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MidSouth Bancorp, Inc. Reports Fourth Quarter 2011 Results

- Reported EPS of $.09 per diluted share; operating EPS of $0.17 per diluted share

- Significant items impacting 4th quarter results: merger related charges of $0.08 per share

- First Louisiana and Tyler acquisitions closed and systems conversions complete

- Total assets stand at $1.4 billion after completion of acquisitions

- Nonperforming assets down 32% YOY and down 8% from linked-quarter

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LAFAYETTE, La., Jan. 31, 2012 /PRNewswire/ -- MidSouth Bancorp, Inc. ("MidSouth") (NYSE Amex: MSL) today reported net earnings available to common shareholders of $879,000 for the fourth quarter of 2011, compared to net earnings available to common shareholders of $1.6 million reported for the fourth quarter of 2010 and $296,000 in net earnings available to common shareholders for the third quarter of 2011.  Diluted earnings for the fourth quarter of 2011 were $0.09 per common share, down from the $0.16 per common share for the fourth quarter of 2010 and up from the $.03 per common share reported for the third quarter of 2011.  

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

C.R. "Rusty" Cloutier, President and Chief Executive Officer, commenting on fourth quarter results, remarked "In December, we completed the acquisition and systems conversion of the Beacon Federal branch in Tyler, Texas ("Tyler") and First Louisiana National Bank in Breaux Bridge, Louisiana ("FLNB").  As a result, the fourth quarter included $0.08 per share of merger related expenses.  Excluding these non-operating expenses, we had strong operating earnings per share in the quarter of $0.17 versus $0.14 in the third quarter.  We are very excited to expand our market presence in Texas and Louisiana and look forward to the positive impact of these acquisitions on our franchise and to future earnings."

Dividends paid on the Series B Preferred Stock totaled $400,000 for the fourth quarter of 2011 based on a dividend rate of 5%.  In August 2011, the Company issued $32.0 million in Series B Preferred Stock to the Treasury in connection with the Small Business Lending Fund ("SBLF").  The dividend rate on the Series B Preferred Stock going forward will be between 1% and 5% based on our level of qualified small business loans.  Linked-quarter net earnings available to common shareholders were impacted by the repayment of $20.0 million in Series A Preferred Stock issued to the Treasury under the Capital Purchase Plan ("CPP") with funds from the U.S. Treasury that were authorized by Congress under the Small Business Jobs Act of 2010.  Repayment of the Series A Preferred Stock under the CPP resulted in accelerated accretion of discount on the preferred stock of approximately $444,000 in the third quarter of 2011, or approximately $0.05 per share.  

For the year ended December 31, 2011, net income available to common shareholders totaled $2.7 million compared to $4.6 million for the year ended December 31, 2010.  Operating earnings per share were $0.48 for 2011, compared to $0.47 for 2010.

Balance Sheet

Total consolidated assets at December 31, 2011 were $1.4 billion, compared to $1.0 billion at December 31, 2010.  Deposits totaled $1.2 billion at year-end 2011, compared to $800.8 million at year-end 2010.  Total loans were $746.3 million at December 31, 2011 compared to $580.8 million at December 31, 2010.  

The Company's subsidiary, MidSouth Bank, N.A. ("the Bank") completed the acquisition of $48.0 million in loans and $104.0 million in deposits from FLNB on December 1, 2011.  A second acquisition closed on December 2, 2011 and included the purchase of $22.2 million in loans and the assumption of $79.8 million in deposits with the Tyler branch.  The Bank also completed the acquisition of five Jefferson Bank branches in the Dallas-Fort Worth market from First Bank and Trust Company of Lubbock, Texas on July 29, 2011.  The Bank acquired $68.9 million in performing loans, including $59.8 million of Jefferson Bank loans and $9.1 million of participation loans from First Bank and Trust.  Jefferson Bank deposits assumed with the purchase totaled $164.3 million.

MidSouth's leverage capital ratio was 11.14% at December 31, 2011 compared to 14.00% at December 31, 2010.  Tier 1 risk-based capital and total risk-based capital ratios were 16.10% and 16.97% at December 31, 2011, compared to 21.11% and 22.36% at December 31, 2010, respectively.  The Tier 1 common equity leverage ratio at December 31, 2011 was 7.61% and tangible book value was $9.34 per common share for the same period.  Tangible common equity totaled $97.7 million at December 31, 2011, compared to $107.9 million at December 31, 2010.  Tangible common equity declined as a result of goodwill and intangibles added with the three acquisitions closed in the second half of 2011.

Asset Quality

Nonperforming assets declined 32.3% in year-over-year comparison and 7.6% in linked-quarter comparison as the Company continued to successfully work problem assets off the balance sheet.  Total nonperforming assets were reduced from $20.9 million at December 31, 2010 to $14.2 million at December 31, 2011, a $6.7 million reduction that included the charge-off of $2.8 million in specific reserves related to two commercial credits in the first quarter of 2011.  The two credits were transferred into Other Real Estate ("ORE") during the second and third quarters of 2011.  Additionally, a $1.6 million credit was sold in the first quarter of 2011 and a $2.7 million national participation credit was sold in the third quarter of 2011 to further reduce nonperforming assets.

Allowance coverage for nonperforming loans increased to 112.63% at December 31, 2011, compared to 44.81% at December 31, 2010, due to a $13.2 million reduction in nonperforming loans.  The ALL/total loans ratio decreased to 0.97% for the year ended December 31, 2011, compared to 1.52% at December 31, 2010, primarily due to the $139.1 million in loans added through the three acquisitions completed in the third and fourth quarters of 2011.  The $139.1 million in acquired loans had the impact of reducing the December 31, 2011 ALL/total loans ratio by approximately 23 basis points as compared to the June 30, 2011 ALL/total loans ratio prior to the acquisitions.  The ratio of net charge-offs to total loans was 0.73% for year-end 2011 compared to 0.72% for year-end 2010.

Loans past due 90 days or more and still accruing totaled $231,000 at December 31, 2011, an increase of $165,000 from December 31, 2010.  Total nonperforming assets to total loans plus ORE and other assets repossessed were 1.88% at December 31, 2011, compared to 3.59% at December 31, 2010.  Loans classified as troubled debt restructurings totaled $456,000 at December 31, 2011.  Classified assets, including ORE, decreased $5.1 million, or 16.1% during the fourth quarter of 2011, from $31.8 million at September 30, 2011 to $26.7 million at December 31, 2011.  The decrease in classified assets resulted primarily from the payout of two commercial loans totaling $3.2 million and a credit quality upgrade on a $1.8 million commercial loan.  

Mr. Cloutier, commenting on MidSouth's asset quality, remarked, "We are pleased with the progress we made reducing classified assets during 2011.  The fourth quarter payout of two loans and a credit quality upgrade on a third loan contributed to a 30% reduction in classified assets year-over-year.  Earlier in the year, two of the three largest non-performing assets going into 2011 were liquidated and the third is in ORE producing positive cash flow from net rental income on a monthly basis."

Earnings

Fourth Quarter 2011 vs. Fourth Quarter 2010 Earnings Comparison

Fourth quarter 2011 net earnings before dividends on preferred stock totaled $1.3 million compared to $1.9 million for the fourth quarter of 2010.  Net earnings decreased as a $2.6 million increase in net interest income and a $95,000 decrease in the provision for loan losses were offset by a $3.4 million increase in non-interest expense and a $36,000 decline in non-interest income.  Of the $2.6 million increase in net interest income, a total of $1.4 million was earned from the branches acquired in the third and fourth quarters.  The $1.4 million included the impact of purchase accounting adjustments and excluded interest income on excess funds available for investment as a result of the acquisitions.  Interest income on investments and other interest-bearing accounts increased $753,000 in quarterly comparison and included interest earned on excess cash invested from the acquisitions.  A $333,000 decrease in service charges on deposit accounts, primarily as a result of fewer insufficient funds ("NSF") transactions processed, was mostly offset by a $134,000 increase in ATM/debit card income and by $174,000 in other non-interest income recorded on ORE.  Non-interest expense increased $3.4 million in prior year quarterly comparison and included $1.3 million in merger and conversion expenses related to the acquisitions.  Operating expenses recorded for the acquired branches during the fourth quarter 2011 totaled $1.1 million, including amortization costs of core deposit intangibles resulting from the acquisitions.  Other increases in non-interest expenses (exclusive of merger, conversion, and acquired operating costs) included $306,000 in salaries and benefits costs, $291,000 in data processing expenses, $208,000 in marketing costs, and $172,000 in legal and professional fees.  

Fourth Quarter 2011 vs. Third Quarter 2011 Earnings Comparison

In linked-quarter comparison, net earnings before dividends on preferred stock increased $179,000 as a $1.4 million increase in net interest income offset a $125,000 increase in provision for loan loss and a $1.0 million increase in non-interest expenses.  Increases in noninterest expenses (including merger, conversion, and acquired operating costs) consisted primarily of approximately $705,000 in data processing expense and $287,000 in marketing costs.  Linked-quarter decreases in legal and professional fees ($265,000) and expenses on ORE ($270,000) offset minimal increases in several other non-interest expense categories.

Year-Over-Year Earnings Comparison

In year-over-year comparison, net earnings before dividends on preferred stock decreased $1.3 million primarily as a result of a $5.5 million increase in non-interest expense and a $1.8 million reduction in non-interest income which offset a $4.5 million improvement in net interest income and a $1.1 million decrease in provision for loan loss.  The $1.8 million decrease in non-interest income was driven by a $2.7 million reduction in NSF fee income due to a lower volume of NSF transactions processed.  Regulatory changes governing our ability to collect NSF fees implemented in the second half of 2010, combined with proactive steps taken during the first quarter of 2011 in response to guidance issued by the FDIC, have significantly lowered our NSF fee income.  Additional regulatory changes regarding electronic transactions could further reduce our non-interest income earned in future periods.  Other increases in non-interest expense (exclusive of merger, conversion, and acquired operating costs) included primarily $749,000 in salary and benefits costs, $713,000 in expenses on ORE and repossessed assets, and $309,000 in marketing costs.  The increased non-interest expenses were partially offset by a $423,000 reduction in internet banking processing costs.  

Net Interest Income Analysis  

Fully taxable-equivalent ("FTE") net interest income totaled $13.4 million and $10.9 million for the quarters ended December 31, 2011 and 2010, respectively.  The FTE net interest income increased $2.5 million in prior year comparison primarily due to a $234.9 million increase in the volume of average earning assets as a result of the three acquisitions.  The average volume of loans increased $115.6 million in quarterly comparison and the average yield on loans fell 19 basis points, from 6.88% to 6.69%.  Discount accretion on acquired loans added 16 basis points to the average yield on loans for the fourth quarter of 2011.  Net of the impact of discount accretion, average loan yields declined 35 basis points in prior year quarterly comparison to 6.53%.  Loan yields have declined primarily due to lower repricing rates as a result of a competitive environment and lower market interest rates.  

The average volume of investment securities increased $130.1 million in quarterly comparison as a portion of excess cash flow from the acquisition was placed primarily in agency mortgage-backed securities.  The average tax equivalent yield on investment securities decreased 39 basis points, from 3.39% to 3.00% primarily due to lower reinvestment rates.  The average volume of overnight interest bearing deposits earning 0.26% decreased $16.7 million due to the purchase of investment securities.  The average yield on all earning assets decreased 28 basis points in prior year quarterly comparison, from 5.40% for the fourth quarter of 2010 to 5.12% for the fourth quarter of 2011.   Net of the impact of discount accretion, the average yield on total earning assets declined 39 basis points, from 5.40% to 5.01% for the three month periods ended December 31, 2010 and 2011, respectively.

Interest expense decreased due to a 30 basis point reduction in the average rate paid on interest bearing liabilities, from 0.98% at December 31, 2010 to 0.68% at December 31, 2011.  The average volume of interest-bearing deposits increased $214.0 million in prior year quarterly comparison primarily due to deposits assumed with the three acquisitions.  Net of premium amortization on acquired certificates of deposit, the average rate paid on interest bearing liabilities was 0.83% for the fourth quarter of 2011 compared to 0.98% for the fourth quarter of 2010.  The average rate paid on interest bearing liabilities has decreased as offering rates on interest bearing deposits and repurchase agreements with bank customers have been adjusted closer to market rates over the past 12 months.

As a result of these changes in volume and yield on earning assets and interest bearing liabilities, the FTE net interest margin decreased 10 basis points, from 4.70% for the fourth quarter of 2010 to 4.60% for the fourth quarter of 2011.  Net of a 21 basis point effect of purchase accounting adjustments on loans and deposits, the FTE margin decreased 31 basis points, from 4.70% for the fourth quarter of 2010 to 4.39% for the fourth quarter of 2011.  

In year-to-date comparison, FTE net interest income increased $4.2 million primarily due to a $2.6 million increase in interest income and a $1.6 million reduction in interest expense.  Interest income on average earning assets increased $2.6 million in year-to-date comparison, as a $121.4 million increase in the average volume of earning assets offset a 41 basis point reduction in the average yield on earning assets, from 5.55% at December 31, 2010 to 5.14% at December 31, 2011.  Net of a 5 basis point effect of discount accretion on acquired loans, the average yield on earning assets was 5.10% at December 31, 2011.

Interest expense decreased in year-over-year comparison primarily due to a 35 basis point reduction in the average rate paid on interest-bearing liabilities, from 1.13% at December 31, 2010 to 0.78% at December 31, 2011, driven by a decrease in the average rate paid on interest-bearing deposits and repurchase agreements.  Net of a 7 basis point effect of premium amortization on acquired certificates of deposit, the average rate paid on interest-bearing liabilities was 0.85% at December 31, 2011 The FTE net interest margin declined 14 basis points, from 4.72% for the year ended December 31, 2010 to 4.58% for the year ended December 31, 2011.  Net of purchase accounting adjustments, the FTE net interest margin declined 24 basis points, from 4.72% to 4.48% for the year ended December 31, 2010 and 2011, respectively.

In linked-quarter comparison, FTE net interest income increased $1.4 million, primarily due to a $113.5 million increase in the average volume of earning assets as a result of the Tyler and FLNB branch acquisitions.  Average loan volume increased $61.0 million and the average yield on loans, net of discount accretion on acquired loans, decreased 7 basis points from 6.60% at September 30, 2011 to 6.53% at December 31, 2011.  The average volume of interest bearing liabilities increased $105.7 million in linked-quarter comparison, and the average rate paid decreased 4 basis points, net of premium amortization on acquired certificates of deposit, from 0.87% at September 30, 2011 to 0.83% at December 31, 2011.  Accordingly, the FTE margin decreased 5 basis points, net of purchase accounting adjustments, from 4.44% for the third quarter of 2011 to 4.39% for the fourth quarter of 2011.

About MidSouth Bancorp, Inc.

MidSouth Bancorp, Inc. is a bank holding company headquartered in Lafayette, Louisiana, with assets of $1.4 billion as of December 31, 2011. 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 has 40 locations in Louisiana and Texas and is connected to a worldwide ATM network that provides customers with access to more than 43,000 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, statements regarding future results, improvements in classified and criticized assets, changes in the local and national economy, the work-out of nonaccrual loans, the competition for other potential acquisitions, the impacts from the integration of operations from completed acquisitions and the impact of regulatory changes regarding electronic transactions.  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, 2010 filed with the SEC on March 16, 2011 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






December 31,


%


September 30,


%


EARNINGS DATA


2011


2010


Change


2011


Change


     Total interest income


$               14,564


$               12,136


20.0%


$                       13,120


11.0%


     Total interest expense


1,489


1,630


-8.7%


1,462


1.8%


          Net interest income


13,075


10,506


24.5%


11,658


12.2%


     FTE net interest income


13,401


10,899


23.0%


11,992


11.7%


     Provision for loan losses


775


870


-10.9%


650


19.2%


     Non-interest income


3,420


3,456


-1.0%


3,398


0.6%


     Non-interest expense


14,169


10,798


31.2%


13,175


7.5%


          Earnings before income taxes


1,551


2,294


-32.4%


1,231


26.0%


     Income tax expense


272


438


-37.9%


131


107.6%


          Net earnings


1,279


1,856


-31.1%


1,100


16.3%


    Dividends on preferred stock


400


300


33.3%


804


-50.2%


         Net earnings available to common shareholders


$                    879


$                 1,556


-43.5%


$                            296


197.0%














PER COMMON SHARE DATA












     Basic earnings per share


$                   0.09


$                   0.16


-43.8%


$                           0.03


200.0%


     Diluted earnings per share


0.09


0.16


-43.8%


0.03


200.0%


     Quarterly dividends per share


0.07


0.07


0.0%


0.07


0.0%


     Book value at end of period


12.41


12.05


3.0%


12.47


-0.5%


     Tangible book value at period end


9.34


11.09


-15.8%


10.45


-10.6%


     Market price at end of period


13.01


15.36


-15.3%


10.75


21.0%


     Shares outstanding at period end


10,465,506


9,730,266


7.6%


9,730,265


7.6%


     Weighted average shares outstanding












        Basic


9,976,057


9,712,600


2.7%


9,726,024


2.57%


        Diluted


9,988,472


9,727,588


2.7%


9,740,275


2.55%














AVERAGE BALANCE SHEET DATA












     Total assets


$          1,273,272


$          1,004,098


26.8%


$                  1,148,516


10.9%


     Loans and leases


703,590


588,004


19.7%


642,601


9.5%


     Total deposits


1,035,792


789,784


31.1%


927,551


11.7%


    Total common equity


123,912


118,301


4.7%


120,216


3.1%


    Total tangible common equity


104,257


108,906


-4.3%


103,991


0.3%


     Total equity


155,912


137,687


13.2%


144,757


7.7%














SELECTED RATIOS


12/31/2011


12/31/2010




9/30/2011




     Annualized return on average assets


0.27%


0.61%


-55.7%


0.10%


170.0%


     Annualized return on average tangible common equity


3.34%


5.67%


-41.1%


1.13%


195.6%


     Average loans to average deposits


67.93%


74.45%


-8.8%


69.28%


-2.0%


     Taxable-equivalent net interest margin


4.60%


4.70%


-2.1%


4.57%


0.7%


     Leverage capital ratio


11.14%


14.00%


-20.4%


12.54%


-11.2%














CREDIT QUALITY












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


0.97%


1.52%


-35.9%


1.09%


-10.6%


     Nonperforming assets to tangible equity + ALL


10.33%


15.37%


-32.8%


10.86%


-4.9%


     Nonperforming assets to total loans, other real estate












         and other repossessed assets


1.88%


3.59%


-47.7%


2.25%


-16.6%


     Annualized YTD net charge-offs to total loans


0.73%


0.72%


1.6%


0.92%


-20.5%






MIDSOUTH BANCORP, INC. and SUBSIDIARIES          


Condensed Consolidated Financial Information (unaudited)       


(in thousands)               






















BALANCE SHEET


December 31,


December 31,


%


September 30,


June 30,




2011


2010


Change


2011


2011


Assets












Cash and cash equivalents


$                    83,303


$                    91,907


-9.4%


$                     97,802


$                     74,239


Securities available-for-sale


367,241


263,809


39.2%


325,736


322,272


Securities held-to-maturity


100,472


1,588


6227.0%


43,736


340


     Total investment securities


467,713


265,397


76.2%


369,472


322,612


Time deposits held in banks


710


5,164


-86.3%


-


-


Other investments


5,637


5,062


11.4%


5,057


5,060


Total loans


746,305


580,812


28.5%


673,426


587,412


Allowance for loan losses


(7,276)


(8,813)


-17.4%


(7,329)


(7,313)


     Loans, net


739,029


571,999


29.2%


666,097


580,099


Premises and equipment


44,598


36,592


21.9%


40,752


37,178


Goodwill and other intangibles


32,106


9,386


242.1%


19,708


9,345


Other assets


23,660


16,832


40.6%


23,063


20,572


     Total assets


$               1,396,756


$               1,002,339


39.3%


$                1,221,951


$                1,049,105


























Liabilities and Shareholders' Equity












Non-interest bearing deposits


$                  254,755


$                  199,460


27.7%


$                   222,937


$                   217,706


Interest-bearing deposits


910,051


601,312


51.3%


766,073


608,190


   Total deposits


1,164,806


800,772


45.5%


989,010


825,896


Securities sold under agreements to












   repurchase and other short term












   borrowings


46,078


43,826


5.1%


55,078


45,963


Junior subordinated debentures


15,465


15,465


0.0%


15,465


15,465


Other liabilities


8,570


5,623


52.4%


9,031


22,651


     Total liabilities


1,234,919


865,686


42.7%


1,068,584


909,975


Total shareholders' equity


161,837


136,653


18.4%


153,367


139,130


    Total liabilities and shareholders' equity


$               1,396,756


$               1,002,339


39.3%


$                1,221,951


$                1,049,105






MIDSOUTH BANCORP, INC. and SUBSIDIARIES             









Condensed Consolidated Financial Information (unaudited)          


(in thousands except per share data)                


















Three Months Ended




Year Ended




EARNINGS STATEMENT


December 31,


%


December 31,


%




2011


2010


Change


2011


2010


Change
















Interest income


$           14,564


$           12,136


20.0%


$           51,007


$           48,124


6.0%


Interest expense


1,489


1,630


-8.7%


5,802


7,395


-21.5%


Net interest income


13,075


10,506


24.5%


45,205


40,729


11.0%


Provision for loan losses


775


870


-10.9%


3,925


5,020


-21.8%


Service charges on deposit accounts


1,855


2,188


-15.2%


6,921


9,673


-28.5%


Other charges and fees


1,565


1,268


23.4%


6,140


5,184


18.4%


Total non-interest income


3,420


3,456


-1.0%


13,061


14,857


-12.1%


Salaries and employee benefits


5,783


5,046


14.6%


21,763


20,352


6.9%


Occupancy expense


2,563


2,018


27.0%


9,281


8,727


6.3%


FDIC premiums


210


345


-39.1%


921


1,331


-30.8%


Other non-interest expense


5,613


3,389


65.6%


17,339


13,408


29.3%


Total non-interest expense


14,169


10,798


31.2%


49,304


43,818


12.5%


Earnings before income taxes


1,551


2,294


-32.4%


5,037


6,748


-25.4%


Income tax expense


272


438


-37.9%


564


968


-41.7%


Net earnings


1,279


1,856


-31.1%


4,473


5,780


-22.6%


Dividends on preferred stock


400


300


33.3%


1,802


1,198


50.4%


Net earnings available to common shareholders


$                879


$             1,556


-43.5%


$             2,671


$             4,582


-41.7%






























Earnings per common share, diluted


$               0.09


$               0.16


-43.8%


$               0.27


$               0.47


-42.6%






MIDSOUTH BANCORP, INC. and SUBSIDIARIES          


Condensed Consolidated Financial Information (unaudited)          


(in thousands except per share data)               














EARNINGS STATEMENT


Fourth


Third


Second


First


Fourth


QUARTERLY TRENDS


Quarter


Quarter


Quarter


Quarter


Quarter




2011


2011


2011


2011


2010


Interest income


$      14,564


$      13,120


$        11,935


$        11,388


$        12,136


Interest expense


1,489


1,462


1,404


1,447


1,630


Net interest income


13,075


11,658


10,531


9,941


10,506


Provision for loan losses


775


650


900


1,600


870


Net interest income after provision for loan loss


12,300


11,008


9,631


8,341


9,636


Total non-interest income


3,420


3,398


3,213


3,030


3,456


Total non-interest expense


14,169


13,175


11,233


10,727


10,798


Earnings before income taxes


1,551


1,231


1,611


644


2,294


Income tax benefit (expense)


(272)


(131)


(258)


97


(438)


Net earnings


1,279


1,100


1,353


741


1,856


Dividends on preferred stock


400


804


299


299


300


Net earnings available to common shareholders


$           879


$           296


$          1,054


$             442


$          1,556














Earnings per common share, diluted


$          0.09


$          0.03


$            0.10


$            0.05


$            0.16






MIDSOUTH BANCORP, INC. and SUBSIDIARIES          


Condensed Consolidated Financial Information (unaudited)       


(in thousands)               










COMPOSITION OF LOANS


December 31,


December 31,


%


September 30,


June 30,




2011


2010


Change


2011


2011














Commercial, financial, and agricultural


$                  223,283


$                  177,598


25.7%


$                212,232


$                194,136


Lease financing receivable


4,276


4,748


-9.9%


4,472


4,660


Real estate - construction


52,712


54,164


-2.7%


60,055


46,608


Real estate - commercial


280,798


208,764


34.5%


262,984


213,007


Real estate - residential


113,582


72,460


56.8%


78,188


71,589


Installment loans to individuals


69,980


62,272


12.4%


54,779


56,768


Other


1,674


806


107.7%


716


644














Total loans


$                  746,305


$                  580,812


28.5%


$                673,426


$                587,412


































COMPOSITION OF DEPOSITS


December 31,


December 31,


%


September 30,


June 30,



2011


2010


Change


2011


2011














Noninterest bearing


$                  254,755


$                  199,460


27.7%


$                222,937


$                217,706


NOW & Other


235,168


179,541


31.0%


207,096


184,072


Money Market/Savings


350,342


304,061


15.2%


313,768


309,138


Time Deposits of less than $100,000


140,428


58,587


139.7%


101,436


55,912


Time Deposits of $100,000 or more


184,113


59,123


211.4%


143,773


59,068














Total deposits


$               1,164,806


$                  800,772


45.5%


$                989,010


$                825,896






MIDSOUTH BANCORP, INC. and SUBSIDIARIES          


Condensed Consolidated Financial Information (unaudited)       


(in thousands)               










ASSET QUALITY DATA


December 31,


December 31,


%


September 30,


June 30,




2011


2010


Change


2011


2011














Nonaccrual loans


$                      6,229


$                    19,603


-68.2%


$                    7,939


$                 10,456


Loans past due 90 days and over


231


66


250.0%


87


69


Total nonperforming loans


6,460


19,669


-67.2%


8,026


10,525


Other real estate owned


7,369


1,206


511.0%


7,278


5,677


Other repossessed assets


326


36


805.6%


9


23


Total nonperforming assets


$                    14,155


$                    20,911


-32.3%


$                  15,313


$                 16,225














Troubled debt restructurings


$                         456


$                         653


-30.2%


$                       461


$                      463


























Nonperforming assets to total assets


1.01%


2.09%


-51.7%


1.25%


1.55%


Nonperforming assets to total loans +      












ORE + other repossessed assets


1.88%


3.59%


-47.6%


2.25%


2.74%


ALL to nonperforming loans


112.63%


44.81%


151.4%


91.32%


69.48%


ALL to total loans


0.97%


1.52%


-36.2%


1.09%


1.24%














Year-to-date charge-offs


$                      5,772


$                      4,456


29.5%


$                    4,890


$                   4,208


Year-to-date recoveries


310


254


22.0%


256


208


Year-to-date net charge-offs


$                      5,462


$                      4,202


30.0%


$                    4,634


$                   4,000


Annualized YTD net charge-offs to total loans


0.73%


0.72%


1.6%


0.92%


1.37%






MIDSOUTH BANCORP, INC. and SUBSIDIARIES             


Condensed Consolidated Financial Information (unaudited)   


(in thousands)    








YIELD ANALYSIS


Three Months Ended


Three Months Ended  




December 31, 2011


December 31, 2010
















Tax






Tax






Average


Equivalent


Yield/


Average


Equivalent


Yield/




Balance


Interest


Rate


Balance


Interest


Rate
















Taxable securities


$            304,741


$            1,825


2.40%


$           156,994


$               883


2.25%


Tax-exempt securities


88,605


1,122


5.07%


106,292


1,351


5.08%


Total investment securities


393,346


2,947


3.00%


263,286


2,234


3.39%


Federal funds sold


11,933


6


0.20%


6,227


3


0.19%


Time and interest bearing deposits in














other banks


40,742


27


0.26%


57,396


60


0.41%


Other investments


5,250


38


2.90%


5,063


35


2.77%


Loans


703,590


11,872


6.69%


588,004


10,197


6.88%


Total interest earning assets


1,154,861


14,890


5.12%


919,976


12,529


5.40%


Non-interest earning assets


118,411






84,122






Total assets


$         1,273,272






$        1,004,098




















Interest-bearing liabilities:














Deposits


$            801,743


$            1,038


0.51%


$           587,781


$            1,152


0.78%


Repurchase agreements


56,849


206


1.44%


53,863


235


1.73%


Junior subordinated debentures


15,465


245


6.20%


15,465


243


6.15%


Total interest-bearing liabilities


874,057


1,489


0.68%


657,109


1,630


0.98%


Non-interest bearing liabilities


243,303






209,302






Shareholders' equity


155,912






137,687






Total liabilities and  shareholders'














equity


$         1,273,272






$        1,004,098




















Net interest income (TE) and spread


$          13,401


4.44%




$          10,899


4.42%
















Net interest margin




4.60%






4.70%






MIDSOUTH BANCORP, INC. and SUBSIDIARIES             


Condensed Consolidated Financial Information (unaudited)   


(in thousands)    








YIELD ANALYSIS


Year Ended


Year Ended




December 31, 2011


December 31, 2010
















Tax






Tax






Average


Equivalent


Yield/


Average


Equivalent


Yield/




Balance


Interest


Rate


Balance


Interest


Rate
















Taxable securities


$            226,819


$              5,362


2.36%


$           153,545


$             3,699


2.41%


Tax-exempt securities


93,796


4,786


5.10%


109,020


5,598


5.13%


Total investment securities


320,615


10,148


3.17%


262,565


9,297


3.54%


Federal funds sold


6,567


14


0.21%


3,328


7


0.21%


Time and interest bearing deposits in














other banks


61,292


196


0.32%


41,999


274


0.64%


Other investments


5,107


155


3.04%


5,007


148


2.96%


Loans


624,889


41,887


6.70%


584,190


40,029


6.85%


Total interest earning assets


1,018,470


52,400


5.14%


897,089


49,755


5.55%


Non-interest earning assets


99,206






84,682






Total assets


$         1,117,676






$           981,771




















Interest-bearing liabilities:














Deposits


$            680,551


$              4,024


0.59%


$           589,168


$             5,468


0.93%


Repurchase agreements


49,654


807


1.63%


49,054


948


1.93%


Federal funds purchased


-


-


-


243


2


0.81%


Other borrowings


-


-


-


682


3


0.44%


Junior subordinated debentures


15,465


971


6.19%


15,465


974


6.21%


Total interest-bearing liabilities


745,670


5,802


0.78%


654,612


7,395


1.13%


Non-interest bearing liabilities


228,036






190,876






Shareholders' equity


143,970






136,283






Total liabilities and  shareholders'














equity


$         1,117,676






$           981,771




















Net interest income (TE) and spread


$            46,598


4.36%




$           42,360


4.42%
















Net interest margin




4.58%






4.72%




MIDSOUTH BANCORP, INC. and SUBSIDIARIES             


Reconciliation of Non-GAAP Financial Measures


(in thousands except per share data)    












For the Quarter Ended




December 31,


December 31,


September 30,


Per Common Share Data


2011


2010


2011










Book value per common share


$                  12.41


$                  12.05


$                  12.47


Effect of intangible assets per share


3.07


0.96


2.02


Tangible book value per common share


$                    9.34


$                  11.09


$                  10.45










Earnings per share


$                    0.09


$                    0.16


$                    0.03


Effect of Merger-related costs, after-tax


0.08


-


0.06


Effect of accretion - repayment of TARP


-


-


0.05


 Operating Earnings per share


$                    0.17


$                    0.16


$                    0.14










Average Balance Sheet Data
















Total equity


$              155,912


$              137,687


$              144,757


Preferred equity


32,000


19,386


24,541


Total common equity


$              123,912


$              118,301


$              120,216


Intangible assets


19,655


9,395


16,225


Tangible common equity


$              104,257


$              108,906


$              103,991


















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.



RELATED LINKS
http://www.midsouthbank.com

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