MidSouth Bancorp, Inc. Updates on Asset Quality Improvements
March 22 2019 - 8:21AM
Business Wire
MidSouth Bancorp, Inc. (“MidSouth”) (NYSE:MSL) today announced
that based on the sale in the first quarter of 2019 of $16.9
million of loans classified as held for sale at December 31, 2018
for total proceeds of $18.3 million, pro forma Bank Classified to
Capital at December 31, 2018 improved from 29% to 19%.
Jim McLemore, President and CEO, remarked, “We are encouraged by
the successful completion of these sales and the meaningful
improvement to our asset quality metrics. Our efforts in 2018 to
stabilize our credit issues and enhance our corporate governance
both serve to improve our risk profile and will allow us to focus
on executing our strategic plan to improve performance and build
shareholder value in 2019.”
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 42 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,
statements regarding expected future performance and shareholder
value. 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; costs and expenses associated with our strategic
initiatives and regulatory remediation efforts 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 and lease 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, require 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; the identified material weaknesses
in our internal control over financial reporting; 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, 2018 filed with the
SEC on March 18, 2019 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20190322005191/en/
Investor Contacts:Jim McLemore, CFAPresident &
CEO337.237.8343Lorraine Miller, CFAEVP & CFO337.593.3143
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