LAFAYETTE, La., Jan. 31, 2017 /PRNewswire/ -- MidSouth
Bancorp, Inc. ("MidSouth") (NYSE:MSL) today reported quarterly net
earnings available to common shareholders of $1.4 million for the fourth quarter of 2016,
compared to net earnings available to common shareholders of
$1.7 million reported for the fourth
quarter of 2015 and $1.6 million in
net earnings available to common shareholders for the third quarter
of 2016. Diluted earnings for the fourth quarter of 2016 were
$0.12 per common share, compared to
$0.15 per common share reported for
the fourth quarter of 2015 and $0.14
per common share reported for the third quarter of 2016.
Troy Cloutier, MidSouth Bank
President and CEO, commenting on fourth quarter earnings remarked,
"We continue to work diligently to support our energy-related
customers through this cycle and at the same time look to minimize
risk to our balance sheet. Our loss content during the past
two years has been modest with cycle-to-date charge-offs of 1.23%
of energy loans. More importantly, we are focused on
improving performance in non-energy related lending and are very
excited with new hires we have made in the latter part of 2016,
especially in our Texas
markets."
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 $5.9 million during 4Q16 to $237.4 million, or 18.5% of total loans, from
19.1% at September 30, 2016.
- Direct C&I energy loans were $192.1
million or 15.0% of total loans and had a weighted average
maturity of 3.2 years at December 31,
2016.
- Energy-related CRE and residential real estate loans were
$44.9 million or 3.5% of total loans
at December 31, 2016.
- Total criticized energy-related loans increased $4.5 million, or 3.6%, during 4Q16 to
$119.2 million and represented 50.2%
of energy loans at December 31, 2016,
versus 47.1% at September 30,
2016.
- Eleven energy loan relationships were downgraded during the
quarter.
- One loan relationship totaling $4.2
million was downgraded to Special Mention
- Ten loan relationships totaling $21.1
million were downgraded to Substandard
- Four energy-related charge-offs totaled $549,000 and one energy-related recovery totaled
$175,000 during 4Q16. YTD
energy-related net charge-offs totaled $1.6
million, or approximately 64 basis points of average energy
loans.
- Cycle to date net charge-offs totaled $3.3 million, or 1.23% of December 31, 2014 energy loans, which was when
the effects of declining oil prices began to surface.
- One energy-related impairment totaling $2.9 million was identified during 4Q16. We
utilized $2.0 million of the energy
reserve in the allowance to offset the impairment.
- The energy reserve as a percentage of total energy loans, as
defined, was 4.9% at December 31,
2016. The reserve attributable to C&I energy loans was
approximately 5.6%. The reserve on all other energy loans was
2.3%.
- The Bank has two Shared National Credits (SNCs) totaling
$14.6 million in the energy portfolio
at December 31, 2016 and both were
downgraded to Substandard during the third quarter of 2016.
- To date, during the month of January
2017, the Bank has had two rating related changes to its
energy portfolio:
- One credit in the amount of $670,000 was downgraded from Pass to
Classified
- One credit in the amount of $640,000 was downgraded from Special Mention to
Classified
C. R. Cloutier, MidSouth Bancorp
President and CEO stated, "We are encouraged with the higher
pricing levels for oil and natural gas in addition to the recent
Executive directives to expedite both the reopening of the Keystone
pipeline and ordering permits for the Dakota access pipeline.
Furthermore, signs of regulatory relief appear to be forthcoming,
all of which should be beneficial to our energy-related
customers."
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 $1.9
billion at December 31, 2016
and 2015, compared to $2.0 billion at
September 30, 2016. Our stable
core deposit base, which excludes time deposits, totaled
$1.4 billion at December 31, 2016 and September 30, 2016 and accounted for 90.0% of
deposits at December 31, 2016 and
September 30, 2016. Net loans
totaled $1.3 billion at December 31, 2016, compared to $1.2 billion at September
30, 2016 and December 31,
2015.
MidSouth's Tier 1 leverage capital ratio was 10.11% at
December 31, 2016, compared to 10.27%
at September 30, 2016. Tier 1
risk-based capital and total risk-based capital ratios were 13.02%
and 14.28% at December 31, 2016,
compared to 13.07% and 14.33% at September
30, 2016, respectively. Tier 1 common equity to total
risk-weighted assets at December 31,
2016 was 8.81%, compared to 8.83% at September 30, 2016. Tangible common equity
totaled $126.5 million at
December 31, 2016, compared to
$129.9 million at September 30, 2016. Tangible book value per
share at December 31, 2016 was
$11.13 versus $11.44 at September 30,
2016 primarily due to a $4.3
million decline in other comprehensive income during the
quarter.
Asset Quality
Nonperforming assets totaled $65.0
million at December 31, 2016,
an increase of $949,000 compared to
$64.1 million reported at
September 30, 2016. The
increase is primarily attributable to a $2.1 increase in loans on nonaccrual, which was
partially offset by a $700,000
decrease in loans past due ninety days and over and accruing.
Allowance coverage for nonperforming loans increased to 38.78% at
December 31, 2016, compared to 37.84%
at September 30, 2016. The
ALLL/total loans ratio was 1.90% at December
31, 2016 and 1.83% at September 30,
2016. Including valuation accounting adjustments on
acquired loans, the total valuation accounting adjustment plus ALLL
was 2.06% of loans at December 31,
2016. The ratio of annualized net charge-offs to total loans
increased to 0.46% for the three months ended December 31, 2016 compared to 0.32% for the three
months ended September 30, 2016.
Total nonperforming assets to total loans plus ORE and other
assets repossessed was 5.06% at December 31,
2016 compared to 5.03% at September
30, 2016. Loans classified as troubled debt
restructurings, accruing ("TDRs, accruing") totaled $152,000 at December 31,
2016 and $153,000 at
September 30, 2016. Classified
assets, including ORE, increased $15.6
million, or 13.2%, to $134.2
million at December 31, 2016
compared to $118.6 million at
September 30, 2016. The
increase in classified assets during the quarter ended December 31, 2016 is primarily due to the
downgrade of six energy-related credits totaling $19.8 million and the downgrade of one credit not
related to energy totaling $4.3
million. These increases to classified assets were
partially offset by the payoff of $8.1
million classified relationship during the fourth
quarter.
Fourth Quarter 2016 vs. Third Quarter 2016 Earnings
Comparison
In sequential-quarter comparison, net earnings available to
common shareholders decreased $200,000, from $1.6
million for the three months ended September 30, 2016 to $1.4
million for the three months ended December 31, 2016. Net interest income
decreased $15,000 in
sequential-quarter comparison. Noninterest income decreased
$84,000 in sequential-quarter
comparison. The decrease in noninterest income consisted
primarily of a $110,000 decrease in
service charges on deposit accounts and a $26,000 decrease in mortgage program fee income,
which were partially offset by a $62,000 increase in ATM/debit card income.
Noninterest expense increased $522,000 in sequential-quarter comparison, which
was primarily due to increased costs of $362,000, or $0.02
per share, related to recruiting new talent to the organization,
including new producers in Texas
and a new Chief Information Officer. The increase in
noninterest expense consisted primarily of increases of
$692,000 in salaries and benefits
costs, a $96,000 in occupancy expense
and an $89,000 increase in loss on
sale of other assets repossessed, which were partially offset by a
$93,000 decrease in marketing expense
and a $274,000 decrease in shares tax
expense. The provision for loan losses decreased $300,000 in sequential-quarter 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
fourth 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 $92,000 for the three months ended December 31, 2016.
Fully taxable-equivalent ("FTE") net interest income increased
$9,000 in sequential-quarter
comparison. Interest income on loans decreased $25,000 due to a decrease in the average yield on
loans of 5 basis points, from 5.45% to 5.40%. The average
balance of loans increased $9.3
million in sequential-quarter comparison. Excluding
purchase accounting adjustments, the loan yield decreased 3 basis
points, from 5.31% to 5.28% during the same period. The
average yield on total earning assets decreased 7 basis points for
the same period, from 4.55% to 4.48%, respectively. As a
result of these changes in volume and yield on earning assets, the
FTE net interest margin decreased 9 basis points, from 4.24% to
4.15%. Excluding purchase accounting adjustments, the FTE net
interest margin decreased 7 basis points, from 4.12% for the third
quarter of 2016 to 4.05% for the fourth quarter of 2016.
Fourth Quarter 2016 vs. Fourth Quarter 2015 Earnings
Comparison
Fourth quarter 2016 net earnings available to common
shareholders totaled $1.4 million
compared to $1.7 million for the
fourth quarter of 2015. Revenues from consolidated operations
increased $194,000 in quarterly
comparison, from $23.1 million for
the three months ended December 31,
2015 to $23.3 million for the
three months ended December 31,
2016. Net interest income decreased $13,000 in quarterly comparison. A
$110,000 increase in interest expense
was partially offset by a $97,000
increase in interest income. Noninterest income increased
$207,000 in quarterly comparison and
consisted primarily of a $66,000
increase in ATM/debit card income, a $46,000 increase in service charges on deposits
accounts and a $41,000 increase in
mortgage program fee income.
Noninterest expenses increased $128,000 in quarterly comparison and consisted
primarily of a $482,000 increase in
salaries and employee benefits costs, a $54,000 increase in recruiting expense and a
$102,000 increase in loss on sale of
other assets repossessed, which was partially offset by a
$123,000 decrease in FDIC premiums, a
$240,000 decrease in shares tax
expense, a $103,000 decrease in
marketing expense and a $57,000
decrease in printing and supplies costs. The increases in
salaries and benefits expense and recruiting expense were
attributable primarily to the cost of locating and hiring several
new key employees. The increase in salaries and benefits
costs included $124,000 of sign-on
bonuses for these employees, and we also recorded $100,000 of recruiting expenses during the three
months ended December 31, 2016
related to these employees. Also included in the increase in
salaries and benefits expense is $223,000 of severance benefits. The
provision for loan losses decreased $400,000 in quarterly comparison, from
$3.0 million for the three months
ended December 31, 2015 to
$2.6 million for the three months
ended December 31, 2016. Income
tax expense increased $105,000 in
quarterly comparison.
Dividends on preferred stock totaled $812,000 for the three months ended December 31, 2016 and $170,000 for the three months ended December 31, 2015.
FTE net interest income totaled $18.8
million for the quarters ended December 31, 2016 and 2015. The FTE
net interest income decreased $39,000
in prior year quarterly comparison. Interest income on loans
increased $29,000 due to a
$6.4 million increase in the average
balance of loans. The average yield on loans decreased 1
basis point, from 5.41% to 5.40%. Purchase accounting
adjustments added 12 basis points to the average yield on loans for
the fourth quarter of 2016 and 15 basis points to the average yield
on loans for the fourth quarter of 2015. Excluding the impact
of the purchase accounting adjustments, average loan yields
increased 2 basis points in prior year quarterly comparison, from
5.26% to 5.28%.
Investment securities totaled $440.1
million, or 22.6% of total assets at December 31, 2016, versus $435.0 million, or 22.6% of total assets at
December 31, 2015. The
investment portfolio had an effective duration of 3.2 years and a
net unrealized loss of $2.5 million
at December 31, 2016. The
average volume of investment securities increased $5.6 million in prior year quarterly
comparison. The average tax equivalent yield on investment
securities decreased 6 basis points, from 2.65% to 2.57%.
The average yield on all earning assets decreased 4 basis points
in prior year quarterly comparison, from 4.52% for the fourth
quarter of 2015 to 4.48% for the fourth quarter of 2016.
Excluding the impact of purchase accounting adjustments, the
average yield on total earning assets decreased 3 basis points,
from 4.42% to 4.39% for the three month periods ended December 31, 2015 and 2016, respectively.
Interest expense increased $110,000 in prior year quarterly
comparison. Increases in interest expense included a
$93,000 increase in interest expense
on deposits and a $35,000 increase in
interest expense on junior subordinated debentures. These
increases were partially offset by a $19,000 decrease in interest expense on
short-term FHLB advances. Excluding purchase accounting
adjustments on acquired certificates of deposit and FHLB
borrowings, the average rate paid on interest-bearing liabilities
was 0.47% for the three months ended December 31, 2016 and 0.44% for the three months
ended December 31, 2015.
As a result of these changes in volume and yield on earning
assets and interest-bearing liabilities, the FTE net interest
margin decreased 7 basis points, from 4.22% for the fourth quarter
of 2015 to 4.15% for the fourth quarter of 2016. Excluding
purchase accounting adjustments on loans, deposits and FHLB
borrowings, the FTE margin decreased 4 basis points, from 4.09% for
the fourth quarter of 2015 to 4.05% for the fourth quarter of
2016.
Year-To-Date Earnings Comparison
In year-to-date comparison, net earnings available to common
shareholders decreased $3.7 million,
from $10.3 million at December 31, 2015 to $6.6
million at December 31,
2016. 2016 net earnings included $13,000 in gain on sales of securities, net of
tax. 2015 net earnings included $808,000 in gain on sales of securities, net of
tax, 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 $2.8 million
in year-to-date comparison. The $2.8
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
$1.4 million of noninterest expense
and an increase of $2.2 million in
dividends on preferred stock, which were partially offset by a
$3.3 million decrease in the
provision for loan losses and an $726,000 decrease in income tax expense.
Excluding non-operating income, noninterest income increased
$70,000 and consisted primarily of
$89,000 in service charges on deposit
accounts and $116,000 in ATM/debit
card income, which were partially offset by a $54,000 decrease in letter of credit income and a
$41,000 decrease in credit card
income. Increases in noninterest expense primarily included
$896,000 in salaries and benefits
costs, $288,000 in ATM and debit card
processing fees, $295,000 in legal
and professional fees and $191,000 in
recruiting expense, which were partially offset by a $422,000 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
$28.1 million in year-over-year
comparison, and the average yield on loans decreased 11 basis
points, from 5.54% to 5.43%. The average volume of investment
securities increased $861,000 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 4.66% at December 31,
2015 to 4.52% at December 31,
2016. The purchase accounting adjustments added 16 basis
points to the average yield on loans for the year ended
December 31, 2015 and 12 basis points
for the year ended December 31,
2016. Net of purchase accounting adjustments, the average
yield on earning assets decreased 11 basis points, from 4.54% at
December 31, 2015 to 4.43% at
December 31, 2016.
Interest expense increased $109,000 in year-over-year comparison.
Increases in interest expense included a $67,000 increase in interest expense on deposits
and a $91,000 increase in interest
expense on junior subordinated debentures. These increases
were partially offset by a $33,000
decrease in interest expense on short-term FHLB advances and a
$18,000 decrease in interest expense
on securities sold under agreements to repurchase. The
average rate paid on interest-bearing liabilities was 0.43% for the
year ended December 31, 2016,
compared to 0.42% for the year ended December 31, 2015. Net of purchase
accounting adjustments, the average rate paid on interest-bearing
liabilities increased one basis point, from 0.45% for the year
ended December 31, 2015 to 0.46% for
the year ended December 31,
2016. The FTE net interest margin decreased 14 basis points,
from 4.34% for the year ended December 31,
2015 to 4.20% for the year ended December 31, 2016. Net of purchase
accounting adjustments, the FTE net interest margin decreased 11
basis points, from 4.20% to 4.09% for the years ended December 31, 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 April 3, 2017 to shareholders of record as of the
close of business on March 15,
2017. 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 April 17, 2017 to shareholders of record as of
the close of business on April 3,
2017.
About MidSouth Bancorp, Inc.
MidSouth Bancorp, Inc. is a financial holding company
headquartered in Lafayette,
Louisiana, with assets of $1.9
billion as of December 31,
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
|
|
12/31/2016
|
|
9/30/2016
|
|
6/30/2016
|
|
3/31/2016
|
|
12/31/2015
|
Total interest
income
|
|
$
19,983
|
|
$
19,953
|
|
$
19,388
|
|
$
19,804
|
|
$
19,886
|
Total interest
expense
|
|
1,459
|
|
1,414
|
|
1,397
|
|
1,420
|
|
1,349
|
Net interest income
|
|
18,524
|
|
18,539
|
|
17,991
|
|
18,384
|
|
18,537
|
FTE net interest
income
|
|
18,767
|
|
18,758
|
|
18,212
|
|
18,625
|
|
18,806
|
Provision for loan
losses
|
|
2,600
|
|
2,900
|
|
2,300
|
|
2,800
|
|
3,000
|
Non-interest
income
|
|
4,782
|
|
4,866
|
|
4,873
|
|
4,487
|
|
4,575
|
Non-interest
expense
|
|
17,636
|
|
17,114
|
|
17,041
|
|
16,759
|
|
17,508
|
Earnings
before income taxes
|
|
3,070
|
|
3,391
|
|
3,523
|
|
3,312
|
|
2,604
|
Income tax
expense
|
|
871
|
|
993
|
|
1,030
|
|
963
|
|
766
|
Net
earnings
|
|
2,199
|
|
2,398
|
|
2,493
|
|
2,349
|
|
1,838
|
Dividends on preferred
stock
|
|
812
|
|
811
|
|
811
|
|
427
|
|
171
|
Net earnings available to common shareholders
|
|
$
1,387
|
|
$
1,587
|
|
$
1,682
|
|
$
1,922
|
|
$
1,667
|
|
|
|
|
|
|
|
|
|
|
|
PER COMMON SHARE
DATA
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
0.12
|
|
$
0.14
|
|
$
0.15
|
|
$
0.17
|
|
$
0.15
|
Diluted earnings per
share
|
|
0.12
|
|
0.14
|
|
0.15
|
|
0.17
|
|
0.15
|
Diluted earnings per share,
operating (Non-GAAP)(*)
|
|
0.12
|
|
0.14
|
|
0.15
|
|
0.17
|
|
0.15
|
Quarterly dividends per
share
|
|
0.09
|
|
0.09
|
|
0.09
|
|
0.09
|
|
0.09
|
Book value at end of
period
|
|
15.25
|
|
15.58
|
|
15.56
|
|
15.38
|
|
15.14
|
Tangible book value at
period end (Non-GAAP)(*)
|
|
11.13
|
|
11.44
|
|
11.40
|
|
11.19
|
|
10.92
|
Market price at end of
period
|
|
13.60
|
|
10.40
|
|
10.04
|
|
7.63
|
|
9.08
|
Shares outstanding at period
end
|
|
11,362,716
|
|
11,362,716
|
|
11,362,705
|
|
11,362,150
|
|
11,362,150
|
Weighted average shares
outstanding
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
11,271,948
|
|
11,262,282
|
|
11,255,042
|
|
11,261,644
|
|
11,281,286
|
Diluted
|
|
11,273,302
|
|
11,262,710
|
|
11,255,178
|
|
11,261,644
|
|
11,281,286
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEET DATA
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
1,960,436
|
|
$1,927,351
|
|
$1,921,004
|
|
$1,931,904
|
|
$
1,938,235
|
Loans and leases
|
|
1,277,555
|
|
1,268,270
|
|
1,256,133
|
|
1,252,742
|
|
1,271,106
|
Total deposits
|
|
1,591,814
|
|
1,562,193
|
|
1,562,680
|
|
1,552,217
|
|
1,557,272
|
Total common
equity
|
|
176,747
|
|
177,866
|
|
175,994
|
|
175,479
|
|
173,950
|
Total tangible common equity
(Non-GAAP)(*)
|
|
129,821
|
|
130,662
|
|
128,516
|
|
127,722
|
|
125,919
|
Total
equity
|
|
217,857
|
|
218,976
|
|
217,112
|
|
216,599
|
|
215,072
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED
RATIOS
|
|
|
|
|
|
|
|
|
|
|
Annualized return on average
assets, operating (Non-GAAP)(*)
|
|
0.28%
|
|
0.33%
|
|
0.35%
|
|
0.40%
|
|
0.34%
|
Annualized return on average
common equity, operating (Non-GAAP)(*)
|
|
3.12%
|
|
3.55%
|
|
3.81%
|
|
4.41%
|
|
3.80%
|
Annualized return on average
tangible common equity, operating
(Non-GAAP)(*)
|
|
4.25%
|
|
4.83%
|
|
5.22%
|
|
6.05%
|
|
5.25%
|
Pre-tax, pre-provision
annualized return on average assets, operating
(Non-GAAP)(*)
|
|
1.15%
|
|
1.30%
|
|
1.21%
|
|
1.27%
|
|
1.15%
|
Efficiency ratio, operating
(Non-GAAP)(*)
|
|
75.67%
|
|
73.04%
|
|
74.49%
|
|
73.28%
|
|
75.69%
|
Average loans to average
deposits
|
|
80.26%
|
|
81.19%
|
|
80.38%
|
|
80.71%
|
|
81.62%
|
Taxable-equivalent net
interest margin
|
|
4.15%
|
|
4.24%
|
|
4.17%
|
|
4.24%
|
|
4.22%
|
Tier 1 leverage capital
ratio
|
|
10.11%
|
|
10.27%
|
|
10.25%
|
|
10.17%
|
|
10.10%
|
|
|
|
|
|
|
|
|
|
|
|
CREDIT
QUALITY
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan and lease
losses (ALLL) as a % of total loans
|
|
1.90%
|
|
1.83%
|
|
1.69%
|
|
1.63%
|
|
1.50%
|
Nonperforming assets to
tangible equity + ALLL
|
|
33.88%
|
|
32.98%
|
|
32.77%
|
|
30.83%
|
|
29.54%
|
Nonperforming assets to
total loans, other real estate owned and other repossessed assets
|
|
5.06%
|
|
5.03%
|
|
4.97%
|
|
4.64%
|
|
4.29%
|
Annualized QTD net
charge-offs to total loans
|
|
0.46%
|
|
0.32%
|
|
0.40%
|
|
0.47%
|
|
0.92%
|
|
|
|
|
|
|
|
|
|
|
|
(*)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
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
82,228
|
|
$
126,667
|
|
$
98,535
|
|
$
112,410
|
|
$
89,201
|
Securities
available-for-sale
|
|
341,873
|
|
316,145
|
|
318,239
|
|
302,151
|
|
318,159
|
Securities
held-to-maturity
|
|
98,211
|
|
103,412
|
|
109,420
|
|
113,623
|
|
116,792
|
Total investment
securities
|
|
440,084
|
|
419,557
|
|
427,659
|
|
415,774
|
|
434,951
|
Other
investments
|
|
11,355
|
|
11,339
|
|
11,036
|
|
11,195
|
|
11,188
|
Total
loans
|
|
1,284,082
|
|
1,272,800
|
|
1,262,389
|
|
1,250,049
|
|
1,263,645
|
Allowance for loan
losses
|
|
(24,372)
|
|
(23,268)
|
|
(21,378)
|
|
(20,347)
|
|
(19,011)
|
Loans, net
|
|
1,259,710
|
|
1,249,532
|
|
1,241,011
|
|
1,229,702
|
|
1,244,634
|
Premises and
equipment
|
|
68,954
|
|
69,778
|
|
68,468
|
|
68,482
|
|
69,105
|
Goodwill and other
intangibles
|
|
46,792
|
|
47,069
|
|
47,346
|
|
47,622
|
|
47,899
|
Other
assets
|
|
34,217
|
|
29,978
|
|
28,469
|
|
31,366
|
|
30,755
|
Total assets
|
|
$
1,943,340
|
|
$
1,953,920
|
|
$1,922,524
|
|
$1,916,551
|
|
$
1,927,733
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing
deposits
|
|
$
414,921
|
|
$
403,301
|
|
$
383,797
|
|
$
383,684
|
|
$
374,261
|
Interest-bearing
deposits
|
|
1,164,509
|
|
1,181,906
|
|
1,176,269
|
|
1,174,519
|
|
1,176,589
|
Total deposits
|
|
1,579,430
|
|
1,585,207
|
|
1,560,066
|
|
1,558,203
|
|
1,550,850
|
Securities sold under
agreements to repurchase
|
|
94,461
|
|
95,210
|
|
85,786
|
|
87,879
|
|
85,957
|
Short-term FHLB
advances
|
|
-
|
|
-
|
|
-
|
|
-
|
|
25,000
|
Long-term FHLB
advances
|
|
25,424
|
|
25,531
|
|
25,638
|
|
25,744
|
|
25,851
|
Junior subordinated
debentures
|
|
22,167
|
|
22,167
|
|
22,167
|
|
22,167
|
|
22,167
|
Other
liabilities
|
|
7,482
|
|
7,679
|
|
10,926
|
|
6,704
|
|
4,771
|
Total
liabilities
|
|
1,728,964
|
|
1,735,794
|
|
1,704,583
|
|
1,700,697
|
|
1,714,596
|
Total shareholders'
equity
|
|
214,376
|
|
218,126
|
|
217,941
|
|
215,854
|
|
213,137
|
Total liabilities and
shareholders' equity
|
|
$
1,943,340
|
|
$
1,953,920
|
|
$1,922,524
|
|
$1,916,551
|
|
$
1,927,733
|
MIDSOUTH BANCORP,
INC. and SUBSIDIARIES
|
|
Condensed
Consolidated Income Statements
(unaudited)
|
|
(in thousands
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Percent
Change
|
|
|
|
|
|
|
|
EARNINGS
STATEMENT
|
|
Three Months
Ended
|
|
4Q16 vs.
3Q16
|
|
4Q16 vs.
4Q15
|
|
Twelve Months
Ended
|
|
Percent
|
|
|
|
12/31/2016
|
|
9/30/2016
|
|
12/31/2015
|
|
|
|
12/31/2016
|
|
12/31/2015
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including
fees
|
|
$
16,986
|
|
$ 16,974
|
|
$
16,914
|
|
0.1%
|
|
0.4%
|
|
$
67,219
|
|
$
69,753
|
|
-3.6%
|
|
Investment
securities
|
|
2,427
|
|
2,399
|
|
2,440
|
|
1.2%
|
|
-0.5%
|
|
9,680
|
|
9,747
|
|
-0.7%
|
|
Accretion of purchase
accounting adjustments
|
|
362
|
|
399
|
|
405
|
|
-9.3%
|
|
-10.6%
|
|
1,463
|
|
1,880
|
|
-22.2%
|
|
Other interest
income
|
|
208
|
|
181
|
|
127
|
|
14.9%
|
|
63.8%
|
|
766
|
|
517
|
|
48.2%
|
|
Total interest
income
|
|
19,983
|
|
19,953
|
|
19,886
|
|
0.2%
|
|
0.5%
|
|
79,128
|
|
81,897
|
|
-3.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
936
|
|
919
|
|
850
|
|
1.8%
|
|
10.1%
|
|
3,689
|
|
3,686
|
|
0.1%
|
|
Borrowings
|
|
422
|
|
419
|
|
442
|
|
0.7%
|
|
-4.5%
|
|
1,691
|
|
1,744
|
|
-3.0%
|
|
Junior subordinated
debentures
|
|
197
|
|
170
|
|
162
|
|
15.9%
|
|
21.6%
|
|
704
|
|
613
|
|
14.8%
|
|
Accretion of purchase
accounting adjustments
|
|
(96)
|
|
(94)
|
|
(105)
|
|
2.1%
|
|
-8.6%
|
|
(394)
|
|
(462)
|
|
-14.7%
|
|
Total interest
expense
|
|
1,459
|
|
1,414
|
|
1,349
|
|
3.2%
|
|
8.2%
|
|
5,690
|
|
5,581
|
|
2.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
18,524
|
|
18,539
|
|
18,537
|
|
-0.1%
|
|
-0.1%
|
|
73,438
|
|
76,316
|
|
-3.8%
|
|
Provision for loan
losses
|
|
2,600
|
|
2,900
|
|
3,000
|
|
-10.3%
|
|
-13.3%
|
|
10,600
|
|
13,900
|
|
-23.7%
|
|
Net interest income
after provision for loan losses
|
|
15,924
|
|
15,639
|
|
15,537
|
|
1.8%
|
|
2.5%
|
|
62,838
|
|
62,416
|
|
0.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges
on deposit accounts
|
|
2,399
|
|
2,509
|
|
2,353
|
|
-4.4%
|
|
2.0%
|
|
9,612
|
|
9,523
|
|
0.9%
|
|
ATM and debit card
income
|
|
1,682
|
|
1,620
|
|
1,616
|
|
3.8%
|
|
4.1%
|
|
6,579
|
|
6,463
|
|
1.8%
|
|
Gain on securities,
net (non-operating)(*)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
20
|
|
1,243
|
|
-98.4%
|
|
Mortgage
lending
|
|
164
|
|
190
|
|
123
|
|
-13.7%
|
|
33.3%
|
|
586
|
|
618
|
|
-5.2%
|
|
Income from death
benefit on BOLI (non-operating)(*)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
160
|
|
-100.0%
|
|
Other charges and
fees
|
|
537
|
|
547
|
|
483
|
|
-1.8%
|
|
11.2%
|
|
2,211
|
|
2,314
|
|
-4.5%
|
|
Total non-interest
income
|
|
4,782
|
|
4,866
|
|
4,575
|
|
-1.7%
|
|
4.5%
|
|
19,008
|
|
20,321
|
|
-6.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
employee benefits
|
|
8,726
|
|
8,034
|
|
8,244
|
|
8.6%
|
|
5.8%
|
|
32,932
|
|
32,036
|
|
2.8%
|
|
Occupancy
expense
|
|
3,731
|
|
3,635
|
|
3,687
|
|
2.6%
|
|
1.2%
|
|
14,630
|
|
15,052
|
|
-2.8%
|
|
ATM and debit
card
|
|
829
|
|
833
|
|
825
|
|
-0.5%
|
|
0.5%
|
|
3,239
|
|
2,951
|
|
9.8%
|
|
Legal and
professional fees
|
|
520
|
|
516
|
|
448
|
|
0.8%
|
|
16.1%
|
|
1,855
|
|
1,560
|
|
18.9%
|
|
FDIC
premiums
|
|
387
|
|
365
|
|
510
|
|
6.0%
|
|
-24.1%
|
|
1,601
|
|
1,513
|
|
5.8%
|
|
Marketing
|
|
349
|
|
442
|
|
452
|
|
-21.0%
|
|
-22.8%
|
|
1,523
|
|
1,564
|
|
-2.6%
|
|
Corporate
development
|
|
423
|
|
395
|
|
453
|
|
7.1%
|
|
-6.6%
|
|
1,572
|
|
1,531
|
|
2.7%
|
|
Data
processing
|
|
500
|
|
527
|
|
488
|
|
-5.1%
|
|
2.5%
|
|
1,963
|
|
1,888
|
|
4.0%
|
|
Printing and
supplies
|
|
158
|
|
191
|
|
215
|
|
-17.3%
|
|
-26.5%
|
|
760
|
|
923
|
|
-17.7%
|
|
Expenses on ORE,
net
|
|
59
|
|
100
|
|
23
|
|
-41.0%
|
|
156.5%
|
|
389
|
|
267
|
|
45.7%
|
|
Amortization of core
deposit intangibles
|
|
277
|
|
277
|
|
276
|
|
0.0%
|
|
0.4%
|
|
1,107
|
|
1,106
|
|
0.1%
|
|
Other non-interest
expense
|
|
1,677
|
|
1,799
|
|
1,887
|
|
-6.8%
|
|
-11.1%
|
|
6,979
|
|
6,746
|
|
3.5%
|
|
Total non-interest
expense
|
|
17,636
|
|
17,114
|
|
17,508
|
|
3.1%
|
|
0.7%
|
|
68,550
|
|
67,137
|
|
2.1%
|
|
Earnings before
income taxes
|
|
3,070
|
|
3,391
|
|
2,604
|
|
-9.5%
|
|
17.9%
|
|
13,296
|
|
15,600
|
|
-14.8%
|
|
Income tax
expense
|
|
871
|
|
993
|
|
766
|
|
-12.3%
|
|
13.7%
|
|
3,857
|
|
4,583
|
|
-15.8%
|
|
Net
earnings
|
|
2,199
|
|
2,398
|
|
1,838
|
|
-8.3%
|
|
19.6%
|
|
9,439
|
|
11,017
|
|
-14.3%
|
|
Dividends on
preferred stock
|
|
812
|
|
811
|
|
170
|
|
0.1%
|
|
377.6%
|
|
2,861
|
|
687
|
|
316.4%
|
|
Net earnings
available to common shareholders
|
|
$
1,387
|
|
$
1,587
|
|
$
1,668
|
|
-12.6%
|
|
-16.8%
|
|
$
6,578
|
|
$
10,330
|
|
-36.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share, diluted
|
|
$
0.12
|
|
$
0.14
|
|
$
0.15
|
|
-14.3%
|
|
-20.0%
|
|
$
0.58
|
|
$
0.90
|
|
-35.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings
per common share, diluted (Non-GAAP)(*)
|
|
$
0.12
|
|
$
0.14
|
|
$
0.15
|
|
-14.3%
|
|
-20.0%
|
|
$
0.58
|
|
$
0.82
|
|
-29.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)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
|
|
December
31,
|
|
September
30,
|
|
Dec 16 vs Sept
16
% Change
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
Dec 16 vs Dec
15
% Change
|
|
|
2016
|
|
2016
|
|
|
2016
|
|
2016
|
|
2015
|
|
|
Commercial,
financial, and agricultural
|
|
$
459,574
|
|
$
463,031
|
|
-0.7%
|
|
$
456,264
|
|
$
441,160
|
|
$
454,028
|
|
1.2%
|
|
Lease financing
receivable
|
|
1,095
|
|
1,449
|
|
-24.4%
|
|
1,641
|
|
1,590
|
|
1,968
|
|
-44.4%
|
|
Real estate -
construction
|
|
100,959
|
|
96,365
|
|
4.8%
|
|
96,331
|
|
84,790
|
|
74,952
|
|
34.7%
|
|
Real estate -
commercial
|
|
481,155
|
|
464,853
|
|
3.5%
|
|
463,142
|
|
467,648
|
|
471,141
|
|
2.1%
|
|
Real estate -
residential
|
|
157,872
|
|
155,653
|
|
1.4%
|
|
148,379
|
|
149,961
|
|
149,064
|
|
5.9%
|
|
Installment loans to
individuals
|
|
82,660
|
|
88,537
|
|
-6.6%
|
|
94,522
|
|
103,181
|
|
111,009
|
|
-25.5%
|
|
Other
|
|
767
|
|
2,912
|
|
-73.7%
|
|
2,110
|
|
1,719
|
|
1,483
|
|
-48.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
loans
|
|
$
1,284,082
|
|
$
1,272,800
|
|
0.9%
|
|
$1,262,389
|
|
$1,250,049
|
|
$
1,263,645
|
|
1.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPOSITION OF
DEPOSITS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
Dec 16 vs Sept
16
% Change
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
Dec 16 vs Dec
15
% Change
|
|
|
|
2016
|
|
2016
|
|
|
2016
|
|
2016
|
|
2015
|
|
|
Noninterest
bearing
|
|
$
414,921
|
|
$
403,301
|
|
2.9%
|
|
$
383,798
|
|
$
383,684
|
|
$
374,261
|
|
10.9%
|
|
NOW &
other
|
|
472,484
|
|
465,850
|
|
1.4%
|
|
467,987
|
|
472,309
|
|
475,346
|
|
-0.6%
|
|
Money
market/savings
|
|
539,815
|
|
557,068
|
|
-3.1%
|
|
544,256
|
|
534,854
|
|
531,449
|
|
1.6%
|
|
Time deposits of less
than $100,000
|
|
75,940
|
|
78,785
|
|
-3.6%
|
|
80,158
|
|
80,802
|
|
81,638
|
|
-7.0%
|
|
Time deposits of
$100,000 or more
|
|
76,270
|
|
80,203
|
|
-4.9%
|
|
83,867
|
|
86,554
|
|
88,156
|
|
-13.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
deposits
|
|
$
1,579,430
|
|
$
1,585,207
|
|
-0.4%
|
|
$1,560,066
|
|
$1,558,203
|
|
$
1,550,850
|
|
1.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
|
|
|
|
2016
|
|
2016
|
|
|
2016
|
|
2016
|
|
2015
|
|
|
|
Nonaccrual
loans
|
|
$
62,580
|
|
$
60,522
|
|
|
|
$
59,865
|
|
$
53,714
|
|
$
50,051
|
|
|
|
Loans past due
90 days and over
|
|
268
|
|
968
|
|
|
|
56
|
|
258
|
|
147
|
|
|
|
Total nonperforming
loans
|
|
62,848
|
|
61,490
|
|
|
|
59,921
|
|
53,972
|
|
50,198
|
|
|
|
Other real
estate
|
|
2,175
|
|
2,317
|
|
|
|
2,735
|
|
3,908
|
|
4,187
|
|
|
|
Other repossessed
assets
|
|
16
|
|
283
|
|
|
|
263
|
|
265
|
|
38
|
|
|
|
Total nonperforming
assets
|
|
$
65,039
|
|
$
64,090
|
|
|
|
$
62,919
|
|
$
58,145
|
|
$
54,423
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Troubled debt
restructurings, accruing
|
|
$
152
|
|
$
153
|
|
|
|
$
154
|
|
$
5,675
|
|
$
164
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets
to total assets
|
|
3.35%
|
|
3.28%
|
|
|
|
3.27%
|
|
3.03%
|
|
2.82%
|
|
|
|
Nonperforming assets
to total loans +
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORE +
other repossessed assets
|
|
5.06%
|
|
5.03%
|
|
|
|
4.97%
|
|
4.64%
|
|
4.29%
|
|
|
|
ALLL to nonperforming
loans
|
|
38.78%
|
|
37.84%
|
|
|
|
35.68%
|
|
37.70%
|
|
37.87%
|
|
|
|
ALLL to total
loans
|
|
1.90%
|
|
1.83%
|
|
|
|
1.69%
|
|
1.63%
|
|
1.50%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter-to-date
charge-offs
|
|
$
1,835
|
|
$
1,161
|
|
|
|
$
1,425
|
|
$
1,594
|
|
$
3,091
|
|
|
|
Quarter-to-date
recoveries
|
|
339
|
|
151
|
|
|
|
156
|
|
130
|
|
163
|
|
|
|
Quarter-to-date net
charge-offs
|
|
$
1,496
|
|
$
1,010
|
|
|
|
$
1,269
|
|
$
1,464
|
|
$
2,928
|
|
|
|
Annualized QTD net
charge-offs to total loans
|
|
0.46%
|
|
0.32%
|
|
|
|
0.40%
|
|
0.47%
|
|
0.92%
|
|
|
|
MIDSOUTH BANCORP,
INC. and
SUBSIDIARIES
|
Loan Portfolio -
Quarterly Roll Forward (unaudited)
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
|
2016
|
|
2016
|
|
2015
|
LOAN
ACTIVITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
originated
|
|
$
91,332
|
|
$
87,991
|
|
$
58,882
|
Repayments
|
|
(64,528)
|
|
(65,871)
|
|
(108,561)
|
Increases on
renewals
|
|
5,259
|
|
4,749
|
|
4,421
|
Change in lines of
credit
|
|
(19,990)
|
|
(20,079)
|
|
10,282
|
Change in allowance
for loan losses
|
|
(1,104)
|
|
(1,890)
|
|
(72)
|
Other
|
|
(791)
|
|
3,621
|
|
(2,831)
|
Net change in
loans
|
|
$
10,178
|
|
$
8,521
|
|
$
(37,879)
|
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
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2016
|
|
2015
|
|
Total
equity
|
|
$
214,376
|
|
$
213,137
|
|
Less preferred
equity
|
|
41,110
|
|
41,120
|
|
Total common
equity
|
|
173,266
|
|
172,017
|
|
Less
goodwill
|
|
42,171
|
|
42,171
|
|
Less
intangibles
|
|
4,621
|
|
5,728
|
|
Tangible common
equity
|
|
$
126,474
|
|
$
124,118
|
|
|
|
|
|
|
|
Total
assets
|
|
$
1,943,340
|
|
$
1,927,733
|
|
Less
goodwill
|
|
42,171
|
|
42,171
|
|
Less
intangibles
|
|
4,621
|
|
5,728
|
|
Tangible
assets
|
|
$
1,896,548
|
|
$
1,879,834
|
|
|
|
|
|
|
|
Tangible common
equity to tangible assets
|
|
6.67%
|
|
6.60%
|
|
|
|
|
|
|
|
REGULATORY
CAPITAL
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1
capital
|
|
$
131,091
|
|
$
128,470
|
|
Tier 1
capital
|
|
193,700
|
|
191,089
|
|
Total
capital
|
|
212,366
|
|
209,132
|
|
|
|
|
|
|
|
Regulatory capital
ratios:
|
|
|
|
|
|
Common equity tier 1
capital ratio
|
|
8.81%
|
|
8.91%
|
|
Tier 1 risk-based
capital ratio
|
|
13.02%
|
|
13.25%
|
|
Total risk-based
capital ratio
|
|
14.28%
|
|
14.50%
|
|
Tier 1 leverage
ratio
|
|
10.11%
|
|
10.10%
|
|
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
|
|
December 31,
2016
|
|
September 30,
2016
|
|
June 30,
2016
|
|
March 31,
2016
|
|
December 31,
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
|
|
$
348,673
|
|
$
1,965
|
|
2.25%
|
|
$
354,770
|
|
$
1,983
|
|
2.24%
|
|
$
349,433
|
|
$
1,940
|
|
2.22%
|
|
$
358,623
|
|
$
2,036
|
|
2.27%
|
|
$
339,033
|
|
$
1,917
|
|
2.26%
|
Tax-exempt
securities
|
|
66,549
|
|
705
|
|
4.24%
|
|
60,544
|
|
635
|
|
4.20%
|
|
60,972
|
|
641
|
|
4.21%
|
|
64,971
|
|
699
|
|
4.30%
|
|
70,548
|
|
778
|
|
4.41%
|
Total investment
securities
|
|
415,222
|
|
2,670
|
|
2.57%
|
|
415,314
|
|
2,618
|
|
2.52%
|
|
410,405
|
|
2,581
|
|
2.52%
|
|
423,594
|
|
2,735
|
|
2.58%
|
|
409,581
|
|
2,695
|
|
2.65%
|
Federal funds
sold
|
|
3,261
|
|
5
|
|
0.60%
|
|
2,703
|
|
3
|
|
0.43%
|
|
3,655
|
|
3
|
|
0.32%
|
|
3,843
|
|
5
|
|
0.51%
|
|
3,922
|
|
3
|
|
0.30%
|
Time and interest
bearing deposits in other
banks
|
|
90,527
|
|
125
|
|
0.54%
|
|
64,444
|
|
83
|
|
0.50%
|
|
76,042
|
|
97
|
|
0.50%
|
|
74,271
|
|
94
|
|
0.50%
|
|
73,069
|
|
52
|
|
0.28%
|
Other
investments
|
|
11,342
|
|
78
|
|
2.75%
|
|
11,253
|
|
95
|
|
3.38%
|
|
11,232
|
|
90
|
|
3.21%
|
|
11,189
|
|
88
|
|
3.15%
|
|
11,544
|
|
86
|
|
2.99%
|
Loans
|
|
1,277,555
|
|
17,348
|
|
5.40%
|
|
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%
|
Total interest
earning assets
|
|
1,797,907
|
|
20,226
|
|
4.48%
|
|
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%
|
Non-interest earning
assets
|
|
162,529
|
|
|
|
|
|
165,367
|
|
|
|
|
|
163,537
|
|
|
|
|
|
166,265
|
|
|
|
|
|
169,013
|
|
|
|
|
Total
assets
|
|
$1,960,436
|
|
|
|
|
|
$1,927,351
|
|
|
|
|
|
$1,921,004
|
|
|
|
|
|
$1,931,904
|
|
|
|
|
|
$1,938,235
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
$1,179,174
|
|
$
929
|
|
0.31%
|
|
$1,170,660
|
|
$
915
|
|
0.31%
|
|
$1,176,387
|
|
$
903
|
|
0.31%
|
|
$1,180,581
|
|
$
907
|
|
0.31%
|
|
$1,156,166
|
|
$
836
|
|
0.29%
|
Repurchase
agreements
|
|
94,609
|
|
241
|
|
1.01%
|
|
88,560
|
|
236
|
|
1.06%
|
|
85,479
|
|
233
|
|
1.10%
|
|
85,756
|
|
233
|
|
1.09%
|
|
85,178
|
|
240
|
|
1.12%
|
Federal funds
purchased
|
|
-
|
|
-
|
|
0.00%
|
|
-
|
|
-
|
|
0.00%
|
|
2
|
|
-
|
|
0.00%
|
|
-
|
|
-
|
|
0.00%
|
|
4
|
|
-
|
|
0.00%
|
Short-term FHLB
advances
|
|
-
|
|
-
|
|
0.00%
|
|
-
|
|
-
|
|
0.00%
|
|
-
|
|
-
|
|
0.00%
|
|
22,802
|
|
23
|
|
0.40%
|
|
25,000
|
|
19
|
|
0.30%
|
Long-term FHLB
advances
|
|
25,474
|
|
92
|
|
1.41%
|
|
25,581
|
|
93
|
|
1.42%
|
|
25,687
|
|
91
|
|
1.40%
|
|
25,794
|
|
90
|
|
1.38%
|
|
25,900
|
|
92
|
|
1.39%
|
Junior subordinated
debentures
|
|
22,167
|
|
197
|
|
3.48%
|
|
22,167
|
|
170
|
|
3.00%
|
|
22,167
|
|
170
|
|
3.03%
|
|
22,167
|
|
167
|
|
2.98%
|
|
22,167
|
|
162
|
|
2.86%
|
Total interest
bearing liabilities
|
|
1,321,424
|
|
1,459
|
|
0.44%
|
|
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%
|
Non-interest bearing
liabilities
|
|
421,155
|
|
|
|
|
|
401,407
|
|
|
|
|
|
394,170
|
|
|
|
|
|
378,205
|
|
|
|
|
|
408,748
|
|
|
|
|
Shareholders'
equity
|
|
217,857
|
|
|
|
|
|
218,976
|
|
|
|
|
|
217,112
|
|
|
|
|
|
216,599
|
|
|
|
|
|
215,072
|
|
|
|
|
Total liabilities
and shareholders'
equity
|
|
$1,960,436
|
|
|
|
|
|
$1,927,351
|
|
|
|
|
|
$1,921,004
|
|
|
|
|
|
$1,931,904
|
|
|
|
|
|
$1,938,235
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(TE) and spread
|
|
|
|
$
18,767
|
|
4.04%
|
|
|
|
$
18,758
|
|
4.12%
|
|
|
|
$
18,212
|
|
4.06%
|
|
|
|
$
18,625
|
|
4.14%
|
|
|
|
$
18,806
|
|
4.11%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
|
|
|
4.15%
|
|
|
|
|
|
4.24%
|
|
|
|
|
|
4.17%
|
|
|
|
|
|
4.24%
|
|
|
|
|
|
4.22%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core net interest
margin (Non-GAAP)(*)
|
|
|
|
|
|
4.05%
|
|
|
|
|
|
4.12%
|
|
|
|
|
|
4.08%
|
|
|
|
|
|
4.11%
|
|
|
|
|
|
4.09%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) 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
|
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
AVERAGE BALANCE
SHEET DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average
assets
|
A
|
$
1,960,436
|
|
$
1,927,351
|
|
$
1,921,004
|
|
$
1,931,904
|
|
$
1,938,235
|
|
|
|
|
|
|
|
|
|
|
|
Total
equity
|
|
$
217,857
|
|
$
218,976
|
|
$
217,112
|
|
$
216,599
|
|
$
215,072
|
Less preferred
equity
|
|
41,110
|
|
41,110
|
|
41,118
|
|
41,120
|
|
41,122
|
Total common
equity
|
B
|
$
176,747
|
|
$
177,866
|
|
$
175,994
|
|
$
175,479
|
|
$
173,950
|
Less intangible
assets
|
|
46,926
|
|
47,204
|
|
47,478
|
|
47,757
|
|
48,031
|
Tangible common
equity
|
C
|
$
129,821
|
|
$
130,662
|
|
$
128,516
|
|
$
127,722
|
|
$
125,919
|
MIDSOUTH BANCORP,
INC. and
SUBSIDIARIES
|
Reconciliation of
Non-GAAP Financial Measures (unaudited) (continued)
|
(in thousands
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
CORE NET INTEREST
MARGIN
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(FTE)
|
|
$
18,767
|
|
$
18,758
|
|
$
18,212
|
|
$
18,625
|
|
$
18,806
|
Less purchase
accounting adjustments
|
|
(458)
|
|
(493)
|
|
(341)
|
|
(565)
|
|
(510)
|
Core net interest
income, net of purchase accounting adjustments
|
D
|
$
18,309
|
|
$
18,264
|
|
$
17,871
|
|
$
18,060
|
|
$
18,296
|
|
|
|
|
|
|
|
|
|
|
|
Total average
earnings assets
|
|
$
1,797,907
|
|
$
1,761,984
|
|
$
1,757,467
|
|
$
1,765,639
|
|
$
1,769,222
|
Add average balance
of loan valuation discount
|
|
2,316
|
|
2,634
|
|
2,931
|
|
3,323
|
|
3,712
|
Average earnings
assets, excluding loan valuation discount
|
E
|
$
1,800,223
|
|
$
1,764,618
|
|
$
1,760,398
|
|
$
1,768,962
|
|
$
1,772,934
|
|
|
|
|
|
|
|
|
|
|
|
Core net interest
margin
|
D/E
|
4.05%
|
|
4.12%
|
|
4.08%
|
|
4.11%
|
|
4.09%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
RETURN
RATIOS
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
available to common shareholders
|
|
$
1,387
|
|
$
1,587
|
|
$
1,682
|
|
$
1,922
|
|
$
1,667
|
Net gain on sale of
securities, after-tax
|
|
-
|
|
-
|
|
(13)
|
|
-
|
|
-
|
Net
earnings available to common shareholders, operating
|
F
|
$
1,387
|
|
$
1,587
|
|
$
1,669
|
|
$
1,922
|
|
$
1,667
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
$
3,070
|
|
$
3,391
|
|
$
3,523
|
|
$
3,312
|
|
$
2,604
|
Net gain on sale of
securities
|
|
-
|
|
-
|
|
(20)
|
|
-
|
|
-
|
Provision for loan
losses
|
|
2,600
|
|
2,900
|
|
2,300
|
|
2,800
|
|
3,000
|
Pre-tax,
pre-provision earnings, operating
|
G
|
$
5,670
|
|
$
6,291
|
|
$
5,803
|
|
$
6,112
|
|
$
5,604
|
|
|
|
|
|
|
|
|
|
|
|
Annualized return on
average assets, operating
|
F/A
|
0.28%
|
|
0.33%
|
|
0.35%
|
|
0.40%
|
|
0.34%
|
Annualized return on
average common equity, operating
|
F/B
|
3.12%
|
|
3.55%
|
|
3.81%
|
|
4.41%
|
|
3.80%
|
Annualized return on
average tangible common equity, operating
|
F/C
|
4.25%
|
|
4.83%
|
|
5.22%
|
|
6.05%
|
|
5.25%
|
Pre-tax,
pre-provision annualized return on average assets,
operating
|
G/A
|
1.15%
|
|
1.30%
|
|
1.21%
|
|
1.27%
|
|
1.15%
|
MIDSOUTH BANCORP,
INC. and
SUBSIDIARIES
|
Reconciliation of
Non-GAAP Financial Measures (unaudited) (continued)
|
|
|
|
|
(in thousands
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
PER COMMON SHARE
DATA
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
0.12
|
|
$
0.14
|
|
$
0.15
|
|
$
0.17
|
|
$
0.15
|
|
$
0.58
|
|
$
0.90
|
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
|
|
$
0.12
|
|
$
0.14
|
|
$
0.15
|
|
$
0.17
|
|
$
0.15
|
|
$
0.58
|
|
$
0.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common
share
|
|
$
15.25
|
|
$
15.58
|
|
$
15.56
|
|
$
15.38
|
|
$
15.14
|
|
|
|
|
Effect of intangible
assets per share
|
|
4.12
|
|
4.14
|
|
4.16
|
|
4.19
|
|
4.22
|
|
|
|
|
Tangible book value
per common share
|
|
$
11.13
|
|
$
11.44
|
|
$
11.40
|
|
$
11.19
|
|
$
10.92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
|
|
|
EFFICIENCY
RATIO
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
18,524
|
|
$
18,539
|
|
$ 17,991
|
|
$
18,384
|
|
$
18,537
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income
|
|
4,782
|
|
4,866
|
|
4,873
|
|
4,487
|
|
4,575
|
|
|
|
|
Net gain on sale of
securities
|
|
-
|
|
-
|
|
(20)
|
|
-
|
|
-
|
|
|
|
|
Noninterest income (non-GAAP)
|
|
$
4,782
|
|
$
4,866
|
|
$
4,853
|
|
$
4,487
|
|
$
4,575
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
H
|
$
23,306
|
|
$
23,405
|
|
$ 22,864
|
|
$
22,871
|
|
$
23,112
|
|
|
|
|
Total revenue
(non-GAAP)
|
I
|
$
23,306
|
|
$
23,405
|
|
$ 22,844
|
|
$
22,871
|
|
$
23,112
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
J
|
$
17,636
|
|
$
17,114
|
|
$ 17,041
|
|
$
16,759
|
|
$
17,508
|
|
|
|
|
Net (loss) gain on
sale/valuation of other real estate owned
|
|
-
|
|
(19)
|
|
(24)
|
|
(144)
|
|
(14)
|
|
|
|
|
Noninterest expense (non-GAAP)
|
K
|
$
17,636
|
|
$
17,095
|
|
$ 17,017
|
|
$
16,615
|
|
$
17,494
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(GAAP)
|
J/H
|
75.67%
|
|
73.12%
|
|
74.53%
|
|
73.28%
|
|
75.75%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(non-GAAP)
|
K/I
|
75.67%
|
|
73.04%
|
|
74.49%
|
|
72.65%
|
|
75.69%
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/midsouth-bancorp-inc-reports-fourth-quarter-2016-results-and-declares-quarterly-dividends-300399091.html
SOURCE MidSouth Bancorp, Inc.