LAFAYETTE, La., Oct. 26, 2016 /PRNewswire/ -- MidSouth Bancorp,
Inc. ("MidSouth") (NYSE:MSL) today reported quarterly net earnings
available to common shareholders of $1.6
million for the third quarter of 2016, compared to net
earnings available to common shareholders of $2.4 million reported for the third quarter of
2015 and $1.7 million in net earnings
available to common shareholders for the second quarter of
2016. Diluted earnings for the third quarter of 2016 were
$0.14 per common share, compared to
$0.21 per common share reported for
the third quarter of 2015 and $0.15
per common share reported for the second quarter of 2016.
C. R. Cloutier, President and
CEO, commenting on third quarter earnings remarked, "We were
pleased to see $10.4 million in loan
growth for the quarter, despite a $6.5
million decrease in our energy loans. Although our
criticized energy loans increased by $21.8
million during the quarter, we have not seen a high level of
energy-related charge-offs to date. Our loss content since
the beginning of this cycle in late 2014 has been modest with
cycle-to-date charge-offs of 1.09% of energy loans. With
uncertainty plaguing the oil and gas industry, we have increased
our energy loan loss reserves to 4.6% of total energy loans over
the past eight quarters and will continue to work closely with our
energy-related customers through this cycle."
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 $6.5 million during 3Q16 to $243.3 million, or 19.1% of total loans, from
19.8% at June 30, 2016.
- Direct C&I energy loans were $198.2
million or 15.6% of total loans and had a weighted average
maturity of 3.5 years at September 30,
2016.
- Energy-related CRE and residential real estate loans were
$44.7 million or 3.5% of total loans
at September 30, 2016.
- Unfunded commitments on energy-related lines totaled
$74.6 million at September 30, 2016.
- Utilization rate on energy-related lines was 43.3% at
September 30, 2016, compared to 42.3%
at June 30, 2016.
- Twelve energy loan relationships had rating changes during the
quarter.
- Five loan relationships totaling $24.6
million were downgraded to Special Mention
- Five loan relationships totaling $24.4
million were downgraded to Substandard
- Two loan relationships totaling $3.3
million were upgraded to Pass
- Total criticized energy-related loans increased $21.8 million during 3Q16 to $114.7 million and represented 47.1% of energy
loans at September 30, 2016, versus
37.2% at June 30, 2016.
- Energy-related loans past due 30 days or more were $34.0 million, or 14.0%, with 12.7% of
energy-related loans on nonaccrual status at September 30, 2016.
- Two energy-related charge-offs totaled $20,000 during 3Q16 and YTD energy-related
charge-offs totaled $1.2 million, or
approximately 48 basis points of average energy loans.
- Cycle to date net charge-offs totaled $2.9 million, or 1.09% of December 31, 2014 energy loans, which was when
the effects of declining oil prices began to surface.
- One energy-related impairment totaling $284,000 was identified during 3Q16 and one
impairment increase of $310,000 on an
impaired loan identified prior to 3Q16.
- The energy reserve as a percentage of total energy loans, as
defined, was 4.6% at September 30,
2016. The reserve attributable to C&I energy loans was
approximately 5.2%. The reserve on all other energy loans was
2.5%.
- The Bank had two Shared National Credits (SNCs) totaling
$15.0 million in the energy portfolio
at September 30, 2016 and both were
downgraded to Substandard during the third quarter of 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 October
2016, the Bank has had no rating related changes to its
energy portfolio.
More information on our energy loan portfolio can be found on
our website at MidSouthBank.com under Investor
Relations/Presentations.
Balance Sheet
Consolidated assets totaled $2.0
billion at September 30, 2016
and 2015, compared to $1.9 billion at
June 30, 2016. Our stable core
deposit base, which excludes time deposits, totaled $1.4 billion at September
30, 2016 and June 30, 2016 and
accounted for 90.0% of deposits compared to 89.5% of deposits,
respectively. Net loans totaled $1.2
billion at September 30, 2016
and June 30, 2016, compared to
$1.3 billion at September 30, 2015.
MidSouth's Tier 1 leverage capital ratio was 10.27% at
September 30, 2016, compared to
10.25% at June 30, 2016. Tier 1
risk-based capital and total risk-based capital ratios were 13.07%
and 14.33% at September 30, 2016,
compared to 13.14% and 14.39% at June 30,
2016, respectively. Tier 1 common equity to total
risk-weighted assets at September 30,
2016 was 8.83%, compared to 8.86% at June 30, 2016. Tangible common equity
totaled $129.9 million at
September 30, 2016, compared to
$129.5 million at June 30, 2016. Tangible book value per
share at September 30, 2016 was
$11.44 versus $11.40 at June 30,
2016.
Asset Quality
Nonperforming assets totaled $64.1
million at September 30, 2016,
an increase of $1.2 million compared
to $62.9 million reported at
June 30, 2016. The increase is
primarily attributable to a $912,000
increase in loans past due ninety days and over and accruing, which
is the result of one loan relationship. Allowance coverage
for nonperforming loans increased to 37.84% at September 30, 2016, compared to 35.68% at
June 30, 2016. The ALLL/total
loans ratio was 1.83% at September 30,
2016 and 1.69% at June 30,
2016. Including valuation accounting adjustments on acquired
loans, the total valuation accounting adjustment plus ALLL was
2.02% of loans at September 30,
2016. The ratio of annualized net charge-offs to total loans
decreased to 0.32% for the three months ended September 30, 2016 compared to 0.40% for the
three months ended June 30, 2016.
Total nonperforming assets to total loans plus ORE and other
assets repossessed was 5.03% at September
30, 2016 compared to 4.97% at June
30, 2016. Loans classified as troubled debt
restructurings, accruing ("TDRs, accruing") totaled $153,000 at September 30,
2016 and $154,000 at
June 30, 2016. Classified
assets, including ORE, increased $23.1
million, or 24.2%, to $118.6
million at September 30, 2016
compared to $95.5 million at
June 30, 2016. The increase in
classified assets during the quarter ended September 30, 2016 is primarily due to the
downgrade of three energy-related credits totaling $23.7 million. Two of the three
credits downgraded are Shared National Credits that were
downgraded by the OCC during their recent review. These two
credits totaled $15.0 million at
September 30, 2016.
Third Quarter 2016 vs. Third Quarter 2015 Earnings
Comparison
Third quarter 2016 net earnings available to common shareholders
totaled $1.6 million compared to
$2.4 million for the third quarter of
2015. Revenues from consolidated operations decreased $504,000 in quarterly comparison, from
$23.9 million for the three months
ended September 30, 2015 to
$23.4 million for the three months
ended September 30, 2016. Net
interest income decreased $602,000 in
quarterly comparison primarily due to a $619,000 decrease in interest income earned on
loans. Noninterest income increased $98,000 in quarterly comparison and consisted
primarily of a $57,000 increase in
ATM/debit card income and a $28,000
increase in the income earned from the cash surrender value of life
insurance.
Noninterest expenses increased $622,000 in quarterly comparison and consisted
primarily of a $381,000 increase in
salaries and employee benefits costs, a $131,000 increase in legal and professional fees,
a $63,000 increase in ATM and debit
card processing fees and a $78,000
increase in losses on wire fraud, which were partially offset by a
$180,000 decrease in occupancy
expense. The provision for loan losses decreased $900,000 in quarterly comparison, from
$3.8 million for the three months
ended September 30, 2015 to
$2.9 million for the three months
ended September 30, 2016.
Income tax expense decreased $35,000
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
third quarter of 2016 based on a dividend rate of 9%.
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 September 30, 2016.
Fully taxable-equivalent ("FTE") net interest income totaled
$18.8 million and $19.4 million for the quarters ended September 30, 2016 and 2015,
respectively. The FTE net interest income decreased
$666,000 in prior year quarterly
comparison primarily due to a $620,000 decrease in interest income on
loans. Interest income on loans decreased due to a
$17.7 million decrease in the average
balance of loans, as well a decrease in the average yield on loans
of 10 basis points, from 5.55% to 5.45%. Purchase accounting
adjustments added 14 basis points to the average yield on loans for
the third quarter of 2016 and 20 basis points to the average yield
on loans for the third quarter of 2015. Excluding the impact
of the purchase accounting adjustments, average loan yields
declined 4 basis points in prior year quarterly comparison, from
5.35% to 5.31%. 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 $420.0
million, or 21.5% of total assets at September 30, 2016, versus $406.5 million, or 20.6% of total assets at
September 30, 2015. The
investment portfolio had an effective duration of 3.2 years and a
net unrealized gain of $5.0 million
at September 30, 2016. The
average volume of investment securities increased $599,000 in prior year quarterly
comparison. The average tax equivalent yield on investment
securities decreased 7 basis points, from 2.59% to 2.52%.
The average yield on all earning assets decreased 10 basis
points in prior year quarterly comparison, from 4.65% for the third
quarter of 2015 to 4.55% for the third quarter of 2016.
Excluding the impact of purchase accounting adjustments, the
average yield on total earning assets decreased 5 basis points,
from 4.51% to 4.46% for the three month periods ended September 30, 2015 and 2016, respectively.
Interest expense increased $23,000
in prior year quarterly comparison. Increases in interest
expenses included a $32,000 increase
in interest expense on deposits and a $20,000 increase in interest expense on junior
subordinated debentures. These increases were partially
offset by a $16,000 decrease in
interest expense on short-term FHLB advances and a $13,000 decrease in interest expense on
securities sold under agreements to repurchase. 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 September 30, 2016 and 0.45% for the three months
ended September 30, 2015.
As a result of these changes in volume and yield on earning
assets and interest-bearing liabilities, the FTE net interest
margin decreased 10 basis points, from 4.34% for the third quarter
of 2015 to 4.24% for the third quarter of 2016. Excluding
purchase accounting adjustments on loans, deposits and FHLB
borrowings, the FTE margin decreased 5 basis points, from 4.17% for
the third quarter of 2015 to 4.12% for the third quarter of
2016.
Third Quarter 2016 vs. Second Quarter 2016 Earnings
Comparison
In sequential-quarter comparison, net earnings available to
common shareholders decreased $95,000, from $1.7
million for the three months ended June 30, 2016 to $1.6
million for the three months ended September 30, 2016. Net interest income
increased $548,000 in
sequential-quarter comparison, primarily due to a $535,000 increase in interest income earned on
loans. Noninterest income decreased $7,000 in sequential-quarter comparison.
Noninterest expense increased $73,000 in sequential-quarter comparison.
The increase in noninterest expense consisted primarily of
increases of $80,000 in legal and
professional fees, $91,000 in
marketing expense, $64,000 in net
expenses on ORE and $49,000 in data
processing costs, which were partially offset by a $148,000 decrease in salaries and benefits costs
and a $55,000 decrease in FDIC
premiums. The provision for loan losses increased
$600,000 in sequential-quarter
comparison.
Dividends on preferred stock totaled $811,000 for the three months ended September 30, 2016 and the three months ended
June 30, 2016.
FTE net interest income increased $545,000 in sequential-quarter comparison
primarily due to a $534,000 increase
in interest income on loans. The increase in interest income
on loans resulted from an increase in the average yield on loans of
6 basis points, from 5.39% for the second quarter of 2016 to 5.45%
for the third quarter of 2016 in addition to an increase in the
average volume of loans of $12.1
million in sequential-quarter comparison. Excluding
purchase accounting adjustments, the loan yield increased 1 basis
point, from 5.30% to 5.31% during the same period. The
average yield on total earning assets increased 6 basis points for
the same period, from 4.49% to 4.55%, respectively. As a
result of these changes in volume and yield on earning assets, the
FTE net interest margin increased 7 basis points, from 4.17% to
4.24%. Excluding purchase accounting adjustments, the FTE net
interest margin increased 4 basis points, from 4.08% for the second
quarter of 2016 to 4.12% for the third quarter of 2016.
Year-To-Date Earnings Comparison
In year-to-date comparison, net earnings available to common
shareholders decreased $3.5 million,
from $8.7 million at September 30, 2015 to $5.2
million at September 30,
2016. The first nine months of 2016 included $20,000 in gain on sales of securities. The
first nine 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
$2.1 million in year-to-date
comparison. The $2.1 million
decrease in operating earnings in year-to-date comparison resulted
primarily from a $2.9 million
decrease in net interest income, an increase of $1.3 million of noninterest expense and an
increase of $1.5 million in dividends
on preferred stock, which were partially offset by a $2.9 million decrease in the provision for loan
losses and an $831,000 decrease in
income tax expense.
Excluding non-operating income, noninterest income decreased
$137,000 and consisted primarily of
$73,000 in mortgage banking fees and
$88,000 in letter of credit
income. Increases in noninterest expense primarily included
$414,000 in salaries and benefits
costs, $284,000 in ATM and debit card
processing fees, $211,000 in FDIC
premiums, $223,000 in legal and
professional fees, $137,000 in
recruiting expense and $142,000 in
shares tax expense, which were partially offset by a $466,000 decrease in occupancy expense.
In year-to-date comparison, FTE net interest income decreased
$3.1 million primarily due to a
$3.0 million decrease in interest
income on loans. The average volume of loans decreased
$39.8 million in year-over-year
comparison, and the average yield on loans decreased 14 basis
points, from 5.59% to 5.45%. The average volume of investment
securities decreased $751,000 in
year-over-year comparison, and the average yield on investment
securities decreased 8 basis points for the same period. The
average yield on earning assets decreased in year-over-year
comparison, from 4.70% at September 30,
2015 to 4.54% at September 30,
2016. The purchase accounting adjustments added 17 basis
points to the average yield on loans for the nine months ended
September 30, 2015 and 13 basis
points for the nine months ended September
30, 2016. Net of purchase accounting adjustments, the
average yield on earning assets decreased 13 basis points, from
4.58% at September 30, 2015 to 4.45%
at September 30, 2016.
Interest expense decreased $1,000
in year-over-year comparison. A $26,000 decrease in interest expense on deposits,
a $14,000 decrease in interest
expense on short-term FHLB advances and a $19,000 decrease in interest expense on
securities sold under agreements to purchase were partially offset
by a $56,000 increase in interest
expense on junior subordinated debentures. The average rate
paid on interest-bearing liabilities was 0.43% for the nine months
ended September 30, 2016, compared to
0.42% for the nine months ended September
30, 2015. Net of purchase accounting adjustments, the
average rate paid on interest-bearing liabilities remained
unchanged at 0.46% for the nine months ended September 30, 2016 and 2015. The FTE net
interest margin decreased 16 basis points, from 4.38% for the nine
months ended September 30, 2015 to
4.22% for the nine months ended September
30, 2016. Net of purchase accounting adjustments, the
FTE net interest margin decreased 14 basis points, from 4.24% to
4.10% for the nine months ended September
30, 2015 and 2016, respectively, primarily due to a decline
in the average rate earned on loans and the decreased average
volume of 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 January 3, 2017 to shareholders of record as of
the close of business on December 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 January 16, 2017 to shareholders of record as of
the close of business on January 3,
2017.
About MidSouth Bancorp, Inc.
MidSouth Bancorp, Inc. is a financial holding company
headquartered in Lafayette,
Louisiana, with assets of $2.0
billion as of September 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
|
|
9/30/2016
|
|
6/30/2016
|
|
3/31/2016
|
|
12/31/2015
|
|
9/30/2015
|
Total interest
income
|
|
$
19,953
|
|
$
19,388
|
|
$
19,804
|
|
$
19,886
|
|
$
20,532
|
Total interest
expense
|
|
1,414
|
|
1,397
|
|
1,420
|
|
1,349
|
|
1,391
|
Net interest income
|
|
18,539
|
|
17,991
|
|
18,384
|
|
18,537
|
|
19,141
|
FTE net interest
income
|
|
18,758
|
|
18,212
|
|
18,625
|
|
18,806
|
|
19,423
|
Provision for loan
losses
|
|
2,900
|
|
2,300
|
|
2,800
|
|
3,000
|
|
3,800
|
Non-interest
income
|
|
4,866
|
|
4,873
|
|
4,487
|
|
4,575
|
|
4,768
|
Non-interest
expense
|
|
17,114
|
|
17,041
|
|
16,759
|
|
17,508
|
|
16,492
|
Earnings
before income taxes
|
|
3,391
|
|
3,523
|
|
3,312
|
|
2,604
|
|
3,617
|
Income tax
expense
|
|
993
|
|
1,030
|
|
963
|
|
766
|
|
1,028
|
Net
earnings
|
|
2,398
|
|
2,493
|
|
2,349
|
|
1,838
|
|
2,589
|
Dividends on preferred
stock
|
|
811
|
|
811
|
|
427
|
|
171
|
|
172
|
Net earnings available to common shareholders
|
|
$
1,587
|
|
$
1,682
|
|
$
1,922
|
|
$
1,667
|
|
$
2,417
|
|
|
|
|
|
|
|
|
|
|
|
PER COMMON SHARE
DATA
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
0.14
|
|
$
0.15
|
|
$
0.17
|
|
$
0.15
|
|
$
0.21
|
Diluted earnings per
share
|
|
0.14
|
|
0.15
|
|
0.17
|
|
0.15
|
|
0.21
|
Diluted earnings per share,
operating (Non-GAAP)(*)
|
|
0.14
|
|
0.15
|
|
0.17
|
|
0.15
|
|
0.21
|
Quarterly dividends per
share
|
|
0.09
|
|
0.09
|
|
0.09
|
|
0.09
|
|
0.09
|
Book value at end of
period
|
|
15.58
|
|
15.56
|
|
15.38
|
|
15.14
|
|
15.21
|
Tangible book value at
period end (Non-GAAP)(*)
|
|
11.44
|
|
11.40
|
|
11.19
|
|
10.92
|
|
10.97
|
Market price at end of
period
|
|
10.40
|
|
10.04
|
|
7.63
|
|
9.08
|
|
11.70
|
Shares outstanding at period
end
|
|
11,362,716
|
|
11,362,705
|
|
11,362,150
|
|
11,362,150
|
|
11,361,839
|
Weighted average shares
outstanding
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
11,262,282
|
|
11,255,042
|
|
11,261,644
|
|
11,281,286
|
|
11,311,841
|
Diluted
|
|
11,262,710
|
|
11,255,178
|
|
11,261,644
|
|
11,281,286
|
|
11,830,540
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEET DATA
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$1,927,351
|
|
$1,921,004
|
|
$1,931,904
|
|
$
1,938,235
|
|
$1,949,352
|
Loans and leases
|
|
1,268,270
|
|
1,256,133
|
|
1,252,742
|
|
1,271,106
|
|
1,285,991
|
Total deposits
|
|
1,562,193
|
|
1,562,680
|
|
1,552,217
|
|
1,557,272
|
|
1,559,308
|
Total common
equity
|
|
177,866
|
|
175,994
|
|
175,479
|
|
173,950
|
|
173,466
|
Total tangible common equity
(Non-GAAP)(*)
|
|
130,662
|
|
128,516
|
|
127,722
|
|
125,919
|
|
125,156
|
Total
equity
|
|
218,976
|
|
217,112
|
|
216,599
|
|
215,072
|
|
214,623
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED
RATIOS
|
|
|
|
|
|
|
|
|
|
|
Annualized return on average
assets, operating (Non-GAAP)(*)
|
|
0.33%
|
|
0.35%
|
|
0.40%
|
|
0.34%
|
|
0.49%
|
Annualized return on average
common equity, operating (Non-GAAP)(*)
|
|
3.55%
|
|
3.81%
|
|
4.41%
|
|
3.80%
|
|
5.53%
|
Annualized return on average
tangible common equity, operating
(Non-GAAP)(*)
|
|
4.83%
|
|
5.22%
|
|
6.05%
|
|
5.25%
|
|
7.66%
|
Pre-tax, pre-provision
annualized return on average assets, operating
(Non-GAAP)(*)
|
|
1.30%
|
|
1.21%
|
|
1.27%
|
|
1.15%
|
|
1.51%
|
Efficiency ratio, operating
(Non-GAAP)(*)
|
|
73.04%
|
|
74.49%
|
|
73.28%
|
|
75.69%
|
|
68.65%
|
Average loans to average
deposits
|
|
81.19%
|
|
80.38%
|
|
80.71%
|
|
81.62%
|
|
82.47%
|
Taxable-equivalent net
interest margin
|
|
4.24%
|
|
4.17%
|
|
4.24%
|
|
4.22%
|
|
4.34%
|
Tier 1 leverage capital
ratio
|
|
10.27%
|
|
10.25%
|
|
10.17%
|
|
10.10%
|
|
9.98%
|
|
|
|
|
|
|
|
|
|
|
|
CREDIT
QUALITY
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan and lease
losses (ALLL) as a % of total loans
|
|
1.83%
|
|
1.69%
|
|
1.63%
|
|
1.50%
|
|
1.46%
|
Nonperforming assets to
tangible equity + ALLL
|
|
32.98%
|
|
32.77%
|
|
30.83%
|
|
29.54%
|
|
30.51%
|
Nonperforming assets to
total loans, other real estate owned and
other repossessed assets
|
|
5.03%
|
|
4.97%
|
|
4.64%
|
|
4.29%
|
|
4.32%
|
Annualized QTD net
charge-offs to total loans
|
|
0.32%
|
|
0.40%
|
|
0.47%
|
|
0.92%
|
|
0.28%
|
|
|
|
|
|
|
|
|
|
|
|
(*)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
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
126,667
|
|
$
98,535
|
|
$
112,410
|
|
$
89,201
|
|
$
125,437
|
Securities
available-for-sale
|
|
316,145
|
|
318,239
|
|
302,151
|
|
318,159
|
|
285,485
|
Securities
held-to-maturity
|
|
103,412
|
|
109,420
|
|
113,623
|
|
116,792
|
|
121,043
|
Total investment
securities
|
|
419,557
|
|
427,659
|
|
415,774
|
|
434,951
|
|
406,528
|
Other
investments
|
|
11,339
|
|
11,036
|
|
11,195
|
|
11,188
|
|
12,063
|
Total
loans
|
|
1,272,800
|
|
1,262,389
|
|
1,250,049
|
|
1,263,645
|
|
1,301,452
|
Allowance for loan
losses
|
|
(23,268)
|
|
(21,378)
|
|
(20,347)
|
|
(19,011)
|
|
(18,939)
|
Loans, net
|
|
1,249,532
|
|
1,241,011
|
|
1,229,702
|
|
1,244,634
|
|
1,282,513
|
Premises and
equipment
|
|
69,778
|
|
68,468
|
|
68,482
|
|
69,105
|
|
68,718
|
Goodwill and other
intangibles
|
|
47,069
|
|
47,346
|
|
47,622
|
|
47,899
|
|
48,175
|
Other
assets
|
|
29,978
|
|
28,469
|
|
31,366
|
|
30,755
|
|
30,874
|
Total assets
|
|
$
1,953,920
|
|
$
1,922,524
|
|
$
1,916,551
|
|
$
1,927,733
|
|
$
1,974,308
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing
deposits
|
|
$
403,301
|
|
$
383,797
|
|
$
383,684
|
|
$
374,261
|
|
$
406,118
|
Interest-bearing
deposits
|
|
1,181,906
|
|
1,176,269
|
|
1,174,519
|
|
1,176,589
|
|
1,137,303
|
Total deposits
|
|
1,585,207
|
|
1,560,066
|
|
1,558,203
|
|
1,550,850
|
|
1,543,421
|
Securities sold under
agreements to repurchase
|
|
95,210
|
|
85,786
|
|
87,879
|
|
85,957
|
|
92,085
|
Short-term FHLB
advances
|
|
-
|
|
-
|
|
-
|
|
25,000
|
|
70,000
|
Long-term FHLB
advances
|
|
25,531
|
|
25,638
|
|
25,744
|
|
25,851
|
|
25,958
|
Junior subordinated
debentures
|
|
22,167
|
|
22,167
|
|
22,167
|
|
22,167
|
|
22,167
|
Other
liabilities
|
|
7,679
|
|
10,926
|
|
6,704
|
|
4,771
|
|
6,713
|
Total
liabilities
|
|
1,735,794
|
|
1,704,583
|
|
1,700,697
|
|
1,714,596
|
|
1,760,344
|
Total shareholders'
equity
|
|
218,126
|
|
217,941
|
|
215,854
|
|
213,137
|
|
213,964
|
Total liabilities and
shareholders' equity
|
|
$
1,953,920
|
|
$
1,922,524
|
|
$
1,916,551
|
|
$
1,927,733
|
|
$
1,974,308
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MIDSOUTH BANCORP,
INC. and
SUBSIDIARIES
|
Condensed
Consolidated Income Statements
(unaudited)
|
(in thousands
except per share
data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent
Change
|
|
|
|
|
|
|
|
EARNINGS
STATEMENT
|
|
Three Months
Ended
|
|
3Q16 vs.
2Q16
|
|
3Q16 vs.
3Q15
|
|
Nine Months
Ended
|
|
Percent
|
|
|
|
9/30/2016
|
|
6/30/2016
|
|
9/30/2015
|
|
|
|
9/30/2016
|
|
9/30/2015
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including
fees
|
|
$
16,974
|
|
$
16,598
|
|
$
17,413
|
|
2.3%
|
|
-2.5%
|
|
$
50,233
|
|
$
52,839
|
|
-4.9%
|
|
Investment
securities
|
|
2,399
|
|
2,360
|
|
2,386
|
|
1.7%
|
|
0.5%
|
|
7,253
|
|
7,307
|
|
-0.7%
|
|
Accretion of purchase
accounting adjustments
|
|
399
|
|
240
|
|
579
|
|
66.3%
|
|
-31.1%
|
|
1,101
|
|
1,475
|
|
-25.4%
|
|
Other interest
income
|
|
181
|
|
190
|
|
154
|
|
-4.7%
|
|
17.5%
|
|
558
|
|
390
|
|
43.1%
|
|
Total interest
income
|
|
19,953
|
|
19,388
|
|
20,532
|
|
2.9%
|
|
-2.8%
|
|
59,145
|
|
62,011
|
|
-4.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
919
|
|
914
|
|
903
|
|
0.5%
|
|
1.8%
|
|
2,753
|
|
2,836
|
|
-2.9%
|
|
Borrowings
|
|
419
|
|
414
|
|
448
|
|
1.2%
|
|
-6.5%
|
|
1,269
|
|
1,302
|
|
-2.5%
|
|
Junior subordinated
debentures
|
|
170
|
|
170
|
|
150
|
|
0.0%
|
|
13.3%
|
|
507
|
|
451
|
|
12.4%
|
|
Accretion of purchase
accounting adjustments
|
|
(94)
|
|
(101)
|
|
(110)
|
|
-6.9%
|
|
-14.5%
|
|
(298)
|
|
(357)
|
|
-16.5%
|
|
Total interest
expense
|
|
1,414
|
|
1,397
|
|
1,391
|
|
1.2%
|
|
1.7%
|
|
4,231
|
|
4,232
|
|
0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
18,539
|
|
17,991
|
|
19,141
|
|
3.0%
|
|
-3.1%
|
|
54,914
|
|
57,779
|
|
-5.0%
|
|
Provision for loan
losses
|
|
2,900
|
|
2,300
|
|
3,800
|
|
26.1%
|
|
-23.7%
|
|
8,000
|
|
10,900
|
|
-26.6%
|
|
Net interest income
after provision for loan losses
|
|
15,639
|
|
15,691
|
|
15,341
|
|
-0.3%
|
|
1.9%
|
|
46,914
|
|
46,879
|
|
0.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges
on deposit accounts
|
|
2,509
|
|
2,391
|
|
2,491
|
|
4.9%
|
|
0.7%
|
|
7,213
|
|
7,170
|
|
0.6%
|
|
ATM and debit card
income
|
|
1,620
|
|
1,668
|
|
1,563
|
|
-2.9%
|
|
3.6%
|
|
4,897
|
|
4,847
|
|
1.0%
|
|
Gain on securities,
net (non-operating)(*)
|
|
-
|
|
20
|
|
-
|
|
-100.0%
|
|
-
|
|
20
|
|
1,243
|
|
-98.4%
|
|
Mortgage
lending
|
|
190
|
|
123
|
|
197
|
|
54.5%
|
|
-3.6%
|
|
422
|
|
495
|
|
-14.7%
|
|
Income from death
benefit on BOLI (non-operating)(*)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
160
|
|
-100.0%
|
|
Other charges and
fees
|
|
547
|
|
671
|
|
517
|
|
-18.5%
|
|
5.8%
|
|
1,674
|
|
1,831
|
|
-8.6%
|
|
Total non-interest
income
|
|
4,866
|
|
4,873
|
|
4,768
|
|
-0.1%
|
|
2.1%
|
|
14,226
|
|
15,746
|
|
-9.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
employee benefits
|
|
8,034
|
|
8,182
|
|
7,653
|
|
-1.8%
|
|
5.0%
|
|
24,206
|
|
23,792
|
|
1.7%
|
|
Occupancy
expense
|
|
3,635
|
|
3,667
|
|
3,815
|
|
-0.9%
|
|
-4.7%
|
|
10,899
|
|
11,365
|
|
-4.1%
|
|
ATM and debit
card
|
|
833
|
|
792
|
|
770
|
|
5.2%
|
|
8.2%
|
|
2,410
|
|
2,126
|
|
13.4%
|
|
Legal and
professional fees
|
|
516
|
|
436
|
|
385
|
|
18.3%
|
|
34.0%
|
|
1,335
|
|
1,112
|
|
20.1%
|
|
FDIC
premiums
|
|
365
|
|
420
|
|
391
|
|
-13.1%
|
|
-6.6%
|
|
1,214
|
|
1,003
|
|
21.0%
|
|
Marketing
|
|
442
|
|
351
|
|
408
|
|
25.9%
|
|
8.3%
|
|
1,174
|
|
1,112
|
|
5.6%
|
|
Corporate
development
|
|
395
|
|
419
|
|
371
|
|
-5.7%
|
|
6.5%
|
|
1,149
|
|
1,078
|
|
6.6%
|
|
Data
processing
|
|
527
|
|
478
|
|
476
|
|
10.3%
|
|
10.7%
|
|
1,463
|
|
1,400
|
|
4.5%
|
|
Printing and
supplies
|
|
191
|
|
223
|
|
228
|
|
-14.3%
|
|
-16.2%
|
|
602
|
|
708
|
|
-15.0%
|
|
Expenses on ORE,
net
|
|
100
|
|
36
|
|
146
|
|
177.8%
|
|
-31.5%
|
|
330
|
|
244
|
|
35.2%
|
|
Amortization of core
deposit intangibles
|
|
277
|
|
276
|
|
277
|
|
0.4%
|
|
0.0%
|
|
830
|
|
830
|
|
0.0%
|
|
Other non-interest
expense
|
|
1,799
|
|
1,761
|
|
1,572
|
|
2.2%
|
|
14.4%
|
|
5,302
|
|
4,859
|
|
9.1%
|
|
Total non-interest
expense
|
|
17,114
|
|
17,041
|
|
16,492
|
|
0.4%
|
|
3.8%
|
|
50,914
|
|
49,629
|
|
2.6%
|
|
Earnings before
income taxes
|
|
3,391
|
|
3,523
|
|
3,617
|
|
-3.7%
|
|
-6.2%
|
|
10,226
|
|
12,996
|
|
-21.3%
|
|
Income tax
expense
|
|
993
|
|
1,030
|
|
1,028
|
|
-3.6%
|
|
-3.4%
|
|
2,986
|
|
3,817
|
|
-21.8%
|
|
Net
earnings
|
|
2,398
|
|
2,493
|
|
2,589
|
|
-3.8%
|
|
-7.4%
|
|
7,240
|
|
9,179
|
|
-21.1%
|
|
Dividends on
preferred stock
|
|
811
|
|
811
|
|
172
|
|
0.0%
|
|
371.5%
|
|
2,049
|
|
517
|
|
296.3%
|
|
Net earnings
available to common shareholders
|
|
$
1,587
|
|
$
1,682
|
|
$
2,417
|
|
-5.6%
|
|
-34.3%
|
|
$
5,191
|
|
$
8,662
|
|
-40.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share, diluted
|
|
$
0.14
|
|
$
0.15
|
|
$
0.21
|
|
-6.7%
|
|
-33.3%
|
|
$
0.46
|
|
$
0.75
|
|
-38.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings
per common share, diluted (Non-GAAP)(*)
|
|
$
0.14
|
|
$
0.15
|
|
$
0.21
|
|
-6.7%
|
|
-33.3%
|
|
$
0.46
|
|
$
0.67
|
|
-31.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)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
|
|
September
30,
|
|
June
30,
|
|
Sept 16 vs June
16
% Change
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
Sept 16 vs Sept
15
% Change
|
|
|
2016
|
|
2016
|
|
|
2016
|
|
2015
|
|
2015
|
|
|
Commercial,
financial, and agricultural
|
|
$
463,031
|
|
$
456,264
|
|
1.5%
|
|
$
441,160
|
|
$
454,028
|
|
$
482,452
|
|
-4.0%
|
|
Lease financing
receivable
|
|
1,449
|
|
1,641
|
|
-11.7%
|
|
1,590
|
|
1,968
|
|
4,790
|
|
-69.7%
|
|
Real estate -
construction
|
|
96,365
|
|
96,331
|
|
0.0%
|
|
84,790
|
|
74,952
|
|
74,279
|
|
29.7%
|
|
Real estate -
commercial
|
|
464,853
|
|
463,142
|
|
0.4%
|
|
467,648
|
|
471,141
|
|
473,319
|
|
-1.8%
|
|
Real estate -
residential
|
|
155,653
|
|
148,379
|
|
4.9%
|
|
149,961
|
|
149,064
|
|
151,667
|
|
2.6%
|
|
Installment loans to
individuals
|
|
88,537
|
|
94,522
|
|
-6.3%
|
|
103,181
|
|
111,009
|
|
113,199
|
|
-21.8%
|
|
Other
|
|
2,912
|
|
2,110
|
|
38.0%
|
|
1,719
|
|
1,483
|
|
1,746
|
|
66.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
loans
|
|
$
1,272,800
|
|
$
1,262,389
|
|
0.8%
|
|
$
1,250,049
|
|
$
1,263,645
|
|
$
1,301,452
|
|
-2.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPOSITION OF
DEPOSITS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
Sept 16 vs June
16
% Change
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
Sept 16 vs Sept
15
% Change
|
|
|
|
2016
|
|
2016
|
|
|
2016
|
|
2015
|
|
2015
|
|
|
Noninterest
bearing
|
|
$
403,301
|
|
$
383,798
|
|
5.1%
|
|
$
383,684
|
|
$
374,261
|
|
$
406,118
|
|
-0.7%
|
|
NOW &
other
|
|
465,850
|
|
467,987
|
|
-0.5%
|
|
472,309
|
|
475,346
|
|
448,938
|
|
3.8%
|
|
Money
market/savings
|
|
557,068
|
|
544,256
|
|
2.4%
|
|
534,854
|
|
531,449
|
|
468,297
|
|
19.0%
|
|
Time deposits of less
than $100,000
|
|
78,785
|
|
80,158
|
|
-1.7%
|
|
80,802
|
|
81,638
|
|
85,589
|
|
-7.9%
|
|
Time deposits of
$100,000 or more
|
|
80,203
|
|
83,867
|
|
-4.4%
|
|
86,554
|
|
88,156
|
|
134,479
|
|
-40.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
deposits
|
|
$
1,585,207
|
|
$
1,560,066
|
|
1.6%
|
|
$
1,558,203
|
|
$
1,550,850
|
|
$
1,543,421
|
|
2.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
|
|
|
|
2016
|
|
2016
|
|
|
2016
|
|
2015
|
|
2015
|
|
|
|
Nonaccrual
loans
|
|
$
60,522
|
|
$
59,865
|
|
|
|
$
53,714
|
|
$
50,051
|
|
$
51,616
|
|
|
|
Loans past due
90 days and over
|
|
968
|
|
56
|
|
|
|
258
|
|
147
|
|
82
|
|
|
|
Total nonperforming
loans
|
|
61,490
|
|
59,921
|
|
|
|
53,972
|
|
50,198
|
|
51,698
|
|
|
|
Other real
estate
|
|
2,317
|
|
2,735
|
|
|
|
3,908
|
|
4,187
|
|
4,661
|
|
|
|
Other repossessed
assets
|
|
283
|
|
263
|
|
|
|
265
|
|
38
|
|
-
|
|
|
|
Total nonperforming
assets
|
|
$
64,090
|
|
$
62,919
|
|
|
|
$
58,145
|
|
$
54,423
|
|
$
56,359
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Troubled debt
restructurings, accruing
|
|
$
153
|
|
$
154
|
|
|
|
$
5,675
|
|
$
164
|
|
$
168
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets
to total assets
|
|
3.28%
|
|
3.27%
|
|
|
|
3.03%
|
|
2.82%
|
|
2.85%
|
|
|
|
Nonperforming assets
to total loans + ORE +
other repossessed assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5.03%
|
|
4.97%
|
|
|
|
4.64%
|
|
4.29%
|
|
4.32%
|
|
|
|
ALLL to nonperforming
loans
|
|
37.84%
|
|
35.68%
|
|
|
|
37.70%
|
|
37.87%
|
|
36.63%
|
|
|
|
ALLL to total
loans
|
|
1.83%
|
|
1.69%
|
|
|
|
1.63%
|
|
1.50%
|
|
1.46%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter-to-date
charge-offs
|
|
$
1,161
|
|
$
1,425
|
|
|
|
$
1,594
|
|
$
3,091
|
|
$
1,000
|
|
|
|
Quarter-to-date
recoveries
|
|
151
|
|
156
|
|
|
|
130
|
|
163
|
|
91
|
|
|
|
Quarter-to-date net
charge-offs
|
|
$
1,010
|
|
$
1,269
|
|
|
|
$
1,464
|
|
$
2,928
|
|
$
909
|
|
|
|
Annualized QTD net
charge-offs to total loans
|
|
0.32%
|
|
0.40%
|
|
|
|
0.47%
|
|
0.92%
|
|
0.28%
|
|
|
|
|
|
|
|
|
|
|
MIDSOUTH BANCORP,
INC. and
SUBSIDIARIES
|
Loan Portfolio -
Quarterly Roll Forward (unaudited)
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
|
2016
|
|
2016
|
|
2015
|
LOAN
ACTIVITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
originated
|
|
$
87,991
|
|
$
92,444
|
|
$
73,417
|
Repayments
|
|
(65,871)
|
|
(65,381)
|
|
(70,817)
|
Increases on
renewals
|
|
4,749
|
|
3,465
|
|
16,925
|
Change in lines of
credit
|
|
(20,079)
|
|
(18,586)
|
|
(14,788)
|
Change in allowance
for loan losses
|
|
(1,890)
|
|
(1,031)
|
|
(2,891)
|
Other
|
|
3,621
|
|
398
|
|
2,323
|
Net change in
loans
|
|
$
8,521
|
|
$
11,309
|
|
$
4,169
|
|
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
|
|
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2016
|
|
2015
|
|
Total
equity
|
|
$
218,126
|
|
$
213,964
|
|
Less preferred
equity
|
|
41,110
|
|
41,126
|
|
Total common
equity
|
|
177,016
|
|
172,838
|
|
Less
goodwill
|
|
42,171
|
|
42,171
|
|
Less
intangibles
|
|
4,898
|
|
6,004
|
|
Tangible common
equity
|
|
$
129,947
|
|
$
124,663
|
|
|
|
|
|
|
|
Total
assets
|
|
$
1,953,920
|
|
$
1,974,308
|
|
Less
goodwill
|
|
42,171
|
|
42,171
|
|
Less
intangibles
|
|
4,898
|
|
6,004
|
|
Tangible
assets
|
|
$
1,906,851
|
|
$
1,926,133
|
|
|
|
|
|
|
|
Tangible common
equity to tangible assets
|
|
6.81%
|
|
6.47%
|
|
|
|
|
|
|
|
REGULATORY
CAPITAL
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1
capital
|
|
$
130,349
|
|
$
127,251
|
|
Tier 1
capital
|
|
192,958
|
|
189,876
|
|
Total
capital
|
|
211,468
|
|
208,335
|
|
|
|
|
|
|
|
Regulatory capital
ratios:
|
|
|
|
|
|
Common equity tier 1
capital ratio
|
|
8.83%
|
|
8.62%
|
|
Tier 1 risk-based
capital ratio
|
|
13.07%
|
|
12.86%
|
|
Total risk-based
capital ratio
|
|
14.33%
|
|
14.11%
|
|
Tier 1 leverage
ratio
|
|
10.27%
|
|
9.98%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
September 30,
2016
|
|
June 30,
2016
|
|
March 31,
2016
|
|
December 31,
2015
|
|
September 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
|
|
$
354,770
|
|
$
1,983
|
|
2.24%
|
|
$
349,433
|
|
$
1,940
|
|
2.22%
|
|
$
358,623
|
|
$
2,036
|
|
2.27%
|
|
$
339,033
|
|
$
1,917
|
|
2.26%
|
|
$
341,192
|
|
$
1,864
|
|
2.19%
|
Tax-exempt
securities
|
|
60,544
|
|
635
|
|
4.20%
|
|
60,972
|
|
641
|
|
4.21%
|
|
64,971
|
|
699
|
|
4.30%
|
|
70,548
|
|
778
|
|
4.41%
|
|
73,523
|
|
818
|
|
4.45%
|
Total investment
securities
|
|
415,314
|
|
2,618
|
|
2.52%
|
|
410,405
|
|
2,581
|
|
2.52%
|
|
423,594
|
|
2,735
|
|
2.58%
|
|
409,581
|
|
2,695
|
|
2.65%
|
|
414,715
|
|
2,682
|
|
2.59%
|
Federal funds
sold
|
|
2,703
|
|
3
|
|
0.43%
|
|
3,655
|
|
3
|
|
0.32%
|
|
3,843
|
|
5
|
|
0.51%
|
|
3,922
|
|
3
|
|
0.30%
|
|
3,349
|
|
1
|
|
0.12%
|
Time and interest
bearing deposits in other
banks
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
64,444
|
|
83
|
|
0.50%
|
|
76,042
|
|
97
|
|
0.50%
|
|
74,271
|
|
94
|
|
0.50%
|
|
73,069
|
|
52
|
|
0.28%
|
|
62,086
|
|
40
|
|
0.25%
|
Other
investments
|
|
11,253
|
|
95
|
|
3.38%
|
|
11,232
|
|
90
|
|
3.21%
|
|
11,189
|
|
88
|
|
3.15%
|
|
11,544
|
|
86
|
|
2.99%
|
|
10,508
|
|
99
|
|
3.77%
|
Loans
|
|
1,268,270
|
|
17,373
|
|
5.45%
|
|
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%
|
Total interest
earning assets
|
|
1,761,984
|
|
20,172
|
|
4.55%
|
|
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%
|
Non-interest earning
assets
|
|
165,367
|
|
|
|
|
|
163,537
|
|
|
|
|
|
166,265
|
|
|
|
|
|
169,013
|
|
|
|
|
|
172,703
|
|
|
|
|
Total
assets
|
|
$
1,927,351
|
|
|
|
|
|
$
1,921,004
|
|
|
|
|
|
$
1,931,904
|
|
|
|
|
|
$
1,938,235
|
|
|
|
|
|
$
1,949,352
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
$
1,170,660
|
|
$
915
|
|
0.31%
|
|
$
1,176,387
|
|
$
903
|
|
0.31%
|
|
$
1,180,581
|
|
$
907
|
|
0.31%
|
|
$
1,156,166
|
|
$
836
|
|
0.29%
|
|
$
1,150,190
|
|
$
883
|
|
0.30%
|
Repurchase
agreements
|
|
88,560
|
|
236
|
|
1.06%
|
|
85,479
|
|
233
|
|
1.10%
|
|
85,756
|
|
233
|
|
1.09%
|
|
85,178
|
|
240
|
|
1.12%
|
|
89,025
|
|
249
|
|
1.11%
|
Federal funds
purchased
|
|
-
|
|
-
|
|
0.00%
|
|
2
|
|
-
|
|
0.00%
|
|
-
|
|
-
|
|
0.00%
|
|
4
|
|
-
|
|
0.00%
|
|
-
|
|
-
|
|
0.00%
|
Short-term FHLB
advances
|
|
-
|
|
-
|
|
0.00%
|
|
-
|
|
-
|
|
0.00%
|
|
22,802
|
|
23
|
|
0.40%
|
|
25,000
|
|
19
|
|
0.30%
|
|
31,196
|
|
16
|
|
0.20%
|
Long-term FHLB
advances
|
|
25,581
|
|
93
|
|
1.42%
|
|
25,687
|
|
91
|
|
1.40%
|
|
25,794
|
|
90
|
|
1.38%
|
|
25,900
|
|
92
|
|
1.39%
|
|
26,007
|
|
93
|
|
1.40%
|
Junior subordinated
debentures
|
|
22,167
|
|
170
|
|
3.00%
|
|
22,167
|
|
170
|
|
3.03%
|
|
22,167
|
|
167
|
|
2.98%
|
|
22,167
|
|
162
|
|
2.86%
|
|
22,167
|
|
150
|
|
2.65%
|
Total interest
bearing liabilities
|
|
1,306,968
|
|
1,414
|
|
0.43%
|
|
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%
|
Non-interest bearing
liabilities
|
|
401,407
|
|
|
|
|
|
394,170
|
|
|
|
|
|
378,205
|
|
|
|
|
|
408,748
|
|
|
|
|
|
416,144
|
|
|
|
|
Shareholders'
equity
|
|
218,976
|
|
|
|
|
|
217,112
|
|
|
|
|
|
216,599
|
|
|
|
|
|
215,072
|
|
|
|
|
|
214,623
|
|
|
|
|
Total liabilities
and shareholders'
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity
|
|
$
1,927,351
|
|
|
|
|
|
$
1,921,004
|
|
|
|
|
|
$
1,931,904
|
|
|
|
|
|
$
1,938,235
|
|
|
|
|
|
$
1,949,352
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(TE) and spread
|
|
|
$
18,758
|
|
4.12%
|
|
|
|
$
18,212
|
|
4.06%
|
|
|
|
$
18,625
|
|
4.14%
|
|
|
|
$
18,806
|
|
4.11%
|
|
|
|
$
19,423
|
|
4.23%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
|
4.24%
|
|
|
|
|
|
4.17%
|
|
|
|
|
|
4.24%
|
|
|
|
|
|
4.22%
|
|
|
|
|
|
4.34%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core net interest
margin (Non-GAAP)(*)
|
|
|
|
|
|
4.12%
|
|
|
|
|
|
4.08%
|
|
|
|
|
|
4.11%
|
|
|
|
|
|
4.09%
|
|
|
|
|
|
4.17%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) 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
|
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
AVERAGE BALANCE
SHEET DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average
assets
|
A
|
$
1,927,351
|
|
$
1,921,004
|
|
$
1,931,904
|
|
$
1,938,235
|
|
$
1,949,352
|
|
|
|
|
|
|
|
|
|
|
|
Total
equity
|
|
$
218,976
|
|
$
217,112
|
|
$
216,599
|
|
$
215,072
|
|
$
214,623
|
Less preferred
equity
|
|
41,110
|
|
41,118
|
|
41,120
|
|
41,122
|
|
41,157
|
Total common
equity
|
B
|
$
177,866
|
|
$
175,994
|
|
$
175,479
|
|
$
173,950
|
|
$
173,466
|
Less intangible
assets
|
|
47,204
|
|
47,478
|
|
47,757
|
|
48,031
|
|
48,310
|
Tangible common
equity
|
C
|
$
130,662
|
|
$
128,516
|
|
$
127,722
|
|
$
125,919
|
|
$
125,156
|
|
|
|
|
|
|
|
|
|
|
|
MIDSOUTH BANCORP,
INC. and
SUBSIDIARIES
|
Reconciliation of
Non-GAAP Financial Measures (unaudited) (continued)
|
(in thousands
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
CORE NET INTEREST
MARGIN
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(FTE)
|
|
$
18,757
|
|
$
18,212
|
|
$
18,625
|
|
$
18,806
|
|
$
19,423
|
Less purchase
accounting adjustments
|
|
(493)
|
|
(341)
|
|
(565)
|
|
(510)
|
|
(689)
|
Core net interest
income, net of purchase accounting adjustments
|
D
|
$
18,264
|
|
$
17,871
|
|
$
18,060
|
|
$
18,296
|
|
$
18,734
|
|
|
|
|
|
|
|
|
|
|
|
Total average
earnings assets
|
|
$
1,761,984
|
|
$
1,757,467
|
|
$
1,765,639
|
|
$
1,769,222
|
|
$
1,776,649
|
Add average balance
of loan valuation discount
|
|
2,634
|
|
2,931
|
|
3,323
|
|
3,712
|
|
4,269
|
Average earnings
assets, excluding loan valuation discount
|
E
|
$
1,764,618
|
|
$
1,760,398
|
|
$
1,768,962
|
|
$
1,772,934
|
|
$
1,780,918
|
|
|
|
|
|
|
|
|
|
|
|
Core net interest
margin
|
D/E
|
4.12%
|
|
4.08%
|
|
4.11%
|
|
4.09%
|
|
4.17%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
RETURN
RATIOS
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
available to common shareholders
|
|
$
1,587
|
|
$
1,682
|
|
$
1,922
|
|
$
1,667
|
|
$
2,417
|
Net gain on sale of
securities, after-tax
|
|
-
|
|
(13)
|
|
-
|
|
-
|
|
-
|
Net
earnings available to common shareholders, operating
|
F
|
$
1,587
|
|
$
1,669
|
|
$
1,922
|
|
$
1,667
|
|
$
2,417
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
$
3,391
|
|
$
3,523
|
|
$
3,312
|
|
$
2,604
|
|
$
3,617
|
Net gain on sale of
securities
|
|
-
|
|
(20)
|
|
-
|
|
-
|
|
-
|
Provision for loan
losses
|
|
2,900
|
|
2,300
|
|
2,800
|
|
3,000
|
|
3,800
|
Pre-tax,
pre-provision earnings, operating
|
G
|
$
6,291
|
|
$
5,803
|
|
$
6,112
|
|
$
5,604
|
|
$
7,417
|
|
|
|
|
|
|
|
|
|
|
|
Annualized return on
average assets, operating
|
F/A
|
0.33%
|
|
0.35%
|
|
0.40%
|
|
0.34%
|
|
0.49%
|
Annualized return on
average common equity, operating
|
F/B
|
3.55%
|
|
3.81%
|
|
4.41%
|
|
3.80%
|
|
5.53%
|
Annualized return on
average tangible common equity, operating
|
F/C
|
4.83%
|
|
5.22%
|
|
6.05%
|
|
5.25%
|
|
7.66%
|
Pre-tax,
pre-provision annualized return on average assets,
operating
|
G/A
|
1.30%
|
|
1.21%
|
|
1.27%
|
|
1.15%
|
|
1.51%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MIDSOUTH BANCORP,
INC. and
SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP Financial Measures (unaudited) (continued)
|
|
|
|
|
|
|
|
|
|
(in thousands
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
PER COMMON SHARE
DATA
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
0.14
|
|
$
0.15
|
|
$
0.17
|
|
$
0.15
|
|
$
0.21
|
|
$
0.46
|
|
$
0.75
|
Effect of net gain on
sale of securities, after-tax
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(0.07)
|
Effect of income from
death benefit on bank owned life insurance
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(0.01)
|
Diluted earnings per
share, operating
|
|
$
0.14
|
|
$
0.15
|
|
$
0.17
|
|
$
0.15
|
|
$
0.21
|
|
$
0.46
|
|
$
0.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common
share
|
|
$
15.58
|
|
$
15.56
|
|
$
15.38
|
|
$
15.14
|
|
$
15.21
|
|
|
|
|
Effect of intangible
assets per share
|
|
4.14
|
|
4.16
|
|
4.19
|
|
4.22
|
|
4.24
|
|
|
|
|
Tangible book value
per common share
|
|
$
11.44
|
|
$
11.40
|
|
$
11.19
|
|
$
10.92
|
|
$
10.97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
|
|
|
EFFICIENCY
RATIO
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
18,539
|
|
$
17,991
|
|
$
18,384
|
|
$
18,537
|
|
$
19,141
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income
|
|
4,866
|
|
4,873
|
|
4,487
|
|
4,575
|
|
4,768
|
|
|
|
|
Net gain on sale of
securities
|
|
-
|
|
(20)
|
|
-
|
|
-
|
|
-
|
|
|
|
|
Noninterest income (non-GAAP)
|
|
$
4,866
|
|
$
4,853
|
|
$
4,487
|
|
$
4,575
|
|
$
4,768
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
H
|
$
23,405
|
|
$
22,864
|
|
$
22,871
|
|
$
23,112
|
|
$
23,909
|
|
|
|
|
Total revenue
(non-GAAP)
|
I
|
$
23,405
|
|
$
22,844
|
|
$
22,871
|
|
$
23,112
|
|
$
23,909
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
J
|
$
17,114
|
|
$
17,041
|
|
$
16,759
|
|
$
17,508
|
|
$
16,492
|
|
|
|
|
Net (loss) gain on
sale/valuation of other real estate owned
|
|
(19)
|
|
(24)
|
|
-
|
|
(14)
|
|
(79)
|
|
|
|
|
Noninterest expense (non-GAAP)
|
K
|
$
17,095
|
|
$
17,017
|
|
$
16,759
|
|
$
17,494
|
|
$
16,413
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(GAAP)
|
J/H
|
73.12%
|
|
74.53%
|
|
73.28%
|
|
75.75%
|
|
68.98%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(non-GAAP)
|
K/I
|
73.04%
|
|
74.49%
|
|
73.28%
|
|
75.69%
|
|
68.65%
|
|
|
|
|
Logo -
http://photos.prnewswire.com/prnh/20100125/MIDSOUTHLOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/midsouth-bancorp-inc-reports-third-quarter-2016-results-and-declares-quarterly-dividends-300351942.html
SOURCE MidSouth Bancorp, Inc.