- Reported EPS for Q418 was a loss of
$1.39 versus a loss of $0.34 for Q318 primarily due to the impact
of a $12.0 million loan loss provision associated with efforts to
significantly improved asset quality and $11.4 million of tax
expense to establish a temporary valuation allowance to fully
reserve against deferred tax assets
- Diluted operating EPS for Q418 was a
loss of $0.66 versus a loss of $0.08 in Q318
- Bank level Classified Assets to
Capital declined sequentially to 29% at Q418 from 45% at Q318 and
pro forma for classified loans marked for sale to 17% at
Q418.
- FTE net interest margin increased 42
bps sequentially to 4.35% due to 33 bps of accelerated loan
accretion and improving yields investments
- Funding costs remain below market
averages at 54 bps with Core Deposits a strong 88% of $1.5 billion
Total Deposits
- Tangible common equity to tangible
assets at 12/31/18 was 8.0%
MidSouth Bancorp, Inc. (“MidSouth”) (NYSE:MSL) today reported a
quarterly net loss available to common shareholders of $23.1
million for the fourth quarter of 2018, compared to net loss
available to common shareholders of $11.3 million reported for the
fourth quarter of 2017 and $5.7 million in net loss available to
common shareholders for the third quarter of 2018. The fourth
quarter of 2018 included an after-tax charge of $3.9 million for
regulatory remediation costs, a $11.4 million tax-related charge
for the establishment of a valuation allowance to fully reserve
against net deferred tax assets given the company’s cumulative
pretax loss position. For comparison purposes, the third quarter of
2018 included a non-recurring after-tax expense of $4.3 million for
regulatory remediation costs. Excluding these non-operating
expenses, a loss of $0.66 per diluted share was reported for the
fourth quarter of 2018, compared to diluted loss per common share
of $0.08 for the third quarter of 2018 and $0.15 for the fourth
quarter of 2017.
Jim McLemore, President and CEO, remarked, “This quarter, we
took important actions to accelerate MidSouth's improvement in
asset quality and to set the stage for an expected return to
operating profitability for the full year 2019. We also concluded
some very extensive remediation projects that contribute to a
renewed culture of prudent risk management in our organization.
Combined with strong capital, ample liquidity, and experienced
banking professionals, MidSouth will continue our tradition of
valuable service to our communities and clients.”
Asset Quality Improvements
Mr. McLemore continued, “The quarter’s improvement in asset
quality was remarkable as classified assets as a percentage of
capital at the bank was reduced to 29% from 45% last quarter,
primarily as the result of the payoff of two of our largest
non-performing loans. We also anticipate selling approximately $20
million of other classified loans and have marked these loans
accordingly. On a pro-forma basis, after reflecting the completion
of this sale, classified assets as a percentage of capital would be
17%.”
Strong Liquidity and Capital
“At the same time as we’ve significantly reduced risk and
improved processes in the credit, operational and compliance areas
of the bank, we’ve also built very strong liquidity levels and have
maintained strong capital levels. Basic surplus, our primary
measure of liquidity, stood at 23% at year-end 2018, which is
almost double the level of 12% at year-end 2017. Tangible common
equity as a percent of tangible assets was roughly 8.0% at year
end.”
Corporate Governance
“In 2018, we made a very focused effort to improve our corporate
governance through the addition of talented and experienced new
board members as well as through improving our other governance
processes. This quarter we took steps to significantly enhance out
board, including the addition of Bill Grant as a new director and
also seeking regulatory approval for John Heffern and Ryan Medo to
join our board.”
Remediation Efforts
Mr. McLemore concluded, “At the end of the fourth quarter, we
completed the last of the remediation projects and associated spend
we identified in our second quarter 2018 earnings release. The
spend for 2018 was $19.7 million, within our range of guidance at
mid-year. We do not expect any significant remediation spend in
2019. Through the process of 2018’s significant remediation efforts
and leadership changes, we have reduced risk and significantly
improved all major processes of the bank. These include corporate
governance, loan portfolio management, problem asset management,
loan and deposit operations, technology platforms, risk management
and compliance.”
Balance Sheet
Consolidated assets decreased 7.3% to $1.7 billion at December
31, 2018 from $1.9 billion at December 31, 2017 and 3.9% from $1.8
billion at September 30, 2018. Our stable core deposit base, which
excludes time deposits, totaled $1.3 billion at December 31, 2018
and September 30, 2018 and accounted for 87.6% and 87.7% of
deposits at December 31, 2018 and September 30, 2018, respectively.
Net loans totaled $882 million at December 31, 2018, compared to
$938 million at September 30, 2018 and $1.2 billion at December 31,
2017. In an effort to further reduce classified assets, classified
loans totaling $20.4 million were transferred to held for sale
during the fourth quarter of 2018.
MidSouth’s Tier 1 leverage capital ratio was 11.45% at December
31, 2018, compared to 12.53% at September 30, 2018. Tier 1
risk-based capital and total risk-based capital ratios were 17.79%
and 19.04% at December 31, 2018, respectively, compared to 19.09%
and 20.35% at September 30, 2018, respectively. Tier 1 common
equity to total risk-weighted assets at December 31, 2018 was
12.20%, compared to 13.78% at September 30, 2018. Tangible common
equity totaled $135.6 million at December 31, 2018, compared to
$155.6 million at September 30, 2018. Tangible book value per share
at December 31, 2018 was $8.20 compared to $9.35 at September 30,
2018.
Asset Quality
Nonperforming assets totaled $30.5 million at December 31, 2018,
including $20.4 million of loans transferred to held for sale, a
decrease of $22.0 million compared to $52.5 million reported at
September 30, 2018. The decrease is primarily attributable to the
payoffs/paydowns of $9.8 million of non-accrual loans and the
charge-off of $14.5 million of non-accrual loans. Allowance
coverage for nonperforming loans increased to 195.40% at December
31, 2018, compared to 47.49% at September 30, 2018. The ALLL/total
loans ratio was 1.94% at December 31, 2018 and 2.54% at September
30, 2018. The ratio of annualized net charge-offs to total loans
increased to 8.45% for the three months ended December 31, 2018
compared to 1.40% for the three months ended September 30, 2018 due
to the payoffs of two large credits and anticipated loan sale.
Total nonperforming assets to total loans plus ORE and other
assets repossessed was 3.39% at December 31, 2018 compared to 5.45%
at September 30, 2018. Loans classified as troubled debt
restructurings, accruing (“TDRs, accruing”) totaled $1.3 million at
December 31, 2018 compared to $896,000 at September 30, 2018. Also
included in nonperforming assets at December 31, 2018 was $20.4
million of classified loans transferred to held for sale. Total
classified assets, including ORE, were $51.2 million at December
31, 2018 compared to $91.6 million at September 30, 2018. The
balance of classified loans decreased as a result of principal
reductions through payoffs and/or pay-downs in the amount $11.8
million in addition to charge-offs of $19.2 million at December 31,
2018. As a part of the anticipated loan sale, there were classified
loans transferred to loans held for sale at fair value, resulting
in $11.9 million in charge-offs which also contributed to the
decline in classified assets. These decreases were partially offset
by downgrades to classified loans of $4.5 million during the
quarter. The classified to capital ratio at MidSouth Bank was 29%
at December 31, 2018 versus 45% at September 30, 2018.
More information on our energy loan portfolio and other
information on quarterly results can be found on our website at
MidSouthBank.com under Investor Relations/Presentations.
Fourth Quarter 2018 vs. Third Quarter 2018
Earnings Comparison
MidSouth reported a net loss available to common shareholders of
$23.1 million for the three months ended December 31, 2018,
compared to net loss available to common shareholders of $5.7
million for the three months ended September 30, 2018. Revenues
from consolidated operations increased $438,000 in
sequential-quarter comparison from $21.6 million to $22.0 million.
Net interest income increased $777,000 primarily due to the
acceleration of $726,000 in accretion income from the PSB Financial
Corporation acquisition after determination that it would be more
conservative to remove the nominal discount remaining from these
acquired loans that undergo quarterly cash flow re-estimations and
instead include these loans with the quarterly allowance for loan
losses calculation. Finally, noninterest income decreased $339,000
in sequential-quarter comparison.
The fourth quarter of 2018 included non-operating expenses
totaling $5.0 million for regulatory remediation costs. The third
quarter of 2018 included a non-recurring charge of $5.5 million of
regulatory remediation costs. Excluding these non-operating
expenses, noninterest expense increased $1.7 million in
sequential-quarter comparison and consisted primarily of a $1.1
million increase in salaries and benefits given continued
investment in staffing for compliance and an $800,000 increase in
legal and professional fees offset by a $100,000 decline in
marketing and FDIC premiums. The increase in legal and professional
fees is primarily due to increased outsourcing expenses to enhance
risk management as well as increased legal fees to resolve credit
quality issues. The provision for loan losses increased $7.7
million in sequential-quarter comparison. A $11.4 million
tax-related charge was recorded during the fourth quarter of 2018
associated with the establishment of a valuation reserve against
the net deferred tax assets. Excluding this adjustment, we recorded
an income tax expense of $7.6 million for the fourth quarter of
2018, compared to an income tax benefit of $1.4 million for the
third quarter of 2018.
Dividends on the Series B Preferred Stock issued to the U.S.
Treasury as a result of our participation in the Small Business
Lending Fund totaled $720,000 for the fourth quarter of 2018 based
on a dividend rate of 9%, unchanged from $720,000 for the third
quarter of 2018. Dividends on the Series C Preferred Stock issued
with the December 28, 2012 acquisition of PSB Financial Corporation
totaled $90,000 for the three months ended December 31, 2018 and
September 30, 2018.
Fully taxable-equivalent (“FTE”) net interest income increased
$780,000 in sequential-quarter comparison, primarily due to an
increase in interest income on investment securities of $801,000.
Interest income on loans was flat at $14.6 million despite a $76.3
million decline in average balances as loan yields increased 44 bps
from 5.72% to 6.16%. Higher yields reflected increased loan rates
in addition to management’s recognition of the remaining PSB
accretion discounts into income. Excluding these purchase
accounting adjustments, the loan yield increased 13 bps, from 5.72%
to 5.85% during the same period. The average yield on investment
securities increased 60 basis points, from 2.56% to 3.16% as a
result of opportunistic purchases at higher yields which increased
average balances by $28.1 million. The average yield on total
earning assets increased 48 bps for the same period, from 4.40% to
4.88%, respectively. The FTE net interest margin increased 42 bps
in sequential-quarter comparison, from 3.93% for the third quarter
of 2018 to 4.35% for the fourth quarter of 2018. Excluding purchase
accounting adjustments, the FTE net interest margin increased 11
bps, from 3.93% for the third quarter of 2018 to 4.04% for the
fourth quarter of 2018.
Fourth Quarter 2018 vs. Fourth Quarter
2017 Earnings Comparison
MidSouth reported a net loss available to common shareholders of
$23.1 million for the three months ended December 31, 2018,
compared to net loss available to common shareholders of $11.3
million for the three months ended December 31, 2017. Revenues from
consolidated operations decreased $3.5 million in quarterly
comparison, from $25.5 million for the three months ended December
31, 2017 to $22.0 million for the three months ended December 31,
2018. Net interest income decreased $2.2 million in quarterly
comparison, resulting from a $1.6 million decrease in interest
income primarily driven by lower loan levels, in addition to higher
interest expense of $0.6 million reflecting the impact of higher
interest rates, partially offset by $726,000 acceleration of
accretion income from the PSB acquisition. Operating noninterest
income decreased $1.3 million in quarterly comparison.
Excluding non-operating expenses of $5.0 million of remediation
costs for the fourth quarter of 2018 and $7.8 million for the
fourth quarter of 2017, which included $1.8 million of remediation
costs, $6.0 million of expenses for loans held for sale,
noninterest expenses increased $1.8 million in quarterly comparison
and consisted primarily of a $1.2 million increase in salaries and
employee benefits costs and a $2.0 million increase in legal and
professional fees offset by declines in other noninterest expenses.
The provision for loan losses increased $1.4 million in quarterly
comparison, from $10.6 million for the three months ended December
31, 2017 to $12.0 million for the three months ended December 31,
2018. Excluding the $11.4 million tax-related charge recorded
during the fourth quarter of 2018 associated with the establishment
of a valuation reserve against the net deferred tax assets and the
$3.6 million tax-related charge recorded in connection with the Tax
Act during the fourth quarter of 2017, we recorded an income tax
expense of $7.6 million for the fourth quarter of 2018, compared to
income tax expense of $4.1 for the fourth quarter of 2017.
Dividends on preferred stock totaled $810,000 for the three
months ended December 31, 2018 and for the three months ended
December 31, 2017. Dividends on the Series B Preferred Stock were
$720,000 for the fourth quarter of 2018, unchanged from $720,000
for the fourth quarter of 2017. Dividends on the Series C Preferred
Stock totaled $90,000 for the three months ended December 31, 2018
and December 31, 2017.
FTE net interest income decreased $2.2 million in prior year
quarterly comparison. Interest income on loans decreased $3.5
million primarily due to a $294.3 million decline in average loans
given ongoing efforts to reduce problem loans and slower loan
originations due to efforts to shore up operational issues.
Excluding the impact of the purchase accounting adjustment of
$726,000, average loan yields increased 8 basis points in prior
year quarterly comparison, from 5.77% to 5.85%.
Investment securities totaled $475.5 million, or 27.2% of total
assets at December 31, 2018, versus $390.2 million, or 20.8% of
total assets at December 31, 2017. The investment portfolio had an
effective duration of 3.0 years and a net unrealized loss of $6.2
million at December 31, 2018. FTE interest income on investments
increased $696,000 in prior year quarterly comparison. The average
volume of investment securities increased $16.2 million in prior
year quarterly comparison, and the average tax equivalent yield on
investment securities increased 47 basis points, from 2.69% to
3.16%.
The average yield on all earning assets increased 9 basis points
in prior year quarterly comparison, from 4.79% for the fourth
quarter of 2017 to 4.88% for the fourth quarter of 2018. Excluding
the impact of purchase accounting adjustments, the average yield on
total earning assets decreased 69 basis points, from 4.72% to 4.17%
for the three-month periods ended December 31, 2017 and 2018,
respectively, primarily due to the $294.3 million decline in
average loans.
Interest expense increased $614,000 in prior year quarterly
comparison primarily due to a $573,000 increase in interest expense
on deposits and a $77,000 increase in interest expense on junior
subordinated debt, which were partially offset by a $49,000
decrease in interest expense on repurchase agreements. Excluding
purchase accounting adjustments on acquired certificates of deposit
and FHLB borrowings, the average rate paid on interest-bearing
liabilities was 0.52% for the three months ended December 31, 2018
and 0.47% for the three months ended December 31, 2017.
As a result of these changes in volume and yield on earning
assets and interest-bearing liabilities, the FTE net interest
margin decreased 12 basis points, from 4.47% for the fourth quarter
of 2017 to 4.35% for the fourth quarter of 2018.
2018 vs 2017 Earnings
Comparison
MidSouth reported a net loss available to common shareholders of
$30.8 million for the year ended December 31, 2018, compared to net
loss available to common shareholders of $15.0 million for the year
ended December 31, 2017. 2017 net earnings included $347,000 of
gain on sales of securities and $744,000 of gain on sale of
branches. Excluding these non-operating revenues, revenues from
consolidated operations decreased $7.7 million in year-over-year
comparison, from $95.3 million for the year ended December 31, 2017
to $87.6 million for the year ended December 31, 2018. Net interest
income decreased $6.6 million in year-over-year comparison,
resulting from a $5.1 million decrease in interest income, in
addition to a $1.5 million increase in interest expense. Operating
noninterest income decreased $1.1 million in year-over-year
comparison primarily due to a $1.9 million decrease in service
charges partially offset by $1.2 million in increases for ATM/debit
card income.
Excluding non-operating expenses of $21.4 million for the year
ended December 31, 2018 and $11.5 million for the year ended
December 31, 2017, noninterest expenses increased $2.0 million in
year-over-year comparison primarily due to increases in legal and
professional fees associated with working down our problem assets.
The provision for loan losses decreased $13.5 million in
year-over-year comparison, from $30.2 million for the year ended
December 31, 2017 to $16.7 million for the year ended December 31,
2018 . Excluding the $3.6 million charge recorded in connection
with the Tax Act during the fourth quarter of 2017, and the $11.4
million charge recorded in conjunction with the establishment of a
valuation reserve against the net deferred tax asset in 2018, a
$6.2 million income tax benefit was reported for the year ended
December 31, 2017, compared to income tax benefit of $5.4 million
for the year ended December 31, 2018.
In year-to-date comparison, FTE net interest income decreased
$7.1 million primarily due to a $8.2 million decrease in interest
income on loans and a $1.5 million increase in interest expense,
offset by increased income from interest bearing deposits at other
banks. The average volume of investment securities decreased $30.0
million in year-over-year comparison, and the average yield on
investment securities increased 1 bps for the same period. The
average volume of loans decreased $197 million in year-over-year
comparison, and the average yield on loans increased 25 bps, from
5.47% to 5.72%, including 7 bps of yield due to the acceleration of
loan accretion income. The average yield on earning assets
decreased 7 basis points in year-over-year comparison, from 4.59%
at December 31, 2017 to 4.52% at December 31, 2018.
Interest expense increased $1.5 million in year-over-year
comparison. Increases in interest expense included a $1.8 million
increase in interest expense on deposits and a $195,000 increase in
interest expense on junior subordinated debentures. These increases
were partially offset by an $587,000 decrease in interest expense
on repurchase agreements. The average rate paid on interest-bearing
liabilities was 0.65% for the year ended December 31, 2018,
compared to 0.48% for the year ended December 31, 2017. The FTE net
interest margin decreased 17 basis points, from 4.25% for the year
ended December 31, 2017 to 4.08% for the year ended December 31,
2018.
About MidSouth Bancorp,
Inc.
MidSouth Bancorp, Inc. is a bank holding company headquartered
in Lafayette, Louisiana, with assets of $1.7 billion as of December
31, 2018. 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 48 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.
Non-GAAP Financial
Measures
This press release, including the accompanying financial
statement tables, contains financial information determined by
methods other than in accordance with generally accepted accounting
principles, or GAAP. This financial information includes certain
operating performance measures, which exclude charges that are not
considered part of recurring operations. Non-GAAP measures in this
press release include, but are not limited to, descriptions such as
“operating net income,” “operating earnings (loss) per share,”
“tangible book value per common share,” “operating return on
average common equity,” “operating return on average assets,” and
“operating efficiency ratio.” In addition, this press release,
consistent with SEC Industry Guide 3, presents total revenue, net
interest income, net interest margin, and efficiency ratios on a
fully taxable equivalent (“FTE”) basis, and ratios on an annualized
basis. The FTE basis adjusts for the tax-favored status of net
interest income from certain loans and investments using a federal
tax rate of 21% for all periods beginning on or after January 1,
2018 and 35% for all periods prior to January 1, 2018, as well as
state income taxes, where applicable, to increase tax-exempt
interest income to a taxable-equivalent basis. MidSouth believes
this measure to be the preferred industry measurement of net
interest income and it enhances comparability of net interest
income arising from taxable and tax-exempt sources.
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
measures should be viewed in addition to, and not as an alternative
to or substitute for, measures determined in accordance with GAAP,
and are not necessarily comparable to non-GAAP measures that may be
presented by other companies. To the extent applicable,
reconciliations of these non-GAAP measures to the most directly
comparable measures as reported in accordance with GAAP are
included with the accompanying financial statement tables.
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,
statements regarding expected future financial results, and
remediation expenses, expected completion of regulatory remediation
projects, our ability to return to profitability, expected
loan sales and the strength of the Company's balance sheet and its
positioning to address problem assets and achieve operating
efficiencies and measured growth. The words “anticipate,”
“believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “will,”
“would,” “could,” “should,” “guidance,” “potential,” “continue,”
“project,” “forecast,” “confident,” and similar expressions are
typically used to identify forward-looking statements.
These statements are based on assumptions and assessments
made by management in light of their experience and their
perception of historical trends, current conditions, expected
future developments and other factors they believe to be
appropriate. Any forward-looking statements are not
guarantees of our future performance and are subject to risks and
uncertainties and may be affected by various factors that may cause
actual results, developments and business decisions to differ
materially from those in the 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 in the
markets we serve, 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; increases in
competitive pressure in the banking and financial services
industries; increased competition for deposits and loans which
could affect compositions, rates and terms; changes in the levels
of prepayments received on loans and investment securities that
adversely affect the yield and value of the earning assets; our
ability to successfully implement and manage our strategic
initiatives and regulatory remediation efforts; costs and expenses
associated with our strategic initiatives and possible changes in
the size and components of the expected costs and charges
associated with our strategic initiatives and regulatory
remediation efforts; our ability to realize the anticipated
benefits and cost savings from our strategic initiatives within the
anticipated time frame, if at all; the ability of the Company to
comply with the terms of the formal agreement and the consent order
with the Office of the Comptroller of the Currency; risk of
noncompliance with and further enforcement actions regarding the
Bank Secrecy Act and other anti-money laundering statues and
regulations; credit losses due to loan concentration, particularly
our energy lending and commercial real estate portfolios; a
deviation in actual experience from the underlying assumptions used
to determine and establish our allowance for loan losses (“ALLL”),
which could result in greater than expected loan losses; the
adequacy of the level of our ALLL and the amount of loan loss
provisions required in future periods including the impact of
implementation of the new CECL (current expected credit loss)
methodology; future examinations by our regulatory authorities,
including the possibility that the regulatory authorities may,
among other things, impose additional enforcement actions or
conditions on our operations, required additional regulatory
remediation efforts or require us to increase our allowance
for loan losses or write-down assets; changes in the availability
of funds resulting from reduced liquidity or increased costs; the
timing and impact of future acquisitions or divestitures, the
success or failure of integrating acquired operations, and the
ability to capitalize on growth opportunities upon entering new
markets; the ability to acquire, operate, and maintain effective
and efficient operating systems; increased asset levels and changes
in the composition of assets that would impact capital levels and
regulatory capital ratios; loss of critical personnel and the
challenge of hiring qualified personnel at reasonable compensation
levels; legislative and regulatory changes, including the impact of
regulations under the Dodd-Frank Wall Street Reform and Consumer
Protection Act of 2010 and other 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;
regulations and restrictions resulting from our participation in
government-sponsored programs such as the U.S. Treasury’s Small
Business Lending Fund, including potential retroactive changes in
such programs; changes in accounting principles, policies, and
guidelines applicable to financial holding companies and banking;
increases in cybersecurity risk, including potential business
disruptions or financial losses; acts of war, terrorism, cyber
intrusion, weather, or other catastrophic events beyond our
control; and other factors discussed under the heading “Risk
Factors” in MidSouth’s Annual Report on Form 10-K for the
year ended December 31, 2017 filed with the SEC on March 16, 2018
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 12/31/2018
9/30/2018 6/30/2018 3/31/2018
12/31/2017 Total interest income $ 19,340 $ 18,436 $ 18,739
$ 18,997 $ 20,955 Total interest expense 2,097
1,970 1,814 1,627 1,483 Net interest
income 17,243 16,466 16,925
17,370 19,472 FTE net interest income 17,318
16,538 16,998 17,454 19,566
Provision for loan losses 12,000 4,300
440 — 10,600 Non-interest income 4,751
5,090 4,882 4,829 6,028 Non-interest expense 24,693
23,527 22,273 21,873 25,944
(Loss) earnings before income taxes (14,699 ) (6,271 ) (906 ) 326
(11,044 ) Income tax (benefit) expense 7,610
(1,373 ) (237 ) (34 ) (540 ) Net (loss) earnings (22,309 ) (4,898 )
(669 ) 360 (10,504 ) Dividends on preferred stock 810
810 810 810 810 Net (loss)
earnings available to common shareholders $ (23,119 )
$ (5,708 ) $ (1,479 ) $ (450 ) $ (11,314 )
PER COMMON
SHARE DATA Basic (loss) earnings per share (1.39 ) (0.34 )
(0.09 ) (0.03 ) (0.69 ) Diluted (loss) earnings per share (1.39 )
(0.34 ) (0.09 ) (0.03 ) (0.69 ) Diluted (loss) earnings per share,
operating (Non-GAAP)(*) (0.66 ) (0.08 ) 0.17 0.21 (0.15 ) Quarterly
dividends per share 0.01 0.01 0.01 0.01 0.01 Book value at end of
period 10.83 12.05 12.50 12.62 12.87 Tangible book value at period
end (Non-GAAP)(*)
8.20
9.35 9.78 9.89 10.11 Market price at end of period 10.60 15.40
13.25 12.65 13.25 Shares outstanding at period end 16,641,017
16,641,105 16,619,894 16,621,811 16,548,829 Weighted average shares
outstanding: Basic 16,640,174 16,557,664 16,525,571 16,495,438
16,460,124 Diluted 16,640,174 16,557,664 16,525,571 16,495,438
16,460,124
AVERAGE BALANCE SHEET DATA Total assets $
1,791,990 $ 1,830,834 $ 1,860,906 $ 1,860,070 $ 1,907,735 Loans and
leases 944,545 1,020,834 1,109,371 1,159,671 1,238,846 Total
deposits 1,476,211 1,503,528 1,514,321 1,495,907 1,513,156 Total
common equity 202,796 209,010 210,291 214,183 228,386 Total
tangible common equity(*) 158,083 164,020 165,024 168,629 182,568
Total equity 243,768 249,997 251,278 255,170 269,373
SELECTED
RATIOS Annualized return on average assets, operating(*) (1.70
)% (0.30 )% 0.59 % 0.76 % (0.17 )% Annualized return on average
common equity, operating(*) (15.06 )% (2.60 )% 5.22 % 6.59 % (1.40
)% Annualized return on average tangible common equity,
operating(*) (19.34 )% (3.31 )% 6.65 % 8.37 % (1.75 )% Efficiency
ratio, operating(*) 89.37 % 83.36 % 77.38 % 75.57 % 69.14 % Average
loans to average deposits 63.98 % 67.90 % 73.26 % 77.52 % 81.87 %
Tier 1 leverage capital ratio 11.45 % 12.53 % 12.71 % 12.80 % 12.53
%
CREDIT QUALITY Allowance for loan and lease losses (ALLL)
as a % of total loans 1.94 % 2.54 % 2.22 % 2.23 % 2.27 %
Nonperforming assets to tangible equity + ALLL 6.44 % 23.75 % 32.99
% 36.86 % 24.35 % Nonperforming assets to total loans, other real
estate owned and other repossessed assets 1.12 % 5.45 % 7.07 % 7.47
% 4.83 % Annualized QTD net charge-offs to total loans 8.45 % 1.40
% 0.87 % 0.54 % 2.94 % (*) See reconciliation of Non-GAAP financial
measures on pages 16-18.
MIDSOUTH BANCORP, INC.
and SUBSIDIARIES Consolidated Balance Sheets (unaudited)
(in thousands) December 31,
September 30, June 30, March 31,
December 31, 2018 2018 2018 2018
2017 Assets Cash and cash equivalents $ 205,371 $
302,888 $ 278,776 $ 211,486 $ 152,964 Securities available-for-sale
437,754 352,606 308,937 293,970 309,191 Securities held-to-maturity
37,759 64,893 67,777 73,255 81,052
Total investment securities 475,513 417,499
376,714 367,225 390,243 Other investments
16,614 16,508 14,927 12,896 12,214 Loans held for sale 23,876 — —
1,117 15,737 Total loans 899,785 962,743 1,057,963 1,137,255
1,183,426 Allowance for loan losses (17,430 ) (24,450 ) (23,514 )
(25,371 ) (26,888 ) Loans, net 882,355 938,293
1,034,449 1,111,884 1,156,538 Premises and
equipment 55,382 56,006 56,834 57,848 59,057 Goodwill and other
intangibles 44,580 44,856 45,133 45,409 45,686 Deferred Tax Asset
11,373 8,452 6,659 4,854 5,932 Deferred Tax Asset Valuation
Allowance (11,373 ) — — — — Other assets 39,707 41,752
45,425 45,036 42,781 Total assets $
1,743,398 $ 1,826,254 $ 1,858,917 $ 1,857,755
$ 1,881,152
Liabilities and Shareholders'
Equity Non-interest bearing deposits $ 383,167 $ 425,696 $
419,517 $ 427,504 $ 416,547 Interest-bearing deposits 1,068,904
1,083,433 1,103,503 1,076,433 1,063,142
Total deposits 1,452,071 1,509,129 1,523,020 1,503,937
1,479,689 Securities sold under agreements to repurchase 11,220
13,676 14,886 33,026 67,133 Short-term FHLB advances 27,500 27,500
27,500 27,500 40,000 Long-term FHLB advances — 6 10,011 10,016
10,021 Junior subordinated debentures 22,167 22,167 22,167 22,167
22,167 Other liabilities 8,450 12,325 12,661
10,272 8,127 Total liabilities 1,521,408
1,584,803 1,610,245 1,606,918 1,627,137
Total shareholders' equity 221,990 241,451 248,672
250,837 254,015 Total liabilities and
shareholders' equity $ 1,743,398 $ 1,826,254 $
1,858,917 $ 1,857,755 $ 1,881,152
MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Consolidated Statements of Operation
(unaudited) (in thousands except per share data)
Three Months Ended Twelve Months
12/31/2018 9/30/2018 6/30/2018
3/31/2018 12/31/2017 12/31/2018
12/31/2017 Interest income: Loans, including fees $ 14,536 $
14,590 $ 15,344 $ 16,015 $ 18,026 $ 60,485 $ 68,708 Investment
securities 3,230 2,429 2,370 2,363 2,515 10,392 10,678 Other
interest income 1,574 1,417 1,025 619
414 4,635 1,237 Total interest income 19,340
18,436 18,739 18,997 20,955
75,512 80,623 Interest expense: Deposits 1,670 1,602
1,410 1,238 $ 1,097 5,920 4,099 Securities sold under agreement to
repurchase 17 16 25 40 65 98 685 FHLB borrowings 135 81 120 129 122
465 412 Other borrowings 275 271 259 220
198 1,025 830 Total interest expense
2,097 1,970 1,814 1,627 1,482
7,508 6,026 Net interest income 17,243 16,466 16,925
17,370 19,472 68,004 74,597 Provision for loan losses 12,000
4,300 440 — 10,600 16,740 30,200
Net interest income after provision for loan losses 5,243
12,166 16,485 17,370 8,872
51,264 44,397 Noninterest income: Service charges on
deposit accounts 1,414 2,159 2,065 2,206 2,385 7,844 9,724 Gain
(loss) on securities, net — — — — — — 347 Gain (Loss) on equity
Securities, other investments 20 (16 ) (51 ) — — (47 ) — ATM and
debit card income 2,624 1,796 1,877 1,784 1,756 8,081 6,912 Other
charges and fees 693 1,151 991 839
1,887 3,674 4,798 Total noninterest income
4,751 5,090 4,882 4,829 6,028
19,552 21,781 Noninterest expense: Salaries and
employee benefits 8,895 7,762 7,916 7,719 7,729 32,292 32,377
Occupancy expense 3,186 3,077 3,193 3,045 3,357 12,501 13,851 ATM
and debit card 678 653 648 576 633 2,555 2,721 Legal and
professional fees 3,457 2,543 1,100 1,689 1,448 8,789 3,319 FDIC
premiums 302 360 507 430 297 1,599 1,572 Marketing 285 344 281 195
353 1,105 1,197 Corporate development 347 274 248 237 258 1,106
1,016 Data processing 828 730 666 665 712 2,889 2,640 Amortization
of core deposit intangibles 276 277 276 277 276 1,106 1,106
Remediation expense 4,970 5,502 5,323 3,926 1,772 19,721 2,628
Other non-interest expense 1,469 2,005 2,115
3,114 9,109 8,703 18,110 Total
noninterest expense 24,693 23,527 22,273
21,873 25,944 92,366 80,537 Earnings
(loss) before income taxes (14,699 ) (6,271 ) (906 ) 326 (11,044 )
(21,550 ) (14,359 ) Income tax (benefit)/expense 7,610
(1,373 ) (237 ) (34 ) (540 ) 5,966 (2,598 ) Net (loss)
earnings (22,309 ) (4,898 ) (669 ) 360 (10,504 ) (27,516 ) (11,761
) Dividends on preferred stock 810 810 810 810
810 3,240 3,242 Net (loss) earnings
available to common shareholders $ (23,119 ) $ (5,708 ) $ (1,479 )
$ (450 ) $ (11,314 ) $ (30,756 ) $ (15,003 ) (Loss) earnings per
common share, diluted $ (1.39 ) $ (0.34 ) $ (0.09 ) $ (0.03 ) $
(0.69 ) $ (1.85 ) $ (1.06 ) Operating (loss) earnings per common
share, diluted (Non-GAAP)(*) $ (0.66 ) $ (0.08 ) $ 0.17 $
0.21 $ (0.15 ) $ (0.37 ) $ (0.27 ) (*) See
reconciliation of Non-GAAP financial measures.
MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Loans, Deposits and Asset Quality (unaudited) (in
thousands)
December 30, September
30, June 30, March 31, December 30,
COMPOSITION OF LOANS 2018 2018 2018
2018 2017 Commercial, financial, and agricultural $
267,340 $ 294,971 $ 354,944 $ 401,048 $ 435,207 Real estate -
construction 89,621 90,444 98,108 94,679 90,287 Real estate -
commercial 368,449 394,416 414,526 438,779 448,406 Real estate -
residential 130,320 136,151 141,104 145,671 146,751 Consumer and
other 43,506 46,169 48,649 56,386 62,043 Lease financing receivable
549 592 632 692 732 Total loans
$ 899,785 $ 962,743 $ 1,057,963 $ 1,137,255
$ 1,183,426
December 30, September
30, June 31, March 31, December 31,
COMPOSITION OF DEPOSITS 2018 2018 2018
2018 2017 Noninterest bearing $ 383,167 $ 425,696 $
419,517 $ 427,504 $ 416,547 NOW & other 400,625 442,487 461,726
459,394 434,646 Money market/savings 488,181 454,867 466,711
441,801 446,215 Time deposits of less than $100,000 121,703 125,363
111,758 113,665 116,309 Time deposits of $100,000 or more 58,395
60,716 63,308 61,573 65,972
Total deposits $ 1,452,071 $ 1,509,129 $ 1,523,020
$ 1,503,937 $ 1,479,689
December
30, September 30, June 30, March 31,
December 31, ASSET QUALITY DATA 2018
2018 2018 2018 2017 Nonaccrual loans $
8,920 $ 51,476 $ 73,538 $ 82,275 $ 49,278 Loans past due 90 days
and over and accruing — 7 3 1 728
Total nonperforming loans 8,920 51,483 73,541 82,276 50,006
Nonperforming loans held for sale 20,441 — — 808 5,067 Other real
estate 1,067 1,022 1,365 1,803 2,001 Other repossessed assets 55
— — 194 192 Total nonperforming
assets $ 30,483 $ 52,505 $ 74,906 $ 85,081 $ 57,266 Troubled debt
restructurings, accruing $ 1,334 $ 896 $ 1,010
$ 1,153 $ 1,360 Nonperforming assets to total assets
1.75 % 2.88 % 4.03 % 4.58 % 3.04 % Nonperforming assets to total
loans 3.39 % 5.45 % 7.07 % 7.47 % 4.83 % ALLL to nonperforming
loans 195.40 % 47.49 % 31.97 % 30.84 % 53.77 % ALLL to total loans
1.94 % 2.54 % 2.22 % 2.23 % 2.27 % Quarter-to-date charge-offs
19,277 4,339 2,801 1,836 8,931 Quarter-to-date recoveries 258
974 505 319 166 Quarter-to-date
net charge-offs 19,019 3,365 2,296 1,517
8,765 Annualized QTD net charge-offs to total loans
8.45 % 1.40 % 0.87 % 0.54 % 2.94 %
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, 2018
December 31, 2017
Total equity $ 221,990 $ 254,015 Less preferred equity
40,972 40,988 Total common equity 181,018 213,027
Less goodwill 42,171 42,171 Less intangibles 2,409 3,515
Tangible common equity $ 136,438 $ 167,341
Total assets $ 1,743,398 $ 1,881,152 Less goodwill 42,171
42,171 Less intangibles 2,409 3,515 Tangible assets $
1,698,818 $ 1,835,466 Tangible common equity
to tangible assets 8.03 % 9.12 %
REGULATORY CAPITAL
Common equity tier 1 capital $ 137,991 $ 171,161 Tier 1
capital 201,130 233,648 Total capital 215,310 251,456
Regulatory capital ratios: Common equity tier 1 capital
ratio 12.20 % 12.10 % Tier 1 risk-based capital ratio 17.79 % 16.51
% Total risk-based capital ratio 19.04 % 17.77 % Tier 1 leverage
ratio 11.45 % 12.53 %
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, 2018
September 30, 2018 June 30, 2018 March 31,
2018 December 31, 2017
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 $ 375,467 $ 2,950 3.14 % $ 347,205 $
2,156 2.48 % $ 340,080 $ 2,093 2.46 % $ 334,419 $ 2,047 2.45 % $
348,267 $ 2,161 2.48 % Tax-exempt securities (*) 43,010 355
3.30 % 43,151 345 3.20 % 43,858 351
3.20 % 50,550 400 3.17 % 53,998 448
3.32 % Total investment securities 418,477 3,305 3.16
% 390,356 2,501 2.56 % 383,938 2,444 2.54 % 384,969
2,447 2.54 % 402,265 2,609 2.59 % Federal funds sold
5,878 33 2.25 % 7,250 32 1.77 % 5,008 21 1.63 % 4,978 18 1.45 %
4,441 15 1.32 % Interest bearing deposits in other banks 208,001
1,364 2.62 % 250,349 1,279 2.04 % 201,281 912 1.79 % 132,940 514
1.55 % 94,394 314 1.30 % Other investments 16,573 177 4.27 % 15,640
106 2.71 % 14,924 91 2.45 % 12,721 87 2.74 % 12,201 85 2.79 % Loans
944,546 14,536 6.16 % 1,020,834 14,590
5.72 % 1,109,371 15,344 5.55 % 1,159,671
16,015 5.60 % 1,238,846 18,026 5.77 % Total
interest earning assets 1,593,475 19,415 4.87 % 1,684,429
18,508 4.40 % 1,714,522 18,812 4.39 % 1,695,279
19,081 4.56 % 1,752,147 21,049 4.81 % Non-interest
earning assets 198,515 146,405 146,384 164,791
155,588 Total assets $ 1,791,990 $ 1,830,834
$ 1,860,906 $ 1,860,070 $ 1,907,735
Interest-bearing liabilities: Deposits $ 1,066,322 $ 1,670 0.63 % $
1,083,404 $ 1,602 0.59 % $ 1,087,746 $ 1,409 0.52 % $ 1,071,484 $
1,238 0.47 % $ 1,085,349 $ 1,097 0.40 % Repurchase agreements
13,031 17 0.52 % 14,641 16 0.44 % 26,230 25 0.39 % 40,115 40 0.40 %
54,799 66 0.48 % FHLB advances 27,500 135 1.96 % 29,139 81 1.11 %
37,514 120 1.28 % 38,741 129 1.33 % 40,281 122 1.21 % Junior
subordinated debentures 22,167 275 4.96 % 22,167 271
4.89 % 22,167 260 4.63 % 22,167 220 3.97 %
22,167 198 3.50 % Total interest bearing liabilities
1,129,020 2,097 0.74 % 1,149,351 1,970 0.69 %
1,173,657 1,814 0.62 % 1,172,507 1,627 0.57 %
1,202,596 1,483 0.49 % Non-interest bearing liabilities
419,202 431,486 435,971 447,460 435,766 Shareholders' equity
243,768 249,997 251,278 255,170 269,373
Total liabilities and shareholders' equity 1,791,990
1,830,834 1,860,906 1,875,137 1,907,735
Net interest income (TE) and spread $ 17,318 4.13 % $ 16,538
3.71 % $ 16,998 3.77 % $ 17,454 3.99 % $
19,566 4.32 % Net interest margin 4.35 % 3.93 % 3.97 % 4.12
% 4.47 %
(*) Reflects taxable equivalent
adjustments using the federal statutory tax rate of 21% and 35%
(4Q17) in adjusting interest on tax-exempt securities to a fully
taxable basis. The taxable equivalent adjustments included above
amount to $75,000 for 4Q18 $72,000 for 3Q18, $74,000 for 2Q18,
$84,000 for 1Q18, and $94,000 for 4Q17.
MIDSOUTH BANCORP, INC. and
SUBSIDIARIES Yearly Yield Analysis (unaudited) (in
thousands) YIELD ANALYSIS Year
Ended Year Ended December 31, 2018 December
31, 2017 Tax Tax
Average Equivalent Yield/ Average
Equivalent Yield/ Balance
Interest Rate Balance
Interest Rate Taxable securities $ 354,153 $
9,246 2.61 % $ 372,523 $ 9,180 2.46 % Tax-exempt securities (*)
45,117 1,451 3.22 % 56,569 2,283 4.04 %
Total investment securities 399,270 10,697 2.68 % 429,092 11,463
2.67 % Federal funds sold 5,785 104 1.80 % 3,979 43 1.08 % Time and
interest bearing deposits in other banks 197,329 4,069 2.06 %
71,754 854 1.19 % Other investments 15,466 461 2.98 % 11,790 340
2.88 % Loans 1,058,379 60,485 5.71 % 1,255,488
68,708 5.47 % Total interest earning assets 1,676,229
75,816 4.52 % 1,772,103 81,408 4.59 %
Non-interest earning assets 159,409 157,435 Total
assets $ 1,835,638 $ 1,929,538 Interest-bearing
liabilities: Deposits $ 1,075,302 $ 5,919 0.55 % $ 1,121,004 $
4,099 0.37 % Repurchase agreements 23,406 98 0.42 % 78,347 685 0.87
% FHLB advances 33,182 466 1.40 % 30,691 412 1.34 % Junior
subordinated debentures 22,167 1,025 4.62 % 22,167
830 3.74 % Total interest bearing liabilities
1,154,057 7,508 0.65 % 1,252,209 6,026
0.48 % Non-interest bearing liabilities 431,559 431,326
Shareholders' equity 250,022 246,003 Total
liabilities and shareholders' equity 1,835,638 1,929,538
Net interest income (TE) and spread $ 68,308 3.87 % $
75,382 4.11 % Net interest margin 4.08 % 4.25 %
(*) Reflects taxable equivalent
adjustments using the federal statutory tax rate of 21% and 35%
(2017) in adjusting interest on tax-exempt securities to a fully
taxable basis. The taxable equivalent adjustments included above
amount to $305,000 for 2018 $785,000 for 2017.
MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures (unaudited)
(in thousands except per share data)
Three Months Ended December
31, September 30, June 30, March 31,
December 31, 2018 2018 2018 2018
2017 TANGIBLE BOOK VALUE PER COMMON SHARE
Total shareholders' equity $
221,990
$ 241,451 $ 248,672 $ 250,837 $ 254,015 Less: Preferred common
shareholders' equity $ 40,972 $ 40,972 $ 40,987
$ 40,987 $ 40,987 Total common shareholders' equity
181,018
200,479 207,685 209,850 213,028
Less: Goodwill $ 42,171 $ 42,171 $ 42,171 $ 42,171 $ 42,171 Other
intangible assets $ 2,409 $ 2,685 $ 2,962 $
3,238 $ 3,515 Total tangible common shareholders' equity $
136,438
$ 155,623 $ 162,552 $ 164,441 $ 167,342
Period end number of shares $ 16,641,017 $ 16,641,105 $ 16,619,894
$ 16,621,811 $ 16,548,829 Book value per share (period end) $
10.88
$ 12.05 $ 12.50 $ 12.62 $ 12.87 Tangible book value per share
(period end) $
8.20
$ 9.35 $ 9.78 $ 9.89 $ 10.11
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, Adjusted Net Income
2018 2018 2018 2017 2017
2018 2017 Net (loss) income available to common
shareholders' $ (23,119 ) $ (5,708 ) $ (1,479 ) $ (450 ) $ (11,314
) $ (30,756 ) $ (15,003 ) Adjustment items: Regulatory remediation
costs 4,970 5,502 5,323 3,926 1,772 19,721 2,628 Loans held for
sale expense — 4 20 963 6,030 987 6,030 Severance and retention
expenses — — — — 171 — 1,512 Branch closure expenses — — — 145 — —
1,368 Discount accretion acceleration 726 — — — — 726 — Tax effect
of adjustments (1,196 ) (1,156 ) (1,122 )
(1,057 ) (2,762 ) (4,531 ) (4,038 ) After tax
adjustment items 4,500 4,350 4,221 3,977 5,211 16,903 7,500 Tax
expense adjustment items: Attributable to valuation allowance on
deferred tax 7,685 — — — — 7,685 — Attributable to remeasurement of
deferred taxes at reduced federal corporate tax rate — —
— — 3,595 — — 3,595
Adjusted net (loss) income $ (10,934 ) $ (1,358 ) $
2,742 $ 3,527 $ (2,508 ) $
(6,168 ) $ (3,908 ) Weighted average number of shares
- diluted 16,640,174 16,557,664 16,525,571 16,495,438 16,460,124
16,617,820 14,107,373 Net income (loss) per diluted share $ (1.39 )
$ (0.34 ) $ (0.09 ) $ (0.03 ) $ (0.69 ) $ (1.85 ) $ (1.06 )
Adjusted net income (loss) per diluted share $ (0.66 ) $ (0.08 ) $
0.17 $ 0.21 $ (0.15 ) $ (0.37 ) $ (0.28 ) Average assets $
1,791,990 $ 1,830,834 $ 1,860,906 $ 1,860,070 $ 1,907,735 $
1,835,638 $ 1,929,538 Return on average assets (5.16 )% (1.25 )%
(0.32 )% (0.10 )% (2.37 )% (1.68 )% (0.78 )% Adjusted return on
average assets (2.44 )% (0.30 )% 0.59 % 0.76 % (0.17 )% (0.34 )%
(0.20 )% Average common equity $ 202,796 $ 209,010 $ 210,291
$ 214,183 $ 228,386 $ 206,825 $ 246,003 Average tangible common
equity $ 158,083 $ 164,020 $ 165,024 $ 168,629 $ 182,568 $ 161,697
$ 147,998 Adjusted return on average common equity (21.57 )% (2.60
)% 5.22 % 6.59 % (1.40 )% (2.98 )% (1.59 )% Adjusted return on
average tangible common equity (27.67 )% (3.31 )% 6.65 % 8.37 %
(1.75 )% (3.81 )% (2.64 )%
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 September 30, June
30, March 31, December 31, December 31,
December 31, ADJUSTED EFFICIENCY RATIO (TE)
2018 2018 2018 2018 2017
2018 2017 Adjusted Noninterest Expense
Total Noninterest Expense $ 24,693 $ 23,527 $ 22,273 $ 21,873 $
25,944 $ 92,366 $ 80,537 Adjustment items:
Regulatory remediation costs $ (4,970 ) $ (5,502 ) $ (5,323 ) $
(3,926 ) $ (1,772 ) $ (19,721 ) $ (2,628 ) Loans held for sale
expense 4 (20 ) (963 ) (6,819 ) (979 ) (6,030 ) Severance and
retention expenses — — — — (171 ) — (1,512 ) Discontinued Branch
project expenses — — — — — — (465 ) Branch closure expenses —
— — (145 ) — (145 ) (903 ) Adjusted
noninterest expense $ 19,723 $ 18,029 $ 16,930
$ 16,839 $ 17,182 $ 71,521 $ 68,999
Total Revenue Net interest income $ 17,243 $ 16,466 $
16,925 $ 17,370 $ 19,472 $ 68,003 $ 74,597 Noninterest income $
4,751 $ 5,090 $ 4,882 $ 4,829 $ 6,028
$ 19,552 $ 21,781 Total Revenue 21,994
21,556 21,807 22,199 25,500 87,555
96,378
Adjusted Total Revenue Net interest
income (TE) 17,318 16,538 16,998 17,454 19,566 68,308 75,382
Noninterest income 4,751 5,090 4,882 4,829
6,028 19,552 21,781 Total Revenue (TE)
22,069 21,628 21,880 22,283 25,594
87,860 97,163 Adjustment items Gain on sale of
securities — — — — — — (347 ) Gain on sale of branches — —
— — (744 ) — (744 ) Adjusted total
revenue (TE) 22,069 21,628 21,880 22,283
24,850 87,860 96,072 Efficiency
ratio (GAAP) 112.27 % 109.14 % 102.14 % 98.53 % 101.74 % 105.49 %
83.56 % Efficiency ratio (non-GAAP) 89.37 % 83.36 % 77.38 %
75.57 % 69.14 % 81.40 % 71.82 %
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190130005860/en/
Investor Contacts:Jim McLemore, CFAPresident &
CEO337.237.8343Lorraine Miller, CFAEVP & CFO337.593.3143
Midsouth Bancorp (NYSE:MSL)
Historical Stock Chart
From May 2024 to Jun 2024
Midsouth Bancorp (NYSE:MSL)
Historical Stock Chart
From Jun 2023 to Jun 2024