LAFAYETTE, La., June 22 /PRNewswire-FirstCall/ -- MidSouth Bancorp, Inc. ("MidSouth") (NYSE Amex: MSL) announced today that it has roughly $15 million in direct exposure to deepwater drilling, an industry sector that has been negatively impacted by the Deepwater Horizon oil spill and subsequent drilling moratorium in the Gulf of Mexico. Based on total loans of $576 million at March 31, 2010, this direct exposure represents less than 3% of the loan portfolio. While MidSouth has a history of strong lending to the oil services industry, the majority of those loans are concentrated to companies that drill on land or in shallow water or service the production side of the industry, representing approximately 16% of the loan portfolio.
The indirect impact of the oil spill has been centered on fishing and seafood, and beach tourism, industries in which MidSouth does not have meaningful loan exposure. Nevertheless, the near term impact of the containment and clean-up efforts associated with the oil spill has been somewhat positive to the hospitality, restaurant, and boating industries for MidSouth's markets in south Louisiana. The long term indirect impact for MidSouth of this unfortunate event remains uncertain in the face of the recent moratorium on deepwater drilling and anticipated changes to industry regulations.
C. R. "Rusty" Cloutier, President and Chief Executive Officer, commented, "We continue to look for ways to support our local communities that have been devastated by the oil spill. Although U.S. District Judge Martin Feldman has just overturned the six-month moratorium on new deepwater drilling projects imposed by the Obama administration, we expect the White House will appeal the decision. However, it is critical for the U.S. government to end the moratorium and allow the industry to stabilize and move forward." Mr. Cloutier added, "MidSouth is fortunate to have a strong capital position, and a long term conservative operating philosophy that has allowed us to withstand many challenges during the past twenty five years and that will serve our Company well in today's turbulent markets."
MidSouth will be reporting its financial results for the second quarter ended June 30, 2010 on Tuesday July 27, 2010, after market hours.
About MidSouth Bancorp, Inc.
MidSouth Bancorp, Inc. is a bank holding company headquartered in Lafayette, Louisiana with assets of $974 million as of March 31, 2010. Through our wholly owned subsidiary, MidSouth Bank, N.A., we offer a full range of banking services to commercial and retail customers in south Louisiana and southeast Texas. MidSouth Bank has 35 locations in Louisiana and Texas and more than 50 ATMs.
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. 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 and the impact of the oil spill in the Gulf of Mexico and the six-month moratorium on deepwater drilling, 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; and other factors discussed under the heading "Risk Factors" in MidSouth's Annual Report on Form 10-K for the year ended December 31, 2009 filed with the SEC on March 16, 2010 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.
SOURCE MidSouth Bancorp, Inc.