2014

MidSouth Bancorp, Inc. Reports First Quarter 2013 Results - Diluted EPS $0.27 per common share versus $0.24 per common share for 1Q 2012

- Operating EPS per common share excluding merger-related charges of $0.28

- Nonperforming assets 0.82% of total assets compared to 1.00% for 4Q 2012

- Core FTE NIM of 4.03% versus 4.21% for 4Q 2012 primarily due to acquisition

LAFAYETTE, La., April 30, 2013 /PRNewswire/ -- MidSouth Bancorp, Inc. ("MidSouth") (NYSE MKT: MSL) today reported record quarterly net earnings available to common shareholders of $3.1 million for the first quarter of 2013, compared to net earnings available to common shareholders of $2.5 million reported for the first quarter of 2012 and $1.3 million in net earnings available to common shareholders for the fourth quarter of 2012.  Diluted earnings for the first quarter of 2013 were $0.27 per common share, compared to $0.24 per common share reported for the first quarter of 2012 and $0.12 per common share reported for the fourth quarter of 2012.  The first quarter of 2013 included after-tax merger and conversion related expenses of $0.01 per share and the fourth quarter of 2012 included $0.06 per share of after-tax merger related expenses.  Excluding these non-operating expenses, operating earnings per share for the first quarter of 2013 were $0.28 compared to fourth quarter of 2012 of $0.18.

(Logo: http://photos.prnewswire.com/prnh/20100125/MIDSOUTHLOGO)

Dividends paid on the Series B Preferred Stock issued to the Treasury as a result of our participation in the Small Business Lending Fund ("SBLF") totaled $192,000 for the first quarter of 2013 based on a dividend rate of 2.40%.  The Series C Preferred Stock issued with the December 28, 2012 acquisition of PSB Financial Corporation ("PSB")  paid dividends totaling $100,000 for the three months ended March 31, 2013. 

Rusty Cloutier, President and CEO, commenting on first quarter 2013 said, "During the first quarter, we transitioned the operations of our branches of The Peoples State Bank as the new Timber Region for our MidSouth Bank franchise and converted the core processing system late in the quarter.  Combined with the 2011 acquisitions and de novo expansion, our franchise has roughly doubled over the past eighteen months.  We believe this growth will greatly benefit shareholders long term as we continue to expand in some of the most attractive growth markets in the country.  Loan demand is increasing in the second quarter and we have a very solid loan pipeline.  Our roadmap for 2013 includes a continued focus on strong asset quality, growing the loan portfolio, and realizing the cost savings from the PSB acquisition."  

Balance Sheet

Total consolidated assets at March 31, 2013 and December 31, 2012 were $1.9 billion, compared to $1.4 billion at March 31, 2012.  Deposits totaled $1.6 billion at March 31, 2013 and December 31, 2012, compared to $1.2 billion at March 31, 2012.   Our stable core deposit base, excluding time deposits, accounted for 83% of deposits at March 31, 2013 compared to 80% of deposits at year end 2012.  The low cost of our interest-bearing deposits declined 3 basis points from 0.42% compared to 0.39% over the three months ended March 31, 2013. 

Loans totaled $1.0 billion at March 31, 2013 and December 31, 2012, compared to $747.8 million at March 31, 2012.  Total loans declined $9.1 million in the first quarter of 2013 primarily due to pay-offs related to asset quality improvement in the portfolio.  The loan mix reflected a minimal decrease in commercial and residential real estate loans, which was partially offset by an increase in real estate construction loans.

MidSouth's Tier 1 leverage capital ratio was 8.98% at March 31, 2013 compared to 11.82% at December 31, 2012.  The Tier 1 leverage capital ratio declined as a result of a full quarter's impact of the PSB assets acquired on total average assets.  Tier 1 risk-based capital and total risk-based capital ratios were 13.75% and 14.41% at March 31, 2013, compared to 13.46% and 14.10% at December 31, 2012, respectively.  The Tier 1 common equity to total risk-weighted assets at March 31, 2013 was 7.71%.  Tangible common equity totaled $97.4 million at March 31, 2013, compared to $95.4 million at December 31, 2012.  Tangible book value per share at March 31, 2013 was $8.67 versus $8.49 at December 31, 2012. 

Asset Quality

Nonperforming assets totaled $15.3 million at March 31, 2013, a decrease of $3.2 million over the $18.5 million reported for year-end 2012.  The decrease resulted from a $1.4 million reduction in nonaccrual loans and a $1.8 million decrease in loans past due 90 days and over.  Allowance coverage for nonperforming loans was 96.98% at March 31, 2013 compared to 67.78% at December 31, 2012.  The ALL/total loans ratio remained relatively constant at 0.72% compared to 0.70% for the fourth quarter of 2012.  The ratio of annualized net charge-offs to total loans was 0.18% for the three months ended March 31, 2013 compared to 0.19% for the three months ended December 31, 2012.

Total nonperforming assets to total loans plus ORE and other assets repossessed decreased to 1.46% at March 31, 2013 from 1.76% at December 31, 2012.  Loans classified as troubled debt restructurings ("TDRs") totaled $5.0 million at March 31, 2013 compared to $5.1 million at December 31, 2012.  A total of $4.8 million in TDRs were acquired with PSB and included four credits, two of which are large commercial credits.  Classified assets, including ORE, decreased $5.2 million, or 15.1% during the three months ended March 31, 2013, from $34.4 million at December 31, 2012 to $29.2 million.  The decrease in classified assets resulted primarily from approximately $2.9 million in pay-offs received on three loan relationships and the upgrade of a $1.0 million loan.  The exposure on other classified loans decreased an additional $1.2 million due to charge-offs and scheduled payments in the first quarter of 2013.

First Quarter 2013 vs. First Quarter 2012 Earnings Comparison

First quarter 2013 net earnings available to common shareholders totaled $3.1 million compared to $2.5 million for the first quarter of 2012.  The first quarter of 2013 included a full quarter of revenues and expenses from PSB operations.  Revenues from consolidated operations increased $5.5 million in quarterly comparison and included $2.2 million in purchase accounting adjustments on the 2012 and 2011 acquisitions.  Noninterest income increased $903,000 in quarterly comparison, from $3.5 million for the three months ended March 31, 2012 to $4.4 million for the three months ended March 31, 2013.  Increases in noninterest income consisted primarily of $347,000 in service charges on deposit accounts, $230,000 in ATM/debit card income and $204,000 in gain on sales of securities. 

Non-interest expenses increased $4.8 million for the first quarter 2013 compared to first quarter 2012 and included approximately $1.6 million in operating expenses for the Timber Region and approximately $0.5 million in operating costs for five new branches opened in late 2012 and early 2013.  Additionally, first quarter 2013 included an increase of $94,000 in core deposit intangibles expense and $214,000 of net merger and conversion related expenses.  The increased operating costs consisted primarily of $2.3 million in salaries and benefits costs, $1.0 million in occupancy expense, $260,000 in marketing expense, $223,000 in the cost of printing and supplies and $226,000 in data processing costs.  Expenses on ORE and other assets repossessed decreased $189,000 in prior year quarterly comparison.  The provision for loan losses decreased $125,000 and income tax expense increased $331,000 in quarterly comparison.

Fully taxable-equivalent ("FTE") net interest income totaled $18.8 million and $14.1 million for the quarters ended March 31, 2013 and 2012, respectively.  The FTE net interest income increased $4.7 million in prior year quarterly comparison primarily due to a $388.3 million increase in the volume of average earning assets as a result of the PSB acquisition.  The average volume of loans increased $301.2 million in quarterly comparison and the average yield on loans decreased 7 basis points, from 6.72% to 6.65%.  Purchase accounting adjustments on acquired loans added 80 basis points to the average yield on loans for the first quarter of 2013 and 32 basis points to the average yield on loans for the first quarter of 2012.  Net of the impact of the purchase accounting adjustments, average loan yields declined 55 basis points in prior year quarterly comparison, from 6.40% to 5.85%.  Loan yields have declined primarily as the result of a sustained low market interest rate environment.

Investment securities totaled $555.4 million, or 29.7% of total assets at March 31, 2013, versus $462.8 million, or 32.7% of total assets at March 31, 2012.  The investment portfolio had an effective duration of 3.5 years and an unrealized gain of $11.2 million at March 31, 2013.  The average volume of investment securities increased $81.7 million in quarterly comparison primarily due to $152.7 million in securities acquired with the PSB acquisition at year end December 2012, of which $28.8 million were sold early in the first quarter of 2013.  Additionally, a portion of excess cash from the 2011 acquisitions was used to purchase securities for the investment portfolio in 2012.  The average tax equivalent yield on investment securities decreased 36 basis points, from 2.80% to 2.44% primarily due to lower reinvestment rates.  The average yield on all earning assets increased 5 basis points in prior year quarterly comparison, from 4.98% for the first quarter of 2012 to 5.03% for the first quarter of 2013.   Net of the impact of purchase accounting adjustments, the average yield on total earning assets declined 27 basis points, from 4.80% to 4.53% for the three month periods ended March 31, 2012 and 2013, respectively.

The impact to interest expense of a $278.0 million increase in the average volume of interest bearing liabilities was partially offset by an 8 basis point decrease in the average rate paid on interest-bearing liabilities, from 0.64% at March 31, 2012 to 0.56% at March 31, 2013.  Net of purchase accounting adjustments on acquired certificates of deposit, the average rate paid on interest bearing liabilities was 0.80% for the first quarter of 2012 compared to 0.67% for the first quarter of 2013. 

As a result of these changes in volume and yield on earning assets and interest bearing liabilities, the FTE net interest margin increased 12 basis points, from 4.49% for the first quarter of 2012 to 4.61% for the first quarter of 2013.  Net of purchase accounting adjustments on loans, deposits and FHLB borrowings, the FTE margin decreased 17 basis points, from 4.20% for the first quarter of 2012 to 4.03% for the first quarter of 2013, primarily due to the addition of the relatively low margin on the earning assets acquired from PSB.

First Quarter 2013 vs. Fourth Quarter 2012 Earnings Comparison

In sequential quarter comparison, net earnings available to common shareholders increased $1.9 million primarily due to increased revenues as a result of the PSB acquisition, net of operating costs associated with the fifteen PSB branches acquired.  Noninterest income increased $734,000 in sequential quarter comparison.  The improvement in noninterest income resulted primarily from increases of $331,000 in service charges on deposit accounts, $204,000 in gain on sales of securities and an increase of $149,000 in ATM/debit card income. 

Noninterest expenses increased $2.9 million and consisted primarily of increases of $2.2 million in salaries and benefits costs (approximately $1.1 million from the Timber Region and five new branches added in late 2012 and early 2013), $560,000 in occupancy expenses, $170,000 in shares tax expense, $133,000 in regulatory fees, $80,000 in corporate development expenses, and $79,000 in the costs of printing and supplies.  The provision for loan losses increased $50,000 to $550,000 for the first quarter of 2013 compared to $500,000 the fourth quarter of 2012. 

FTE net interest income increased $4.8 million in sequential quarter comparison primarily due to the increase in volume of average earning assets as a result of the 2012 PSB acquisition.   Average earning assets increased $387.7 million, from $1.3 billion for the quarter ended December 31, 2012 to $1.7 billion for the quarter ended March 31, 2013.  The average yield on earning assets increased 21 basis points for the same period, from 4.82% to 5.03%, respectively.  The average volume of interest-bearing liabilities increased $310.0 million, from $929.1 million for the fourth quarter of 2012 compared to $1.2 billion for the first quarter of 2013.  As a result of these changes in volume and yield on earning assets and interest bearing liabilities, the FTE net interest margin increased 21 basis points in sequential quarter comparison, from 4.40% to 4.61%.  Net of purchase accounting adjustments, the FTE net interest margin decreased 18 basis points, from 4.21% for the quarter ended December 31, 2012 to 4.03% for the quarter ended March 31, 2013.

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, 2013. 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 59 banking centers in Louisiana and Texas and is connected to a worldwide ATM network that provides customers with access to more than 50,000 surcharge-free ATMs.  Additional corporate information is available at www.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 impacts of the recently completed PSB acquisition, future expansion plans 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, the ability of MidSouth to integrate the PSB operations and capitalize on new market opportunities resulting from the acquisition; the effect of the PSB acquisition on relations with customers and employees; 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, 2012 filed with the SEC on March 18, 2013 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)               









For the Quarter Ended




For the Quarter Ended





March 31,


%


December 31,


%

EARNINGS DATA


2013


2012


Change


2012


Change

     Total interest income


$       20,129


$       15,333


31.3%


$               15,036


33.9%

     Total interest expense


1,717


1,529


12.3%


1,354


26.8%

          Net interest income


18,412


13,804


33.4%


13,682


34.6%

     FTE net interest income


18,761


14,121


32.9%


13,972


34.3%

     Provision for loan losses


550


675


-18.5%


500


10.0%

     Non-interest income


4,431


3,528


25.6%


3,697


19.9%

     Non-interest expense


17,431


12,668


37.6%


14,567


19.7%

          Earnings before income taxes


4,862


3,989


21.9%


2,312


110.3%

     Income tax expense


1,434


1,103


30.0%


683


110.0%

          Net earnings


3,428


2,886


18.8%


1,629


110.4%

     Dividends on preferred stock


292


400


-27.0%


367


-20.4%

          Net earnings available to common shareholders


$         3,136


$         2,486


26.1%


$                 1,262


148.5%












PER COMMON SHARE DATA











     Basic earnings per share


$           0.28


$           0.24


16.7%


$                   0.12


133.3%

     Diluted earnings per share


0.27


0.24


12.5%


0.12


125.0%

     Quarterly dividends per share


0.07


0.07


0.0%


0.07


0.0%

     Book value at end of period


13.24


12.55


5.5%


13.10


1.1%

     Tangible book value at period end


8.67


9.51


-8.8%


8.49


2.1%

     Market price at end of period


16.26


13.60


19.6%


16.35


-0.6%

     Shares outstanding at period end 


11,238,786


10,465,506


7.4%


11,236,159


0.0%

     Weighted average shares outstanding











        Basic


11,237,916


10,465,506


7.4%


10,512,255


6.9%

        Diluted


11,866,108


10,480,207


13.2%


10,599,583


11.9%












AVERAGE BALANCE SHEET DATA











     Total assets


$  1,850,759


$  1,395,964


32.6%


$          1,400,244


32.2%

     Loans and leases


1,043,780


742,595


40.6%


799,316


30.6%

     Total deposits


1,542,726


1,161,756


32.8%


1,153,728


33.7%

     Total common equity


148,565


131,477


13.0%


136,006


9.2%

     Total tangible common equity


96,692


99,557


-2.9%


104,343


-7.3%

     Total equity 


190,564


163,477


16.6%


168,115


13.4%












SELECTED RATIOS


3/31/2013


3/31/2012




12/31/2012



     Annualized return on average assets


0.69%


0.72%


-4.2%


0.36%


91.7%

     Annualized return on average common equity


8.56%


7.60%


12.6%


3.69%


132.0%

     Average loans to average deposits


67.66%


63.92%


5.8%


69.28%


-2.3%

     Taxable-equivalent net interest margin


4.61%


4.49%


2.7%


4.41%


4.5%

     Tier 1 leverage capital ratio


8.98%


10.29%


-12.7%


11.82%


-24.0%












CREDIT QUALITY











     Allowance for loan losses (ALLL) as a % of total loans


0.72%


0.95%


-24.2%


0.70%


2.9%

     Nonperforming assets to tangible equity + ALLL


10.39%


11.19%


-7.1%


12.79%


-18.8%

     Nonperforming assets to total loans, other real estate











          owned and other repossessed assets


1.46%


2.05%


-28.8%


1.76%


-17.1%

     Annualized QTD net charge-offs to total loans


0.18%


0.47%


-61.5%


0.19%


-4.8%












 

 

 


MIDSOUTH BANCORP, INC. and SUBSIDIARIES          

Condensed Consolidated Financial Information (unaudited)       

(in thousands)               



















BALANCE SHEET


March 31,


March 31,


%


December 31,


September 31,



2013


2012


Change


2012


2012

Assets











Cash and cash equivalents


$   118,009


$   104,326


13.1%


$         73,745


$          59,655

Securities available-for-sale


387,786


366,010


5.9%


424,617


341,170

Securities held-to-maturity


167,617


96,817


73.1%


153,524


117,628

     Total investment securities


555,403


462,827


20.0%


578,141


458,798

Time deposits held in banks


-


710


-100.0%


709


709

Other investments


10,017


5,634


77.8%


8,310


5,820

Total loans


1,037,859


747,767


38.8%


1,046,940


808,833

Allowance for loan losses


(7,457)


(7,078)


5.4%


(7,370)


(7,374)

     Loans, net


1,030,402


740,689


39.1%


1,039,570


801,459

Premises and equipment


66,797


44,130


51.4%


63,461


48,086

Goodwill and other intangibles


51,447


31,785


61.9%


51,831


31,391

Other assets


34,981


23,538


48.6%


35,964


23,018

     Total assets


$1,867,056


$1,413,639


32.1%


$    1,851,731


$     1,428,936























Liabilities and Shareholders' Equity











Non-interest bearing deposits


$   390,774


$   271,447


44.0%


$       381,083


$        306,463

Interest-bearing deposits


1,169,352


905,719


29.1%


1,170,821


872,549

   Total deposits


1,560,126


1,177,166


32.5%


1,551,904


1,179,012

Securities sold under agreements to 











    repurchase and other short term 











    borrowings


48,557


49,055


-1.0%


41,447


55,233

Other borrowings


28,772


-


100.0%


29,128


-

Junior subordinated debentures


29,384


15,465


90.0%


29,384


15,465

Other liabilities


9,384


8,618


8.9%


10,624


10,891

     Total liabilities


1,676,223


1,250,304


34.1%


1,662,487


1,260,601

Total shareholders' equity


190,833


163,335


16.8%


189,244


168,335

     Total liabilities and shareholders' equity


$1,867,056


$1,413,639


32.1%


$    1,851,731


$     1,428,936












 

 

 


MIDSOUTH BANCORP, INC. and SUBSIDIARIES             


Condensed Consolidated Financial Information (unaudited)          

(in thousands except per share data)                










Three Months Ended



EARNINGS STATEMENT


March 31,


%



2013


2012


Change








Interest income


$20,129


$15,333


31.3%

Interest expense


1,717


1,529


12.3%

Net interest income


18,412


13,804


33.4%

Provision for loan losses


550


675


-18.5%

Service charges on deposit accounts


2,171


1,824


19.0%

Other charges and fees


2,260


1,704


32.6%

Total non-interest income


4,431


3,528


25.6%

Salaries and employee benefits


8,392


6,086


37.9%

Occupancy expense


3,597


2,548


41.2%

FDIC premiums


345


258


33.7%

Other non-interest expense


5,097


3,776


35.0%

Total non-interest expense


17,431


12,668


37.6%

Earnings before income taxes


4,862


3,989


21.9%

Income tax expense


1,434


1,103


30.0%

Net earnings


3,428


2,886


18.8%

Dividends on preferred stock


292


400


-27.0%

Net earnings available to common shareholders


$  3,136


$  2,486


26.1%















Earnings per common share, diluted


$    0.27


$    0.24


12.5%

 

 

 


MIDSOUTH BANCORP, INC. and SUBSIDIARIES          

Condensed Consolidated Financial Information (unaudited)          

(in thousands except per share data)               












EARNINGS STATEMENT


First


Fourth


Third


Second


First

QUARTERLY TRENDS


Quarter


Quarter


Quarter


Quarter


Quarter



2013


2012


2012


2012


2012

Interest income


$20,129


$15,036


$15,355


$15,298


$15,333

Interest expense


1,717


1,354


1,468


1,489


1,529

Net interest income


18,412


13,682


13,887


13,809


13,804

Provision for loan losses


550


500


300


575


675

Net interest income after provision for loan loss


17,862


13,182


13,587


13,234


13,129

Total non-interest income


4,431


3,697


3,754


3,965


3,528

Total non-interest expense


17,431


14,567


13,630


13,790


12,668

Earnings before income taxes


4,862


2,312


3,711


3,409


3,989

Income tax expense


1,434


683


1,062


931


1,103

Net earnings


3,428


1,629


2,649


2,478


2,886

Dividends on preferred stock


292


367


400


380


400

Net earnings available to common shareholders


$  3,136


$  1,262


$  2,249


$  2,098


$  2,486












Earnings per common share, diluted


$    0.27


$    0.12


$    0.21


$    0.20


$    0.24












 

 

 



MIDSOUTH BANCORP, INC. and SUBSIDIARIES          

Condensed Consolidated Financial Information (unaudited)       

(in thousands)               



COMPOSITION OF LOANS


March 31, 


March 31,


%


December 31,


September 31,


2013


2012


Change


2012


2012












Commercial, financial, and agricultural


$   315,397


$   221,855


42.2%


$       315,655


$       266,046

Lease financing receivable


4,962


3,840


29.2%


5,769


5,041

Real estate - construction


82,508


55,320


49.1%


75,334


57,727

Real estate - commercial


405,705


283,114


43.3%


414,384


293,579

Real estate - residential


138,284


112,142


23.3%


142,858


110,735

Installment loans to individuals


88,898


70,085


26.8%


90,561


73,334

Other


2,105


1,411


49.2%


2,379


2,371












Total loans


$1,037,859


$   747,767


38.8%


$    1,046,940


$       808,833






























COMPOSITION OF DEPOSITS


March 31,


March 31,


%


December 31,


September 31,


2013


2012


Change


2012    (1)


2012












Noninterest bearing


$   390,774


$   271,447


44.0%


$       381,083


$       306,463

NOW & Other


432,540


242,695


78.2%


402,121


239,937

Money Market/Savings


465,954


367,910


26.6%


456,222


377,405

Time Deposits of less than $100,000


125,020


128,415


-2.6%


133,304


111,356

Time Deposits of $100,000 or more


145,838


166,699


-12.5%


179,174


143,851












Total deposits


$1,560,126


$1,177,166


32.5%


$    1,551,904


$    1,179,012


(1)

A restatement of the deposit mix acquired from The Peoples State Bank is included in the Composition of Deposits for December 31, 2012. A total of $64.3 million in Money Market/Savings deposits were reclassed to NOW & Other deposits ($63.8 million) and to Noninterest bearing balances ($0.5 million).

 

 

 


MIDSOUTH BANCORP, INC. and SUBSIDIARIES          

Condensed Consolidated Financial Information (unaudited)       

(in thousands)               








ASSET QUALITY DATA


March 31,


March 31,


%


December 31,


September 30,


2013


2012


Change


2012


2012












Nonaccrual loans


$    7,526


$    7,655


-1.7%


$           8,887


$           8,307

Loans past due 90 days and over


163


418


-61.0%


1,986


532

Total nonperforming loans


7,689


8,073


-4.8%


10,873


8,839

Other real estate owned


7,552


7,120


6.1%


7,496


6,608

Other repossessed assets


16


321


-95.0%


151


51

Total nonperforming assets


$  15,257


$  15,514


-1.7%


$         18,520


$         15,498












Troubled debt restructurings


$    5,032


$       421


1095.2%


$           5,062


$              242























Nonperforming assets to total assets


0.82%


1.10%


-25.5%


1.00%


1.08%

Nonperforming assets to total loans +      











OREO + other repossessed assets


1.46%


2.05%


-28.8%


1.76%


1.90%

ALLL to nonperforming loans


96.98%


87.67%


10.6%


67.78%


83.43%

ALLL to total loans


0.72%


0.95%


-24.2%


0.70%


0.91%












Quarter-to-date charge-offs


$       523


$       939


-44.3%


$              557


$              234

Quarter-to-date recoveries


60


66


-9.1%


53


86

Quarter-to-date net charge-offs


$       463


$       873


-47.0%


$              504


$              148

Annualized QTD net charge-offs to total loans


0.18%


0.47%


-61.5%


0.19%


0.07%












 

 

 



MIDSOUTH BANCORP, INC. and SUBSIDIARIES             

Condensed Consolidated Financial Information (unaudited)   

(in thousands)    






YIELD ANALYSIS


Three Months Ended


Three Months Ended  


March 31, 2013


March 31, 2012














Tax






Tax





Average


Equivalent


Yield/


Average


Equivalent


Yield/



Balance


Interest


Rate


Balance


Interest


Rate














Taxable securities


$   426,017


$     2,059


1.93%


$   365,302


$     2,069


2.27%

Tax-exempt securities


106,982


1,188


4.44%


85,964


1,093


5.09%

Total investment securities


532,999


3,247


2.44%


451,266


3,162


2.80%

Federal funds sold


8,021


4


0.20%


4,108


2


0.19%

Time and interest bearing deposits in













other banks


57,829


38


0.26%


60,045


39


0.26%

Other investments


9,317


72


3.09%


5,636


45


3.19%

Loans (1)


1,043,780


17,117


6.65%


742,595


12,402


6.72%

Total interest earning assets


1,651,946


20,478


5.03%


1,263,650


15,650


4.98%

Non-interest earning assets


198,813






132,314





Total assets


$1,850,759






$1,395,964


















Interest-bearing liabilities:













Deposits (2)


$1,133,087


$     1,078


0.39%


$   899,646


$     1,100


0.49%

Repurchase agreements


45,644


179


1.59%


45,867


181


1.59%

Federal funds purchased


-


-


-


4


-


-

FHLB borrowings (3)


27,076


88


1.30%


2


-


-

Notes Payable


1,836


15


3.27%


-


-


-

Contingent value right payable


2,000


20


4.00%


-


-


-

Junior subordinated debentures


29,384


337


4.59%


15,465


248


6.34%

Total interest-bearing liabilities


1,239,027


1,717


0.56%


960,984


1,529


0.64%

Non-interest bearing liabilities


421,168






271,503





Shareholders' equity


190,564






163,477





Total liabilities and  shareholders'













equity


$1,850,759






$1,395,964


















Net interest income (TE) and spread


$   18,761


4.47%




$   14,121


4.34%














Net interest margin




4.61%






4.49%


(1)

Includes $1,867,000 and $515,000 of interest income from accretable yield on purchased loans from acquisitions for the three months ended March 31, 2013 and 2012, respectively.

(2)

Includes $231,000 and $374,000 of reduction in interest expense from premium amortization on time deposits acquired from acquisitions for the three months ended March 31, 2013 and 2012, respectively.

(3)

Includes $92,000 of reduction in interest expense from premium amortization on FHLB borrowings acquired from PSB for the three months ended March 31, 2013.

 

 

 








MIDSOUTH BANCORP, INC. and SUBSIDIARIES             

Reconciliation of Non-GAAP Financial Measures (unaudited)

(in thousands except per share data)    










For the Quarter Ended



March 31,


March 31,


December 31,

Per Common Share Data


2013


2012


2012








Book value per common share


$     13.24


$     12.55


$           13.10

Effect of intangible assets per share


4.57


3.04


4.61

Tangible book value per common share


$       8.67


$       9.51


$             8.49








Diluted earnings per share


$       0.27


$       0.24


$             0.12

Effect of merger-related costs, after-tax


0.01


-


0.06

Operating earnings per share


$       0.28


$       0.24


$             0.18








Average Balance Sheet Data














Total equity


$ 190,564


$ 163,477


$       168,115

Less preferred equity


41,999


32,000


32,109

Total common equity


$ 148,565


$ 131,477


$       136,006

Less intangible assets


51,873


31,920


31,663

Tangible common equity


$   96,692


$   99,557


$       104,343








     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.  The non-GAAP financial measure above is calculated by using "tangible common equity," which is defined as total common equity reduced by intangible assets.  "Tangible book value per common share" is defined as tangible common equity divided by total common shares outstanding.  

     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.

 

SOURCE MidSouth Bancorp, Inc.



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