MidSouth Bancorp, Inc. Reports Third Quarter 2013 Results

- Diluted EPS $0.27 per common share versus $0.21 per common share for 3Q 2012

- Annualized net loan growth of 9.5% on linked quarter basis and 12.5% YTD

- Annualized net charge-offs for the quarter of 0.11%

- Core FTE NIM on linked quarter basis of 4.30% versus 4.33%

- SBLF dividend set at 1.00% starting 4Q 2013 through February 2016

Oct 29, 2013, 16:00 ET from MidSouth Bancorp, Inc.

LAFAYETTE, La., Oct. 29, 2013 /PRNewswire/ -- MidSouth Bancorp, Inc. ("MidSouth") (NYSE: MSL) today reported record quarterly net earnings available to common shareholders of $3.1 million for the third quarter of 2013, compared to net earnings available to common shareholders of $2.2 million reported for the third quarter of 2012 and $3.3 million in net earnings available to common shareholders for the second quarter of 2013.  Diluted earnings for the third quarter of 2013 were $0.27 per common share, compared to $0.21 per common share reported for the third quarter of 2012 and $0.29 per common share reported for the second quarter of 2013. 

(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 $368,000 for the third quarter of 2013 based on a dividend rate of 4.60%.  The dividend rate is set at 1.00% for the fourth quarter of 2013 due to attaining the target 10% growth rate in qualified small business loans during the second quarter of 2013.  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 September 30, 2013. 

Balance Sheet

Total consolidated assets at September 30, 2013 were $1.9 billion, compared to $1.4 billion at September 30, 2012 and $1.9 billion at June 30, 2013.  Deposits totaled $1.5 billion at September 30, 2013, compared to $1.2 billion at September 30, 2012 and $1.5 billion at June 30, 2013.   Total deposits declined $29.7 million during the quarter due to fluctuations in demand deposit accounts, primarily public fund accounts and, to a lesser extent, acquired higher cost certificate of deposit accounts.  Net loans totaled $1.1 billion at September 30, 2013, compared to $801.5 million at September 30, 2012 and $1.1 billion at June 30, 2013.  Net loans grew $26.3 million in the third quarter and $96.8 million for the nine months ended September 30, 2013 at annualized growth rates of 9.5% and 12.5%, respectively.

MidSouth's Tier 1 leverage capital ratio was 9.17% at September 30, 2013 compared to 9.14% at June 30, 2013.  Tier 1 risk-based capital and total risk-based capital ratios were 13.13% and 13.84% at September 30, 2013, compared to 13.24% and 13.95% at June 30, 2013, respectively.  The Tier 1 common equity to total risk-weighted assets at September 30, 2013 was 7.56%.  Tangible common equity totaled $96.9 million at September 30, 2013, compared to $94.5 million at June 30, 2013.  Tangible book value per share at September 30, 2013 was $8.61 versus $8.39 at June 30, 2013.

Rusty Cloutier, President & CEO, commenting on third quarter earnings stated, "We invested significantly in marketing our brand throughout our footprint during the quarter to spur loan growth and continue the momentum of our successful SBLF campaign in the second quarter.  As a result, we grew loans $26 million this quarter.  However, our operating efficiencies are not meeting our expectations as we position the Bank to reap the benefits of recent investments in growth through acquisitions and branch expansions.  Over the next year, Jerry Reaux, Vice Chairman and COO, will lead our executive management team to analyze revenue and expenses, including our branch network structure, to accelerate improvements in profitability."

Asset Quality

Nonperforming assets declined 12.6% in year-over-year comparison and 1.7% in sequential quarter comparison as asset quality continued to improve.  Total nonperforming assets were reduced from $18.5 million at December 31, 2012 to $13.8 million at June 30, 2013 and to $13.6 million at September 30, 2013, primarily due to a $4.0 million reduction in nonperforming loans, including loans past due 90 days and over, during the first nine months of 2013.    

Allowance coverage for nonperforming loans increased to 126.29% at September 30, 2013 compared to 123.84% at June 30, 2013.  The ALL/total loans ratio was 0.76% at September 30, 2013, unchanged from June 30, 2013.  Including valuation accounting adjustments on acquired loans, the total valuation accounting adjustment plus ALL was 1.61% of loans at September 30, 2013.  The ratio of annualized net charge-offs to total loans was 0.11% for the three months ended September 30, 2013 compared to 0.06% for the three months ended June 30, 2013.

Total nonperforming assets to total loans plus ORE and other assets repossessed decreased to 1.18% at September 30, 2013 from 1.23% at June 30, 2013.  Loans classified as troubled debt restructurings ("TDRs") totaled $533,000 at September 30, 2013 compared to $535,000 at June 30, 2013.  Classified assets, including ORE, decreased to $34.5 million compared to $36.1 million at June 30, 2013.

Third Quarter 2013 vs. Third Quarter 2012 Earnings Comparison

Third quarter 2013 net earnings available to common shareholders totaled $3.1 million compared to $2.2 million for the third quarter of 2012.  Revenues from consolidated operations increased $6.4 million in quarterly comparison and included $1.2 million in purchase accounting adjustments on the 2012 and 2011 acquisitions.  Noninterest income increased $1.2 million in quarterly comparison, from $3.8 million for the three months ended September 30, 2012 to $5.0 million for the three months ended September 30, 2013.  Increases in noninterest income consisted primarily of $454,000 in service charges on deposit accounts and $596,000 in ATM/debit card income due to the acquired branches in the Timber Region. 

Noninterest expenses increased $4.9 million for the third quarter 2013 compared to third quarter 2012 and included approximately $1.7 million in operating expenses for the Timber Region and approximately $368,000 in operating costs for four new branches opened in late 2012 and early 2013.  The remaining $2.8 million of increased operating costs consisted primarily of $1.2 million in salaries and benefits costs, $464,000 in occupancy expense, $293,000 in ATM/debit card expense, $117,000 in marketing costs and $173,000 in data processing expenses.  The increased costs were partially offset by a $230,000 decrease in legal and professional fees.  The provision for loan losses increased $150,000 primarily as a result of the loan growth experienced during the third quarter of 2013.  Income tax expense increased $526,000 in quarterly comparison.

Fully taxable-equivalent ("FTE") net interest income totaled $19.5 million and $14.2 million for the quarters ended September 30, 2013 and 2012, respectively.  The FTE net interest income increased $5.3 million in prior year quarterly comparison primarily due to a $413.4 million increase in the volume of average earning assets primarily as a result of the PSB acquisition.  The average volume of loans increased $350.2 million in quarterly comparison and the average yield on loans decreased 22 basis points, from 6.46% to 6.24%.  Purchase accounting adjustments on acquired loans added 39 basis points to the average yield on loans for the third quarter of 2013 and 23 basis points to the average yield on loans for the third quarter of 2012.  Net of the impact of the purchase accounting adjustments, average loan yields declined 38 basis points in prior year quarterly comparison, from 6.23% to 5.85%.  Loan yields have declined primarily as the result of a sustained low market interest rate environment.

Investment securities totaled $517.8 million, or 27.8% of total assets at September 30, 2013, versus $458.8 million, or 32.1% of total assets at September 30, 2012.  The investment portfolio had an effective duration of 4.4 years and an unrealized gain of $2.1 million at September 30, 2013.  The average volume of investment securities increased $57.1 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.  The average tax equivalent yield on investment securities decreased 4 basis points, from 2.63% to 2.59%.  The average yield on all earning assets increased 7 basis points in prior year quarterly comparison, from 4.92% for the third quarter of 2012 to 4.99% for the third quarter of 2013.   Net of the impact of purchase accounting adjustments, the average yield on total earning assets declined 5 basis points, from 4.79% to 4.74% for the three month periods ended September 30, 2012 and 2013, respectively.

The impact to interest expense of a $335.8 million increase in the average volume of interest bearing liabilities was partially offset by an 11 basis point decrease in the average rate paid on interest bearing liabilities, from 0.62% at September 30, 2012 to 0.51% at September 30, 2013.  Net of purchase accounting adjustments on acquired certificates of deposit and FHLB borrowings, the average rate paid on interest bearing liabilities was 0.71% for the third quarter of 2012 and declined to 0.58% for the third 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 14 basis points, from 4.46% for the third quarter of 2012 to 4.60% for the third quarter of 2013.  Net of purchase accounting adjustments on loans, deposits and FHLB borrowings, the FTE margin increased 4 basis points, from 4.26% for the third quarter of 2012 to 4.30% for the third quarter of 2013.

Third Quarter 2013 vs. Second Quarter 2013 Earnings Comparison

In sequential-quarter comparison, net earnings available to common shareholders decreased $199,000 as a $671,000 decrease in net interest income and a $214,000 increase in non-interest expenses were partially offset by an $800,000 decrease in provision for loan losses.  Net interest income decreased in sequential-quarter comparison primarily due to $842,000 in non-recurring interest income recorded in the second quarter of 2013.  This amount was comprised of additional discount accretion totaling $630,000 was earned from the PSB purchased credit impaired loan portfolio and $212,000 in interest income was recaptured on a nonperforming loan in June of 2013.

Noninterest expenses increased $214,000 and consisted primarily of increases of $271,000 in salaries and benefits costs, $196,000 in marketing expenses and $149,000 in occupancy expenses, which were partially offset by decreases of $216,000 in expenses on ORE and $230,000 in legal and professional fees.  

FTE net interest income decreased $593,000 in sequential quarter comparison primarily due to a reduction in purchase accounting adjustments resulting from the payoff of certain PSB purchased credit impaired loans.  The reduction in purchase accounting adjustments resulted in a decrease in the average yield on loans, from 6.76% for the second quarter of 2013 to 6.24% for the third quarter of 2013.  An average decrease of $19.3 million in investment securities and an average increase of $23.3 million in FHLB advances funded a $42.8 million increase in the average volume of loans.  The average yield on total earning assets decreased 27 basis points for the same period, from 5.26% to 4.99%, respectively.  An average decrease of $16.2 million in deposits was offset by an average increase of $16.6 million in overnight repurchase agreements.  As a result of these changes in volume and yield on earning assets and interest bearing liabilities, the FTE net interest margin decreased 27 basis points, from 4.87% to 4.60%.  Net of purchase accounting adjustments, the FTE net interest margin decreased 3 basis points, from 4.33% for the quarter ended June 30, 2013 to 4.30% for the quarter ended September 30, 2013.

Year-Over-Year Earnings Comparison

In year-over-year comparison, net earnings available to common shareholders increased $2.7 million primarily as a result of a $15.7 million improvement in net interest income and a $3.2 million increase in noninterest income which offset a $14.1 million increase in noninterest expense, a $700,000 increase in provision for loan loss and a $1.5 million increase in income tax expense.  The $15.7 million increase in net interest income included approximately $9.7 million earned from the Timber Region.  An increase in purchase accounting adjustments of $3.2 million in year-to-date comparison also contributed to the increase in net interest income. 

Increases in noninterest income consisted primarily of $1.2 million in service charges on deposit accounts and $1.3 million in ATM and debit card income.  Noninterest expenses increased $14.1 million in year-to-date comparison and included approximately $5.0 million in operating expenses for the Timber Region and approximately $1.2 million in operating expenses for the four new branches opened in late 2012 and early 2013.  Increases in noninterest expense, excluding operating expenses on the Timber Region and the new branches, included primarily $3.7 million in salary and benefits costs, $1.4 million in occupancy expense, $486,000 in ATM/debit card expense and $370,000 in corporate development expense.  The increase was offset by a $529,000 decrease in expenses on ORE and repossessed assets, excluding expenses on ORE and repossessed assets incurred by the Timber Region.

In year-to-date comparison, FTE net interest income increased $16.1 million primarily due to a $399.1 million increase in the average volume of earning assets that resulted in a $16.6 million increase in interest income.  The average yield on earning assets increased in year-to-date comparison, from 4.95% at September 30, 2012 to 5.11% at September 30, 2013.  Net of a 41 basis point effect of discount accretion on acquired loans, the average yield on earning assets was 4.70% at September 30, 2013.

Interest expense increased in year-over-year comparison primarily due to a $307.5 million increase in the average volume of interest-bearing liabilities, from $951.8 million at September 30, 2012 to $1.3 billion at September 30, 2013.  The average rate paid on interest-bearing liabilities decreased 10 basis points, from 0.63% at September 30, 2012 to 0.53% at September 30, 2013.  Net of a 9 basis point effect of premium amortization on acquired certificates of deposit and FHLB advances, the average rate paid on interest bearing liabilities was 0.62% at September 30, 2013.  The FTE net interest margin increased 23 basis points, from 4.48% for the nine months ended September 30, 2012 to 4.71% for the nine months ended September 30, 2013.  Net of purchase accounting adjustments, the FTE net interest margin increased 1 basis point, from 4.23% to 4.24% for the nine months ended September 30, 2012 and 2013, respectively.

About MidSouth Bancorp, Inc.

MidSouth Bancorp, Inc. is a financial holding company headquartered in Lafayette, Louisiana, with assets of $1.9 billion as of September 30, 2013. 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 61 locations in Louisiana and Texas, including a Loan Production Office in Austin, 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

September 30,

%

June 30,

%

EARNINGS DATA

2013

2012

Change

2013

Change

     Total interest income

$        20,704

$        15,355

34.8%

$        21,356

-3.1%

     Total interest expense

1,633

1,468

11.2%

1,614

1.2%

          Net interest income

19,071

13,887

37.3%

19,742

-3.4%

     FTE net interest income

19,486

14,187

37.4%

20,079

-3.0%

     Provision for loan losses

450

300

50.0%

1,250

-64.0%

     Non-interest income

4,988

3,754

32.9%

5,004

-0.3%

     Non-interest expense

18,481

13,630

35.6%

18,267

1.2%

          Earnings before income taxes

5,128

3,711

38.2%

5,229

-1.9%

     Income tax expense

1,588

1,062

49.5%

1,566

1.4%

          Net earnings

3,540

2,649

33.6%

3,663

-3.4%

     Dividends on preferred stock

468

400

17.0%

392

19.4%

          Net earnings available to common shareholders

$          3,072

$          2,249

36.6%

$          3,271

-6.1%

PER COMMON SHARE DATA

     Basic earnings per share

$            0.27

$            0.21

28.6%

$            0.29

-6.9%

     Diluted earnings per share

0.27

0.21

28.6%

0.29

-6.9%

     Quarterly dividends per share

0.08

0.07

14.3%

0.08

0.0%

     Book value at end of period

13.12

13.01

0.8%

12.92

1.5%

     Tangible book value at period end

8.61

10.01

-14.0%

8.39

2.6%

     Market price at end of period

15.50

16.19

-4.3%

15.53

-0.2%

     Shares outstanding at period end 

11,253,216

10,479,077

7.4%

11,253,216

0.0%

     Weighted average shares outstanding

        Basic

11,253,216

10,478,456

7.3%

11,238,945

0.0%

        Diluted

11,868,851

10,517,999

12.8%

11,838,862

0.3%

AVERAGE BALANCE SHEET DATA

     Total assets

$   1,863,090

$   1,398,355

33.2%

$   1,850,483

0.7%

     Loans and leases

1,123,086

772,838

45.3%

1,080,295

4.0%

     Total deposits

1,521,146

1,149,892

32.3%

1,538,320

-1.1%

     Total common equity

146,182

135,055

8.2%

150,287

-2.7%

     Total tangible common equity

95,363

103,577

-7.9%

98,996

-3.7%

     Total equity 

188,179

167,055

12.6%

192,284

-2.1%

SELECTED RATIOS

9/30/2013

9/30/2012

6/30/2013

     Annualized return on average assets

0.65%

0.64%

1.6%

0.71%

-8.5%

     Annualized return on average common equity

8.34%

6.62%

26.0%

8.73%

-4.5%

     Average loans to average deposits

73.83%

67.21%

9.9%

70.23%

5.1%

     Taxable-equivalent net interest margin

4.60%

4.46%

3.1%

4.87%

-5.5%

     Tier 1 leverage capital ratio

9.17%

10.53%

-12.9%

9.14%

0.3%

CREDIT QUALITY

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

0.76%

0.91%

-16.5%

0.76%

0.0%

     Nonperforming assets to tangible equity + ALLL

9.18%

10.74%

-14.5%

9.51%

-3.4%

     Nonperforming assets to total loans, other real estate

owned and other repossessed assets

1.18%

1.90%

-38.1%

1.23%

-4.0%

     Annualized QTD net charge-offs to total loans

0.11%

0.07%

58.9%

0.06%

74.3%

 

 

 

MIDSOUTH BANCORP, INC. and SUBSIDIARIES          

Condensed Consolidated Financial Information (unaudited)       

(in thousands)               

BALANCE SHEET

September 30,

September 30,

%

June 30,

March 31,

2013

2012

Change

2013

2013

Assets

Cash and cash equivalents

$     43,434

$     59,655

-27.2%

$     59,578

$   118,009

Securities available-for-sale

358,675

341,170

5.1%

367,299

387,786

Securities held-to-maturity

159,141

117,628

35.3%

163,610

167,617

     Total investment securities

517,816

458,798

12.9%

530,909

555,403

Time deposits held in banks

-

709

-100.0%

-

0

Other investments

10,951

5,820

88.2%

10,951

10,017

Total loans

1,145,023

808,833

41.6%

1,118,572

1,037,859

Allowance for loan losses

(8,667)

(7,374)

17.5%

(8,531)

(7,457)

     Loans, net

1,136,356

801,459

41.8%

1,110,041

1,030,402

Premises and equipment

70,147

48,086

45.9%

67,881

66,797

Goodwill and other intangibles

50,703

31,391

61.5%

50,980

51,447

Other assets

33,400

23,018

45.1%

33,436

34,981

     Total assets

$1,862,807

$1,428,936

30.4%

$1,863,776

$1,867,056

Liabilities and Shareholders' Equity

Non-interest bearing deposits

$   380,048

$   306,463

24.0%

$   395,341

$   390,774

Interest-bearing deposits

1,126,078

872,549

29.1%

1,140,453

1,169,352

   Total deposits

1,506,126

1,179,012

27.7%

1,535,794

1,560,126

Securities sold under agreements to repurchase and other short term borrowings

77,809

55,233

40.9%

51,710

48,557

Short-term FHLB advances

25,000

-

100.0%

25,000

-

Other borrowings

28,059

0

100.0%

28,416

28,772

Junior subordinated debentures

29,384

15,465

90.0%

29,384

29,384

Other liabilities

6,800

10,891

-37.6%

6,039

9,384

     Total liabilities

1,673,178

1,260,601

32.7%

1,676,343

1,676,223

Total shareholders' equity

189,629

168,335

12.6%

187,433

190,833

     Total liabilities and shareholders' equity

$1,862,807

$1,428,936

30.4%

$1,863,776

$1,867,056

 

 

 

MIDSOUTH BANCORP, INC. and SUBSIDIARIES             

Condensed Consolidated Financial Information (unaudited)          

(in thousands except per share data)                

Three Months Ended

Nine Months Ended

EARNINGS STATEMENT

September 30,

%

September 30,

%

2013

2012

Change

2013

2012

Change

Interest income

$20,704

$15,355

34.8%

$62,189

$45,986

35.2%

Interest expense

1,633

1,468

11.2%

4,964

4,486

10.7%

Net interest income

19,071

13,887

37.3%

57,225

41,500

37.9%

Provision for loan losses

450

300

50.0%

2,250

1,550

45.2%

Service charges on deposit accounts

2,352

1,898

23.9%

6,794

5,590

21.5%

Other charges and fees

2,636

1,856

42.0%

7,629

5,657

34.9%

Total non-interest income

4,988

3,754

32.9%

14,423

11,247

28.2%

Salaries and employee benefits

8,640

6,273

37.7%

25,401

18,511

37.2%

Occupancy expense

3,874

2,952

31.2%

11,196

8,283

35.2%

FDIC premiums

265

242

9.5%

854

695

22.9%

Other non-interest expense

5,702

4,163

37.0%

16,728

12,599

32.8%

Total non-interest expense

18,481

13,630

35.6%

54,179

40,088

35.2%

Earnings before income taxes

5,128

3,711

38.2%

15,219

11,109

37.0%

Income tax expense

1,588

1,062

49.5%

4,588

3,096

48.2%

Net earnings

3,540

2,649

33.6%

10,631

8,013

32.7%

Dividends on preferred stock

468

400

17.0%

1,152

1,180

-2.4%

Net earnings available to common shareholders

$  3,072

$  2,249

36.6%

$  9,479

$  6,833

38.7%

Earnings per common share, diluted

$    0.27

$    0.21

28.6%

$    0.83

$    0.65

27.7%

 

 

 

MIDSOUTH BANCORP, INC. and SUBSIDIARIES          

Condensed Consolidated Financial Information (unaudited)          

(in thousands except per share data)               

EARNINGS STATEMENT

Third

Second

First

Fourth

Third

QUARTERLY TRENDS

Quarter

Quarter

Quarter

Quarter

Quarter

2013

2013

2013

2012

2012

Interest income

$20,704

$21,356

$20,129

$15,036

$15,355

Interest expense

1,633

1,614

1,717

1,354

1,468

Net interest income

19,071

19,742

18,412

13,682

13,887

Provision for loan losses

450

1,250

550

500

300

Net interest income after provision for loan loss

18,621

18,492

17,862

13,182

13,587

Total non-interest income

4,988

5,004

4,431

3,697

3,754

Total non-interest expense

18,481

18,267

17,431

14,567

13,630

Earnings before income taxes

5,128

5,229

4,862

2,312

3,711

Income tax expense

1,588

1,566

1,434

683

1,062

Net earnings

3,540

3,663

3,428

1,629

2,649

Dividends on preferred stock

468

392

292

367

400

Net earnings available to common shareholders

$  3,072

$  3,271

$  3,136

$  1,262

$  2,249

Earnings per common share, diluted

$    0.27

$    0.29

$    0.27

$    0.12

$    0.21

 

 

 

MIDSOUTH BANCORP, INC. and SUBSIDIARIES          

Condensed Consolidated Financial Information (unaudited)       

(in thousands)               

COMPOSITION OF LOANS

September 30,

September 30,

%

June 30,

March 31, 

2013

2012

Change

2013

2013

Commercial, financial, and agricultural

$       423,073

$       266,046

59.0%

$   391,241

$   315,397

Lease financing receivable

5,340

5,041

5.9%

5,656

4,962

Real estate - construction

76,213

57,727

32.0%

82,851

82,508

Real estate - commercial

401,080

293,579

36.6%

404,543

405,705

Real estate - residential

142,431

110,735

28.6%

141,689

138,284

Installment loans to individuals

94,722

73,334

29.2%

90,571

88,898

Other

2,164

2,371

-8.7%

2,021

2,105

Total loans

$    1,145,023

$       808,833

41.6%

$1,118,572

$1,037,859

COMPOSITION OF DEPOSITS

September 30,

September 30,

%

June 30,

March 31,

2013

2012

Change

2013

2013

Noninterest bearing

$       380,048

$       306,463

24.0%

$   395,341

$   390,774

NOW & Other

412,873

239,937

72.1%

431,596

432,540

Money Market/Savings

463,621

377,405

22.8%

453,729

465,954

Time Deposits of less than $100,000

116,118

111,356

4.3%

119,299

125,020

Time Deposits of $100,000 or more

133,466

143,851

-7.2%

135,829

145,838

Total deposits

$    1,506,126

$    1,179,012

27.7%

$1,535,794

$1,560,126

 

 

 

MIDSOUTH BANCORP, INC. and SUBSIDIARIES          

Condensed Consolidated Financial Information (unaudited)       

(in thousands)               

ASSET QUALITY DATA

September 30,

September 30,

%

June 30,

March 31,

2013

2012

Change

2013

2013

Nonaccrual loans

$  6,119

$  8,307

-26.3%

$  6,772

$  7,526

Loans past due 90 days and over

744

532

39.8%

117

163

Total nonperforming loans

6,863

8,839

-22.4%

6,889

7,689

Other real estate owned

6,672

6,608

1.0%

6,900

7,552

Other repossessed assets

18

51

-64.7%

0

16

Total nonperforming assets

$13,553

$15,498

-12.6%

$13,789

$15,257

Troubled debt restructurings

$     533

$     242

120.2%

$     535

$  5,032

Nonperforming assets to total assets

0.73%

1.08%

-32.4%

0.74%

0.82%

Nonperforming assets to total loans + OREO + other repossessed assets

1.18%

1.90%

-37.9%

1.23%

1.46%

ALLL to nonperforming loans

126.29%

83.43%

51.4%

123.84%

96.98%

ALLL to total loans

0.76%

0.91%

-16.5%

0.76%

0.72%

Quarter-to-date charge-offs

$     375

$     234

60.3%

$     267

$     523

Quarter-to-date recoveries

61

86

-29.1%

91

60

Quarter-to-date net charge-offs

$     314

$     148

112.2%

$     176

$     463

Annualized QTD net charge-offs to total loans

0.11%

0.07%

58.9%

0.06%

0.18%

 

 

 

MIDSOUTH BANCORP, INC. and SUBSIDIARIES             

Condensed Consolidated Financial Information (unaudited)   

(in thousands)    

YIELD ANALYSIS

Three Months Ended

Three Months Ended  

September 30, 2013

September 30, 2012

Tax

Tax

Average

Equivalent

Yield/

Average

Equivalent

Yield/

Balance

Interest

Rate

Balance

Interest

Rate

Taxable securities

$   418,964

$   2,171

2.07%

$   384,958

$   2,048

2.13%

Tax-exempt securities

101,226

1,200

4.74%

78,115

997

5.11%

  Total investment securities

520,190

3,371

2.59%

463,073

3,045

2.63%

Federal funds sold

2,180

1

0.18%

3,570

2

0.22%

Time and interest bearing deposits in

other banks

22,519

15

0.26%

20,253

13

0.25%

Other investments

10,948

80

2.92%

5,816

55

3.78%

Loans (1)

1,123,086

17,652

6.24%

772,838

12,540

6.46%

  Total interest earning assets

1,678,923

21,119

4.99%

1,265,550

15,655

4.92%

Non-interest earning assets

184,167

132,805

  Total assets

$1,863,090

$1,398,355

Interest-bearing liabilities:

Deposits (2)

$1,133,126

$      976

0.34%

$   873,128

$   1,030

0.47%

Repurchase agreements

64,274

204

1.26%

55,953

197

1.40%

Federal funds purchased

354

-

0.00%

64

-

-

Other borrowings (3)

51,853

104

0.78%

-

-

-

Notes Payable

1,448

14

3.78%

-

-

-

Junior subordinated debentures

29,384

335

4.46%

15,465

241

6.10%

  Total interest-bearing liabilities

1,280,439

1,633

0.51%

944,610

1,468

0.62%

Non-interest bearing liabilities

394,472

286,690

Shareholders' equity

188,179

167,055

  Total liabilities and  shareholders'

equity

$1,863,090

$1,398,355

Net interest income (TE) and spread

$ 19,486

4.48%

$ 14,187

4.30%

Net interest margin

4.60%

4.46%

(1)

Includes $945,000 and $388,000 of interest income from accretable yield on purchased loans from acquisitions for the three months ended September 30, 2013 and 2012, respectively.

(2)

Includes $138,000 and $213,000 of reduction in interest expense from premium amortization on time deposits acquired from acquisitions for the three months ended September 30, 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 September 30, 2013.

 

 

 

MIDSOUTH BANCORP, INC. and SUBSIDIARIES             

Condensed Consolidated Financial Information (unaudited)   

(in thousands)    

YIELD ANALYSIS

Nine Months Ended

Nine Months Ended

September 30, 2013

September 30, 2012

Tax

Tax

Average

Equivalent

Yield/

Average

Equivalent

Yield/

Balance

Interest

Rate

Balance

Interest

Rate

Taxable securities

$   426,544

$  6,481

2.03%

$   380,154

$  6,265

2.20%

Tax-exempt securities

104,297

3,763

4.81%

81,774

3,152

5.14%

  Total investment securities

530,841

10,244

2.57%

461,928

9,417

2.72%

Federal funds sold

3,910

6

0.20%

3,657

6

0.22%

Time and interest bearing deposits in

other banks

34,435

70

0.27%

36,720

73

0.26%

Other investments

10,113

230

3.03%

5,737

142

3.30%

Loans (1)

1,082,679

52,966

6.54%

754,838

37,298

6.58%

  Total interest earning assets

1,661,978

63,516

5.11%

1,262,880

46,936

4.95%

Non-interest earning assets

191,964

132,169

  Total assets

$1,853,942

$1,395,049

Interest-bearing liabilities:

Deposits (2)

$1,138,506

$  3,044

0.36%

$   886,033

$  3,189

0.48%

Repurchase agreements

52,597

565

1.44%

50,313

564

1.49%

Federal funds purchased

607

3

0.65%

22

-

-

Other borrowings (3)

36,587

302

1.09%

1

-

-

Notes payable

1,660

43

3.42%

-

-

Junior subordinated debentures

29,384

1,007

4.52%

15,465

733

6.23%

  Total interest-bearing liabilities

1,259,341

4,964

0.53%

951,834

4,486

0.63%

Non-interest bearing liabilities

404,267

278,042

Shareholders' equity

190,334

165,173

  Total liabilities and  shareholders'

equity

$1,853,942

$1,395,049

Net interest income (TE) and spread

$58,552

4.58%

$42,450

4.32%

Net interest margin

4.71%

4.48%

(1)

Includes $4.6 million and $1.4 million of interest income from accretable yield on purchased loans from acquisitions for the nine months ended September 30, 2013 and 2012, respectively.

(2)

Includes $546,000 and $857,000 of reduction in interest expense from premium amortization on time deposits acquired from acquisitions for the nine months ended September 30, 2013 and 2012, respectively

(3)

Includes $276,000 of reduction in interest expense from premium amortization on FHLB borrowings acquired from PSB for the nine months ended September 30, 2013.

 

 

 

MIDSOUTH BANCORP, INC. and SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures (unaudited)

(in thousands except per share data)    

For the Quarter Ended

September 30,

September 30,

June 30,

Per Common Share Data

2013

2012

2013

Book value per common share

$     13.12

$     13.01

$     12.92

Effect of intangible assets per share

4.51

3.00

4.53

Tangible book value per common share

$       8.61

$     10.01

$       8.39

Diluted earnings per share

$       0.27

$       0.21

$       0.29

Effect of merger-related costs, after-tax

-

0.02

-

Operating earnings per share

$       0.27

$       0.23

$       0.29

Average Balance Sheet Data

Total equity

$ 188,179

$ 167,055

$ 192,284

Less preferred equity

41,997

32,000

41,997

Total common equity

$ 146,182

$ 135,055

$ 150,287

Less intangible assets

50,819

31,478

51,291

Tangible common equity

$   95,363

$ 103,577

$   98,996

     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