LAFAYETTE, La., April 27, 2017 /PRNewswire/ -- MidSouth Bancorp,
Inc. ("MidSouth") (NYSE:MSL) today reported quarterly net earnings
available to common shareholders of $1.7
million for the first quarter of 2017, compared to net
earnings available to common shareholders of $1.9 million reported for the first quarter of
2016 and $1.4 million in net earnings
available to common shareholders for the fourth quarter of
2016. Diluted earnings for the first quarter of 2017 were
$0.15 per common share, compared to
$0.17 per common share reported for
the first quarter of 2016 and $0.12
per common share reported for the fourth quarter of 2016.
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.
Other comments on the Bank's energy lending:
- Total energy loans, as defined above, decreased $5.6 million during 1Q17 to $231.8 million, or 18.2% of total loans, from
18.5% at December 31, 2016.
- Direct C&I energy loans were $193.1
million or 15.2% of total loans and had a weighted average
maturity of 3.2 years at March 31,
2017.
- Energy-related CRE and residential real estate loans were
$38.3 million or 3.0% of total loans
at March 31, 2017.
- Total criticized energy-related loans decreased $7.7 million, or 6.5%, during 1Q17 to
$111.5 million and represented 48.1%
of energy loans at March 31, 2017,
versus 50.2% at December 31,
2016.
- Seven energy loan relationships had rating changes during the
quarter.
-
- One loan relationship totaling $108,000 was downgraded to Special Mention
- Five loan relationships totaling $23.4
million were downgraded to Substandard
- One loan relationship totaling $438,000 was upgraded to Pass
- Three energy-related charge-offs totaled $657,000.
- Cycle to date net charge-offs totaled $4.1 million, or 1.56% of December 31, 2014 energy loans, which was when
the effects of declining oil prices began to surface.
- Two energy-related impairments totaling $177,000 were identified during 1Q17 and one
impairment increase of $272,000 on an
impaired loan identified prior to 1Q17.
- The energy reserve as a percentage of total energy loans, as
defined, was 5.5% at March 31, 2017.
The reserve attributable to C&I energy loans was approximately
6.5%. The reserve on all other energy loans was 1.0%.
- The Bank has two Shared National Credits (SNCs) totaling
$14.2 million in the energy portfolio
at March 31, 2017 and both are rated
as Substandard.
More information on our energy loan portfolio can be found on
our website at MidSouthBank.com under Investor
Relations/Presentations.
Balance Sheet
Consolidated assets remained constant at $1.9 billion as of March
31, 2017 and 2016 and December
31, 2016. Our stable core deposit base, which excludes
time deposits, totaled $1.4 billion
at March 31, 2017 and December 31, 2016 and accounted for 90.4% and
90.0% of deposits at March 31, 2017
and December 31, 2016,
respectively. Net loans totaled $1.247
billion at March 31, 2017 and
2016, compared to $1.260 billion at
December 31, 2016.
MidSouth's Tier 1 leverage capital ratio was 10.27% at
March 31, 2017, compared to 10.11% at
December 31, 2016. Tier 1
risk-based capital and total risk-based capital ratios were 13.14%
and 14.40% at March 31, 2017,
respectively, compared to 13.02% and 14.28% at December 31, 2016, respectively. Tier 1
common equity to total risk-weighted assets at March 31, 2017 was 8.91%, compared to 8.81% at
December 31, 2016. Tangible
common equity totaled $128.4 million
at March 31, 2017, compared to
$126.5 million at December 31, 2016. Tangible book value per
share at March 31, 2017 was
$11.28 versus $11.13 at December 31,
2016.
Asset Quality
Nonperforming assets totaled $58.9
million at March 31, 2017, a
decrease of $6.1 million compared to
$65.0 million reported at
December 31, 2016. The decrease
is primarily attributable to the payoff of four relationships
during the quarter that were on non-accrual at December 31, 2016 and totaled $9.6 million. Allowance coverage for
nonperforming loans increased to 42.96% at March 31, 2017, compared to 38.78% at
December 31, 2016. The
ALLL/total loans ratio was 1.93% at March
31, 2017 and 1.90% at December
31, 2016. Including valuation accounting adjustments
on acquired loans, the total valuation accounting adjustment plus
ALLL was 2.08% of loans at March 31,
2017. The ratio of annualized net charge-offs to total loans
increased to 0.83% for the three months ended March 31, 2017 compared to 0.46% for the three
months ended December 31, 2016, with
$1.7 million, or 67.4% of first
quarter net charge-offs attributable to loans reserved for in
previous quarters.
Total nonperforming assets to total loans plus ORE and other
assets repossessed was 4.62% at March 31,
2017 compared to 5.06% at December
31, 2016. Loans classified as troubled debt
restructurings, accruing ("TDRs, accruing") increased to
$2.0 million at March 31, 2017 compared to $152,000 at December
31, 2016. Classified assets, including ORE, increased
$14.2 million, or 10.6%, to
$148.4 million at March 31, 2017 compared to $134.2 million at December
31, 2016. The increase in classified assets during the
quarter ended March 31, 2017 is
primarily due to the downgrade of two energy-related credits
totaling $22.2 million. These
increases to classified assets were partially offset by the
payoff/paydown of $6.2 million of
energy-related classified relationships during the first quarter as
well as the payoff of $4.7 million of
classified relationships not related to energy.
First Quarter 2017 vs. Fourth Quarter 2016 Earnings
Comparison
In sequential-quarter comparison, net earnings available to
common shareholders increased $293,000, from $1.4
million for the three months ended December 31, 2016 to $1.7
million for the three months ended March 31, 2017. Net interest income
decreased $169,000 in
sequential-quarter comparison. Noninterest income decreased
$27,000 in sequential-quarter
comparison.
Noninterest expense decreased $406,000 in sequential-quarter comparison and
consisted primarily of decreases of $107,000 in occupancy expense, $108,000 in ATM and debit card expense,
$135,000 in legal and professional
fees and $107,000 in corporate
development. These decreased costs were partially offset by a
$121,000 increase in data processing
costs. A reclass of certain hosted services subscriptions
from corporate development into data processing at the beginning of
2017 caused the fluctuations in those two expense categories.
The provision for loan losses increased $200,000 in sequential-quarter comparison.
Income tax expense decreased $282,000.
Dividends on the Series B Preferred Stock issued to the Treasury
as a result of our participation in the Small Business Lending Fund
("SBLF") totaled $720,000 for the
first quarter of 2017 based on a dividend rate of 9%, unchanged
from $720,000 for the fourth quarter
of 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, 2017 and $92,000 for the three months ended December 31, 2016.
Fully taxable-equivalent ("FTE") net interest income decreased
$199,000 in sequential-quarter
comparison. Interest income on loans decreased $437,000. The average yield on loans
decreased 2 basis points, from 5.31% to 5.29%, and the average
balance of loans decreased $3.3
million in sequential-quarter comparison. Excluding
purchase accounting adjustments, the loan yield increased 3 basis
points, from 5.19% to 5.22% during the same period. Interest
income on investment securities increased $277,000 in sequential-quarter comparison.
The average yield on investment securities increased 9 basis
points, and the average balance of investment securities increased
$27.5 million. The average
yield on total earning assets increased 10 basis points for the
same period, from 4.41% to 4.51%, respectively. As a result
of these changes in volume and yield on earning assets, the FTE net
interest margin increased 9 basis points, from 4.09% to
4.18%. Excluding purchase accounting adjustments, the FTE net
interest margin, after reflecting a reclassification of certain
credit card income to noninterest income, increased 13 basis
points, from 3.98% for the fourth quarter of 2016 to 4.11% for the
first quarter of 2017.
First Quarter 2017 vs. First Quarter 2016 Earnings
Comparison
First quarter 2017 net earnings available to common shareholders
totaled $1.7 million compared to
$1.9 million for the first quarter of
2016. Revenues from consolidated operations increased $239,000 in quarterly comparison, from
$22.9 million for the three months
ended March 31, 2016 to $23.1 million for the three months ended
March 31, 2017. Net interest
income decreased $61,000 in quarterly
comparison, resulting from a $16,000
decrease in interest income and a $45,000 increase in interest expense.
Noninterest income increased $300,000
in quarterly comparison and consisted primarily of a $94,000 increase in ATM/debit card income and a
$111,000 increase in service charges
on deposits accounts.
Noninterest expense increased $471,000 in quarterly comparison and consisted
primarily of a $699,000 increase in
salaries and employee benefits costs and a $163,000 increase in data processing costs, which
were partially offset by a $101,000
decrease in marketing expense. The $699,000 increase in salaries and benefits costs
included a $262,000 increase in group
health costs, a $135,000 increase in
incentive pay and $81,000 of sign-on
bonuses. The provision for loan losses remained unchanged at
$2.8 million in quarterly
comparison. Income tax expense decreased $374,000 in quarterly comparison.
Dividends on preferred stock totaled $811,000 for the three months ended March 31, 2017 and $427,000 for the three months ended March 31, 2016. Dividends on the Series B
Preferred Stock were $720,000 for the
first quarter of 2017 and 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 totaled
$91,000 for the three months ended
March 31, 2017 and March 31, 2016.
FTE net interest income, after reflecting a reclassification of
certain credit card income to noninterest income, decreased
$89,000 in prior year quarterly
comparison. Interest income on loans decreased $244,000 due to a decrease in the average yield
on loans of 12 basis points. The average balance of loans
increased $21.5 million in prior year
quarterly comparison. Purchase accounting adjustments added 7
basis points to the average yield on loans for the first quarter of
2017 and 25 basis points to the average yield on loans for the
first quarter of 2016. Excluding the impact of the purchase
accounting adjustments, average loan yields decreased 3 basis
points in prior year quarterly comparison, from 5.25% to 5.22%.
Investment securities totaled $449.0
million, or 23.2% of total assets at March 31, 2017, versus $440.1 million, or 22.6% of total assets at
December 31, 2016. The
investment portfolio had an effective duration of 4.1 years and a
net unrealized loss of $1.2 million
at March 31, 2017. The average
volume of investment securities increased $19.1 million in prior year quarterly
comparison. The average tax equivalent yield on investment
securities increased 8 basis points, from 2.58% to 2.66%.
The average yield on all earning assets remained unchanged in
prior year quarterly comparison at 4.51%. Excluding the
impact of purchase accounting adjustments, the average yield on
total earning assets increased 8 basis points, from 4.39% to 4.47%
for the three-month periods ended March 31,
2016 and 2017, respectively.
Interest expense increased $45,000
in prior year quarterly comparison. Increases in interest
expense included a $28,000 increase
in interest expense on deposits and a $41,000 increase in interest expense on variable
rate junior subordinated debentures. These increases were
partially offset by a $23,000
decrease in interest expense on short-term FHLB advances.
Excluding purchase accounting adjustments on acquired certificates
of deposit and FHLB borrowings, the average rate paid on
interest-bearing liabilities was 0.49% for the three months ended
March 31, 2017 and 0.46% for the
three months ended March 31,
2016.
As a result of these changes in volume and yield on earning
assets and interest-bearing liabilities, the FTE net interest
margin remained unchanged in prior year quarterly comparison at
4.18%. Excluding purchase accounting adjustments on loans,
deposits and FHLB borrowings, the FTE margin increased 6 basis
points, from 4.05% for the first quarter of 2016 to 4.11% for the
first quarter of 2017.
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
3, 2017 to shareholders of record as of the close of
business on June 15, 2017.
Additionally, a quarterly cash dividend of 1.00% per preferred
share on its 4.00% Non-Cumulative Perpetual Convertible Preferred
Stock, Series C was declared payable on July
17, 2017 to shareholders of record as of the close of
business on July 3, 2017.
Leadership Transition.
MidSouth also announced today in a separate press release
changes to its executive management team, including the termination
of employment of C.R. "Rusty" Cloutier as MidSouth's President and
CEO and Troy M. Cloutier as MidSouth
Bank's President and CEO and the appointment of James R. McLemore as interim President and CEO
for MidSouth and MidSouth Bank, effective immediately.
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, 2017.
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 performance of new hires, performance in non-energy
related lending, 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, 2016 filed with the SEC
on March 16, 2017 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
|
|
3/31/2017
|
|
12/31/2016
|
|
9/30/2016
|
|
6/30/2016
|
|
3/31/2016
|
Total interest
income
|
|
$
19,531
|
|
$
19,694
|
|
$
19,667
|
|
$
19,122
|
|
$
19,547
|
Total interest
expense
|
|
1,465
|
|
1,459
|
|
1,414
|
|
1,397
|
|
1,420
|
Net interest income
|
|
18,066
|
|
18,235
|
|
18,253
|
|
17,725
|
|
18,127
|
FTE net interest
income
|
|
18,279
|
|
18,478
|
|
18,472
|
|
17,946
|
|
18,368
|
Provision for loan
losses
|
|
2,800
|
|
2,600
|
|
2,900
|
|
2,300
|
|
2,800
|
Non-interest
income
|
|
5,044
|
|
5,071
|
|
5,152
|
|
5,139
|
|
4,744
|
Non-interest
expense
|
|
17,230
|
|
17,636
|
|
17,114
|
|
17,041
|
|
16,759
|
Earnings
before income taxes
|
|
3,080
|
|
3,070
|
|
3,391
|
|
3,523
|
|
3,312
|
Income tax
expense
|
|
589
|
|
871
|
|
993
|
|
1,030
|
|
963
|
Net
earnings
|
|
2,491
|
|
2,199
|
|
2,398
|
|
2,493
|
|
2,349
|
Dividends on preferred
stock
|
|
811
|
|
812
|
|
811
|
|
811
|
|
427
|
Net earnings available to common shareholders
|
|
$
1,680
|
|
$
1,387
|
|
$
1,587
|
|
$
1,682
|
|
$
1,922
|
|
|
|
|
|
|
|
|
|
|
|
PER COMMON SHARE
DATA
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
0.15
|
|
$
0.12
|
|
$
0.14
|
|
$
0.15
|
|
$
0.17
|
Diluted earnings per
share
|
|
0.15
|
|
0.12
|
|
0.14
|
|
0.15
|
|
0.17
|
Quarterly dividends per
share
|
|
0.09
|
|
0.09
|
|
0.09
|
|
0.09
|
|
0.09
|
Book value at end of
period
|
|
15.37
|
|
15.25
|
|
15.58
|
|
15.56
|
|
15.38
|
Tangible book value at
period end (Non-GAAP)(*)
|
|
11.28
|
|
11.13
|
|
11.44
|
|
11.40
|
|
11.19
|
Market price at end of
period
|
|
15.30
|
|
13.60
|
|
10.40
|
|
10.04
|
|
7.63
|
Shares outstanding at period
end
|
|
11,383,914
|
|
11,362,716
|
|
11,362,716
|
|
11,362,705
|
|
11,362,150
|
Weighted average shares
outstanding
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
11,264,394
|
|
11,271,948
|
|
11,262,282
|
|
11,255,042
|
|
11,261,644
|
Diluted
|
|
11,282,491
|
|
11,273,302
|
|
11,262,710
|
|
11,255,178
|
|
11,261,644
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEET DATA
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$1,932,818
|
|
$
1,960,436
|
|
$1,927,351
|
|
$1,921,004
|
|
$1,931,904
|
Loans and leases
|
|
1,274,213
|
|
1,277,555
|
|
1,268,270
|
|
1,256,133
|
|
1,252,742
|
Total deposits
|
|
1,569,188
|
|
1,591,814
|
|
1,562,193
|
|
1,562,680
|
|
1,552,217
|
Total common
equity
|
|
174,785
|
|
176,747
|
|
177,866
|
|
175,994
|
|
175,479
|
Total tangible common equity
(Non-GAAP)(*)
|
|
128,124
|
|
129,821
|
|
130,662
|
|
128,516
|
|
127,722
|
Total
equity
|
|
215,895
|
|
217,857
|
|
218,976
|
|
217,112
|
|
216,599
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED
RATIOS
|
|
|
|
|
|
|
|
|
|
|
Annualized return on average
assets, operating (Non-GAAP)(*)
|
|
0.35%
|
|
0.28%
|
|
0.33%
|
|
0.35%
|
|
0.40%
|
Annualized return on average
common equity, operating (Non-GAAP)(*)
|
|
3.89%
|
|
3.12%
|
|
3.55%
|
|
3.81%
|
|
4.41%
|
Annualized return on average
tangible common equity, operating
(Non-GAAP)(*)
|
|
5.31%
|
|
4.25%
|
|
4.83%
|
|
5.22%
|
|
6.05%
|
Pre-tax, pre-provision
annualized return on average assets, operating
(Non-GAAP)(*)
|
|
1.23%
|
|
1.15%
|
|
1.30%
|
|
1.21%
|
|
1.27%
|
Efficiency ratio, operating
(Non-GAAP)(*)
|
|
74.51%
|
|
75.67%
|
|
73.04%
|
|
74.49%
|
|
73.28%
|
Average loans to average
deposits
|
|
81.20%
|
|
80.26%
|
|
81.19%
|
|
80.38%
|
|
80.71%
|
Taxable-equivalent net
interest margin
|
|
4.18%
|
|
4.09%
|
|
4.17%
|
|
4.11%
|
|
4.18%
|
Tier 1 leverage capital
ratio
|
|
10.27%
|
|
10.11%
|
|
10.27%
|
|
10.25%
|
|
10.17%
|
|
|
|
|
|
|
|
|
|
|
|
CREDIT
QUALITY
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan and lease
losses (ALLL) as a % of total loans
|
|
1.93%
|
|
1.90%
|
|
1.83%
|
|
1.69%
|
|
1.63%
|
Nonperforming assets to
tangible equity + ALLL
|
|
30.34%
|
|
33.88%
|
|
32.98%
|
|
32.77%
|
|
30.83%
|
Nonperforming assets to total
loans, other real estate owned and other repossessed
assets
|
|
4.62%
|
|
5.06%
|
|
5.03%
|
|
4.97%
|
|
4.64%
|
Annualized QTD net
charge-offs to total loans
|
|
0.83%
|
|
0.46%
|
|
0.32%
|
|
0.40%
|
|
0.47%
|
|
|
|
|
|
|
|
|
|
|
|
(*)See
reconciliation of Non-GAAP financial measures on pages
8-10.
|
MIDSOUTH BANCORP,
INC. and
SUBSIDIARIES
|
Condensed
Consolidated Balance Sheets
(unaudited)
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE
SHEET
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
|
2017
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
78,471
|
|
$
82,228
|
|
$
126,667
|
|
$
98,535
|
|
$
112,410
|
Securities
available-for-sale
|
|
357,803
|
|
341,873
|
|
316,145
|
|
318,239
|
|
302,151
|
Securities
held-to-maturity
|
|
91,242
|
|
98,211
|
|
103,412
|
|
109,420
|
|
113,623
|
Total investment
securities
|
|
449,045
|
|
440,084
|
|
419,557
|
|
427,659
|
|
415,774
|
Other
investments
|
|
11,362
|
|
11,355
|
|
11,339
|
|
11,036
|
|
11,195
|
Total
loans
|
|
1,272,000
|
|
1,284,082
|
|
1,272,800
|
|
1,262,389
|
|
1,250,049
|
Allowance for loan
losses
|
|
(24,578)
|
|
(24,372)
|
|
(23,268)
|
|
(21,378)
|
|
(20,347)
|
Loans, net
|
|
1,247,422
|
|
1,259,710
|
|
1,249,532
|
|
1,241,011
|
|
1,229,702
|
Premises and
equipment
|
|
68,216
|
|
68,954
|
|
69,778
|
|
68,468
|
|
68,482
|
Goodwill and other
intangibles
|
|
46,516
|
|
46,792
|
|
47,069
|
|
47,346
|
|
47,622
|
Other
assets
|
|
33,907
|
|
34,217
|
|
29,978
|
|
28,469
|
|
31,366
|
Total assets
|
|
$1,934,939
|
|
$
1,943,340
|
|
$
1,953,920
|
|
$1,922,524
|
|
$1,916,551
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing
deposits
|
|
$
426,998
|
|
$
414,921
|
|
$
403,301
|
|
$
383,797
|
|
$
383,684
|
Interest-bearing
deposits
|
|
1,145,946
|
|
1,164,509
|
|
1,181,906
|
|
1,176,269
|
|
1,174,519
|
Total deposits
|
|
1,572,944
|
|
1,579,430
|
|
1,585,207
|
|
1,560,066
|
|
1,558,203
|
Securities sold under agreements
to repurchase
|
|
89,807
|
|
94,461
|
|
95,210
|
|
85,786
|
|
87,879
|
Long-term FHLB
advances
|
|
25,318
|
|
25,424
|
|
25,531
|
|
25,638
|
|
25,744
|
Junior subordinated
debentures
|
|
22,167
|
|
22,167
|
|
22,167
|
|
22,167
|
|
22,167
|
Other
liabilities
|
|
8,641
|
|
7,482
|
|
7,679
|
|
10,926
|
|
6,704
|
Total
liabilities
|
|
1,718,877
|
|
1,728,964
|
|
1,735,794
|
|
1,704,583
|
|
1,700,697
|
Total shareholders'
equity
|
|
216,062
|
|
214,376
|
|
218,126
|
|
217,941
|
|
215,854
|
Total liabilities and
shareholders' equity
|
|
$1,934,939
|
|
$
1,943,340
|
|
$
1,953,920
|
|
$1,922,524
|
|
$1,916,551
|
MIDSOUTH BANCORP,
INC. and
SUBSIDIARIES
|
Condensed
Consolidated Income Statements
(unaudited)
|
(in thousands
except per share
data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent
Change
|
EARNINGS
STATEMENT
|
|
Three Months
Ended
|
|
|
|
|
|
|
3/31/2017
|
|
12/31/2016
|
|
3/31/2016
|
|
1Q17 vs.
4Q16
|
|
1Q17 vs.
1Q16
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
Loans, including
fees
|
|
$ 16,437
|
|
$
16,697
|
|
$ 16,404
|
|
-1.6%
|
|
0.2%
|
Investment
securities
|
|
2,734
|
|
2,427
|
|
2,494
|
|
12.6%
|
|
9.6%
|
Accretion of purchase
accounting adjustments
|
|
185
|
|
362
|
|
462
|
|
-48.9%
|
|
-60.0%
|
Other interest
income
|
|
175
|
|
208
|
|
187
|
|
-15.9%
|
|
-6.4%
|
Total interest
income
|
|
19,531
|
|
19,694
|
|
19,547
|
|
-0.8%
|
|
-0.1%
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
935
|
|
936
|
|
920
|
|
-0.1%
|
|
1.6%
|
Borrowings
|
|
411
|
|
422
|
|
436
|
|
-2.6%
|
|
-5.7%
|
Junior subordinated
debentures
|
|
208
|
|
197
|
|
167
|
|
5.6%
|
|
24.6%
|
Accretion of purchase
accounting adjustments
|
|
(89)
|
|
(96)
|
|
(103)
|
|
-7.3%
|
|
-13.6%
|
Total interest
expense
|
|
1,465
|
|
1,459
|
|
1,420
|
|
0.4%
|
|
3.2%
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
18,066
|
|
18,235
|
|
18,127
|
|
-0.9%
|
|
-0.3%
|
Provision for loan
losses
|
|
2,800
|
|
2,600
|
|
2,800
|
|
7.7%
|
|
0.0%
|
Net interest income
after provision for loan losses
|
|
15,266
|
|
15,635
|
|
15,327
|
|
-2.4%
|
|
-0.4%
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
|
Service charges
on deposit accounts
|
|
2,480
|
|
2,479
|
|
2,369
|
|
0.0%
|
|
4.7%
|
ATM and debit card
income
|
|
1,703
|
|
1,682
|
|
1,609
|
|
1.2%
|
|
5.8%
|
Gain on securities,
net (non-operating)(*)
|
|
6
|
|
-
|
|
-
|
|
-
|
|
-
|
Mortgage
lending
|
|
143
|
|
164
|
|
109
|
|
-12.8%
|
|
31.2%
|
Other charges and
fees
|
|
712
|
|
746
|
|
657
|
|
-4.6%
|
|
8.4%
|
Total non-interest
income
|
|
5,044
|
|
5,071
|
|
4,744
|
|
-0.5%
|
|
6.3%
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
|
Salaries and
employee benefits
|
|
8,689
|
|
8,726
|
|
7,990
|
|
-0.4%
|
|
8.7%
|
Occupancy
expense
|
|
3,624
|
|
3,731
|
|
3,597
|
|
-2.9%
|
|
0.8%
|
ATM and debit
card
|
|
721
|
|
829
|
|
785
|
|
-13.0%
|
|
-8.2%
|
Legal and
professional fees
|
|
385
|
|
520
|
|
383
|
|
-26.0%
|
|
0.5%
|
FDIC
premiums
|
|
397
|
|
387
|
|
429
|
|
2.6%
|
|
-7.5%
|
Marketing
|
|
280
|
|
349
|
|
381
|
|
-19.8%
|
|
-26.5%
|
Corporate
development
|
|
316
|
|
423
|
|
335
|
|
-25.3%
|
|
-5.7%
|
Data
processing
|
|
621
|
|
500
|
|
458
|
|
24.2%
|
|
35.6%
|
Printing and
supplies
|
|
183
|
|
158
|
|
188
|
|
15.8%
|
|
-2.7%
|
Expenses on ORE,
net
|
|
79
|
|
59
|
|
194
|
|
33.9%
|
|
-59.3%
|
Amortization of core
deposit intangibles
|
|
277
|
|
277
|
|
277
|
|
0.0%
|
|
0.0%
|
Other non-interest
expense
|
|
1,658
|
|
1,677
|
|
1,742
|
|
-1.1%
|
|
-4.8%
|
Total non-interest
expense
|
|
17,230
|
|
17,636
|
|
16,759
|
|
-2.3%
|
|
2.8%
|
Earnings before
income taxes
|
|
3,080
|
|
3,070
|
|
3,312
|
|
0.3%
|
|
-7.0%
|
Income tax
expense
|
|
589
|
|
871
|
|
963
|
|
-32.4%
|
|
-38.8%
|
Net
earnings
|
|
2,491
|
|
2,199
|
|
2,349
|
|
13.3%
|
|
6.0%
|
Dividends on
preferred stock
|
|
811
|
|
812
|
|
427
|
|
-0.1%
|
|
89.9%
|
Net earnings
available to common shareholders
|
|
$
1,680
|
|
$
1,387
|
|
$
1,922
|
|
21.1%
|
|
-12.6%
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share, diluted
|
|
$
0.15
|
|
$
0.12
|
|
$
0.17
|
|
25.0%
|
|
-11.8%
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings
per common share, diluted (Non-GAAP)(*)
|
|
$
0.15
|
|
$
0.12
|
|
$
0.17
|
|
25.0%
|
|
-11.8%
|
|
|
|
|
|
|
|
|
|
|
|
(*)See
reconciliation of Non-GAAP financial measures on page
8-10.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Prior period
information presented above has been adjusted to reflect a reclass
of certain credit card income from interest income to other
non-interest income as well as certain wire fee income from other
non-interest income into service charges on deposit
accounts.
|
MIDSOUTH BANCORP,
INC. and
SUBSIDIARIES
|
Composition of
Loans and Deposits and Asset Quality Data
(unaudited)
|
(in
thousands)
|
|
|
|
|
|
COMPOSITION OF
LOANS
|
|
March
31,
|
|
December
31,
|
|
Mar 17 vs Dec 16 %
Change
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
Mar 17 vs Mar 16 %
Change
|
|
|
2017
|
|
2016
|
|
|
2016
|
|
2016
|
|
2016
|
|
|
Commercial,
financial, and agricultural
|
|
$
469,815
|
|
$
459,574
|
|
2.2%
|
|
$
463,031
|
|
$
456,264
|
|
$
441,160
|
|
6.5%
|
|
Lease financing
receivable
|
|
969
|
|
1,095
|
|
-11.5%
|
|
1,449
|
|
1,641
|
|
1,590
|
|
-39.1%
|
|
Real estate -
construction
|
|
100,248
|
|
100,959
|
|
-0.7%
|
|
96,365
|
|
96,331
|
|
84,790
|
|
18.2%
|
|
Real estate -
commercial
|
|
464,859
|
|
481,155
|
|
-3.4%
|
|
464,853
|
|
463,142
|
|
467,648
|
|
-0.6%
|
|
Real estate -
residential
|
|
159,426
|
|
157,872
|
|
1.0%
|
|
155,653
|
|
148,379
|
|
149,961
|
|
6.3%
|
|
Installment loans to
individuals
|
|
75,258
|
|
82,660
|
|
-9.0%
|
|
88,537
|
|
94,522
|
|
103,181
|
|
-27.1%
|
|
Other
|
|
1,425
|
|
767
|
|
85.8%
|
|
2,912
|
|
2,110
|
|
1,719
|
|
-17.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
loans
|
|
$1,272,000
|
|
$
1,284,082
|
|
-0.9%
|
|
$
1,272,800
|
|
$1,262,389
|
|
$1,250,049
|
|
1.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPOSITION OF
DEPOSITS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
Mar 17 vs Dec 16 %
Change
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
Mar 17 vs Mar 16 %
Change
|
|
|
|
2017
|
|
2016
|
|
|
2016
|
|
2016
|
|
2016
|
|
|
Noninterest
bearing
|
|
$
426,998
|
|
$
414,921
|
|
2.9%
|
|
$
403,301
|
|
$
383,798
|
|
$
383,684
|
|
11.3%
|
|
NOW &
other
|
|
489,789
|
|
472,484
|
|
3.7%
|
|
465,850
|
|
467,987
|
|
472,309
|
|
3.7%
|
|
Money
market/savings
|
|
505,669
|
|
539,815
|
|
-6.3%
|
|
557,068
|
|
544,256
|
|
534,854
|
|
-5.5%
|
|
Time deposits of less
than $100,000
|
|
75,579
|
|
75,940
|
|
-0.5%
|
|
78,785
|
|
80,158
|
|
80,802
|
|
-6.5%
|
|
Time deposits of
$100,000 or more
|
|
74,909
|
|
76,270
|
|
-1.8%
|
|
80,203
|
|
83,867
|
|
86,554
|
|
-13.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
deposits
|
|
$1,572,944
|
|
$
1,579,430
|
|
-0.4%
|
|
$
1,585,207
|
|
$1,560,066
|
|
$1,558,203
|
|
0.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
|
|
|
|
2017
|
|
2016
|
|
|
2016
|
|
2016
|
|
2016
|
|
|
|
Nonaccrual
loans
|
|
$
56,443
|
|
$
62,580
|
|
|
|
$
60,522
|
|
$
59,865
|
|
$
53,714
|
|
|
|
Loans past due
90 days and over
|
|
775
|
|
268
|
|
|
|
968
|
|
56
|
|
258
|
|
|
|
Total nonperforming
loans
|
|
57,218
|
|
62,848
|
|
|
|
61,490
|
|
59,921
|
|
53,972
|
|
|
|
Other real
estate
|
|
1,643
|
|
2,175
|
|
|
|
2,317
|
|
2,735
|
|
3,908
|
|
|
|
Other repossessed
assets
|
|
30
|
|
16
|
|
|
|
283
|
|
263
|
|
265
|
|
|
|
Total nonperforming
assets
|
|
$
58,891
|
|
$
65,039
|
|
|
|
$
64,090
|
|
$
62,919
|
|
$
58,145
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Troubled debt
restructurings, accruing
|
|
$
1,995
|
|
$
152
|
|
|
|
$
153
|
|
$
154
|
|
$
5,675
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets
to total assets
|
|
3.04%
|
|
3.35%
|
|
|
|
3.28%
|
|
3.27%
|
|
3.03%
|
|
|
|
Nonperforming assets
to total loans +
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORE +
other repossessed assets
|
|
4.62%
|
|
5.06%
|
|
|
|
5.03%
|
|
4.97%
|
|
4.64%
|
|
|
|
ALLL to nonperforming
loans
|
|
42.96%
|
|
38.78%
|
|
|
|
37.84%
|
|
35.68%
|
|
37.70%
|
|
|
|
ALLL to total
loans
|
|
1.93%
|
|
1.90%
|
|
|
|
1.83%
|
|
1.69%
|
|
1.63%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter-to-date
charge-offs
|
|
$
2,906
|
|
$
1,835
|
|
|
|
$
1,161
|
|
$
1,425
|
|
$
1,594
|
|
|
|
Quarter-to-date
recoveries
|
|
312
|
|
339
|
|
|
|
151
|
|
156
|
|
130
|
|
|
|
Quarter-to-date net
charge-offs
|
|
$
2,594
|
|
$
1,496
|
|
|
|
$
1,010
|
|
$
1,269
|
|
$
1,464
|
|
|
|
Annualized QTD net
charge-offs to total loans
|
|
0.83%
|
|
0.46%
|
|
|
|
0.32%
|
|
0.40%
|
|
0.47%
|
|
|
|
MIDSOUTH BANCORP,
INC. and
SUBSIDIARIES
|
Loan Portfolio -
Quarterly Roll Forward (unaudited)
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
|
2017
|
|
2016
|
|
2016
|
LOAN
ACTIVITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
originated
|
|
$
63,141
|
|
$
91,332
|
|
$
74,797
|
Repayments
|
|
(72,179)
|
|
(64,528)
|
|
(60,252)
|
Increases on
renewals
|
|
3,940
|
|
5,259
|
|
2,307
|
Change in lines of
credit
|
|
(4,798)
|
|
(19,990)
|
|
(30,920)
|
Change in allowance
for loan losses
|
|
(206)
|
|
(1,104)
|
|
(1,336)
|
Other
|
|
(2,186)
|
|
(791)
|
|
473
|
Net change in
loans
|
|
$ (12,288)
|
|
$
10,178
|
|
$ (14,931)
|
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
|
|
|
|
|
|
|
March
31,
|
|
March
31,
|
|
|
|
2017
|
|
2016
|
|
Total
equity
|
|
$
216,062
|
|
$
215,854
|
|
Less preferred
equity
|
|
41,110
|
|
41,120
|
|
Total common
equity
|
|
174,952
|
|
174,734
|
|
Less
goodwill
|
|
42,171
|
|
42,171
|
|
Less
intangibles
|
|
4,345
|
|
5,451
|
|
Tangible common
equity
|
|
$
128,436
|
|
$
127,112
|
|
|
|
|
|
|
|
Total
assets
|
|
$1,934,939
|
|
$1,916,551
|
|
Less
goodwill
|
|
42,171
|
|
42,171
|
|
Less
intangibles
|
|
4,345
|
|
5,451
|
|
Tangible
assets
|
|
$1,888,423
|
|
$1,868,929
|
|
|
|
|
|
|
|
Tangible common
equity to tangible assets
|
|
6.80%
|
|
6.80%
|
|
|
|
|
|
|
|
REGULATORY
CAPITAL
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1
capital
|
|
$
131,660
|
|
$
128,483
|
|
Tier 1
capital
|
|
194,269
|
|
191,770
|
|
Total
capital
|
|
212,820
|
|
209,848
|
|
|
|
|
|
|
|
Regulatory capital
ratios:
|
|
|
|
|
|
Common equity tier 1
capital ratio
|
|
8.91%
|
|
8.90%
|
|
Tier 1 risk-based
capital ratio
|
|
13.14%
|
|
13.28%
|
|
Total risk-based
capital ratio
|
|
14.40%
|
|
14.53%
|
|
Tier 1 leverage
ratio
|
|
10.27%
|
|
10.17%
|
|
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
|
|
March 31,
2017
|
|
December 31,
2016
|
|
September 30,
2016
|
|
June 30,
2016
|
|
March 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
$
382,105
|
|
$
2,327
|
|
2.44%
|
|
$
348,673
|
|
$
1,965
|
|
2.25%
|
|
$
354,770
|
|
$
1,983
|
|
2.24%
|
|
$
349,433
|
|
$
1,940
|
|
2.22%
|
|
$
358,623
|
|
$
2,036
|
|
2.27%
|
Tax-exempt
securities
|
|
60,618
|
|
620
|
|
4.09%
|
|
66,549
|
|
705
|
|
4.24%
|
|
60,544
|
|
635
|
|
4.20%
|
|
60,972
|
|
641
|
|
4.21%
|
|
64,971
|
|
699
|
|
4.30%
|
Total investment
securities
|
|
442,723
|
|
2,947
|
|
2.66%
|
|
415,222
|
|
2,670
|
|
2.57%
|
|
415,314
|
|
2,618
|
|
2.52%
|
|
410,405
|
|
2,581
|
|
2.52%
|
|
423,594
|
|
2,735
|
|
2.58%
|
Federal funds
sold
|
|
3,571
|
|
6
|
|
0.67%
|
|
3,261
|
|
5
|
|
0.60%
|
|
2,703
|
|
3
|
|
0.43%
|
|
3,655
|
|
3
|
|
0.32%
|
|
3,843
|
|
5
|
|
0.51%
|
Time and interest bearing deposits in other
banks
|
|
41,785
|
|
85
|
|
0.81%
|
|
90,527
|
|
125
|
|
0.54%
|
|
64,444
|
|
83
|
|
0.50%
|
|
76,042
|
|
97
|
|
0.50%
|
|
74,271
|
|
94
|
|
0.50%
|
Other
investments
|
|
11,355
|
|
84
|
|
2.96%
|
|
11,342
|
|
78
|
|
2.75%
|
|
11,253
|
|
95
|
|
3.38%
|
|
11,232
|
|
90
|
|
3.21%
|
|
11,189
|
|
88
|
|
3.15%
|
Loans
|
|
1,274,213
|
|
16,622
|
|
5.29%
|
|
1,277,555
|
|
17,059
|
|
5.31%
|
|
1,268,270
|
|
17,087
|
|
5.36%
|
|
1,256,133
|
|
16,572
|
|
5.31%
|
|
1,252,742
|
|
16,866
|
|
5.41%
|
Total interest
earning assets
|
|
1,773,647
|
|
19,744
|
|
4.51%
|
|
1,797,907
|
|
19,937
|
|
4.41%
|
|
1,761,984
|
|
19,886
|
|
4.49%
|
|
1,757,467
|
|
19,343
|
|
4.43%
|
|
1,765,639
|
|
19,788
|
|
4.51%
|
Non-interest earning
assets
|
|
159,171
|
|
|
|
|
|
162,529
|
|
|
|
|
|
165,367
|
|
|
|
|
|
163,537
|
|
|
|
|
|
166,265
|
|
|
|
|
Total
assets
|
|
$1,932,818
|
|
|
|
|
|
$1,960,436
|
|
|
|
|
|
$1,927,351
|
|
|
|
|
|
$1,921,004
|
|
|
|
|
|
$1,931,904
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
$1,155,407
|
|
$
935
|
|
0.33%
|
|
$1,179,174
|
|
$
929
|
|
0.31%
|
|
$1,170,660
|
|
$
915
|
|
0.31%
|
|
$1,176,387
|
|
$
903
|
|
0.31%
|
|
$1,180,581
|
|
$
907
|
|
0.31%
|
Repurchase
agreements
|
|
92,571
|
|
234
|
|
1.03%
|
|
94,609
|
|
241
|
|
1.01%
|
|
88,560
|
|
236
|
|
1.06%
|
|
85,479
|
|
233
|
|
1.10%
|
|
85,756
|
|
233
|
|
1.09%
|
Federal funds
purchased
|
|
-
|
|
-
|
|
0.00%
|
|
-
|
|
-
|
|
0.00%
|
|
-
|
|
-
|
|
0.00%
|
|
2
|
|
-
|
|
0.00%
|
|
-
|
|
-
|
|
0.00%
|
Short-term FHLB
advances
|
|
-
|
|
-
|
|
0.00%
|
|
-
|
|
-
|
|
0.00%
|
|
-
|
|
-
|
|
0.00%
|
|
-
|
|
-
|
|
0.00%
|
|
22,802
|
|
23
|
|
0.40%
|
Long-term FHLB
advances
|
|
25,370
|
|
88
|
|
1.39%
|
|
25,474
|
|
92
|
|
1.41%
|
|
25,581
|
|
93
|
|
1.42%
|
|
25,687
|
|
91
|
|
1.40%
|
|
25,794
|
|
90
|
|
1.38%
|
Junior subordinated
debentures
|
|
22,167
|
|
208
|
|
3.75%
|
|
22,167
|
|
197
|
|
3.48%
|
|
22,167
|
|
170
|
|
3.00%
|
|
22,167
|
|
170
|
|
3.03%
|
|
22,167
|
|
167
|
|
2.98%
|
Total interest
bearing liabilities
|
|
1,295,515
|
|
1,465
|
|
0.46%
|
|
1,321,424
|
|
1,459
|
|
0.44%
|
|
1,306,968
|
|
1,414
|
|
0.43%
|
|
1,309,722
|
|
1,397
|
|
0.43%
|
|
1,337,100
|
|
1,420
|
|
0.43%
|
Non-interest bearing
liabilities
|
|
421,408
|
|
|
|
|
|
421,155
|
|
|
|
|
|
401,407
|
|
|
|
|
|
394,170
|
|
|
|
|
|
378,205
|
|
|
|
|
Shareholders'
equity
|
|
215,895
|
|
|
|
|
|
217,857
|
|
|
|
|
|
218,976
|
|
|
|
|
|
217,112
|
|
|
|
|
|
216,599
|
|
|
|
|
Total liabilities and shareholders'
equity
|
|
$1,932,818
|
|
|
|
|
|
$1,960,436
|
|
|
|
|
|
$1,927,351
|
|
|
|
|
|
$1,921,004
|
|
|
|
|
|
$1,931,904
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(TE) and spread
|
|
$
18,279
|
|
4.05%
|
|
|
|
$
18,478
|
|
3.97%
|
|
|
|
$
18,472
|
|
4.06%
|
|
|
|
$
17,946
|
|
4.00%
|
|
|
|
$
18,368
|
|
4.08%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
|
4.18%
|
|
|
|
|
|
4.09%
|
|
|
|
|
|
4.17%
|
|
|
|
|
|
4.11%
|
|
|
|
|
|
4.18%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core net interest
margin (Non-GAAP)(*)
|
|
|
|
|
|
4.11%
|
|
|
|
|
|
3.98%
|
|
|
|
|
|
4.05%
|
|
|
|
|
|
4.02%
|
|
|
|
|
|
4.05%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) See
reconciliation of Non-GAAP financial measures on page
8-10.
|
|
Note: Prior period
information presented above has been adjusted to reflect a reclass
of certain credit card income from interest income to non-interest
income.
|
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,
|
|
|
2017
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
AVERAGE BALANCE
SHEET DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average
assets
|
A
|
$
1,932,818
|
|
$
1,960,436
|
|
$
1,927,351
|
|
$
1,921,004
|
|
$
1,931,904
|
|
|
|
|
|
|
|
|
|
|
|
Total
equity
|
|
$
215,895
|
|
$
217,857
|
|
$
218,976
|
|
$
217,112
|
|
$
216,599
|
Less preferred
equity
|
|
41,110
|
|
41,110
|
|
41,110
|
|
41,118
|
|
41,120
|
Total common
equity
|
B
|
$
174,785
|
|
$
176,747
|
|
$
177,866
|
|
$
175,994
|
|
$
175,479
|
Less intangible
assets
|
|
46,661
|
|
46,926
|
|
47,204
|
|
47,478
|
|
47,757
|
Tangible common
equity
|
C
|
$
128,124
|
|
$
129,821
|
|
$
130,662
|
|
$
128,516
|
|
$
127,722
|
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
|
|
2017
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(FTE)
|
|
$
18,279
|
|
$
18,478
|
|
$
18,472
|
|
$
17,946
|
|
$
18,368
|
Less purchase
accounting adjustments
|
|
(274)
|
|
(458)
|
|
(493)
|
|
(341)
|
|
(565)
|
Core net interest
income, net of purchase accounting adjustments
|
D
|
$
18,005
|
|
$
18,020
|
|
$
17,979
|
|
$
17,605
|
|
$
17,803
|
|
|
|
|
|
|
|
|
|
|
|
Total average
earnings assets
|
|
$
1,773,647
|
|
$
1,797,907
|
|
$
1,761,984
|
|
$
1,757,467
|
|
$
1,765,639
|
Add average balance
of loan valuation discount
|
|
1,964
|
|
2,316
|
|
2,634
|
|
2,931
|
|
3,323
|
Average earnings
assets, excluding loan valuation discount
|
E
|
$
1,775,611
|
|
$
1,800,223
|
|
$
1,764,618
|
|
$
1,760,398
|
|
$
1,768,962
|
|
|
|
|
|
|
|
|
|
|
|
Core net interest
margin
|
D/E
|
4.11%
|
|
3.98%
|
|
4.05%
|
|
4.02%
|
|
4.05%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
RETURN
RATIOS
|
|
2017
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
available to common shareholders
|
|
$
1,680
|
|
$
1,387
|
|
$
1,587
|
|
$
1,682
|
|
$
1,922
|
Net gain on sale of
securities, after-tax
|
|
(4)
|
|
-
|
|
-
|
|
(13)
|
|
-
|
Net
earnings available to common shareholders, operating
|
F
|
$
1,676
|
|
$
1,387
|
|
$
1,587
|
|
$
1,669
|
|
$
1,922
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
$
3,080
|
|
$
3,070
|
|
$
3,391
|
|
$
3,523
|
|
$
3,312
|
Net gain on sale of
securities
|
|
(6)
|
|
-
|
|
-
|
|
(20)
|
|
-
|
Provision for loan
losses
|
|
2,800
|
|
2,600
|
|
2,900
|
|
2,300
|
|
2,800
|
Pre-tax,
pre-provision earnings, operating
|
G
|
$
5,874
|
|
$
5,670
|
|
$
6,291
|
|
$
5,803
|
|
$
6,112
|
|
|
|
|
|
|
|
|
|
|
|
Annualized return on
average assets, operating
|
F/A
|
0.35%
|
|
0.28%
|
|
0.33%
|
|
0.35%
|
|
0.40%
|
Annualized return on
average common equity, operating
|
F/B
|
3.89%
|
|
3.12%
|
|
3.55%
|
|
3.81%
|
|
4.41%
|
Annualized return on
average tangible common equity, operating
|
F/C
|
5.31%
|
|
4.25%
|
|
4.83%
|
|
5.22%
|
|
6.05%
|
Pre-tax,
pre-provision annualized return on average assets,
operating
|
G/A
|
1.23%
|
|
1.15%
|
|
1.30%
|
|
1.21%
|
|
1.27%
|
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
|
|
2017
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common
share
|
|
$
15.37
|
|
$
15.25
|
|
$
15.58
|
|
$
15.56
|
|
$
15.38
|
Effect of intangible
assets per share
|
|
4.09
|
|
4.12
|
|
4.14
|
|
4.16
|
|
4.19
|
Tangible book value
per common share
|
|
$
11.28
|
|
$
11.13
|
|
$
11.44
|
|
$
11.40
|
|
$
11.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
EFFICIENCY
RATIO
|
|
2017
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
18,066
|
|
$
18,235
|
|
$
18,253
|
|
$ 17,725
|
|
$
18,127
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income
|
|
5,044
|
|
5,071
|
|
5,152
|
|
5,139
|
|
4,744
|
Net gain on sale of
securities
|
|
(6)
|
|
-
|
|
-
|
|
(20)
|
|
-
|
Noninterest income (non-GAAP)
|
|
$
5,038
|
|
$
5,071
|
|
$
5,152
|
|
$
5,119
|
|
$
4,744
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
H
|
$
23,110
|
|
$
23,306
|
|
$
23,405
|
|
$ 22,864
|
|
$
22,871
|
Total revenue
(non-GAAP)
|
I
|
$
23,104
|
|
$
23,306
|
|
$
23,405
|
|
$ 22,844
|
|
$
22,871
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
J
|
$
17,230
|
|
$
17,636
|
|
$
17,114
|
|
$ 17,041
|
|
$
16,759
|
Net loss on
sale/valuation of other real estate owned
|
|
(15)
|
|
-
|
|
(19)
|
|
(24)
|
|
(144)
|
Noninterest expense (non-GAAP)
|
K
|
$
17,215
|
|
$
17,636
|
|
$
17,095
|
|
$ 17,017
|
|
$
16,615
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(GAAP)
|
J/H
|
74.56%
|
|
75.67%
|
|
73.12%
|
|
74.53%
|
|
73.28%
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(non-GAAP)
|
K/I
|
74.51%
|
|
75.67%
|
|
73.04%
|
|
74.49%
|
|
72.65%
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/midsouth-bancorp-inc-reports-first-quarter-2017-results-and-declares-quarterly-dividends-300447170.html
SOURCE MidSouth Bancorp, Inc.