LAFAYETTE, La., April 27, 2016 /PRNewswire/ -- MidSouth Bancorp,
Inc. ("MidSouth") (NYSE:MSL) today reported quarterly net earnings
available to common shareholders of $1.9
million for the first quarter of 2016, compared to net
earnings available to common shareholders of $1.3 million reported for the first quarter of
2015 and $1.7 million in net earnings
available to common shareholders for the fourth quarter of
2015. Diluted earnings for the first quarter of 2016 were
$0.17 per common share, compared to
$0.12 per common share reported for
the first quarter of 2015 and $0.15
per common share reported for the fourth quarter of 2015.
C. R. Cloutier, President and
CEO, commenting on first quarter earnings remarked, "We are
encouraged by the recent upturn in oil prices and a stabilizing of
our energy portfolio in early 2016. Nevertheless, we continue
to operate in an environment with many headwinds and will remain
vigilant in working with our customers and staying very close to
developments in their businesses."
Cloutier continued, "Given the current environment, we believe
it is prudent to conserve capital and therefore have delayed our
original plans to repay our SBLF capital. During the quarter,
all of our regulatory capital ratios continued to improve, and we
remain well capitalized."
Energy Lending Update
MidSouth Bank defines an energy loan as any loan where the
borrower's ability to repay is disproportionately impacted by a
prolonged downturn in energy prices. Under this definition,
the Bank includes direct Commercial and Industrial (C&I) loans
to energy borrowers, as well as Commercial Real Estate (CRE) loans,
Residential Real Estate loans and loans to energy-related borrowers
where the loan's primary collateral is cash and marketable
securities. Although this definition has resulted in a lack
of comparability with some 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 $12.2 million during 1Q16 to $252.5 million, or 20.2% of total loans, from
20.9% at December 31, 2015.
- Direct C&I energy loans were $201.5
million or 16.0% of total loans and had a weighted average
maturity of 3.7 years at March 31,
2016.
- Energy-related CRE and residential real estate loans were
$50.6 million or 4.0% of total loans
at March 31, 2016.
- Unfunded commitments on energy-related lines totaled
$82 million at March 31, 2016.
- Utilization rate on energy-related lines was 42.1% at
March 31, 2016, compared to 44.8% at
December 31, 2015.
- Eight energy loan relationships had rating changes during the
quarter
- Three loan relationships totaling $8.4
million were downgraded to Special Mention
- Five loan relationships totaling $15.0
million were downgraded to Substandard
- Total criticized energy-related loans increased $4.4 million during 1Q16 to $76.9 million and represented 30.4% of energy
loans at March 31, 2016, versus 27.4%
at December 31, 2015.
- Energy-related past due loans were $36.4
million, or 14.4%, with 9.6% of energy-related loans on
nonaccrual status at March 31,
2016.
- One energy-related charge-off totaled $786,000 during 1Q16, or approximately 30 basis
points of average energy loans.
- Cycle to date net charge-offs totaled $2.4 million, or 0.91% of 12/31/14 energy loans, which was when the effects
of declining oil prices began to surface.
- One energy-related impairment totaling $252,000 identified during 1Q16.
- The energy reserve as a percentage of total energy loans, as
defined, was 3.1% at March 31, 2016.
The reserve attributable to C&I energy loans was approximately
3.6%. The reserve on all other energy loans was 1.4%.
- One energy relationship totaling $8.5
million is the only Shared National Credit (SNC) in the
energy portfolio at March 31,
2016.
- The Bank has no reserve-based energy loans and therefore does
not conduct periodic borrowing base redeterminations associated
with reserve based loans.
- The Bank has determined its loan loss reserves using a
pre-defined methodology consistently applied, which takes into
account historical losses, migrations of credits using its internal
loan grading system and other qualitative factors.
- To date, during the month of April
2016, the Bank had 1 rating related change to its energy
portfolio:
- One credit in the amount of $1.1
million was downgraded from Pass to Special Mention
More information on our energy loan portfolio can be found on
our website at MidSouthBank.com under Investor
Relations/Presentations.
Balance Sheet
Total consolidated assets remained constant at $1.9 billion for the quarters ended March 31, 2016 and December 31, 2015, compared to $2.0 billion at March
31, 2015. Our stable core deposit base, which excludes
time deposits, totaled $1.4 billion
at March 31, 2016 and December 31, 2015 and accounted for 89.3% of
deposits compared to 89.1% of deposits, respectively. Net
loans totaled $1.2 billion at
March 31, 2016 and December 31, 2015, compared to $1.3 billion at March 31,
2015.
MidSouth's Tier 1 leverage capital ratio was 10.17% at
March 31, 2016, compared to 10.10% at
December 31, 2015. Tier 1
risk-based capital and total risk-based capital ratios were 13.28%
and 14.53% at March 31, 2016,
compared to 13.25% and 14.50% at December
31, 2015, respectively. Tier 1 common equity to total
risk-weighted assets at March 31,
2016 was 8.90%, compared to 8.91% at December 31, 2015. Tangible common
equity totaled $127.1 million at
March 31, 2016, compared to
$124.1 million at December 31, 2015. Tangible book value per
share at March 31, 2016 was
$11.19 versus $10.92 at December 31,
2015.
Asset Quality
Nonperforming assets totaled $58.1
million at March 31, 2016, an
increase of $3.7 million compared to
$54.4 million reported at
December 31, 2015. The increase
resulted primarily from a $5.6
million commercial real estate loan unrelated to energy that
was placed on nonaccrual status during the quarter. The
$5.6 million increase was partially
offset by a $786,000 partial
charge-off of an energy related relationship. Allowance
coverage for nonperforming loans was 37.70% at March 31, 2016, compared to 37.87% at
December 31, 2015. The
ALLL/total loans ratio was 1.63% at March
31, 2016 and 1.50% at December
31, 2015. Including valuation accounting adjustments
on acquired loans, the total valuation accounting adjustment plus
ALLL was 1.87% of loans at March 31,
2016. The ratio of annualized net charge-offs to total loans
decreased to 0.47% for the three months ended March 31, 2016 compared to 0.92% for the three
months ended December 31, 2015.
Total nonperforming assets to total loans plus ORE and other
assets repossessed was 4.64% at March 31,
2016 compared to 4.29% at December
31, 2015. Loans classified as troubled debt
restructurings, accruing ("TDRs, accruing") increased to
$5.7 million at March 31, 2016 compared to $164,000 at December
31, 2015. The $5.5
million of loans restructured during the first quarter of
2016 represented a single, energy-related relationship.
Classified assets, including ORE, increased $16.3 million, or 21.3%, to $92.9 million at March 31,
2016 compared to $76.6 million
at December 31, 2015. The
increase in classified assets during the quarter ended March 31, 2016 is primarily due to the downgrade
of two energy-related relationships totaling $11.5 million and the downgrade of two non
energy-related loans totaling $3.8
million.
First Quarter 2016 vs. First Quarter 2015 Earnings
Comparison
First quarter 2016 net earnings available to common shareholders
totaled $1.9 million compared to
$1.3 million for the first quarter of
2015. Revenues from consolidated operations decreased
$1.2 million in quarterly comparison,
from $24.1 million for the three
months ended March 31, 2015 to
$22.9 million for the three months
ended March 31, 2016. Net
interest income decreased $873,000 in
quarterly comparison primarily due to a $931,000 decrease in interest income earned on
loans. The decrease in interest income on loans was partially
offset by a $40,000 decrease in
interest expense on deposits. Noninterest income decreased
$354,000 in quarterly comparison,
from $4.8 million for the three
months ended March 31, 2015 to
$4.5 million for the three months
ended March 31, 2016. The
decrease in noninterest income resulted primarily from a
$115,000 decrease in gain on sales of
securities and a $86,000 decrease in
letter of credit income.
Noninterest expenses increased $598,000 in quarterly comparison and primarily
consisted of increases of $148,000 in
FDIC premiums, $181,000 in expenses
on ORE, $94,000 in marketing
expenses, $69,000 in other assets
expense and $122,000 in ATM/debit
card expense. The provision for loan losses decreased
$3.2 million in quarterly comparison,
from $6.0 million for the three
months ended March 31, 2015 to
$2.8 million for the three months
ended March 31, 2016. The
$6.0 million provision for loan
losses for the three months ended March 31,
2015 resulted primarily from a $41.1
million increase in classified assets during the first
quarter of 2015. Income tax expense increased $517,000 in quarterly comparison.
Dividends on the Series B Preferred Stock issued to the Treasury
as a result of our participation in the Small Business Lending Fund
("SBLF") totaled $336,000 for the
first quarter of 2016 based on a dividend rate of 4.2%. The
dividend rate increased to 9% on February
25, 2016. Dividends on the Series C Preferred Stock
issued with the December 28, 2012
acquisition of PSB Financial Corporation ("PSB") totaled
$91,000 for the three months ended
March 31, 2016.
Fully taxable-equivalent ("FTE") net interest income totaled
$18.6 million and $19.6 million for the quarters ended March 31, 2016 and 2015,
respectively. The FTE net interest income decreased
$940,000 in prior year quarterly
comparison primarily due to a $931,000 decrease in interest income on
loans. Interest income on loans decreased due to a
$45.6 million decrease in the average
balance of loans as well a decrease in the average yield on loans
of 14 basis points, from 5.64% to 5.50%. The purchase
accounting adjustments added 24 basis points to the average yield
on loans for the first quarter of 2016 and 13 basis points to the
average yield on loans for the first quarter of 2015.
Excluding the impact of the purchase accounting adjustments,
average loan yields declined 25 basis points in prior year
quarterly comparison, from 5.51% to 5.26%. Loan yields have
declined primarily as the result of a sustained low interest rate
environment and a higher volume of loans on nonaccrual status.
Investment securities totaled $415.8
million, or 21.7% of total assets at March 31, 2016, versus $437.3 million, or 21.9% of total assets at
March 31, 2015. The investment
portfolio had an effective duration of 3.3 years and a net
unrealized gain of $3.6 million at
March 31, 2016. The average
volume of investment securities increased $8.3 million in prior year quarterly
comparison. The average tax equivalent yield on investment
securities decreased 13 basis points, from 2.71% to 2.58%.
The average yield on all earning assets decreased 20 basis
points in prior year quarterly comparison, from 4.77% for the first
quarter of 2015 to 4.57% for the first quarter of 2016.
Excluding the impact of purchase accounting adjustments, the
average yield on total earning assets decreased 28 basis points,
from 4.67% to 4.39% for the three month periods ended March 31, 2015 and 2016, respectively.
Interest expense decreased $4,000
in prior year quarterly comparison. A $40,000 decrease in interest expense on deposits
was partially offset by a $15,000
increase in interest expense on short-term FHLB advances and a
$17,000 increase on junior
subordinated debentures. Excluding purchase accounting
adjustments on acquired certificates of deposit and FHLB
borrowings, the average rate paid on interest-bearing liabilities
was 0.45% for the three months ended March
31, 2016, compared to 0.47% for the three months ended
March 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 20 basis points, from 4.44% for the first quarter
of 2015 to 4.24% for the first quarter of 2016. Excluding
purchase accounting adjustments on loans, deposits and FHLB
borrowings, the FTE margin decreased 21 basis points, from 4.32%
for the first quarter of 2015 to 4.11% for the first quarter of
2016.
First Quarter 2016 vs. Fourth Quarter 2015 Earnings
Comparison
In sequential-quarter comparison, net earnings available to
common shareholders increased $255,000, from $1.7
million for the three months ended December 31, 2015 to $1.9
million for the three months ended March 31, 2016. Net interest income
decreased $153,000 in
sequential-quarter comparison, primarily due to a $196,000 decrease in interest income earned on
loans. Noninterest income decreased $88,000 in sequential-quarter comparison, from
$4.6 million for the three months
ended December 31, 2015 to
$4.5 million for the three months
ended March 31, 2016.
Noninterest expense decreased $749,000 in sequential-quarter comparison.
The decrease in noninterest expense consisted primarily of
decreases of $254,000 in salaries and
benefits costs, $81,000 in FDIC premiums, $118,000 in corporate development expense,
$90,000 in occupancy expense and
$71,000 in marketing expense,
combined with smaller decreases in several other noninterest
expense categories.
FTE net interest income decreased $181,000 in sequential-quarter comparison
primarily due to a $196,000 decrease
in interest income on loans. The average volume of loans
decreased $18.4 million and the
average yield on loans increased 9 basis points, from 5.41% for the
fourth quarter of 2015 to 5.50% for the first quarter of
2016. Excluding purchase accounting adjustments, the loan
yield remained unchanged at 5.26% for the three months ended
March 31, 2016 and December 31, 2015. The average yield on
total earning assets increased 5 basis points for the same period,
from 4.52% to 4.57%, respectively. As a result of these
changes in volume and yield on earning assets, the FTE net interest
margin increased 2 basis points, from 4.22% to 4.24%.
Excluding purchase accounting adjustments, the FTE net interest
margin increased 2 basis points, from 4.09% for the fourth quarter
of 2015 to 4.11% for the first quarter of 2016.
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 July
1, 2016 to shareholders of record as of the close of
business on June 15, 2016.
Additionally, a quarterly cash dividend of 1.00% per preferred
share on its 4.00% Non-Cumulative Perpetual Convertible Preferred
Stock, Series C was declared payable on July
15, 2016 to shareholders of record as of the close of
business on July 1, 2016.
About MidSouth Bancorp, Inc.
MidSouth Bancorp, Inc. is a financial holding company
headquartered in Lafayette,
Louisiana, with assets of $1.9
billion as of March 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,
2014 filed with the SEC on March 13,
2015 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
|
|
3/31/2016
|
|
12/31/2015
|
|
9/30/2015
|
|
6/30/2015
|
|
3/31/2015
|
Total interest
income
|
|
$ 19,804
|
|
$ 19,886
|
|
$ 20,532
|
|
$ 20,798
|
|
$ 20,681
|
Total interest
expense
|
|
1,420
|
|
1,349
|
|
1,391
|
|
1,417
|
|
1,424
|
Net interest income
|
|
18,384
|
|
18,537
|
|
19,141
|
|
19,381
|
|
19,257
|
FTE net interest
income
|
|
18,625
|
|
18,806
|
|
19,423
|
|
19,676
|
|
19,565
|
Provision for loan
losses
|
|
2,800
|
|
3,000
|
|
3,800
|
|
1,100
|
|
6,000
|
Non-interest
income
|
|
4,487
|
|
4,575
|
|
4,768
|
|
6,137
|
|
4,841
|
Non-interest
expense
|
|
16,759
|
|
17,508
|
|
16,492
|
|
16,976
|
|
16,161
|
Earnings
before income taxes
|
|
3,312
|
|
2,604
|
|
3,617
|
|
7,442
|
|
1,937
|
Income tax
expense
|
|
963
|
|
766
|
|
1,028
|
|
2,343
|
|
446
|
Net
earnings
|
|
2,349
|
|
1,838
|
|
2,589
|
|
5,099
|
|
1,491
|
Dividends on preferred
stock
|
|
427
|
|
171
|
|
172
|
|
172
|
|
173
|
Net earnings available to common shareholders
|
|
$
1,922
|
|
$
1,667
|
|
$
2,417
|
|
$
4,927
|
|
$
1,318
|
|
|
|
|
|
|
|
|
|
|
|
PER COMMON SHARE
DATA
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
0.17
|
|
$
0.15
|
|
$
0.21
|
|
$
0.43
|
|
$
0.12
|
Diluted earnings per
share
|
|
0.17
|
|
0.15
|
|
0.21
|
|
0.42
|
|
0.12
|
Diluted earnings per share,
operating (Non-GAAP)(*)
|
|
0.17
|
|
0.15
|
|
0.21
|
|
0.35
|
|
0.11
|
Quarterly dividends per
share
|
|
0.09
|
|
0.09
|
|
0.09
|
|
0.09
|
|
0.09
|
Book value at end of
period
|
|
15.38
|
|
15.14
|
|
15.21
|
|
15.04
|
|
14.92
|
Tangible book value at
period end (Non-GAAP)(*)
|
|
11.19
|
|
10.92
|
|
10.97
|
|
10.78
|
|
10.63
|
Market price at end of
period
|
|
7.63
|
|
9.08
|
|
11.70
|
|
15.26
|
|
14.75
|
Shares outstanding at period
end
|
|
11,362,150
|
|
11,362,150
|
|
11,361,839
|
|
11,359,396
|
|
11,349,285
|
Weighted average shares
outstanding
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
11,261,644
|
|
11,281,286
|
|
11,311,841
|
|
11,323,506
|
|
11,317,667
|
Diluted
|
|
11,261,644
|
|
11,281,286
|
|
11,830,540
|
|
11,849,683
|
|
11,351,239
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEET DATA
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$ 1,931,904
|
|
$ 1,938,235
|
|
$ 1,949,352
|
|
$ 1,976,574
|
|
$ 1,966,752
|
Loans and leases
|
|
1,252,742
|
|
1,271,106
|
|
1,285,991
|
|
1,312,359
|
|
1,298,317
|
Total deposits
|
|
1,552,217
|
|
1,557,272
|
|
1,559,308
|
|
1,593,318
|
|
1,592,153
|
Total common
equity
|
|
175,479
|
|
173,950
|
|
173,466
|
|
170,885
|
|
170,638
|
Total tangible common equity
(Non-GAAP)(*)
|
|
127,722
|
|
125,919
|
|
125,156
|
|
122,299
|
|
121,778
|
Total
equity
|
|
216,599
|
|
215,072
|
|
214,623
|
|
212,112
|
|
211,985
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED
RATIOS
|
|
|
|
|
|
|
|
|
|
|
Annualized return on average
assets, operating (Non-GAAP)(*)
|
|
0.40%
|
|
0.34%
|
|
0.49%
|
|
0.82%
|
|
0.26%
|
Annualized return on average
common equity, operating (Non-GAAP)(*)
|
|
4.41%
|
|
3.80%
|
|
5.53%
|
|
9.47%
|
|
2.95%
|
Annualized return on average
tangible common equity, operating
(Non-GAAP)(*)
|
|
6.05%
|
|
5.25%
|
|
7.66%
|
|
13.23%
|
|
4.14%
|
Pre-tax, pre-provision
annualized return on average assets, operating
(Non-GAAP)(*)
|
|
1.27%
|
|
1.15%
|
|
1.51%
|
|
1.47%
|
|
1.61%
|
Efficiency ratio, operating
(Non-GAAP)(*)
|
|
73.28%
|
|
75.69%
|
|
68.65%
|
|
69.89%
|
|
67.48%
|
Average loans to average
deposits
|
|
80.71%
|
|
81.62%
|
|
82.47%
|
|
82.37%
|
|
81.54%
|
Taxable-equivalent net
interest margin
|
|
4.24%
|
|
4.22%
|
|
4.34%
|
|
4.38%
|
|
4.44%
|
Tier 1 leverage capital
ratio
|
|
10.17%
|
|
10.10%
|
|
9.98%
|
|
9.79%
|
|
9.63%
|
|
|
|
|
|
|
|
|
|
|
|
CREDIT
QUALITY
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan and lease
losses (ALLL) as a % of total loans
|
|
1.63%
|
|
1.50%
|
|
1.46%
|
|
1.24%
|
|
1.23%
|
Nonperforming assets to
tangible equity + ALLL
|
|
30.83%
|
|
29.54%
|
|
30.51%
|
|
16.18%
|
|
9.87%
|
Nonperforming assets to
total loans, other real estate owned and other repossessed
assets
|
|
4.64%
|
|
4.29%
|
|
4.32%
|
|
2.24%
|
|
1.34%
|
Annualized QTD net
charge-offs to total loans
|
|
0.47%
|
|
0.92%
|
|
0.28%
|
|
0.34%
|
|
0.36%
|
|
|
|
|
|
|
|
|
|
|
|
(*)See
reconciliation of Non-GAAP financial measures on pages
6-8.
|
MIDSOUTH BANCORP,
INC. and
SUBSIDIARIES
|
Condensed
Consolidated Financial Information
(unaudited)
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE
SHEET
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$ 112,410
|
|
$
89,201
|
|
$
125,437
|
|
$ 82,636
|
|
$ 104,402
|
Securities
available-for-sale
|
|
302,151
|
|
318,159
|
|
285,485
|
|
300,335
|
|
299,690
|
Securities
held-to-maturity
|
|
113,623
|
|
116,792
|
|
121,043
|
|
126,529
|
|
137,592
|
Total investment
securities
|
|
415,774
|
|
434,951
|
|
406,528
|
|
426,864
|
|
437,282
|
Other
investments
|
|
11,195
|
|
11,188
|
|
12,063
|
|
10,598
|
|
9,644
|
Total
loans
|
|
1,250,049
|
|
1,263,645
|
|
1,301,452
|
|
1,294,392
|
|
1,310,929
|
Allowance for loan
losses
|
|
(20,347)
|
|
(19,011)
|
|
(18,939)
|
|
(16,048)
|
|
(16,060)
|
Loans, net
|
|
1,229,702
|
|
1,244,634
|
|
1,282,513
|
|
1,278,344
|
|
1,294,869
|
Premises and
equipment
|
|
68,482
|
|
69,105
|
|
68,718
|
|
69,263
|
|
69,762
|
Goodwill and other
intangibles
|
|
47,622
|
|
47,899
|
|
48,175
|
|
48,452
|
|
48,729
|
Other
assets
|
|
31,366
|
|
30,755
|
|
30,874
|
|
32,627
|
|
30,570
|
Total assets
|
|
$ 1,916,551
|
|
$ 1,927,733
|
|
$
1,974,308
|
|
$ 1,948,784
|
|
$ 1,995,258
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing
deposits
|
|
$ 383,684
|
|
$
374,261
|
|
$
406,118
|
|
$ 408,742
|
|
$ 421,897
|
Interest-bearing
deposits
|
|
1,174,519
|
|
1,176,589
|
|
1,137,303
|
|
1,149,508
|
|
1,194,201
|
Total deposits
|
|
1,558,203
|
|
1,550,850
|
|
1,543,421
|
|
1,558,250
|
|
1,616,098
|
Securities sold under agreements to
repurchase
|
|
87,879
|
|
85,957
|
|
92,085
|
|
84,547
|
|
87,346
|
Short-term FHLB
advances
|
|
-
|
|
25,000
|
|
70,000
|
|
40,000
|
|
25,000
|
Long-term FHLB
advances
|
|
25,744
|
|
25,851
|
|
25,958
|
|
26,064
|
|
26,171
|
Junior subordinated
debentures
|
|
22,167
|
|
22,167
|
|
22,167
|
|
22,167
|
|
22,167
|
Other
liabilities
|
|
6,704
|
|
4,771
|
|
6,713
|
|
5,720
|
|
7,820
|
Total
liabilities
|
|
1,700,697
|
|
1,714,596
|
|
1,760,344
|
|
1,736,748
|
|
1,784,602
|
Total shareholders'
equity
|
|
215,854
|
|
213,137
|
|
213,964
|
|
212,036
|
|
210,656
|
Total liabilities and
shareholders' equity
|
|
$ 1,916,551
|
|
$ 1,927,733
|
|
$
1,974,308
|
|
$ 1,948,784
|
|
$ 1,995,258
|
MIDSOUTH BANCORP,
INC. and
SUBSIDIARIES
|
Condensed
Consolidated Financial Information
(unaudited)
|
(in thousands
except per share
data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
STATEMENT
|
|
Three Months
Ended
|
|
|
|
3/31/2016
|
|
12/31/2015
|
|
9/30/2015
|
|
6/30/2015
|
|
3/31/2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including
fees
|
|
$ 16,661
|
|
$ 16,914
|
|
$ 17,413
|
|
$ 17,709
|
|
$ 17,717
|
|
Investment
securities
|
|
2,494
|
|
2,440
|
|
2,386
|
|
2,412
|
|
2,509
|
|
Accretion of purchase
accounting adjustments
|
|
462
|
|
405
|
|
579
|
|
559
|
|
337
|
|
Other interest
income
|
|
187
|
|
127
|
|
154
|
|
118
|
|
118
|
|
Total interest
income
|
|
19,804
|
|
19,886
|
|
20,532
|
|
20,798
|
|
20,681
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
920
|
|
850
|
|
903
|
|
949
|
|
984
|
|
Borrowings
|
|
436
|
|
442
|
|
448
|
|
436
|
|
418
|
|
Junior subordinated
debentures
|
|
167
|
|
162
|
|
150
|
|
151
|
|
150
|
|
Accretion of purchase
accounting adjustments
|
|
(103)
|
|
(105)
|
|
(110)
|
|
(119)
|
|
(128)
|
|
Total interest
expense
|
|
1,420
|
|
1,349
|
|
1,391
|
|
1,417
|
|
1,424
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
18,384
|
|
18,537
|
|
19,141
|
|
19,381
|
|
19,257
|
|
Provision for loan
losses
|
|
2,800
|
|
3,000
|
|
3,800
|
|
1,100
|
|
6,000
|
|
Net interest income
after provision for loan losses
|
|
15,584
|
|
15,537
|
|
15,341
|
|
18,281
|
|
13,257
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
|
|
Service charges
on deposit accounts
|
|
2,313
|
|
2,353
|
|
2,491
|
|
2,347
|
|
2,332
|
|
ATM and debit card
income
|
|
1,609
|
|
1,616
|
|
1,563
|
|
1,655
|
|
1,629
|
|
Gain on securities,
net (non-operating)(*)
|
|
-
|
|
-
|
|
-
|
|
1,128
|
|
115
|
|
Mortgage
lending
|
|
109
|
|
123
|
|
197
|
|
145
|
|
153
|
|
Income from death
benefit on bank owned life insurance
(non-operating)(*)
|
|
-
|
|
-
|
|
-
|
|
160
|
|
-
|
|
Other charges and
fees
|
|
456
|
|
483
|
|
517
|
|
702
|
|
612
|
|
Total non-interest
income
|
|
4,487
|
|
4,575
|
|
4,768
|
|
6,137
|
|
4,841
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
employee benefits
|
|
7,990
|
|
8,244
|
|
7,653
|
|
8,197
|
|
7,942
|
|
Occupancy
expense
|
|
3,597
|
|
3,687
|
|
3,815
|
|
3,865
|
|
3,685
|
|
ATM and debit
card
|
|
785
|
|
825
|
|
770
|
|
693
|
|
663
|
|
Legal and
professional fees
|
|
383
|
|
448
|
|
385
|
|
382
|
|
345
|
|
FDIC
premiums
|
|
429
|
|
510
|
|
391
|
|
331
|
|
281
|
|
Marketing
|
|
381
|
|
452
|
|
408
|
|
417
|
|
287
|
|
Corporate
development
|
|
335
|
|
453
|
|
371
|
|
387
|
|
320
|
|
Data
processing
|
|
458
|
|
488
|
|
476
|
|
467
|
|
457
|
|
Printing and
supplies
|
|
188
|
|
215
|
|
228
|
|
255
|
|
225
|
|
Expenses on ORE,
net
|
|
194
|
|
56
|
|
113
|
|
85
|
|
13
|
|
Amortization of core
deposit intangibles
|
|
277
|
|
276
|
|
277
|
|
276
|
|
277
|
|
Other non-interest
expense
|
|
1,742
|
|
1,854
|
|
1,605
|
|
1,621
|
|
1,666
|
|
Total non-interest
expense
|
|
16,759
|
|
17,508
|
|
16,492
|
|
16,976
|
|
16,161
|
|
Earnings before
income taxes
|
|
3,312
|
|
2,604
|
|
3,617
|
|
7,442
|
|
1,937
|
|
Income tax
expense
|
|
963
|
|
766
|
|
1,028
|
|
2,343
|
|
446
|
|
Net
earnings
|
|
2,349
|
|
1,838
|
|
2,589
|
|
5,099
|
|
1,491
|
|
Dividends on
preferred stock
|
|
427
|
|
171
|
|
172
|
|
172
|
|
173
|
|
Net earnings
available to common shareholders
|
|
$ 1,922
|
|
$ 1,667
|
|
$ 2,417
|
|
$ 4,927
|
|
$ 1,318
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share, diluted
|
|
$ 0.17
|
|
$ 0.15
|
|
$ 0.21
|
|
$ 0.42
|
|
$ 0.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings
per common share, diluted (Non-GAAP)(*)
|
|
$ 0.17
|
|
$ 0.15
|
|
$ 0.21
|
|
$ 0.35
|
|
$ 0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)See
reconciliation of Non-GAAP financial measures on page
6-8.
|
|
MIDSOUTH BANCORP,
INC. and
SUBSIDIARIES
|
Condensed
Consolidated Financial Information
(unaudited)
|
(in
thousands)
|
|
|
|
|
|
COMPOSITION OF
LOANS
|
|
March
31,
|
|
Percent
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
Percent
|
|
|
2016
|
|
of
Total
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
of
Total
|
|
Commercial,
financial, and agricultural
|
|
$ 441,160
|
|
35.29%
|
|
$
454,028
|
|
$
482,452
|
|
$ 471,397
|
|
$ 484,508
|
|
36.96%
|
|
Lease financing
receivable
|
|
1,590
|
|
0.13%
|
|
1,968
|
|
4,790
|
|
5,561
|
|
6,350
|
|
0.48%
|
|
Real estate -
construction
|
|
84,790
|
|
6.78%
|
|
74,952
|
|
74,279
|
|
79,176
|
|
76,964
|
|
5.87%
|
|
Real estate -
commercial
|
|
467,648
|
|
37.41%
|
|
471,141
|
|
473,319
|
|
469,022
|
|
471,737
|
|
35.98%
|
|
Real estate -
residential
|
|
149,961
|
|
12.00%
|
|
149,064
|
|
151,667
|
|
153,820
|
|
153,647
|
|
11.72%
|
|
Installment loans to
individuals
|
|
103,181
|
|
8.25%
|
|
111,009
|
|
113,199
|
|
113,626
|
|
115,284
|
|
8.79%
|
|
Other
|
|
1,719
|
|
0.14%
|
|
1,483
|
|
1,746
|
|
1,790
|
|
2,439
|
|
0.19%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
loans
|
|
$ 1,250,049
|
|
|
|
$ 1,263,645
|
|
$
1,301,452
|
|
$ 1,294,392
|
|
$ 1,310,929
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPOSITION OF
DEPOSITS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
Percent
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
Percent
|
|
|
|
2016
|
|
of
Total
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
of
Total
|
|
Noninterest
bearing
|
|
$ 383,684
|
|
24.62%
|
|
$
374,261
|
|
$
406,118
|
|
$ 408,742
|
|
$ 421,897
|
|
26.11%
|
|
NOW &
Other
|
|
472,309
|
|
30.31%
|
|
475,346
|
|
448,938
|
|
458,338
|
|
480,454
|
|
29.73%
|
|
Money
Market/Savings
|
|
534,854
|
|
34.33%
|
|
531,449
|
|
468,297
|
|
453,902
|
|
463,625
|
|
28.69%
|
|
Time Deposits of less
than $100,000
|
|
80,802
|
|
5.19%
|
|
81,638
|
|
85,589
|
|
90,348
|
|
94,730
|
|
5.86%
|
|
Time Deposits of
$100,000 or more
|
|
86,554
|
|
5.55%
|
|
88,156
|
|
134,479
|
|
146,920
|
|
155,392
|
|
9.62%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
deposits
|
|
$ 1,558,203
|
|
|
|
$ 1,550,850
|
|
$
1,543,421
|
|
$ 1,558,250
|
|
$ 1,616,098
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
|
|
|
|
2016
|
|
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
|
|
Nonaccrual
loans
|
|
$ 53,714
|
|
|
|
$
50,051
|
|
$
51,616
|
|
$ 23,873
|
|
$ 12,894
|
|
|
|
Loans past due
90 days and over
|
|
258
|
|
|
|
147
|
|
82
|
|
609
|
|
40
|
|
|
|
Total nonperforming
loans
|
|
53,972
|
|
|
|
50,198
|
|
51,698
|
|
24,482
|
|
12,934
|
|
|
|
Other real
estate
|
|
3,908
|
|
|
|
4,187
|
|
4,661
|
|
4,542
|
|
4,589
|
|
|
|
Other repossessed
assets
|
|
265
|
|
|
|
38
|
|
-
|
|
38
|
|
43
|
|
|
|
Total nonperforming
assets
|
|
$ 58,145
|
|
|
|
$
54,423
|
|
$
56,359
|
|
$ 29,062
|
|
$ 17,566
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Troubled debt
restructurings, accruing
|
|
$
5,675
|
|
|
|
$
164
|
|
$
168
|
|
$ 21,529
|
|
$
173
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets
to total assets
|
|
3.03%
|
|
|
|
2.82%
|
|
2.85%
|
|
1.49%
|
|
0.88%
|
|
|
|
Nonperforming assets to total loans + ORE +
other repossessed assets
|
|
4.64%
|
|
|
|
4.29%
|
|
4.32%
|
|
2.24%
|
|
1.34%
|
|
|
|
ALLL to nonperforming
loans
|
|
37.70%
|
|
|
|
37.87%
|
|
36.63%
|
|
65.55%
|
|
124.17%
|
|
|
|
ALLL to total
loans
|
|
1.63%
|
|
|
|
1.50%
|
|
1.46%
|
|
1.24%
|
|
1.23%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter-to-date
charge-offs
|
|
$
1,594
|
|
|
|
$
3,091
|
|
$
1,000
|
|
$
1,151
|
|
$
1,332
|
|
|
|
Quarter-to-date
recoveries
|
|
130
|
|
|
|
163
|
|
91
|
|
39
|
|
166
|
|
|
|
Quarter-to-date net
charge-offs
|
|
$
1,464
|
|
|
|
$
2,928
|
|
$
909
|
|
$
1,112
|
|
$
1,166
|
|
|
|
Annualized QTD net
charge-offs to total loans
|
|
0.47%
|
|
|
|
0.92%
|
|
0.28%
|
|
0.34%
|
|
0.36%
|
|
|
|
MIDSOUTH BANCORP,
INC. and
SUBSIDIARIES
|
Condensed
Consolidated Financial Information
(unaudited)
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
YIELD
ANALYSIS
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
March 31,
2016
|
|
December 31,
2015
|
|
September 30,
2015
|
|
June 30,
2015
|
|
March 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
|
|
$ 358,623
|
|
$ 2,036
|
|
2.27%
|
|
$ 339,033
|
|
$ 1,917
|
|
2.26%
|
|
$ 341,192
|
|
$ 1,864
|
|
2.19%
|
|
$ 345,108
|
|
$ 1,853
|
|
2.15%
|
|
$ 336,337
|
|
$ 1,925
|
|
2.29%
|
Tax-exempt
securities
|
|
64,971
|
|
699
|
|
4.30%
|
|
70,548
|
|
778
|
|
4.41%
|
|
73,523
|
|
818
|
|
4.45%
|
|
76,433
|
|
854
|
|
4.47%
|
|
78,948
|
|
892
|
|
4.52%
|
Total investment
securities
|
|
423,594
|
|
2,735
|
|
2.58%
|
|
409,581
|
|
2,695
|
|
2.65%
|
|
414,715
|
|
2,682
|
|
2.57%
|
|
421,541
|
|
2,707
|
|
2.57%
|
|
415,285
|
|
2,817
|
|
2.71%
|
Federal funds
sold
|
|
3,843
|
|
5
|
|
0.51%
|
|
3,922
|
|
3
|
|
0.30%
|
|
3,349
|
|
1
|
|
0.12%
|
|
3,228
|
|
2
|
|
0.25%
|
|
3,816
|
|
2
|
|
0.21%
|
Time and interest
bearing deposits in other
banks
|
|
74,271
|
|
94
|
|
0.50%
|
|
73,069
|
|
52
|
|
0.28%
|
|
62,086
|
|
40
|
|
0.25%
|
|
56,110
|
|
35
|
|
0.25%
|
|
59,225
|
|
37
|
|
0.25%
|
Other
investments
|
|
11,189
|
|
88
|
|
3.15%
|
|
11,544
|
|
86
|
|
2.99%
|
|
10,508
|
|
99
|
|
3.77%
|
|
10,057
|
|
81
|
|
3.22%
|
|
9,754
|
|
79
|
|
3.24%
|
Loans
|
|
1,252,742
|
|
17,123
|
|
5.50%
|
|
1,271,106
|
|
17,319
|
|
5.41%
|
|
1,285,991
|
|
17,992
|
|
5.55%
|
|
1,312,359
|
|
18,268
|
|
5.58%
|
|
1,298,317
|
|
18,054
|
|
5.64%
|
Total interest
earning assets
|
|
1,765,639
|
|
20,045
|
|
4.57%
|
|
1,769,222
|
|
20,155
|
|
4.52%
|
|
1,776,649
|
|
20,814
|
|
4.65%
|
|
1,803,295
|
|
21,093
|
|
4.69%
|
|
1,786,397
|
|
20,989
|
|
4.77%
|
Non-interest earning
assets
|
|
166,265
|
|
|
|
|
|
169,013
|
|
|
|
|
|
172,703
|
|
|
|
|
|
173,279
|
|
|
|
|
|
180,355
|
|
|
|
|
Total
assets
|
|
$ 1,931,904
|
|
|
|
|
|
$ 1,938,235
|
|
|
|
|
|
$ 1,949,352
|
|
|
|
|
|
$ 1,976,574
|
|
|
|
|
|
$ 1,966,752
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
$ 1,180,581
|
|
$
907
|
|
0.31%
|
|
$ 1,156,166
|
|
$
836
|
|
0.29%
|
|
$ 1,150,190
|
|
$
883
|
|
0.30%
|
|
$ 1,181,381
|
|
$
921
|
|
0.31%
|
|
$ 1,192,086
|
|
$
947
|
|
0.32%
|
Repurchase
agreements
|
|
85,756
|
|
233
|
|
1.09%
|
|
85,178
|
|
240
|
|
1.12%
|
|
89,025
|
|
249
|
|
1.11%
|
|
84,545
|
|
242
|
|
1.15%
|
|
79,630
|
|
230
|
|
1.17%
|
Federal funds
purchased
|
|
-
|
|
-
|
|
0.00%
|
|
4
|
|
-
|
|
0.00%
|
|
-
|
|
-
|
|
0.00%
|
|
-
|
|
-
|
|
0.00%
|
|
-
|
|
-
|
|
0.00%
|
Short-term FHLB
advances
|
|
22,802
|
|
23
|
|
0.40%
|
|
25,000
|
|
19
|
|
0.30%
|
|
31,196
|
|
16
|
|
0.20%
|
|
30,604
|
|
13
|
|
0.17%
|
|
25,000
|
|
8
|
|
0.13%
|
Long-term FHLB
advances
|
|
25,794
|
|
90
|
|
1.38%
|
|
25,900
|
|
92
|
|
1.39%
|
|
26,007
|
|
93
|
|
1.40%
|
|
26,114
|
|
90
|
|
1.36%
|
|
26,219
|
|
89
|
|
1.36%
|
Junior subordinated
debentures
|
|
22,167
|
|
167
|
|
2.98%
|
|
22,167
|
|
162
|
|
2.86%
|
|
22,167
|
|
150
|
|
2.65%
|
|
22,167
|
|
151
|
|
2.69%
|
|
22,167
|
|
150
|
|
2.71%
|
Total interest
bearing liabilities
|
|
1,337,100
|
|
1,420
|
|
0.43%
|
|
1,314,415
|
|
1,349
|
|
0.41%
|
|
1,318,585
|
|
1,391
|
|
0.42%
|
|
1,344,811
|
|
1,417
|
|
0.42%
|
|
1,345,102
|
|
1,424
|
|
0.43%
|
Non-interest bearing
liabilities
|
|
378,205
|
|
|
|
|
|
408,748
|
|
|
|
|
|
416,144
|
|
|
|
|
|
419,651
|
|
|
|
|
|
409,665
|
|
|
|
|
Shareholders'
equity
|
|
216,599
|
|
|
|
|
|
215,072
|
|
|
|
|
|
214,623
|
|
|
|
|
|
212,112
|
|
|
|
|
|
211,985
|
|
|
|
|
Total liabilities
and shareholders' equity
|
|
$ 1,931,904
|
|
|
|
|
|
$ 1,938,235
|
|
|
|
|
|
$ 1,949,352
|
|
|
|
|
|
$ 1,976,574
|
|
|
|
|
|
$ 1,966,752
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(TE) and spread
|
|
|
|
$ 18,625
|
|
4.14%
|
|
|
|
$ 18,806
|
|
4.11%
|
|
|
|
$ 19,423
|
|
4.23%
|
|
|
|
$ 19,676
|
|
4.27%
|
|
|
|
$ 19,565
|
|
4.34%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
|
4.24%
|
|
|
|
|
|
4.22%
|
|
|
|
|
|
4.34%
|
|
|
|
|
|
4.38%
|
|
|
|
|
|
4.44%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core net interest
margin (Non-GAAP)(*)
|
|
|
|
|
|
4.11%
|
|
|
|
|
|
4.09%
|
|
|
|
|
|
4.17%
|
|
|
|
|
|
4.21%
|
|
|
|
|
|
4.32%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) See
reconciliation of Non-GAAP financial measures on page
6-8.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
Average Balance
Sheet Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average
assets
|
A
|
$ 1,931,904
|
|
$ 1,938,235
|
|
$
1,949,352
|
|
$ 1,976,574
|
|
$ 1,966,752
|
|
|
|
|
|
|
|
|
|
|
|
Total
equity
|
|
$ 216,599
|
|
$
215,072
|
|
$
214,623
|
|
$ 212,112
|
|
$ 211,985
|
Less preferred
equity
|
|
41,120
|
|
41,122
|
|
41,157
|
|
41,226
|
|
41,347
|
Total common
equity
|
B
|
$ 175,479
|
|
$
173,950
|
|
$
173,466
|
|
$ 170,886
|
|
$ 170,638
|
Less intangible
assets
|
|
47,757
|
|
48,031
|
|
48,310
|
|
48,587
|
|
48,860
|
Tangible common
equity
|
C
|
$ 127,722
|
|
$
125,919
|
|
$
125,156
|
|
$ 122,299
|
|
$ 121,778
|
MIDSOUTH BANCORP,
INC. and
SUBSIDIARIES
|
Reconciliation of
Non-GAAP Financial Measures (unaudited) (continued)
|
(in thousands
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
Core Net Interest
Margin
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(FTE)
|
|
$ 18,625
|
|
$
18,806
|
|
$
19,423
|
|
$ 19,676
|
|
$ 19,565
|
Less purchase
accounting adjustments
|
|
(565)
|
|
(510)
|
|
(689)
|
|
(678)
|
|
(465)
|
Core net interest
income, net of purchase accounting adjustments
|
D
|
$ 18,060
|
|
$
18,296
|
|
$
18,734
|
|
$ 18,998
|
|
$ 19,100
|
|
|
|
|
|
|
|
|
|
|
|
Total average
earnings assets
|
|
$ 1,765,639
|
|
$ 1,769,222
|
|
$
1,776,649
|
|
$ 1,803,295
|
|
$ 1,786,397
|
Add average balance
of loan valuation discount
|
|
3,323
|
|
3,712
|
|
4,269
|
|
4,888
|
|
5,179
|
Average earnings
assets, excluding loan valuation discount
|
E
|
$ 1,768,962
|
|
$ 1,772,934
|
|
$
1,780,918
|
|
$ 1,808,183
|
|
$ 1,791,576
|
|
|
|
|
|
|
|
|
|
|
|
Core net interest
margin
|
D/E
|
4.11%
|
|
4.09%
|
|
4.17%
|
|
4.21%
|
|
4.32%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
Return
Ratios
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
available to common shareholders
|
|
$
1,922
|
|
$
1,667
|
|
$
2,417
|
|
$
4,927
|
|
$
1,318
|
Net gain on sale of
securities, after-tax
|
|
-
|
|
-
|
|
-
|
|
(733)
|
|
(75)
|
Income from death
benefit on bank owned life insurance
|
|
-
|
|
-
|
|
-
|
|
(160)
|
|
-
|
Net
earnings available to common shareholders, operating
|
F
|
$
1,922
|
|
$
1,667
|
|
$
2,417
|
|
$
4,034
|
|
$
1,243
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
$
3,312
|
|
$
2,604
|
|
$
3,617
|
|
$
7,442
|
|
$
1,937
|
Net gain on sale of
securities
|
|
-
|
|
-
|
|
-
|
|
(1,128)
|
|
(115)
|
Income from death
benefit on bank owned life insurance
|
|
-
|
|
-
|
|
-
|
|
(160)
|
|
-
|
Provision for loan
losses
|
|
2,800
|
|
3,000
|
|
3,800
|
|
1,100
|
|
6,000
|
Pre-tax,
pre-provision earnings, operating
|
G
|
$
6,112
|
|
$
5,604
|
|
$
7,417
|
|
$
7,254
|
|
$
7,822
|
|
|
|
|
|
|
|
|
|
|
|
Annualized return on
average assets, operating
|
F/A
|
0.40%
|
|
0.34%
|
|
0.49%
|
|
0.82%
|
|
0.26%
|
Annualized return on
average common equity, operating
|
F/B
|
4.41%
|
|
3.80%
|
|
5.53%
|
|
9.47%
|
|
2.95%
|
Annualized return on
average tangible common equity, operating
|
F/C
|
6.05%
|
|
5.25%
|
|
7.66%
|
|
13.23%
|
|
4.14%
|
Pre-tax,
pre-provision annualized return on average assets,
operating
|
G/A
|
1.27%
|
|
1.15%
|
|
1.51%
|
|
1.47%
|
|
1.61%
|
MIDSOUTH BANCORP,
INC. and
SUBSIDIARIES
|
Reconciliation of
Non-GAAP Financial Measures (unaudited) (continued)
|
(in thousands
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
Per Common Share
Data
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common
share
|
|
$ 15.38
|
|
$
15.14
|
|
$
15.21
|
|
$ 15.04
|
|
$ 14.92
|
Effect of intangible
assets per share
|
|
4.19
|
|
4.22
|
|
4.24
|
|
4.26
|
|
4.29
|
Tangible book value
per common share
|
|
$ 11.19
|
|
$
10.92
|
|
$
10.97
|
|
$ 10.78
|
|
$ 10.63
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$ 0.17
|
|
$
0.15
|
|
$
0.21
|
|
$ 0.42
|
|
$ 0.12
|
Effect of net gain on
sale of securities, after-tax
|
|
-
|
|
-
|
|
-
|
|
(0.06)
|
|
(0.01)
|
Effect of income from
death benefit on bank owned life insurance
|
|
-
|
|
-
|
|
-
|
|
(0.01)
|
|
-
|
Diluted earnings per
share, operating
|
|
$ 0.17
|
|
$
0.15
|
|
$
0.21
|
|
$ 0.35
|
|
$ 0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
Efficiency
Ratio
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$ 18,384
|
|
$
18,537
|
|
$
19,141
|
|
$ 19,381
|
|
$ 19,257
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income
|
|
4,487
|
|
4,575
|
|
4,768
|
|
6,137
|
|
4,841
|
Income from death
benefit on bank owned life insurance
|
|
-
|
|
-
|
|
-
|
|
(160)
|
|
-
|
Net gain on sale of
securities
|
|
-
|
|
-
|
|
-
|
|
(1,128)
|
|
(115)
|
Noninterest income (non-GAAP)
|
|
$ 4,487
|
|
$
4,575
|
|
$
4,768
|
|
$ 4,849
|
|
$ 4,726
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
H
|
$ 22,871
|
|
$
23,112
|
|
$
23,909
|
|
$ 25,518
|
|
$ 24,098
|
Total revenue
(non-GAAP)
|
I
|
$ 22,871
|
|
$
23,112
|
|
$
23,909
|
|
$ 24,230
|
|
$ 23,983
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
J
|
$ 16,759
|
|
$
17,508
|
|
$
16,492
|
|
$ 16,976
|
|
$ 16,161
|
Net (loss) gain on
sale/valuation of other real estate owned
|
|
-
|
|
(14)
|
|
(79)
|
|
(41)
|
|
22
|
Noninterest expense (non-GAAP)
|
K
|
$ 16,759
|
|
$
17,494
|
|
$
16,413
|
|
$ 16,935
|
|
$ 16,183
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(GAAP)
|
J/H
|
73.28%
|
|
75.75%
|
|
68.98%
|
|
66.53%
|
|
67.06%
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(non-GAAP)
|
K/I
|
73.28%
|
|
75.69%
|
|
68.65%
|
|
69.89%
|
|
67.48%
|
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SOURCE MidSouth Bancorp, Inc.