0.09
|
|
0.09
|
|
0.09
|
|
0.09
|
|
0.09
|
Book value at end of
period
|
|
15.56
|
|
15.38
|
|
15.14
|
|
15.21
|
|
15.04
|
Tangible book value at
period end (Non-GAAP)(*)
|
|
11.40
|
|
11.19
|
|
10.92
|
|
10.97
|
|
10.78
|
Market price at end of
period
|
|
10.04
|
|
7.63
|
|
9.08
|
|
11.70
|
|
15.26
|
Shares outstanding at period
end
|
|
11,362,705
|
|
11,362,150
|
|
11,362,150
|
|
11,361,839
|
|
11,359,396
|
Weighted average shares
outstanding
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
11,255,042
|
|
11,261,644
|
|
11,281,286
|
|
11,311,841
|
|
11,323,506
|
Diluted
|
|
11,255,178
|
|
11,261,644
|
|
11,281,286
|
|
11,830,540
|
|
11,849,683
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEET DATA
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
1,921,004
|
|
$
1,931,904
|
|
$
1,938,235
|
|
$
1,949,352
|
|
$
1,976,574
|
Loans and leases
|
|
1,256,133
|
|
1,252,742
|
|
1,271,106
|
|
1,285,991
|
|
1,312,359
|
Total deposits
|
|
1,562,680
|
|
1,552,217
|
|
1,557,272
|
|
1,559,308
|
|
1,593,318
|
Total common
equity
|
|
175,994
|
|
175,479
|
|
173,950
|
|
173,466
|
|
170,885
|
Total tangible common equity
(Non-GAAP)(*)
|
|
128,516
|
|
127,722
|
|
125,919
|
|
125,156
|
|
122,299
|
Total
equity
|
|
217,112
|
|
216,599
|
|
215,072
|
|
214,623
|
|
212,112
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED
RATIOS
|
|
|
|
|
|
|
|
|
|
|
Annualized return on average
assets, operating (Non-GAAP)(*)
|
|
0.35%
|
|
0.40%
|
|
0.34%
|
|
0.49%
|
|
0.82%
|
Annualized return on average
common equity, operating (Non-GAAP)(*)
|
|
3.81%
|
|
4.41%
|
|
3.80%
|
|
5.53%
|
|
9.47%
|
Annualized return on average
tangible common equity, operating
(Non-GAAP)(*)
|
|
5.22%
|
|
6.05%
|
|
5.25%
|
|
7.66%
|
|
13.23%
|
Pre-tax, pre-provision
annualized return on average assets, operating
(Non-GAAP)(*)
|
|
1.21%
|
|
1.27%
|
|
1.15%
|
|
1.51%
|
|
1.47%
|
Efficiency ratio, operating
(Non-GAAP)(*)
|
|
74.49%
|
|
73.28%
|
|
75.69%
|
|
68.65%
|
|
69.89%
|
Average loans to average
deposits
|
|
80.38%
|
|
80.71%
|
|
81.62%
|
|
82.47%
|
|
82.37%
|
Taxable-equivalent net
interest margin
|
|
4.17%
|
|
4.24%
|
|
4.22%
|
|
4.34%
|
|
4.38%
|
Tier 1 leverage capital
ratio
|
|
10.25%
|
|
10.17%
|
|
10.10%
|
|
9.98%
|
|
9.79%
|
|
|
|
|
|
|
|
|
|
|
|
CREDIT
QUALITY
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan and lease
losses (ALLL) as a % of total loans
|
|
1.69%
|
|
1.63%
|
|
1.50%
|
|
1.46%
|
|
1.24%
|
Nonperforming assets to
tangible equity + ALLL
|
|
32.77%
|
|
30.83%
|
|
29.54%
|
|
30.51%
|
|
16.18%
|
Nonperforming assets to
total loans, other real estate
|
|
|
|
|
|
|
|
|
|
|
owned and other repossessed assets
|
|
4.97%
|
|
4.64%
|
|
4.29%
|
|
4.32%
|
|
2.24%
|
Annualized QTD net
charge-offs to total loans
|
|
0.40%
|
|
0.47%
|
|
0.92%
|
|
0.28%
|
|
0.34%
|
|
|
|
|
|
|
|
|
|
|
|
(*)See
reconciliation of Non-GAAP financial measures on pages
8-10.
|
|
MIDSOUTH BANCORP,
INC. and
SUBSIDIARIES
|
Condensed
Consolidated Balance Sheets
(unaudited)
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE
SHEET
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
98,535
|
|
$
112,410
|
|
$
89,201
|
|
$
125,437
|
|
$
82,636
|
Securities
available-for-sale
|
|
318,239
|
|
302,151
|
|
318,159
|
|
285,485
|
|
300,335
|
Securities
held-to-maturity
|
|
109,420
|
|
113,623
|
|
116,792
|
|
121,043
|
|
126,529
|
Total investment
securities
|
|
427,659
|
|
415,774
|
|
434,951
|
|
406,528
|
|
426,864
|
Other
investments
|
|
11,036
|
|
11,195
|
|
11,188
|
|
12,063
|
|
10,598
|
Total
loans
|
|
1,262,389
|
|
1,250,049
|
|
1,263,645
|
|
1,301,452
|
|
1,294,392
|
Allowance for loan
losses
|
|
(21,378)
|
|
(20,347)
|
|
(19,011)
|
|
(18,939)
|
|
(16,048)
|
Loans, net
|
|
1,241,011
|
|
1,229,702
|
|
1,244,634
|
|
1,282,513
|
|
1,278,344
|
Premises and
equipment
|
|
68,468
|
|
68,482
|
|
69,105
|
|
68,718
|
|
69,263
|
Goodwill and other
intangibles
|
|
47,346
|
|
47,622
|
|
47,899
|
|
48,175
|
|
48,452
|
Other
assets
|
|
28,469
|
|
31,366
|
|
30,755
|
|
30,874
|
|
32,627
|
Total assets
|
|
$
1,922,524
|
|
$
1,916,551
|
|
$
1,927,733
|
|
$
1,974,308
|
|
$
1,948,784
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing
deposits
|
|
$
383,797
|
|
$
383,684
|
|
$
374,261
|
|
$
406,118
|
|
$
408,742
|
Interest-bearing
deposits
|
|
1,176,269
|
|
1,174,519
|
|
1,176,589
|
|
1,137,303
|
|
1,149,508
|
Total deposits
|
|
1,560,066
|
|
1,558,203
|
|
1,550,850
|
|
1,543,421
|
|
1,558,250
|
Securities sold under
agreements to
|
|
|
|
|
|
|
|
|
|
|
repurchase
|
|
85,786
|
|
87,879
|
|
85,957
|
|
92,085
|
|
84,547
|
Short-term FHLB
advances
|
|
-
|
|
-
|
|
25,000
|
|
70,000
|
|
40,000
|
Long-term FHLB
advances
|
|
25,638
|
|
25,744
|
|
25,851
|
|
25,958
|
|
26,064
|
Junior subordinated
debentures
|
|
22,167
|
|
22,167
|
|
22,167
|
|
22,167
|
|
22,167
|
Other
liabilities
|
|
10,926
|
|
6,704
|
|
4,771
|
|
6,713
|
|
5,720
|
Total
liabilities
|
|
1,704,583
|
|
1,700,697
|
|
1,714,596
|
|
1,760,344
|
|
1,736,748
|
Total shareholders'
equity
|
|
217,941
|
|
215,854
|
|
213,137
|
|
213,964
|
|
212,036
|
Total liabilities and
shareholders' equity
|
|
$
1,922,524
|
|
$
1,916,551
|
|
$
1,927,733
|
|
$
1,974,308
|
|
$
1,948,784
|
|
|
|
MIDSOUTH BANCORP,
INC. and
SUBSIDIARIES
|
Condensed
Consolidated Income Statements
(unaudited)
|
(in thousands
except per share
data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent
Change
|
|
|
|
|
|
|
EARNINGS
STATEMENT
|
|
Three Months
Ended
|
|
2Q16 vs.
1Q16
|
|
2Q16 vs.
2Q15
|
|
Six Months
Ended
|
|
Percent
|
|
|
6/30/2016
|
|
3/31/2016
|
|
6/30/2015
|
|
|
|
6/30/2016
|
|
6/30/2015
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including
fees
|
|
$ 16,598
|
|
$ 16,661
|
|
$ 17,709
|
|
-0.4%
|
|
-6.3%
|
|
$ 33,259
|
|
$ 35,426
|
|
-6.1%
|
Investment
securities
|
|
2,360
|
|
2,494
|
|
2,412
|
|
-5.4%
|
|
-2.2%
|
|
4,854
|
|
4,921
|
|
-1.4%
|
Accretion of purchase
accounting adjustments
|
|
240
|
|
462
|
|
559
|
|
-48.1%
|
|
-57.1%
|
|
702
|
|
896
|
|
-21.7%
|
Other interest
income
|
|
190
|
|
187
|
|
118
|
|
1.6%
|
|
61.0%
|
|
377
|
|
236
|
|
59.7%
|
Total interest
income
|
|
19,388
|
|
19,804
|
|
20,798
|
|
-2.1%
|
|
-6.8%
|
|
39,192
|
|
41,479
|
|
-5.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
914
|
|
920
|
|
949
|
|
-0.7%
|
|
-3.7%
|
|
1,834
|
|
1,933
|
|
-5.1%
|
Borrowings
|
|
414
|
|
436
|
|
436
|
|
-5.0%
|
|
-5.0%
|
|
850
|
|
854
|
|
-0.5%
|
Junior subordinated
debentures
|
|
170
|
|
167
|
|
151
|
|
1.8%
|
|
12.6%
|
|
337
|
|
301
|
|
12.0%
|
Accretion of purchase
accounting adjustments
|
|
(101)
|
|
(103)
|
|
(119)
|
|
-1.9%
|
|
-15.1%
|
|
(204)
|
|
(247)
|
|
-17.4%
|
Total interest
expense
|
|
1,397
|
|
1,420
|
|
1,417
|
|
-1.6%
|
|
-1.4%
|
|
2,817
|
|
2,841
|
|
-0.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
17,991
|
|
18,384
|
|
19,381
|
|
-2.1%
|
|
-7.2%
|
|
36,375
|
|
38,638
|
|
-5.9%
|
Provision for loan
losses
|
|
2,300
|
|
2,800
|
|
1,100
|
|
-17.9%
|
|
109.1%
|
|
5,100
|
|
7,100
|
|
-28.2%
|
Net interest income
after provision for loan losses
|
|
15,691
|
|
15,584
|
|
18,281
|
|
0.7%
|
|
-14.2%
|
|
31,275
|
|
31,538
|
|
-0.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges
on deposit accounts
|
|
2,391
|
|
2,313
|
|
2,347
|
|
3.4%
|
|
1.9%
|
|
4,704
|
|
4,679
|
|
0.5%
|
ATM and debit card
income
|
|
1,668
|
|
1,609
|
|
1,655
|
|
3.7%
|
|
0.8%
|
|
3,277
|
|
3,284
|
|
-0.2%
|
Gain on securities,
net (non-operating)(*)
|
|
20
|
|
-
|
|
1,128
|
|
-
|
|
-98.2%
|
|
20
|
|
1,243
|
|
-98.4%
|
Mortgage
lending
|
|
123
|
|
109
|
|
145
|
|
12.8%
|
|
-15.2%
|
|
232
|
|
298
|
|
-22.1%
|
Income from death
benefit on BOLI (non-operating)(*)
|
|
-
|
|
-
|
|
160
|
|
-
|
|
-100.0%
|
|
0
|
|
160
|
|
-100.0%
|
Other charges and
fees
|
|
671
|
|
456
|
|
702
|
|
47.1%
|
|
-4.4%
|
|
1,127
|
|
1,314
|
|
-14.2%
|
Total non-interest
income
|
|
4,873
|
|
4,487
|
|
6,137
|
|
8.6%
|
|
-20.6%
|
|
9,360
|
|
10,978
|
|
-14.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
employee benefits
|
|
8,182
|
|
7,990
|
|
8,197
|
|
2.4%
|
|
-0.2%
|
|
16,172
|
|
16,139
|
|
0.2%
|
Occupancy
expense
|
|
3,667
|
|
3,597
|
|
3,865
|
|
1.9%
|
|
-5.1%
|
|
7,264
|
|
7,550
|
|
-3.8%
|
ATM and debit
card
|
|
792
|
|
785
|
|
693
|
|
0.9%
|
|
14.3%
|
|
1,577
|
|
1,356
|
|
16.3%
|
Legal and
professional fees
|
|
436
|
|
383
|
|
382
|
|
13.8%
|
|
14.1%
|
|
819
|
|
727
|
|
12.7%
|
FDIC
premiums
|
|
420
|
|
429
|
|
331
|
|
-2.1%
|
|
26.9%
|
|
849
|
|
612
|
|
38.7%
|
Marketing
|
|
351
|
|
381
|
|
417
|
|
-7.9%
|
|
-15.8%
|
|
732
|
|
704
|
|
4.0%
|
Corporate
development
|
|
419
|
|
335
|
|
387
|
|
25.1%
|
|
8.3%
|
|
754
|
|
707
|
|
6.6%
|
Data
processing
|
|
478
|
|
458
|
|
467
|
|
4.4%
|
|
2.4%
|
|
936
|
|
924
|
|
1.3%
|
Printing and
supplies
|
|
223
|
|
188
|
|
255
|
|
18.6%
|
|
-12.5%
|
|
411
|
|
480
|
|
-14.4%
|
Expenses on ORE,
net
|
|
36
|
|
194
|
|
85
|
|
-81.4%
|
|
-57.6%
|
|
230
|
|
98
|
|
134.7%
|
Amortization of core
deposit intangibles
|
|
276
|
|
277
|
|
276
|
|
-0.4%
|
|
0.0%
|
|
553
|
|
553
|
|
0.0%
|
Other non-interest
expense
|
|
1,761
|
|
1,742
|
|
1,621
|
|
1.1%
|
|
8.6%
|
|
3,503
|
|
3,287
|
|
6.6%
|
Total non-interest
expense
|
|
17,041
|
|
16,759
|
|
16,976
|
|
1.7%
|
|
0.4%
|
|
33,800
|
|
33,137
|
|
2.0%
|
Earnings before
income taxes
|
|
3,523
|
|
3,312
|
|
7,442
|
|
6.4%
|
|
-52.7%
|
|
6,835
|
|
9,379
|
|
-27.1%
|
Income tax
expense
|
|
1,030
|
|
963
|
|
2,343
|
|
7.0%
|
|
-56.0%
|
|
1,993
|
|
2,789
|
|
-28.5%
|
Net
earnings
|
|
2,493
|
|
2,349
|
|
5,099
|
|
6.1%
|
|
-51.1%
|
|
4,842
|
|
6,590
|
|
-26.5%
|
Dividends on
preferred stock
|
|
811
|
|
427
|
|
172
|
|
89.9%
|
|
371.5%
|
|
1,238
|
|
345
|
|
258.8%
|
Net earnings
available to common shareholders
|
|
$
1,682
|
|
$
1,922
|
|
$
4,927
|
|
-12.5%
|
|
-65.9%
|
|
$
3,604
|
|
$
6,245
|
|
-42.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share, diluted
|
|
$
0.15
|
|
$
0.17
|
|
$
0.42
|
|
-11.8%
|
|
-64.3%
|
|
$
0.32
|
|
$
0.54
|
|
-40.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings
per common share, diluted (Non-GAAP)(*)
|
|
$
0.15
|
|
$
0.17
|
|
$
0.35
|
|
-11.8%
|
|
-57.1%
|
|
$
0.32
|
|
$
0.46
|
|
-30.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)See
reconciliation of Non-GAAP financial measures on page
8-10.
|
|
MIDSOUTH BANCORP,
INC. and
SUBSIDIARIES
|
Composition of
Loans and Deposits and Asset Quality Data
(unaudited)
|
(in
thousands)
|
|
|
|
|
|
COMPOSITION OF
LOANS
|
|
June
30,
|
|
March
31,
|
|
Jun 16 vs Mar 16 %
Change
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
Jun 16 vs Jun 15 %
Change
|
|
|
2016
|
|
2016
|
|
|
2015
|
|
2015
|
|
2015
|
|
|
Commercial,
financial, and agricultural
|
|
$
456,264
|
|
$
441,160
|
|
3.4%
|
|
$
454,028
|
|
$
482,452
|
|
$
471,397
|
|
-3.2%
|
|
Lease financing
receivable
|
|
1,641
|
|
1,590
|
|
3.2%
|
|
1,968
|
|
4,790
|
|
5,561
|
|
-70.5%
|
|
Real estate -
construction
|
|
96,331
|
|
84,790
|
|
13.6%
|
|
74,952
|
|
74,279
|
|
79,176
|
|
21.7%
|
|
Real estate -
commercial
|
|
463,142
|
|
467,648
|
|
-1.0%
|
|
471,141
|
|
473,319
|
|
469,022
|
|
-1.3%
|
|
Real estate -
residential
|
|
148,379
|
|
149,961
|
|
-1.1%
|
|
149,064
|
|
151,667
|
|
153,820
|
|
-3.5%
|
|
Installment loans to
individuals
|
|
94,522
|
|
103,181
|
|
-8.4%
|
|
111,009
|
|
113,199
|
|
113,626
|
|
-16.8%
|
|
Other
|
|
2,110
|
|
1,719
|
|
22.7%
|
|
1,483
|
|
1,746
|
|
1,790
|
|
17.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
loans
|
|
$1,262,389
|
|
$1,250,049
|
|
1.0%
|
|
$
1,263,645
|
|
$
1,301,452
|
|
$1,294,392
|
|
-2.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPOSITION OF
DEPOSITS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
March
31,
|
|
Jun 16 vs Mar 16 %
Change
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
Jun 16 vs Jun 15 %
Change
|
|
|
|
2016
|
|
2016
|
|
|
2015
|
|
2015
|
|
2015
|
|
|
Noninterest
bearing
|
|
$
383,798
|
|
$
383,684
|
|
0.0%
|
|
$
374,261
|
|
$
406,118
|
|
$
408,742
|
|
-6.1%
|
|
NOW &
other
|
|
467,987
|
|
472,309
|
|
-0.9%
|
|
475,346
|
|
448,938
|
|
458,338
|
|
2.1%
|
|
Money
market/savings
|
|
544,256
|
|
534,854
|
|
1.8%
|
|
531,449
|
|
468,297
|
|
453,902
|
|
19.9%
|
|
Time deposits of less
than $100,000
|
|
80,158
|
|
80,802
|
|
-0.8%
|
|
81,638
|
|
85,589
|
|
90,348
|
|
-11.3%
|
|
Time deposits of
$100,000 or more
|
|
83,867
|
|
86,554
|
|
-3.1%
|
|
88,156
|
|
134,479
|
|
146,920
|
|
-42.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
deposits
|
|
$1,560,066
|
|
$1,558,203
|
|
0.1%
|
|
$
1,550,850
|
|
$
1,543,421
|
|
$1,558,250
|
|
0.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
March
31,
|
|
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
|
|
|
|
2016
|
|
2016
|
|
|
2015
|
|
2015
|
|
2015
|
|
|
|
Nonaccrual
loans
|
|
$
59,865
|
|
$
53,714
|
|
|
|
$
50,051
|
|
$
51,616
|
|
$
23,873
|
|
|
|
Loans past due
90 days and over
|
|
56
|
|
258
|
|
|
|
147
|
|
82
|
|
609
|
|
|
|
Total nonperforming
loans
|
|
59,921
|
|
53,972
|
|
|
|
50,198
|
|
51,698
|
|
24,482
|
|
|
|
Other real
estate
|
|
2,735
|
|
3,908
|
|
|
|
4,187
|
|
4,661
|
|
4,542
|
|
|
|
Other repossessed
assets
|
|
263
|
|
265
|
|
|
|
38
|
|
-
|
|
38
|
|
|
|
Total nonperforming
assets
|
|
$
62,919
|
|
$
58,145
|
|
|
|
$
54,423
|
|
$
56,359
|
|
$
29,062
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Troubled debt
restructurings, accruing
|
|
$
154
|
|
$
5,675
|
|
|
|
$
164
|
|
$
168
|
|
$
21,529
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets
to total assets
|
|
3.27%
|
|
3.03%
|
|
|
|
2.82%
|
|
2.85%
|
|
1.49%
|
|
|
|
Nonperforming assets
to total loans +
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORE +
other repossessed assets
|
|
4.97%
|
|
4.64%
|
|
|
|
4.29%
|
|
4.32%
|
|
2.24%
|
|
|
|
ALLL to nonperforming
loans
|
|
35.68%
|
|
37.70%
|
|
|
|
37.87%
|
|
36.63%
|
|
65.55%
|
|
|
|
ALLL to total
loans
|
|
1.69%
|
|
1.63%
|
|
|
|
1.50%
|
|
1.46%
|
|
1.24%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter-to-date
charge-offs
|
|
$
1,425
|
|
$
1,594
|
|
|
|
$
3,091
|
|
$
1,000
|
|
$
1,151
|
|
|
|
Quarter-to-date
recoveries
|
|
156
|
|
130
|
|
|
|
163
|
|
91
|
|
39
|
|
|
|
Quarter-to-date net
charge-offs
|
|
$
1,269
|
|
$
1,464
|
|
|
|
$
2,928
|
|
$
909
|
|
$
1,112
|
|
|
|
Annualized QTD net
charge-offs to total loans
|
|
0.40%
|
|
0.47%
|
|
|
|
0.92%
|
|
0.28%
|
|
0.34%
|
|
|
|
|
|
|
|
|
|
|
MIDSOUTH BANCORP,
INC. and
SUBSIDIARIES
|
Loan Portfolio -
Quarterly Roll Forward (unaudited)
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
|
2016
|
|
2016
|
|
2015
|
LOAN
ACTIVITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
originated
|
|
$
92,444
|
|
$
74,797
|
|
$
82,439
|
Repayments
|
|
(65,381)
|
|
(60,252)
|
|
(73,319)
|
Increases on
renewals
|
|
3,465
|
|
2,307
|
|
1,631
|
Change in lines of
credit
|
|
(18,586)
|
|
(30,920)
|
|
(28,373)
|
Change in allowance
for loan losses
|
|
(1,031)
|
|
(1,336)
|
|
12
|
Other
|
|
398
|
|
473
|
|
1,085
|
Net change in
loans
|
|
$
11,309
|
|
$
(14,931)
|
|
$
(16,525)
|
|
MIDSOUTH BANCORP,
INC. and
SUBSIDIARIES
|
Tangible Common
Equity to Tangible Assets and Regulatory Ratios
(unaudited)
|
(in
thousands)
|
|
|
COMPUTATION OF
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS
|
|
|
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
2016
|
|
2015
|
|
Total
equity
|
|
$
217,941
|
|
$
212,036
|
|
Less preferred
equity
|
|
41,110
|
|
41,170
|
|
Total common
equity
|
|
176,831
|
|
170,866
|
|
Less
goodwill
|
|
42,171
|
|
42,171
|
|
Less
intangibles
|
|
5,175
|
|
6,281
|
|
Tangible common
equity
|
|
$
129,485
|
|
$
122,414
|
|
|
|
|
|
|
|
Total
assets
|
|
$
1,922,524
|
|
$
1,948,784
|
|
Less
goodwill
|
|
42,171
|
|
42,171
|
|
Less
intangibles
|
|
5,175
|
|
6,281
|
|
Tangible
assets
|
|
$
1,875,178
|
|
$
1,900,332
|
|
|
|
|
|
|
|
Tangible common
equity to tangible assets
|
|
6.91%
|
|
6.44%
|
|
|
|
|
|
|
|
REGULATORY
CAPITAL
|
|
June
30,
|
|
June
30,
|
|
|
|
2016
|
|
2015
|
|
Common equity tier 1
capital
|
|
$
129,516
|
|
$
126,188
|
|
Tier 1
capital
|
|
192,125
|
|
188,857
|
|
Total
capital
|
|
210,444
|
|
205,072
|
|
|
|
|
|
|
|
Regulatory capital
ratios:
|
|
|
|
|
|
Common equity tier 1
capital ratio
|
|
8.86%
|
|
8.47%
|
|
Tier 1 risk-based
capital ratio
|
|
13.14%
|
|
12.68%
|
|
Total risk-based
capital ratio
|
|
14.39%
|
|
13.77%
|
|
Tier 1 leverage
ratio
|
|
10.25%
|
|
9.79%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MIDSOUTH BANCORP,
INC. and
SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Yield
Analysis (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YIELD
ANALYSIS
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
June 30,
2016
|
|
March 31,
2016
|
|
December 31,
2015
|
|
September 30,
2015
|
|
June 30,
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax
|
|
|
|
|
|
Tax
|
|
|
|
|
|
Tax
|
|
|
|
|
|
Tax
|
|
|
|
|
|
Tax
|
|
|
|
|
Average
|
|
Equivalent
|
|
Yield/
|
|
Average
|
|
Equivalent
|
|
Yield/
|
|
Average
|
|
Equivalent
|
|
Yield/
|
|
Average
|
|
Equivalent
|
|
Yield/
|
|
Average
|
|
Equivalent
|
|
Yield/
|
|
|
Balance
|
|
Interest
|
|
Rate
|
|
Balance
|
|
Interest
|
|
Rate
|
|
Balance
|
|
Interest
|
|
Rate
|
|
Balance
|
|
Interest
|
|
Rate
|
|
Balance
|
|
Interest
|
|
Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
securities
|
|
$
349,433
|
|
$
1,940
|
|
2.22%
|
|
$
358,623
|
|
$
2,036
|
|
2.27%
|
|
$
339,033
|
|
$
1,917
|
|
2.26%
|
|
$
341,192
|
|
$
1,864
|
|
2.19%
|
|
$
345,108
|
|
$
1,853
|
|
2.15%
|
Tax-exempt
securities
|
|
60,972
|
|
641
|
|
4.21%
|
|
64,971
|
|
699
|
|
4.30%
|
|
70,548
|
|
778
|
|
4.41%
|
|
73,523
|
|
818
|
|
4.45%
|
|
76,433
|
|
854
|
|
4.47%
|
Total investment
securities
|
|
410,405
|
|
2,581
|
|
2.52%
|
|
423,594
|
|
2,735
|
|
2.58%
|
|
409,581
|
|
2,695
|
|
2.65%
|
|
414,715
|
|
2,682
|
|
2.57%
|
|
421,541
|
|
2,707
|
|
2.57%
|
Federal funds
sold
|
|
3,655
|
|
3
|
|
0.32%
|
|
3,843
|
|
5
|
|
0.51%
|
|
3,922
|
|
3
|
|
0.30%
|
|
3,349
|
|
1
|
|
0.12%
|
|
3,228
|
|
2
|
|
0.25%
|
Time and interest
bearing deposits in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
other
banks
|
|
76,042
|
|
97
|
|
0.50%
|
|
74,271
|
|
94
|
|
0.50%
|
|
73,069
|
|
52
|
|
0.28%
|
|
62,086
|
|
40
|
|
0.25%
|
|
56,110
|
|
35
|
|
0.25%
|
Other
investments
|
|
11,232
|
|
90
|
|
3.21%
|
|
11,189
|
|
88
|
|
3.15%
|
|
11,544
|
|
86
|
|
2.99%
|
|
10,508
|
|
99
|
|
3.77%
|
|
10,057
|
|
81
|
|
3.22%
|
Loans
|
|
1,256,133
|
|
16,838
|
|
5.39%
|
|
1,252,742
|
|
17,123
|
|
5.50%
|
|
1,271,106
|
|
17,319
|
|
5.41%
|
|
1,285,991
|
|
17,992
|
|
5.55%
|
|
1,312,359
|
|
18,268
|
|
5.58%
|
Total interest
earning assets
|
|
1,757,467
|
|
19,609
|
|
4.49%
|
|
1,765,639
|
|
20,045
|
|
4.57%
|
|
1,769,222
|
|
20,155
|
|
4.52%
|
|
1,776,649
|
|
20,814
|
|
4.65%
|
|
1,803,295
|
|
21,093
|
|
4.69%
|
Non-interest earning
assets
|
|
163,537
|
|
|
|
|
|
166,265
|
|
|
|
|
|
169,013
|
|
|
|
|
|
172,703
|
|
|
|
|
|
173,279
|
|
|
|
|
Total
assets
|
|
$
1,921,004
|
|
|
|
|
|
$
1,931,904
|
|
|
|
|
|
$
1,938,235
|
|
|
|
|
|
$
1,949,352
|
|
|
|
|
|
$
1,976,574
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
$
1,176,387
|
|
$
903
|
|
0.31%
|
|
$
1,180,581
|
|
$
907
|
|
0.31%
|
|
$
1,156,166
|
|
$
836
|
|
0.29%
|
|
$
1,150,190
|
|
$
883
|
|
0.30%
|
|
$
1,181,381
|
|
$
921
|
|
0.31%
|
Repurchase
agreements
|
|
85,479
|
|
233
|
|
1.10%
|
|
85,756
|
|
233
|
|
1.09%
|
|
85,178
|
|
240
|
|
1.12%
|
|
89,025
|
|
249
|
|
1.11%
|
|
84,545
|
|
242
|
|
1.15%
|
Federal funds
purchased
|
|
2
|
|
-
|
|
0.00%
|
|
-
|
|
-
|
|
0.00%
|
|
4
|
|
-
|
|
0.00%
|
|
-
|
|
-
|
|
0.00%
|
|
-
|
|
-
|
|
0.00%
|
Short-term FHLB
advances
|
|
-
|
|
-
|
|
0.00%
|
|
22,802
|
|
23
|
|
0.40%
|
|
25,000
|
|
19
|
|
0.30%
|
|
31,196
|
|
16
|
|
0.20%
|
|
30,604
|
|
13
|
|
0.17%
|
Long-term FHLB
advances
|
|
25,687
|
|
91
|
|
1.40%
|
|
25,794
|
|
90
|
|
1.38%
|
|
25,900
|
|
92
|
|
1.39%
|
|
26,007
|
|
93
|
|
1.40%
|
|
26,114
|
|
90
|
|
1.36%
|
Junior subordinated
debentures
|
|
22,167
|
|
170
|
|
3.03%
|
|
22,167
|
|
167
|
|
2.98%
|
|
22,167
|
|
162
|
|
2.86%
|
|
22,167
|
|
150
|
|
2.65%
|
|
22,167
|
|
151
|
|
2.69%
|
Total interest
bearing liabilities
|
|
1,309,722
|
|
1,397
|
|
0.43%
|
|
1,337,100
|
|
1,420
|
|
0.43%
|
|
1,314,415
|
|
1,349
|
|
0.41%
|
|
1,318,585
|
|
1,391
|
|
0.42%
|
|
1,344,811
|
|
1,417
|
|
0.42%
|
Non-interest bearing
liabilities
|
|
394,170
|
|
|
|
|
|
378,205
|
|
|
|
|
|
408,748
|
|
|
|
|
|
416,144
|
|
|
|
|
|
419,651
|
|
|
|
|
Shareholders'
equity
|
|
217,112
|
|
|
|
|
|
216,599
|
|
|
|
|
|
215,072
|
|
|
|
|
|
214,623
|
|
|
|
|
|
212,112
|
|
|
|
|
Total liabilities
and shareholders'
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity
|
|
$
1,921,004
|
|
|
|
|
|
$
1,931,904
|
|
|
|
|
|
$
1,938,235
|
|
|
|
|
|
$
1,949,352
|
|
|
|
|
|
$
1,976,574
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(TE) and spread
|
|
$
18,212
|
|
4.06%
|
|
|
|
$
18,625
|
|
4.14%
|
|
|
|
$
18,806
|
|
4.11%
|
|
|
|
$
19,423
|
|
4.23%
|
|
|
|
$
19,676
|
|
4.27%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
|
4.17%
|
|
|
|
|
|
4.24%
|
|
|
|
|
|
4.22%
|
|
|
|
|
|
4.34%
|
|
|
|
|
|
4.38%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core net interest
margin (Non-GAAP)(*)
|
|
|
|
|
|
4.08%
|
|
|
|
|
|
4.11%
|
|
|
|
|
|
4.09%
|
|
|
|
|
|
4.17%
|
|
|
|
|
|
4.21%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) See
reconciliation of Non-GAAP financial measures on page
8-10.
|
|
|
|
|
|
|
|
|
|
|
|
MIDSOUTH BANCORP,
INC. and
SUBSIDIARIES
|
Reconciliation of
Non-GAAP Financial Measures (unaudited)
|
(in thousands
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Certain financial
information included in the earnings release and the associated
Condensed Consolidated Financial Information (unaudited) is
determined by methods other than in accordance with GAAP. We
are providing disclosure of the reconciliation of these non-GAAP
financial measures to the most comparable GAAP financial
measures. "Tangible common equity" is defined as total common
equity reduced by intangible assets. "Core net interest
margin" is defined as reported net interest margin less purchase
accounting adjustments. "Annualized return on average assets,
operating" is defined as net earnings available to common
shareholders adjusted for specified one-time items divided by
average assets. "Annualized return on average common equity,
operating" is defined as net earnings available to common
shareholders adjusted for specified one-time items divided by
average common equity. "Annualized return on average tangible
common equity, operating" is defined as net earnings available to
common shareholders adjusted for specified one-time items divided
by average tangible common equity. "Pre-tax, pre-provision
annualized return on average assets, operating" is defined as
pre-tax, pre-provision earnings adjusted for specified one-time
items divided by average assets. "Tangible book value per
common share" is defined as tangible common equity divided by total
common shares outstanding. "Diluted earnings per share,
operating" is defined as net earnings available to common
shareholders adjusted for specified one-time items divided by
diluted weighted-average shares. The GAAP-based efficiency
ratio is measured as noninterest expense as a percentage of net
interest income plus noninterest income. The non-GAAP
efficiency ratio excludes specified one-time items in addition to
securities gains and losses and gains and losses on the
sale/valuation of other real estate owned and other assets
repossessed.
|
|
We use non-GAAP measures
because we believe they are useful for evaluating our financial
condition and performance over periods of time, as well as in
managing and evaluating our business and in discussions about our
performance. We also believe these non-GAAP financial
measures provide users of our financial information with a
meaningful measure for assessing our financial condition as well as
comparison to financial results for prior periods. These
results should not be viewed as a substitute for results determined
in accordance with GAAP, and are not necessarily comparable to
non-GAAP performance measures that other companies may
use.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
AVERAGE BALANCE
SHEET DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average
assets
|
A
|
$
1,921,004
|
|
$
1,931,904
|
|
$
1,938,235
|
|
$
1,949,352
|
|
$
1,976,574
|
|
|
|
|
|
|
|
|
|
|
|
Total
equity
|
|
$
217,112
|
|
$
216,599
|
|
$
215,072
|
|
$
214,623
|
|
$
212,112
|
Less preferred
equity
|
|
41,118
|
|
41,120
|
|
41,122
|
|
41,157
|
|
41,226
|
Total common
equity
|
B
|
$
175,994
|
|
$
175,479
|
|
$
173,950
|
|
$
173,466
|
|
$
170,886
|
Less intangible
assets
|
|
47,478
|
|
47,757
|
|
48,031
|
|
48,310
|
|
48,587
|
Tangible common
equity
|
C
|
$
128,516
|
|
$
127,722
|
|
$
125,919
|
|
$
125,156
|
|
$
122,299
|
|
|
|
|
|
|
|
|
|
|
|
MIDSOUTH BANCORP,
INC. and
SUBSIDIARIES
|
Reconciliation of
Non-GAAP Financial Measures (unaudited) (continued)
|
(in thousands
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
CORE NET INTEREST
MARGIN
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(FTE)
|
|
$
18,212
|
|
$
18,625
|
|
$
18,806
|
|
$
19,423
|
|
$
19,676
|
Less purchase
accounting adjustments
|
|
(341)
|
|
(565)
|
|
(510)
|
|
(689)
|
|
(678)
|
Core net interest
income, net of purchase accounting adjustments
|
D
|
$
17,871
|
|
$
18,060
|
|
$
18,296
|
|
$
18,734
|
|
$
18,998
|
|
|
|
|
|
|
|
|
|
|
|
Total average
earnings assets
|
|
$
1,757,467
|
|
$
1,765,639
|
|
$
1,769,222
|
|
$
1,776,649
|
|
$
1,803,295
|
Add average balance
of loan valuation discount
|
|
2,931
|
|
3,323
|
|
3,712
|
|
4,269
|
|
4,888
|
Average earnings
assets, excluding loan valuation discount
|
E
|
$
1,760,398
|
|
$
1,768,962
|
|
$
1,772,934
|
|
$
1,780,918
|
|
$
1,808,183
|
|
|
|
|
|
|
|
|
|
|
|
Core net interest
margin
|
D/E
|
4.08%
|
|
4.11%
|
|
4.09%
|
|
4.17%
|
|
4.21%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
RETURN
RATIOS
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
available to common shareholders
|
|
$
1,682
|
|
$
1,922
|
|
$
1,667
|
|
$
2,417
|
|
$
4,927
|
Net gain on sale of
securities, after-tax
|
|
(13)
|
|
-
|
|
-
|
|
-
|
|
(733)
|
Income from death
benefit on bank owned life insurance
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(160)
|
Net
earnings available to common shareholders, operating
|
F
|
$
1,669
|
|
$
1,922
|
|
$
1,667
|
|
$
2,417
|
|
$
4,034
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
$
3,523
|
|
$
3,312
|
|
$
2,604
|
|
$
3,617
|
|
$
7,442
|
Net gain on sale of
securities
|
|
(20)
|
|
-
|
|
-
|
|
-
|
|
(1,128)
|
Income from death
benefit on bank owned life insurance
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(160)
|
Provision for loan
losses
|
|
2,300
|
|
2,800
|
|
3,000
|
|
3,800
|
|
1,100
|
Pre-tax,
pre-provision earnings, operating
|
G
|
$
5,803
|
|
$
6,112
|
|
$
5,604
|
|
$
7,417
|
|
$
7,254
|
|
|
|
|
|
|
|
|
|
|
|
Annualized return on
average assets, operating
|
F/A
|
0.35%
|
|
0.40%
|
|
0.34%
|
|
0.49%
|
|
0.82%
|
Annualized return on
average common equity, operating
|
F/B
|
3.81%
|
|
4.41%
|
|
3.80%
|
|
5.53%
|
|
9.47%
|
Annualized return on
average tangible common equity, operating
|
F/C
|
5.22%
|
|
6.05%
|
|
5.25%
|
|
7.66%
|
|
13.23%
|
Pre-tax,
pre-provision annualized return on average assets,
operating
|
G/A
|
1.21%
|
|
1.27%
|
|
1.15%
|
|
1.51%
|
|
1.47%
|
|
|
|
|
|
|
|
|
|
|
|
MIDSOUTH BANCORP,
INC. and
SUBSIDIARIES
|
Reconciliation of
Non-GAAP Financial Measures (unaudited) (continued)
|
(in thousands
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
PER COMMON SHARE
DATA
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common
share
|
|
$
15.56
|
|
$
15.38
|
|
$
15.14
|
|
$
15.21
|
|
$
15.04
|
Effect of intangible
assets per share
|
|
4.16
|
|
4.19
|
|
4.22
|
|
4.24
|
|
4.26
|
Tangible book value
per common share
|
|
$
11.40
|
|
$
11.19
|
|
$
10.92
|
|
$
10.97
|
|
$
10.78
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
0.15
|
|
$
0.17
|
|
$
0.15
|
|
$
0.21
|
|
$
0.42
|
Effect of net gain on
sale of securities, after-tax
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(0.06)
|
Effect of income from
death benefit on bank owned life insurance
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(0.01)
|
Diluted earnings per
share, operating
|
|
$
0.15
|
|
$
0.17
|
|
$
0.15
|
|
$
0.21
|
|
$
0.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
EFFICIENCY
RATIO
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
17,991
|
|
$
18,384
|
|
$
18,537
|
|
$
19,141
|
|
$
19,381
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income
|
|
4,873
|
|
4,487
|
|
4,575
|
|
4,768
|
|
6,137
|
Income from death
benefit on bank owned life insurance
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(160)
|
Net gain on sale of
securities
|
|
(20)
|
|
-
|
|
-
|
|
-
|
|
(1,128)
|
Noninterest income (non-GAAP)
|
|
$
4,853
|
|
$
4,487
|
|
$
4,575
|
|
$
4,768
|
|
$
4,849
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
H
|
$
22,864
|
|
$
22,871
|
|
$
23,112
|
|
$
23,909
|
|
$
25,518
|
Total revenue
(non-GAAP)
|
I
|
$
22,844
|
|
$
22,871
|
|
$
23,112
|
|
$
23,909
|
|
$
24,230
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
J
|
$
17,041
|
|
$
16,759
|
|
$
17,508
|
|
$
16,492
|
|
$
16,976
|
Net (loss) gain on
sale/valuation of other real estate owned
|
|
(24)
|
|
-
|
|
(14)
|
|
(79)
|
|
(41)
|
Noninterest expense (non-GAAP)
|
K
|
$
17,017
|
|
$
16,759
|
|
$
17,494
|
|
$
16,413
|
|
$
16,935
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(GAAP)
|
J/H
|
74.53%
|
|
73.28%
|
|
75.75%
|
|
68.98%
|
|
66.53%
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(non-GAAP)
|
K/I
|
74.49%
|
|
73.28%
|
|
75.69%
|
|
68.65%
|
|
69.89%
|
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SOURCE MidSouth Bancorp, Inc.