MidSouth Bancorp, Inc. Reports Second Quarter 2017 Results and Declares Quarterly Dividends

LAFAYETTE, La., July 25, 2017 /PRNewswire/ -- MidSouth Bancorp, Inc. ("MidSouth") (NYSE:MSL) today reported a quarterly net loss available to common shareholders of $6.2 million for the second quarter of 2017, compared to net earnings available to common shareholders of $1.7 million reported for the second quarter of 2016 and for the first quarter of 2017.  The loss of $6.2 million, or $0.51 per diluted share, for the second quarter of 2017 was primarily due to increased loan loss provisioning to address credit issues as well as charges related to branch sales/closures and the accrual of severance benefits resulting from the termination of an executive pursuant to an employment agreement.  Second quarter 2017 net loss included an after-tax charge of $872,000 for severance and retention accruals, an after-tax charge of $371,000 resulting from the write-down of assets held for sale, and a one-time after-tax charge of $302,000 related to discontinued branch projects.  Excluding these non-operating expenses, a loss of $0.38 per diluted share was reported for the second quarter of 2017, compared to diluted earnings per common share of $0.15 for the first quarter of 2017 and for the second quarter of 2016.

MidSouth Bancorp, Inc. Logo. (PRNewsFoto/MidSouth Bancorp, Inc.)

Jim McLemore, President and CEO, remarked, "The operating loss this quarter is consistent with our disclosures during our June capital raise.  These results reflect our previously announced transition plans that include a more aggressive approach to addressing asset quality and the optimization of our branch network.  Despite the quarterly loss, capital and liquidity levels increased significantly over the prior quarter and our balance sheet is stronger than it has been in many years.  Pre-tax, pre-provision operating earnings increased $0.4 million sequentially.  As a result of the Bank's enhanced capital position, we have commenced discussions with our regulators to assess the repayment of the $32 million SBLF preferred stock."

Additionally, on July 19th, 2017, the Bank entered into a formal written agreement with the Office of the Comptroller of the Currency, (the "OCC").  Mr. McLemore commented, "We embrace and accept the provisions of the agreement with the OCC.   The provisions of the agreement are consistent with the disclosures made during our capital raise.  We believe implementing the provisions of the agreement with our realigned management team and strengthened balance sheet will only serve to enhance our efforts to deal effectively with our problem assets and become a better managed and higher performing institution."

Energy Lending Update

MidSouth Bank defines an energy loan as any loan where the borrower's ability to repay is disproportionately impacted by a prolonged downturn in energy prices.  Under this definition, the Bank includes direct Commercial and Industrial (C&I) loans to energy borrowers, as well as Commercial Real Estate (CRE) loans, Residential Real Estate loans and loans to energy-related borrowers where the loan's primary collateral is cash and marketable securities.

Other comments on the Bank's energy lending:

  • Total energy loans, as defined above, decreased $23.0 million during 2Q17 to $208.8 million, or 16.8% of total loans, from 18.2% at March 31, 2017 primarily due to $16.1 million of payoffs during the quarter.
  • Direct C&I energy loans were $171.5 million or 13.8% of total loans and had a weighted average maturity of 3.1 years at June 30, 2017.
  • Energy-related CRE and residential real estate loans were $37.0 million or 3.0% of total loans at June 30, 2017.
  • Total criticized energy-related loans decreased $18.0 million, or 16.1%, during 2Q17 to $93.5 million and represented 44.7% of energy loans at June 30, 2017, versus 48.1% at March 31, 2017.
  • Seven energy loan relationships had rating changes during the quarter.
    • Two loan relationship totaling $1.4 million were downgraded to Special Mention
    • Four loan relationships totaling $5.7 million were downgraded to Substandard
    • One loan relationship totaling $195,000 was upgraded to Pass
  • Three energy-related charge-offs totaled $6.0 million, including $5.6 million of collateral dependent charge-offs on 2 relationships, of which $2.4 million was reserved as of March 31, 2017.
  • Cycle to date net charge-offs totaled $10.0 million, or 3.76% of December 31, 2014 energy loans, which was when the effects of declining oil prices began to surface.
  • Five new energy-related impairments totaling $2.3 million were identified during 2Q17 and three additional impairment charges of $2.6 million were recorded related to existing impaired loans identified prior to 2Q17.
  • The energy reserve as a percentage of total energy loans, as defined, was 5.4% at June 30, 2017. The reserve attributable to C&I energy loans was approximately 6.4%. The reserve on all other energy loans was 1.0%.
  • The Bank has two Shared National Credits (SNCs) totaling $12.9 million in the energy portfolio at June 30, 2017 and both are rated as Substandard.
  • To date, during the month of July 2017, the Bank has had one rating related change to its energy portfolio:
    • One credit in the amount of $93,000 was downgraded from Pass to Classified

More information on our energy loan portfolio and other information on quarterly results can be found on our website at MidSouthBank.com under Investor Relations/Presentations.

Balance Sheet

Consolidated assets remained constant at $1.9 billion for the quarters ended June 30, 2017 and 2016 and March 31, 2017.  Our stable core deposit base, which excludes time deposits, totaled $1.4 billion at June 30, 2017 and March 31, 2017 and accounted for 90.3% and 90.4% of deposits at June 30, 2017 and March 31, 2017, respectively.  Net loans totaled $1.216 billion at June 30, 2017, compared to $1.247 billion at March 31, 2017 and $1.241 billion at June 30, 2016.  The $31.8 million reduction in loans during the second quarter demonstrates our accelerated efforts to address nonperforming loans, which resulted in the high level of charge-offs and pay-offs during the quarter.

MidSouth's Tier 1 leverage capital ratio was 12.66% at June 30, 2017, compared to 10.27% at March 31, 2017.  Tier 1 risk-based capital and total risk-based capital ratios were 16.48% and 17.73% at June 30, 2017, compared to 13.14% and 14.40% at March 31, 2017, respectively.  Tier 1 common equity to total risk-weighted assets at June 30, 2017 was 12.15%, compared to 8.91% at March 31, 2017.  Tangible common equity totaled $174.2 million at June 30, 2017, compared to $128.4 million at March 31, 2017.  Tangible book value per share at June 30, 2017 was $10.87 versus $11.28 at March 31, 2017.  The changes in regulatory capital levels, tangible common equity and tangible book value per share are primarily attributable to the 4,583,334 shares of common stock issued with the $55.0 million capital raise during the quarter.

Asset Quality

Nonperforming assets totaled $56.4 million at June 30, 2017, a decrease of $2.5 million compared to $58.9 million reported at March 31, 2017.  The decrease is primarily attributable to the payoffs/paydowns of $15.3 million of non-accrual loans and the charge-off of $9.1 million of non-accrual loans, which included the charge-offs of $6.9 million of collateral-dependent loans that were on non-accrual at March 31, 2017.  These decreases were partially offset by $22.7 million of loans placed on non-accrual during the quarter.  Allowance coverage for nonperforming loans increased to 44.88% at June 30, 2017, compared to 42.96% at March 31, 2017.  The ALLL/total loans ratio was 1.99% at June 30, 2017 and 1.93% at March 31, 2017.  Including valuation accounting adjustments on acquired loans, the total valuation accounting adjustment plus ALLL was 2.11% of loans at June 30, 2017.  The ratio of annualized net charge-offs to total loans increased to 4.01% for the three months ended June 30, 2017 compared to 0.83% for the three months ended March 31, 2017.

Total nonperforming assets to total loans plus ORE and other assets repossessed was 4.54% at June 30, 2017 compared to 4.62% at March 31, 2017.  Loans classified as troubled debt restructurings, accruing ("TDRs, accruing") decreased to $1.7 million at June 30, 2017 compared to $2.0 million at March 31, 2017.  Classified assets, including ORE, were $148.8 million at June 30, 2017 compared to $148.4 million at March 31, 2017.  Downgrades to classified assets totaling $39.5 million during the quarter were partially offset by the payoff/paydown of $29.3 million of classified relationships during the second quarter as well as charge-offs of $9.6 million of loans rated as classified at March 31, 2017.

Second Quarter 2017 vs. First Quarter 2017 Earnings Comparison

MidSouth reported a net loss available to common shareholders of $6.2 million for the three months ended June 30, 2017, compared to net earnings available to common shareholders of $1.7 million for the three months ended March 31, 2017.  Net interest income increased $180,000 in sequential-quarter comparison.  Noninterest income increased $179,000 in sequential-quarter comparison.

The second quarter of 2017 included non-operating expenses totaling $2.4 million which consisted of $1.3 million of severance and retention accruals, a $570,000 write-down on assets held for sale and a $465,000 one-time charge related to discontinued branch projects.  Excluding these non-operating expenses, noninterest expense decreased $2,000 in sequential-quarter comparison.  Decreases of $579,000 in salaries and benefits costs and $196,000 in occupancy expenses were primarily offset by increases of $551,000 in legal and professional fees and a $187,000 provision for unfunded lines of credit.   The increase in legal and professional fees is primarily due to legal costs related to management transition issues and increased outsourcing expenses to enhance risk management.  The provision for loan losses increased $9.7 million in sequential-quarter comparison.  A $3.2 million income tax benefit was reported for the second quarter of 2017, compared to income tax expense of $589,000 for the first quarter of 2017.

Dividends on the Series B Preferred Stock issued to the Treasury as a result of our participation in the Small Business Lending Fund ("SBLF") totaled $720,000 for the second quarter of 2017 based on a dividend rate of 9%, unchanged from $720,000 for the first quarter of 2017.  Dividends on the Series C Preferred Stock issued with the December 28, 2012 acquisition of PSB Financial Corporation ("PSB") totaled $91,000 for the three months ended June 30, 2017 and March 31, 2017.

Fully taxable-equivalent ("FTE") net interest income increased $163,000 in sequential-quarter comparison, primarily due to an increase in interest income on loans of $109,000 as well as a $65,000 increase in interest income on time and interest-bearing deposits in other banks.  Interest income on loans increased in sequential-quarter comparison due to an increase in the average yield on loans of 6 basis points, from 5.29% to 5.35%.  The average balance of loans decreased $19.8 million in sequential-quarter comparison due to the high level of charge-offs and payoffs.  Excluding purchase accounting adjustments, the loan yield increased 3 basis points, from 5.22% to 5.25% during the same period.  Interest income on investment securities increased $39,000 in sequential-quarter comparison.  The average yield on investment securities increased 3 basis points, from 2.66% to 2.69%, and the average balance of investment securities increased $1.3 million.  The average yield on total earning assets increased one basis point for the same period, from 4.51% to 4.52%, respectively.  The FTE net interest margin remained unchanged at 4.18% in sequential-quarter comparison.  Excluding purchase accounting adjustments, the FTE net interest margin decreased 2 basis points, from 4.11% for the first quarter of 2017 to 4.09% for the second quarter of 2017.

Second Quarter 2017 vs. Second Quarter 2016 Earnings Comparison

MidSouth reported a net loss available to common shareholders of $6.2 million for the three months ended June 30, 2017, compared to net earnings available to common shareholders of $1.7 million for the three months ended June 30, 2016.  Revenues from consolidated operations increased $605,000 in quarterly comparison, from $22.9 million for the three months ended June 30, 2016 to $23.5 million for the three months ended June 30, 2017.  Net interest income increased $521,000 in quarterly comparison, resulting from a $636,000 increase in interest income, which was partially offset by a $115,000 increase in interest expense.  Noninterest income increased $84,000 in quarterly comparison and consisted primarily of a $98,000 increase in ATM/debit card income and a $44,000 increase in mortgage program fee income.  The increases were partially offset by a $55,000 decrease in service charges on deposits accounts.

Excluding non-operating expenses of $2.4 million for the second quarter of 2017, noninterest expenses increased $187,000 in quarterly comparison and consisted primarily of a $500,000 increase in legal and professional fees and a $189,000 increase in data processing costs, which were partially offset by a $239,000 decrease in occupancy expense and a $166,000 decrease in corporate development.  A reclass of certain hosted services subscriptions from corporate development into data processing at the beginning of 2017 caused the fluctuations in those two expense categories.  The provision for loan losses increased $10.2 million in quarterly comparison, from $2.3 million for the three months ended June 30, 2016 to $12.5 million for the three months ended June 30, 2017.  A $3.2 million income tax benefit was reported for the second quarter of 2017, compared to income tax expense of $1.0 million for the second quarter of 2016.

Dividends on preferred stock totaled $811,000 for the three months ended June 30, 2017 and June 30, 2016.  Dividends on the Series B Preferred Stock were $720,000 for the second quarter of 2017, unchanged from $720,000 for the second quarter of 2016.  Dividends on the Series C Preferred Stock issued with the December 28, 2012 acquisition of PSB Financial Corporation ("PSB") totaled $91,000 for the three months ended June 30, 2017 and June 30, 2016.

FTE net interest income increased $496,000 in prior year quarterly comparison.  Interest income on loans increased $159,000 due to an increase in the average yield on loans of 4 basis points.  The average balance of loans decreased $1.7 million in prior year quarterly comparison.  Purchase accounting adjustments added 10 basis points to the average yield on loans for the second quarter of 2017 and 9 basis points to the average yield on loans for the second quarter of 2016.  Excluding the impact of the purchase accounting adjustments, average loan yields increased 3 basis points in prior year quarterly comparison, from 5.22% to 5.25%.

Investment securities totaled $436.0 million, or 22.4% of total assets at June 30, 2017, versus $440.1 million, or 22.6% of total assets at December 31, 2016.  The investment portfolio had an effective duration of 3.0 years and a net unrealized gain of $2.0 million at June 30, 2017.  Interest income on investments increased $405,000 in prior year quarterly comparison.  The average volume of investment securities increased $33.7 million in prior year quarterly comparison, and the average tax equivalent yield on investment securities increased 17 basis points, from 2.52% to 2.69%.

The average yield on all earning assets increased 9 basis points in prior year quarterly comparison, from 4.43% for the second quarter of 2016 to 4.52% for the second quarter of 2017.  Excluding the impact of purchase accounting adjustments, the average yield on total earning assets increased 9 basis points, from 4.36% to 4.45% for the three-month periods ended June 30, 2016 and 2017, respectively.

Interest expense increased $115,000 in prior year quarterly comparison.  Increases in interest expense included a $70,000 increase in interest expense on deposits and a $42,000 increase in interest expense on variable rate junior subordinated debentures.  Excluding purchase accounting adjustments on acquired certificates of deposit and FHLB borrowings, the average rate paid on interest-bearing liabilities was 0.51% for the three months ended June 30, 2017 and 0.46% for the three months ended June 30, 2016.

As a result of these changes in volume and yield on earning assets and interest-bearing liabilities, the FTE net interest margin increased 7 basis points, from 4.11% for the second quarter of 2016 to 4.18% for the second quarter of 2017.  Excluding purchase accounting adjustments on loans, deposits and FHLB borrowings, the FTE margin increased 7 basis points, from 4.02% for the second quarter of 2016 to 4.09% for the second quarter of 2017.

Year-To-Date Earnings Comparison

MidSouth reported a net loss available to common shareholders of $4.5 million for the six months ended June 30, 2017, compared to net earnings available to common shareholders of $3.6 million for the six months ended June 30, 2016.  Revenues from consolidated operations increased $844,000 in year-over-year comparison, from $45.7 million for the six months ended June 30, 2016 to $46.6 million for the six months ended June 30, 2017.  Net interest income increased $460,000 in year-over-year comparison, resulting from a $620,000 increase in interest income, which was partially offset by a $160,000 increase in interest expense.  Noninterest income increased $384,000 in year-over-year comparison and consisted primarily of a $192,000 increase in ATM/debit card income, a $78,000 increase in mortgage program fee income and a $56,000 increase in service charges on deposits accounts.

Excluding non-operating expenses of $2.4 million for the second quarter of 2017, noninterest expenses increased $658,000 in year-over-year comparison and consisted primarily of a $627,000 increase in salaries and benefits costs, a $502,000 increase in legal and professional fees and a $352,000 increase in data processing costs, which were partially offset by decreases of $212,000 in occupancy expense, $190,000 in marketing costs, $185,000 in corporate development and $143,000 in ATM/debit card expense.  A reclass of certain hosted services subscriptions from corporate development into data processing at the beginning of 2017 caused the fluctuations in those two expense categories.  The provision for loan losses increased $10.2 million in year-over-year comparison, from $5.1 million for the six months ended June 30, 2016 to $15.3 million for the six months ended June 30, 2017, primarily due to the high level of charge-offs and additional impairment charges on nonperforming loans in the second quarter of 2017.  A $2.6 million income tax benefit was reported for the first six months of 2017, compared to income tax expense of $2.0 million for the first six months of 2016.

In year-to-date comparison, FTE net interest income increased $408,000 primarily due to a $618,000 increase in interest income from investment securities.  The average volume of investment securities increased $26.4 million in year-over-year comparison, and the average yield on investment securities increased 13 basis points for the same period.  Interest income on loans decreased $85,000 in year-over-year comparison.  The average volume of loans increased $9.8 million in year-over-year comparison, and the average yield on loans decreased 3 basis points, from 5.36% to 5.33%. The average yield on earning assets increased 6 basis points in year-over-year comparison, from 4.47% at June 30, 2016 to 4.53% at June 30, 2017.  The purchase accounting adjustments added 8 basis points to the average yield on loans for the six months ended June 30, 2017 and 13 basis points for the six months ended June 30, 2016.  Net of purchase accounting adjustments, the average yield on earning assets increased 9 basis points, from 4.38% at June 30, 2016 to 4.47% at June 30, 2017.

Interest expense increased $160,000 in year-over-year comparison.  Increases in interest expense included a $74,000 increase in interest expense on deposits and an $83,000 increase in interest expense on junior subordinated debentures.  These increases were partially offset by a $23,000 decrease in interest expense on short-term FHLB advances.  The average rate paid on interest-bearing liabilities was 0.47% for the six months ended June 30, 2017, compared to 0.43% for the six months ended June 30, 2016.  Net of purchase accounting adjustments, the average rate paid on interest-bearing liabilities increased 4 basis points, from 0.46% for the six months ended June 30, 2016 to 0.50% for the six months ended June 30, 2017.  The FTE net interest margin increased 4 basis points, from 4.15% for the six months ended June 30, 2016 to 4.19% for the six months ended June 30, 2017.  Net of purchase accounting adjustments, the FTE net interest margin increased 7 basis points, from 4.04% to 4.11% for the six months ended June 30, 2016 and 2017.

Dividends

MidSouth's Board of Directors announced a cash dividend was declared in the amount of $0.01 per share to be paid on its common stock on October 2, 2017 to shareholders of record as of the close of business on September 15, 2017.  The quarterly common stock cash dividend has been reduced to conserve capital as we work to reduce problem assets.  Additionally, a quarterly cash dividend of 1.00% per preferred share on its 4.00% Non-Cumulative Perpetual Convertible Preferred Stock, Series C was declared payable on October 16, 2017 to shareholders of record as of the close of business on October 2, 2017.

About MidSouth Bancorp, Inc.

MidSouth Bancorp, Inc. is a financial holding company headquartered in Lafayette, Louisiana, with assets of $1.9 billion as of June 30, 2017. MidSouth Bancorp, Inc. trades on the NYSE under the symbol "MSL." Through its wholly owned subsidiary, MidSouth Bank, N.A., MidSouth offers a full range of banking services to commercial and retail customers in Louisiana and Texas. MidSouth Bank currently has 57 locations in Louisiana and Texas and is connected to a worldwide ATM network that provides customers with access to more than 55,000 surcharge-free ATMs. Additional corporate information is available at MidSouthBank.com.

Forward-Looking Statements

Certain statements contained herein are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties.  These statements include, among others, statements regarding the strength of the Company's balance sheet and its positioning to address problem assets and achieve operating efficiencies and the implementation of the provisions of the formal agreement with the OCC.

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 in the markets we serve, 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; increases in competitive pressure in the banking and financial services industries; increased competition for deposits and loans which could affect compositions, rates and terms; changes in the levels of prepayments received on loans and investment securities that adversely affect the yield and value of the earning assets; our ability to successfully implement and manage our recently announced strategic initiatives; costs and expenses associated with our strategic initiatives and possible changes in the size and components of the expected costs and charges associated with our strategic initiatives; our ability to realize the anticipated benefits and cost savings from our strategic initiatives within the anticipated time frame, if at all; the ability of our strategic initiatives to adequately address the anticipated concerns of the Office of the Comptroller of the Currency (the "OCC") in its current examination of us and the ability of the Company to comply with the terms of the formal agreement with the OCC; credit losses due to loan concentration, particularly our energy lending and legacy commercial real estate portfolios; a deviation in actual experience from the underlying assumptions used to determine and establish our allowance for loan losses ("ALLL"), which could result in greater than expected loan losses; the adequacy of the level of our ALLL and the amount of loan loss provisions required in future periods including the impact of implementation of the new CECL (current expected credit loss) methodology; future examinations by our regulatory authorities, including the possibility that the regulatory authorities may, among other things, impose conditions on our operations or require us to increase our allowance for loan losses or write-down assets; changes in the availability of funds resulting from reduced liquidity or increased costs; the timing and impact of future acquisitions or divestitures, the success or failure of integrating acquired operations, and the ability to capitalize on growth opportunities upon entering new markets; the ability to acquire, operate, and maintain effective and efficient operating systems; increased asset levels and changes in the composition of assets that would impact capital levels and regulatory capital ratios; loss of critical personnel and the challenge of hiring qualified personnel at reasonable compensation levels; legislative and regulatory changes, including the impact of regulations under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and other 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; regulations and restrictions resulting from our participation in government-sponsored programs such as the U.S. Treasury's Small Business Lending Fund, including potential retroactive changes in such programs; changes in accounting principles, policies, and guidelines applicable to financial holding companies and banking; increases in cybersecurity risk, including potential business disruptions or financial losses; acts of war, terrorism, cyber intrusion, weather, or other catastrophic events beyond our control; and other factors discussed under the heading "Risk Factors" in MidSouth's Annual Report on Form 10-K for the year ended December 31, 2016 filed with the SEC on March 16, 2017 and in its other filings with the SEC.

MidSouth does not undertake any obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information, future events or otherwise, except as required by law.

 

MIDSOUTH BANCORP, INC. and SUBSIDIARIES          

Condensed Consolidated Financial Information (unaudited)          

(in thousands except per share data)               









Quarter


Quarter


Quarter


Quarter


Quarter



Ended


Ended


Ended


Ended


Ended

EARNINGS DATA


6/30/2017


3/31/2017


12/31/2016


9/30/2016


6/30/2016

     Total interest income


$     19,758


$     19,531


$      19,694


$     19,667


$     19,122

     Total interest expense


1,512


1,465


1,459


1,414


1,397

          Net interest income


18,246


18,066


18,235


18,253


17,725

     FTE net interest income


18,442


18,279


18,478


18,472


17,946

     Provision for loan losses


12,500


2,800


2,600


2,900


2,300

     Non-interest income


5,223


5,044


5,071


5,152


5,139

     Non-interest expense


19,604


17,230


17,636


17,114


17,041

          Earnings (loss) before income taxes


(8,635)


3,080


3,070


3,391


3,523

     Income tax expense (benefit)


(3,221)


589


871


993


1,030

          Net earnings (loss)


(5,414)


2,491


2,199


2,398


2,493

     Dividends on preferred stock


811


811


812


811


811

          Net earnings (loss) available to common shareholders


$      (6,225)


$       1,680


$        1,387


$       1,587


$       1,682












PER COMMON SHARE DATA











     Basic earnings (loss) per share


$        (0.51)


$         0.15


$          0.12


$         0.14


$         0.15

     Diluted earnings (loss) per share


(0.51)


0.15


0.12


0.14


0.15

     Diluted earnings per share, operating (Non-GAAP)(*)


(0.38)


0.15


0.12


0.14


0.15

     Quarterly dividends per share


0.09


0.09


0.09


0.09


0.09

     Book value at end of period


13.76


15.37


15.25


15.58


15.56

     Tangible book value at period end (Non-GAAP)(*)


10.87


11.28


11.13


11.44


11.40

     Market price at end of period


11.75


15.30


13.60


10.40


10.04

     Shares outstanding at period end 


16,026,355


11,383,914


11,362,716


11,362,716


11,362,705

     Weighted average shares outstanding











        Basic


12,227,456


11,264,394


11,271,948


11,262,282


11,255,042

        Diluted


12,237,299


11,282,491


11,273,302


11,262,710


11,255,178












AVERAGE BALANCE SHEET DATA











     Total assets


$1,926,408


$1,932,818


$ 1,960,436


$1,927,351


$1,921,004

     Loans and leases


1,254,402


1,274,213


1,277,555


1,268,270


1,256,133

     Total deposits


1,551,498


1,569,188


1,591,814


1,562,193


1,562,680

     Total common equity


187,762


174,785


176,747


177,866


175,994

     Total tangible common equity (Non-GAAP)(*)


141,389


128,124


129,821


130,662


128,516

     Total equity 


228,871


215,895


217,857


218,976


217,112












SELECTED RATIOS











     Annualized return on average assets, operating (Non-GAAP)(*)


-0.97%


0.35%


0.28%


0.33%


0.35%

     Annualized return on average common equity, operating (Non-GAAP)(*)


-10.00%


3.89%


3.12%


3.55%


3.81%

     Annualized return on average tangible common equity, operating (Non-GAAP)(*)


-13.28%


5.31%


4.25%


4.83%


5.22%

     Pre-tax, pre-provision annualized return on average assets, operating (Non-GAAP)(*)


1.30%


1.23%


1.15%


1.30%


1.21%

     Efficiency ratio, operating (Non-GAAP)(*)


73.11%


74.51%


75.67%


73.04%


74.49%

     Average loans to average deposits


80.85%


81.20%


80.26%


81.19%


80.38%

     Taxable-equivalent net interest margin


4.18%


4.18%


4.09%


4.17%


4.11%

     Tier 1 leverage capital ratio


12.66%


10.27%


10.11%


10.27%


10.25%












CREDIT QUALITY











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


1.99%


1.93%


1.90%


1.83%


1.69%

     Nonperforming assets to tangible equity + ALLL


23.50%


30.34%


33.88%


32.98%


32.77%

     Nonperforming assets to total loans, other real estate owned and other repossessed assets












4.54%


4.62%


5.06%


5.03%


4.97%

     Annualized QTD net charge-offs to total loans


4.01%


0.83%


0.46%


0.32%


0.40%












(*) See reconciliation of Non-GAAP financial measures on pages 8-10.

 

MIDSOUTH BANCORP, INC. and SUBSIDIARIES          

Condensed Consolidated Balance Sheets (unaudited)       

(in thousands)               



















BALANCE SHEET


June 30,


March 31,


December 31,


September 30,


June 30,



2017


2017


2016


2016


2016

Assets











Cash and cash equivalents


$   131,437


$     78,471


$         82,228


$        126,667


$     98,535

Securities available-for-sale


348,580


357,803


341,873


316,145


318,239

Securities held-to-maturity


87,462


91,242


98,211


103,412


109,420

     Total investment securities


436,042


449,045


440,084


419,557


427,659

Other investments


11,666


11,362


11,355


11,339


11,036

Total loans


1,240,253


1,272,000


1,284,082


1,272,800


1,262,389

Allowance for loan losses


(24,674)


(24,578)


(24,372)


(23,268)


(21,378)

     Loans, net


1,215,579


1,247,422


1,259,710


1,249,532


1,241,011

Premises and equipment


65,739


68,216


68,954


69,778


68,468

Goodwill and other intangibles


46,239


46,516


46,792


47,069


47,346

Other assets


38,867


33,907


34,217


29,978


28,469

     Total assets


$1,945,569


$1,934,939


$    1,943,340


$     1,953,920


$1,922,524























Liabilities and Shareholders' Equity











Non-interest bearing deposits


$   428,419


$   426,998


$       414,921


$        403,301


$   383,797

Interest-bearing deposits


1,107,801


1,145,946


1,164,509


1,181,906


1,176,269

   Total deposits


1,536,220


1,572,944


1,579,430


1,585,207


1,560,066

Securities sold under agreements to repurchase












90,799


89,807


94,461


95,210


85,786

Long-term FHLB advances


25,211


25,318


25,424


25,531


25,638

Junior subordinated debentures


22,167


22,167


22,167


22,167


22,167

Other liabilities


9,602


8,641


7,482


7,679


10,926

     Total liabilities


1,683,999


1,718,877


1,728,964


1,735,794


1,704,583

Total shareholders' equity


261,570


216,062


214,376


218,126


217,941

     Total liabilities and shareholders' equity


$1,945,569


$1,934,939


$    1,943,340


$     1,953,920


$1,922,524












 

MIDSOUTH BANCORP, INC. and SUBSIDIARIES             

Condensed Consolidated Income Statements (unaudited)          



(in thousands except per share data)                


























Percent Change







EARNINGS STATEMENT


Three Months Ended


2Q17 vs. 1Q17


2Q17 vs. 2Q16


Six Months Ended


Percent



6/30/2017


3/31/2017


6/30/2016




6/30/2017


6/30/2016


Change


















Interest income:

















Loans, including fees


$ 16,440


$ 16,437


$ 16,332


0.0%


0.7%


$ 32,877


$ 32,736


0.4%

Investment securities


2,790


2,734


2,360


2.0%


18.2%


5,524


4,854


13.8%

Accretion of purchase accounting adjustments


291


185


240


57.3%


21.3%


476


702


-32.2%

Other interest income


237


175


190


35.4%


24.7%


412


377


9.3%

Total interest income


19,758


19,531


19,122


1.2%


3.3%


39,289


38,669


1.6%


















Interest expense:

















Deposits


973


935


914


4.1%


6.5%


1,908


1,834


4.0%

Borrowings


416


411


414


1.2%


0.5%


827


850


-2.7%

Junior subordinated debentures


212


208


170


1.9%


24.7%


420


337


24.6%

Accretion of purchase accounting adjustments


(89)


(89)


(101)


0.0%


-11.9%


(178)


(204)


-12.7%

Total interest expense


1,512


1,465


1,397


3.2%


8.2%


2,977


2,817


5.7%


















Net interest income


18,246


18,066


17,725


1.0%


2.9%


36,312


35,852


1.3%

Provision for loan losses


12,500


2,800


2,300


346.4%


443.5%


15,300


5,100


200.0%

Net interest income after provision for loan losses


5,746


15,266


15,425


-62.4%


-62.7%


21,012


30,752


-31.7%


















Noninterest income:

















Service charges on deposit accounts


2,396


2,480


2,451


-3.4%


-2.2%


4,876


4,820


1.2%

ATM and debit card income


1,766


1,703


1,668


3.7%


5.9%


3,469


3,277


5.9%

Gain on securities, net  (non-operating)(*)


3


6


20


-50.0%


-85.0%


9


20


-55.0%

Mortgage lending


167


143


123


16.8%


35.8%


310


232


33.6%

Other charges and fees


891


712


877


25.1%


1.6%


1,603


1,534


4.5%

Total non-interest income


5,223


5,044


5,139


3.5%


1.6%


10,267


9,883


3.9%


















Noninterest expense:

















Salaries and employee benefits


8,110


8,689


8,182


-6.7%


-0.9%


16,799


16,172


3.9%

Occupancy expense


3,428


3,624


3,667


-5.4%


-6.5%


7,052


7,264


-2.9%

ATM and debit card


713


721


792


-1.1%


-10.0%


1,434


1,577


-9.1%

Legal and professional fees


936


385


436


143.1%


114.7%


1,321


819


61.3%

FDIC premiums


430


397


420


8.3%


2.4%


827


849


-2.6%

Marketing


262


280


351


-6.4%


-25.4%


542


732


-26.0%

Corporate development


253


316


419


-19.9%


-39.6%


569


754


-24.5%

Data processing


667


621


478


7.4%


39.5%


1,288


936


37.6%

Printing and supplies


135


183


223


-26.2%


-39.5%


318


411


-22.6%

Expenses on ORE, net


92


79


36


16.5%


155.6%


171


230


-25.7%

Amortization of core deposit intangibles


276


277


276


-0.4%


0.0%


553


553


0.0%

Severance and retention accruals (non-operating)(*)


1,341


-


-


-


-


1,341


-


-

One-time charge related to discontinued branch projects (non-operating)(*)


465


-


-


-


-


465


-


-

Write-down of assets held for sale (non-operating)(*)


570


-


-


-


-


570


-


-

Other non-interest expense


1,926


1,658


1,761


16.2%


9.4%


3,584


3,503


2.3%

Total non-interest expense


19,604


17,230


17,041


13.8%


15.0%


36,834


33,800


9.0%

Earnings (loss) before income taxes


(8,635)


3,080


3,523


-380.4%


-345.1%


(5,555)


6,835


-181.3%

Income tax expense


(3,221)


589


1,030


-646.9%


-412.7%


(2,632)


1,993


-232.1%

Net earnings (loss)


(5,414)


2,491


2,493


-317.3%


-317.2%


(2,923)


4,842


-160.4%

Dividends on preferred stock


811


811


811


0.0%


0.0%


1,622


1,238


31.0%

Net earnings (loss) available to common shareholders


$  (6,225)


$   1,680


$   1,682


-470.5%


-470.1%


$  (4,545)


$   3,604


-226.1%


















Earnings (loss) per common share, diluted


$    (0.51)


$     0.15


$     0.15


-440.0%


-440.0%


$    (0.39)


$     0.32


-221.9%


















Operating earnings (loss) per common share, diluted (Non-GAAP)(*)


$    (0.38)


$     0.15


$     0.15


-353.3%


-353.3%


$    (0.26)


$     0.32


-181.3%



















(*) See reconciliation of Non-GAAP financial measures on page 8-10.


















Note: Prior period information presented above has been adjusted to reflect a reclass of certain credit card income from interest income to other non-interest income as well as certain wire fee income from other non-interest income into service charges on deposit accounts.

 

MIDSOUTH BANCORP, INC. and SUBSIDIARIES          

Composition of Loans and Deposits and Asset Quality Data (unaudited)       

(in thousands)               





COMPOSITION OF LOANS


June 30,


March 31,


Jun 17 vs Mar 17
% Change


December 31,


September 30,


June 30,


Jun 17 vs Jun 16
% Change


2017


2017



2016


2016


2016


Commercial, financial, and agricultural


$   451,767


$   469,815


-3.8%


$       459,574


$       463,031


$   456,264


-1.0%

Lease financing receivable


866


969


-10.6%


1,095


1,449


1,641


-47.2%

Real estate - construction


98,695


100,248


-1.5%


100,959


96,365


96,331


2.5%

Real estate - commercial


461,064


464,859


-0.8%


481,155


464,853


463,142


-0.4%

Real estate - residential


156,394


159,426


-1.9%


157,872


155,653


148,379


5.4%

Installment loans to individuals


70,031


75,258


-6.9%


82,660


88,537


94,522


-25.9%

Other


1,436


1,425


0.8%


767


2,912


2,110


-31.9%
















Total loans


$1,240,253


$1,272,000


-2.5%


$    1,284,082


$    1,272,800


$1,262,389


-1.8%
















COMPOSITION OF DEPOSITS
















June 30,


March 31,


Jun 17 vs Mar 17
% Change


December 31,


September 30,


June 30,


Jun 17 vs Jun 16
% Change



2017


2017



2016


2016


2016


Noninterest bearing


$   428,419


$   426,998


0.3%


$       414,921


$       403,301


$   383,798


11.6%

NOW & other


465,505


489,789


-5.0%


472,484


465,850


467,987


-0.5%

Money market/savings


493,232


505,669


-2.5%


539,815


557,068


544,256


-9.4%

Time deposits of less than $100,000


75,196


75,579


-0.5%


75,940


78,785


80,158


-6.2%

Time deposits of $100,000 or more


73,868


74,909


-1.4%


76,270


80,203


83,867


-11.9%
















Total deposits


$1,536,220


$1,572,944


-2.3%


$    1,579,430


$    1,585,207


$1,560,066


-1.5%
















ASSET QUALITY DATA
















June 30,


March 31,




December 31,


September 30,


June 30,





2017


2017



2016


2016


2016



Nonaccrual loans


$     54,810


$     56,443




$         62,580


$         60,522


$     59,865



Loans past due 90 days and over


165


775




268


968


56



Total nonperforming loans


54,975


57,218




62,848


61,490


59,921



Other real estate


1,387


1,643




2,175


2,317


2,735



Other repossessed assets


36


30




16


283


263



Total nonperforming assets


$     56,398


$     58,891




$         65,039


$         64,090


$     62,919


















Troubled debt restructurings, accruing


$       1,653


$       1,995




$              152


$              153


$          154

































Nonperforming assets to total assets


2.90%


3.04%




3.35%


3.28%


3.27%



Nonperforming assets to total loans +      















ORE + other repossessed assets


4.54%


4.62%




5.06%


5.03%


4.97%



ALLL to nonperforming loans


44.88%


42.96%




38.78%


37.84%


35.68%



ALLL to total loans


1.99%


1.93%




1.90%


1.83%


1.69%


















Quarter-to-date charge-offs


$     12,659


$       2,906




$           1,835


$           1,161


$       1,425



Quarter-to-date recoveries


255


312




339


151


156



Quarter-to-date net charge-offs


$     12,404


$       2,594




$           1,496


$           1,010


$       1,269



Annualized QTD net charge-offs to total loans


4.01%


0.83%




0.46%


0.32%


0.40%



 

MIDSOUTH BANCORP, INC. and SUBSIDIARIES             

Loan Portfolio - Quarterly Roll Forward (unaudited)

(in thousands)    










Three Months Ended



June 30,


March 31,


June 30,



2017


2017


2016

LOAN ACTIVITY














Loans originated


$  72,316


$      63,141


$ 92,444

Repayments


(116,885)


(72,179)


(65,381)

Increases on renewals


2,531


3,940


3,465

Change in lines of credit


9,151


(4,798)


(18,586)

Change in allowance for loan losses


(96)


(206)


(1,031)

Other


1,140


(2,186)


398

Net change in loans


$ (31,843)


$    (12,288)


$ 11,309

 

MIDSOUTH BANCORP, INC. and SUBSIDIARIES          

Tangible Common Equity to Tangible Assets and Regulatory Ratios (unaudited)

(in thousands)               


COMPUTATION OF TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS






June 30,


June 30,



2017


2016

Total equity


$   261,570


$   217,941

Less preferred equity


41,092


41,110

Total common equity


220,478


176,831

Less goodwill


42,171


42,171

Less intangibles


4,068


5,175

Tangible common equity


$   174,239


$   129,485






Total assets


$1,945,569


$1,922,524

Less goodwill


42,171


42,171

Less intangibles


4,068


5,175

Tangible assets


$1,899,330


$1,875,178






Tangible common equity to tangible assets


9.17%


6.91%






REGULATORY CAPITAL










Common equity tier 1 capital


$   175,827


$   129,516

Tier 1 capital


238,418


192,125

Total capital


256,589


210,444






Regulatory capital ratios:





Common equity tier 1 capital ratio


12.15%


8.86%

Tier 1 risk-based capital ratio


16.48%


13.14%

Total risk-based capital ratio


17.73%


14.39%

Tier 1 leverage ratio


12.66%


10.25%






 

MIDSOUTH BANCORP, INC. and SUBSIDIARIES

Quarterly Yield Analysis (unaudited)



















(in thousands)






























YIELD ANALYSIS


Three Months Ended


Three Months Ended


Three Months Ended


Three Months Ended


Three Months Ended


June 30, 2017


March 31, 2017


December 31, 2016


September 30, 2016


June 30, 2016


























Tax






Tax






Tax






Tax






Tax





Average


Equivalent


Yield/


Average


Equivalent


Yield/


Average


Equivalent


Yield/


Average


Equivalent


Yield/


Average


Equivalent


Yield/



Balance


Interest


Rate


Balance


Interest


Rate


Balance


Interest


Rate


Balance


Interest


Rate


Balance


Interest


Rate
































Taxable securities


$   387,441


$     2,416


2.49%


$   382,105


$     2,327


2.44%


$   348,673


$     1,965


2.25%


$   354,770


$     1,983


2.24%


$   349,433


$     1,940


2.22%

Tax-exempt securities


56,622


570


4.03%


60,618


620


4.09%


66,549


705


4.24%


60,544


635


4.20%


60,972


641


4.21%

Total investment securities


444,063


2,986


2.69%


442,723


2,947


2.66%


415,222


2,670


2.57%


415,314


2,618


2.52%


410,405


2,581


2.52%

Federal funds sold


3,573


9


1.00%


3,571


6


0.67%


3,261


5


0.60%


2,703


3


0.43%


3,655


3


0.32%

Time and interest bearing deposits in































other banks


55,331


150


1.07%


41,785


85


0.81%


90,527


125


0.54%


64,444


83


0.50%


76,042


97


0.50%

Other investments


11,493


78


2.71%


11,355


84


2.96%


11,342


78


2.75%


11,253


95


3.38%


11,232


90


3.21%

Loans


1,254,402


16,731


5.35%


1,274,213


16,622


5.29%


1,277,555


17,059


5.31%


1,268,270


17,087


5.36%


1,256,133


16,572


5.31%

Total interest earning assets


1,768,862


19,954


4.52%


1,773,647


19,744


4.51%


1,797,907


19,937


4.41%


1,761,984


19,886


4.49%


1,757,467


19,343


4.43%

Non-interest earning assets


157,546






159,171






162,529






165,367






163,537





Total assets


$1,926,408






$1,932,818






$1,960,436






$1,927,351






$1,921,004




































Interest-bearing liabilities:































Deposits


$1,125,482


$        973


0.35%


$1,155,407


$        935


0.33%


$1,179,174


$        929


0.31%


$1,170,660


$        915


0.31%


$1,176,387


$        903


0.31%

Repurchase agreements


90,807


236


1.04%


92,571


234


1.03%


94,609


241


1.01%


88,560


236


1.06%


85,479


233


1.10%

Federal funds purchased


-


-


0.00%


-


-


0.00%


-


-


0.00%


-


-


0.00%


2


-


0.00%

Long-term FHLB advances


25,260


91


1.43%


25,370


88


1.39%


25,474


92


1.41%


25,581


93


1.42%


25,687


91


1.40%

Junior subordinated debentures


22,167


212


3.78%


22,167


208


3.75%


22,167


197


3.48%


22,167


170


3.00%


22,167


170


3.03%

Total interest bearing liabilities


1,263,716


1,512


0.48%


1,295,515


1,465


0.46%


1,321,424


1,459


0.44%


1,306,968


1,414


0.43%


1,309,722


1,397


0.43%

Non-interest bearing liabilities


433,821






421,408






421,155






401,407






394,170





Shareholders' equity


228,871






215,895






217,857






218,976






217,112





Total liabilities and  shareholders'































equity


$1,926,408






$1,932,818






$1,960,436






$1,927,351






$1,921,004




































Net interest income (TE) and spread


$   18,442


4.04%




$   18,279


4.05%




$   18,478


3.97%




$   18,472


4.06%




$   17,946


4.00%
































Net interest margin




4.18%






4.18%






4.09%






4.17%






4.11%
































Core net interest margin (Non-GAAP)(*)



4.09%






4.11%






3.98%






4.05%






4.02%


































(*) See reconciliation of Non-GAAP financial measures on page 8-10


Note: Prior period information presented above has been adjusted to reflect a reclass of certain credit card income from interest income to non-interest income

 

MIDSOUTH BANCORP, INC. and SUBSIDIARIES             

Reconciliation of Non-GAAP Financial Measures (unaudited)

(in thousands except per share data)    












Certain financial information included in the earnings release and the associated Condensed Consolidated Financial Information (unaudited) is determined by methods other than in accordance with GAAP.  We are providing disclosure of the reconciliation of these non-GAAP financial measures to the most comparable GAAP financial measures.  "Tangible common equity" is defined as total common equity reduced by intangible assets.  "Core net interest margin" is defined as reported net interest margin less purchase accounting adjustments.  "Annualized return on average assets, operating" is defined as net earnings available to common shareholders adjusted for specified one-time items divided by average assets.  "Annualized return on average common equity, operating" is defined as net earnings available to common shareholders adjusted for specified one-time items divided by average common equity.  "Annualized return on average tangible common equity, operating" is defined as net earnings available to common shareholders adjusted for specified one-time items divided by average tangible common equity.  "Pre-tax, pre-provision annualized return on average assets, operating" is defined as pre-tax, pre-provision earnings adjusted for specified one-time items divided by average assets.  "Tangible book value per common share" is defined as tangible common equity divided by total common shares outstanding.  "Diluted earnings per share, operating" is defined as net earnings available to common shareholders adjusted for specified one-time items divided by diluted weighted-average shares.  The GAAP-based efficiency ratio is measured as noninterest expense as a percentage of net interest income plus noninterest income.  The non-GAAP efficiency ratio excludes specified one-time items in addition to securities gains and losses and gains and losses on the sale/valuation of other real estate owned and other assets repossessed.


We use non-GAAP measures because we believe they are useful for evaluating our financial condition and performance over periods of time, as well as in managing and evaluating our business and in discussions about our performance.  We also believe these non-GAAP financial measures provide users of our financial information with a meaningful measure for assessing our financial condition as well as comparison to financial results for prior periods.  These results should not be viewed as a substitute for results determined in accordance with GAAP, and are not necessarily comparable to non-GAAP performance measures that other companies may use.


























Three Months Ended



June 30,


March 31,


December 31,


September 30,


June 30,



2017


2017


2016


2016


2016

AVERAGE BALANCE SHEET DATA






















Total average assets

A

$     1,926,408


$   1,932,818


$   1,960,436


$   1,927,351


$ 1,921,004












Total equity


$        228,871


$      215,895


$      217,857


$      218,976


$    217,112

Less preferred equity


41,109


41,110


41,110


41,110


41,118

Total common equity

B

$        187,762


$      174,785


$      176,747


$      177,866


$    175,994

Less intangible assets


46,373


46,661


46,926


47,204


47,478

Tangible common equity

C

$        141,389


$      128,124


$      129,821


$      130,662


$    128,516

 

MIDSOUTH BANCORP, INC. and SUBSIDIARIES             

Reconciliation of Non-GAAP Financial Measures (unaudited) (continued)

(in thousands except per share data)    














Three Months Ended



June 30,


March 31,


December 31,


September 30,


June 30,

CORE NET INTEREST MARGIN


2017


2017


2016


2016


2016












Net interest income (FTE)


$      18,442


$      18,279


$         18,478


$          18,472


$      17,946

Less purchase accounting adjustments


(380)


(274)


(458)


(493)


(341)

Core net interest income, net of purchase accounting adjustments

D

$      18,062


$      18,005


$         18,020


$          17,979


$      17,605












Total average earnings assets


$ 1,768,862


$ 1,773,647


$    1,797,907


$     1,761,984


$ 1,757,467

Add average balance of loan valuation discount


1,720


1,964


2,316


2,634


2,931

Average earnings assets, excluding loan valuation discount

E

$ 1,770,582


$ 1,775,611


$    1,800,223


$     1,764,618


$ 1,760,398












Core net interest margin

D/E

4.09%


4.11%


3.98%


4.05%


4.02%














Three Months Ended



June 30,


March 31,


December 31,


September 30,


June 30,

RETURN RATIOS


2017


2017


2016


2016


2016












Net earnings (loss) available to common shareholders


$      (6,225)


$        1,680


$           1,387


$            1,587


$        1,682

Severance and retention accruals, after-tax


872


-


-


-


-

One-time charge related to discontinued branch projects


302


-


-


-


-

Write-down of assets held for sale, after-tax


371


-


-


-


-

Net gain on sale of securities, after-tax


(2)


(4)


-


-


(13)

   Net earnings (loss) available to common shareholders, operating

F

$      (4,682)


$        1,676


$           1,387


$            1,587


$        1,669












Earnings (loss) before income taxes


$      (8,635)


$        3,080


$           3,070


$            3,391


$        3,523

Severance and retention accruals


1,341


-


-


-


-

One-time charge related to discontinued branch projects


465









Write-down of assets held for sale


570


-


-


-


-

Net gain on sale of securities


(3)


(6)


-


-


(20)

Provision for loan losses


12,500


2,800


2,600


2,900


2,300

   Pre-tax, pre-provision earnings, operating

G

$        6,238


$        5,874


$           5,670


$            6,291


$        5,803












Annualized return on average assets, operating

F/A

-0.97%


0.35%


0.28%


0.33%


0.35%

Annualized return on average common equity, operating

F/B

-10.00%


3.89%


3.12%


3.55%


3.81%

Annualized return on average tangible common equity, operating

F/C

-13.28%


5.31%


4.25%


4.83%


5.22%

Pre-tax, pre-provision annualized return on average assets, operating

G/A

1.30%


1.23%


1.15%


1.30%


1.21%

 

MIDSOUTH BANCORP, INC. and SUBSIDIARIES             

Reconciliation of Non-GAAP Financial Measures (unaudited) (continued)





(in thousands except per share data)    


















Three Months Ended


Six Months Ended



June 30,


March 31,


December 31,


September 30,


June 30,


June 30,


June 30,

PER COMMON SHARE DATA


2017


2017


2016


2016


2016


2017


2016
















Diluted earnings (loss) per share


$             (0.51)


$            0.15


$            0.12


$           0.14


$     0.15


$  (0.39)


$    0.32

Effect of severance and retention accruals


0.08


-


-


-


-


0.08


-

Effect of one-time charge related to discontinued branch projects


0.02


-


-


-


-


0.02


-

Effect of write-down of assets held for sale


0.03


-


-


-


-


0.03


-

Diluted earnings (loss) per share, operating


$             (0.38)


$            0.15


$            0.12


$           0.14


$     0.15


$  (0.26)


$    0.32
















Book value per common share


$            13.76


$          15.37


$          15.25


$         15.58


$   15.56





Effect of intangible assets per share


2.89


4.09


4.12


4.14


4.16





Tangible book value per common share


$            10.87


$          11.28


$          11.13


$         11.44


$   11.40






















Three Months Ended







June 30,


March 31,


December 31,


September 30,


June 30,





EFFICIENCY RATIO


2017


2017


2016


2016


2016




















Net interest income


$          18,246


$        18,066


$        18,235


$       18,253


$ 17,725




















Noninterest income


5,223


5,044


5,071


5,152


5,139





Net gain on sale of securities


(3)


(6)


-


-


(20)





   Noninterest income (non-GAAP)


$            5,220


$          5,038


$          5,071


$         5,152


$   5,119




















Total revenue

H

$          23,469


$        23,110


$        23,306


$       23,405


$ 22,864





Total revenue (non-GAAP)

I

$          23,466


$        23,104


$        23,306


$       23,405


$ 22,844




















Noninterest expense

J

$          19,604


$        17,230


$        17,636


$       17,114


$ 17,041





Severance and retention accruals


(1,341)


-


-


-


-





One-time charge related to discontinued branch projects


(465)


-


-


-


-





Write-down of assets held for sale


(570)


-


-


-


-





Net loss on sale/valuation of other real estate owned


(72)


(15)


-


(19)


(24)





   Noninterest expense (non-GAAP)

K

$          17,156


$        17,215


$        17,636


$       17,095


$ 17,017




















Efficiency ratio (GAAP)

J/H

83.53%


74.56%


75.67%


73.12%


74.53%




















Efficiency ratio (non-GAAP)

K/I

73.11%


74.51%


75.67%


73.04%


74.49%





 

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SOURCE MidSouth Bancorp, Inc.

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