Exhibit
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Investor Contacts: Rusty Cloutier President & CEO or Jim McLemore, CFA Sr. EVP & CFO 337.237.8343 |
MidSouth Bancorp, Inc. Reports First Quarter 2016 Results
and Declares Quarterly Dividends
Quarterly Highlights
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• | Diluted operating EPS $0.17 versus $0.15 for 4Q2015 and $0.12 for 1Q2015 |
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• | Regulatory capital ratios continued to improve during 1Q16 |
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• | Loan loss reserve to total loans increased to 1.63% with $2.8 million provision |
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• | Total energy loans declined $12.2 million to 20.2% of loans at period end |
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• | Direct C&I energy exposure 16% of loans with 3.6% reserve at period end |
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• | Total net charge-offs for the quarter were $1.5 million versus $2.9 million for 4Q15 |
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• | One energy-related charge-off totaling $786,000 during the quarter |
LAFAYETTE, LA., April 27, 2016/PRNewswire-FirstCall/ -- MidSouth Bancorp, Inc. (“MidSouth”) (NYSE:MSL) today reported quarterly net earnings available to common shareholders of $1.9 million for the first quarter of 2016, compared to net earnings available to common shareholders of $1.3 million reported for the first quarter of 2015 and $1.7 million in net earnings available to common shareholders for the fourth quarter of 2015. Diluted earnings for the first quarter of 2016 were $0.17 per common share, compared to $0.12 per common share reported for the first quarter of 2015 and $0.15 per common share reported for the fourth quarter of 2015.
C. R. Cloutier, President and CEO, commenting on first quarter earnings remarked, "We are encouraged by the recent upturn in oil prices and a stabilizing of our energy portfolio in early 2016. Nevertheless, we continue to operate in an environment with many headwinds and will remain vigilant in working with our customers and staying very close to developments in their businesses."
Cloutier continued, "Given the current environment, we believe it is prudent to conserve capital and therefore have delayed our original plans to repay our SBLF capital. During the quarter, all of our regulatory capital ratios continued to improve, and we remain well capitalized."
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. Although this definition has resulted in a lack of comparability with some energy related banks, management believes it to be the prudent approach to monitoring and managing the Bank's energy exposure.
Other comments on the Bank's energy lending:
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• | Total energy loans, as defined above, decreased $12.2 million during 1Q16 to $252.5 million, or 20.2% of total loans, from 20.9% at December 31, 2015. |
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• | Direct C&I energy loans were $201.5 million or 16.0% of total loans and had a weighted average maturity of 3.7 years at March 31, 2016. |
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• | Energy-related CRE and residential real estate loans were $50.6 million or 4.0% of total loans at March 31, 2016. |
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• | Unfunded commitments on energy-related lines totaled $82 million at March 31, 2016. |
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◦ | Utilization rate on energy-related lines was 42.1% at March 31, 2016, compared to 44.8% at December 31, 2015. |
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• | Eight energy loan relationships had rating changes during the quarter |
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◦ | Three loan relationships totaling $8.4 million were downgraded to Special Mention |
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◦ | Five loan relationships totaling $15.0 million were downgraded to Substandard |
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• | Total criticized energy-related loans increased $4.4 million during 1Q16 to $76.9 million and represented 30.4% of energy loans at March 31, 2016, versus 27.4% at December 31, 2015. |
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• | Energy-related past due loans were $36.4 million, or 14.4%, with 9.6% of energy-related loans on nonaccrual status at March 31, 2016. |
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• | One energy-related charge-off totaled $786,000 during 1Q16, or approximately 30 basis points of average energy loans. |
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• | Cycle to date net charge-offs totaled $2.4 million, or 0.91% of 12/31/14 energy loans, which was when the effects of declining oil prices began to surface. |
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• | One energy-related impairment totaling $252,000 identified during 1Q16. |
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• | The energy reserve as a percentage of total energy loans, as defined, was 3.1% at March 31, 2016. The reserve attributable to C&I energy loans was approximately 3.6%. The reserve on all other energy loans was 1.4%. |
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• | One energy relationship totaling $8.5 million is the only Shared National Credit (SNC) in the energy portfolio at March 31, 2016. |
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• | The Bank has no reserve-based energy loans and therefore does not conduct periodic borrowing base redeterminations associated with reserve based loans. |
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• | The Bank has determined its loan loss reserves using a pre-defined methodology consistently applied, which takes into account historical losses, migrations of credits using its internal loan grading system and other qualitative factors. |
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• | To date, during the month of April 2016, the Bank had 1 rating related change to its energy portfolio: |
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◦ | One credit in the amount of $1.1 million was downgraded from Pass to Special Mention |
More information on our energy loan portfolio can be found on our website at MidSouthBank.com under Investor Relations/Presentations.
Balance Sheet
Total consolidated assets remained constant at $1.9 billion for the quarters ended March 31, 2016 and December 31, 2015, compared to $2.0 billion at March 31, 2015. Our stable core deposit base, which excludes time deposits, totaled $1.4 billion at March 31, 2016 and December 31, 2015 and accounted for 89.3% of deposits compared to 89.1% of deposits, respectively. Net loans totaled $1.2 billion at March 31, 2016 and December 31, 2015, compared to $1.3 billion at March 31, 2015.
MidSouth’s Tier 1 leverage capital ratio was 10.17% at March 31, 2016, compared to 10.10% at December 31, 2015. Tier 1 risk-based capital and total risk-based capital ratios were 13.28% and 14.53% at March 31, 2016, compared to 13.25% and 14.50% at December 31, 2015, respectively. Tier 1 common equity to total risk-weighted assets at March 31, 2016 was 8.90%, compared to 8.91% at December 31, 2015. Tangible common equity totaled $127.1 million at March 31, 2016, compared to $124.1 million at December 31, 2015. Tangible book value per share at March 31, 2016 was $11.19 versus $10.92 at December 31, 2015.
Asset Quality
Nonperforming assets totaled $58.1 million at March 31, 2016, an increase of $3.7 million compared to $54.4 million reported at December 31, 2015. The increase resulted primarily from a $5.6 million commercial real estate loan unrelated to energy that was placed on nonaccrual status during the quarter. The $5.6 million increase was partially offset by a $786,000 partial charge-off of an energy related relationship. Allowance coverage for nonperforming loans was 37.70% at March 31, 2016, compared to 37.87% at December 31, 2015. The ALLL/total loans ratio was 1.63% at March 31, 2016 and 1.50% at December 31, 2015. Including valuation accounting adjustments on acquired loans, the total valuation accounting adjustment plus ALLL was 1.87% of loans at March 31, 2016. The ratio of annualized net charge-offs to total loans decreased to 0.47% for the three months ended March 31, 2016 compared to 0.92% for the three months ended December 31, 2015.
Total nonperforming assets to total loans plus ORE and other assets repossessed was 4.64% at March 31, 2016 compared to 4.29% at December 31, 2015. Loans classified as troubled debt restructurings, accruing (“TDRs, accruing”) increased to $5.7 million at March 31, 2016 compared to $164,000 at December 31, 2015. The $5.5 million of loans restructured during the first quarter of 2016 represented a single, energy-related relationship. Classified assets, including ORE, increased $16.3 million, or 21.3%, to $92.9 million at March 31, 2016 compared to $76.6 million at December 31, 2015. The increase in classified assets during the quarter ended March 31, 2016 is primarily due to the downgrade of two energy-related relationships totaling $11.5 million and the downgrade of two non energy-related loans totaling $3.8 million.
First Quarter 2016 vs. First Quarter 2015 Earnings Comparison
First quarter 2016 net earnings available to common shareholders totaled $1.9 million compared to $1.3 million for the first quarter of 2015. Revenues from consolidated operations decreased $1.2 million in quarterly comparison, from $24.1 million for the three months ended March 31, 2015 to $22.9 million for the three months ended March 31, 2016. Net interest income
decreased $873,000 in quarterly comparison primarily due to a $931,000 decrease in interest income earned on loans. The decrease in interest income on loans was partially offset by a $40,000 decrease in interest expense on deposits. Noninterest income decreased $354,000 in quarterly comparison, from $4.8 million for the three months ended March 31, 2015 to $4.5 million for the three months ended March 31, 2016. The decrease in noninterest income resulted primarily from a $115,000 decrease in gain on sales of securities and a $86,000 decrease in letter of credit income.
Noninterest expenses increased $598,000 in quarterly comparison and primarily consisted of increases of $148,000 in FDIC premiums, $181,000 in expenses on ORE, $94,000 in marketing expenses, $69,000 in other assets expense and $122,000 in ATM/debit card expense. The provision for loan losses decreased $3.2 million in quarterly comparison, from $6.0 million for the three months ended March 31, 2015 to $2.8 million for the three months ended March 31, 2016. The $6.0 million provision for loan losses for the three months ended March 31, 2015 resulted primarily from a $41.1 million increase in classified assets during the first quarter of 2015. Income tax expense increased $517,000 in quarterly comparison.
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 $336,000 for the first quarter of 2016 based on a dividend rate of 4.2%. The dividend rate increased to 9% on February 25, 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 March 31, 2016.
Fully taxable-equivalent (“FTE”) net interest income totaled $18.6 million and $19.6 million for the quarters ended March 31, 2016 and 2015, respectively. The FTE net interest income decreased $940,000 in prior year quarterly comparison primarily due to a $931,000 decrease in interest income on loans. Interest income on loans decreased due to a $45.6 million decrease in the average balance of loans as well a decrease in the average yield on loans of 14 basis points, from 5.64% to 5.50%. The purchase accounting adjustments added 24 basis points to the average yield on loans for the first quarter of 2016 and 13 basis points to the average yield on loans for the first quarter of 2015. Excluding the impact of the purchase accounting adjustments, average loan yields declined 25 basis points in prior year quarterly comparison, from 5.51% to 5.26%. Loan yields have declined primarily as the result of a sustained low interest rate environment and a higher volume of loans on nonaccrual status.
Investment securities totaled $415.8 million, or 21.7% of total assets at March 31, 2016, versus $437.3 million, or 21.9% of total assets at March 31, 2015. The investment portfolio had an effective duration of 3.3 years and a net unrealized gain of $3.6 million at March 31, 2016. The average volume of investment securities increased $8.3 million in prior year quarterly comparison. The average tax equivalent yield on investment securities decreased 13 basis points, from 2.71% to 2.58%.
The average yield on all earning assets decreased 20 basis points in prior year quarterly comparison, from 4.77% for the first quarter of 2015 to 4.57% for the first quarter of 2016. Excluding the impact of purchase accounting adjustments, the average yield on total earning assets decreased 28 basis points, from 4.67% to 4.39% for the three month periods ended March 31, 2015 and 2016, respectively.
Interest expense decreased $4,000 in prior year quarterly comparison. A $40,000 decrease in interest expense on deposits was partially offset by a $15,000 increase in interest expense on short-term FHLB advances and a $17,000 increase on junior subordinated debentures. Excluding purchase accounting adjustments on acquired certificates of deposit and FHLB borrowings, the average rate paid on interest-bearing liabilities was 0.45% for the three months ended March 31, 2016, compared to 0.47% for the three months ended March 31, 2015.
As a result of these changes in volume and yield on earning assets and interest-bearing liabilities, the FTE net interest margin decreased 20 basis points, from 4.44% for the first quarter of 2015 to 4.24% for the first quarter of 2016. Excluding purchase accounting adjustments on loans, deposits and FHLB borrowings, the FTE margin decreased 21 basis points, from 4.32% for the first quarter of 2015 to 4.11% for the first quarter of 2016.
First Quarter 2016 vs. Fourth Quarter 2015 Earnings Comparison
In sequential-quarter comparison, net earnings available to common shareholders increased $255,000, from $1.7 million for the three months ended December 31, 2015 to $1.9 million for the three months ended March 31, 2016. Net interest income decreased $153,000 in sequential-quarter comparison, primarily due to a $196,000 decrease in interest income earned on loans. Noninterest income decreased $88,000 in sequential-quarter comparison, from $4.6 million for the three months ended December 31, 2015 to $4.5 million for the three months ended March 31, 2016.
Noninterest expense decreased $749,000 in sequential-quarter comparison. The decrease in noninterest expense consisted primarily of decreases of $254,000 in salaries and benefits costs, $81,000 in FDIC premiums, $118,000 in corporate development expense, $90,000 in occupancy expense and $71,000 in marketing expense, combined with smaller decreases in several other noninterest expense categories.
FTE net interest income decreased $181,000 in sequential-quarter comparison primarily due to a $196,000 decrease in interest income on loans. The average volume of loans decreased $18.4 million and the average yield on loans increased 9 basis points, from 5.41% for the fourth quarter of 2015 to 5.50% for the first quarter of 2016. Excluding purchase accounting adjustments, the loan yield remained unchanged at 5.26% for the three months ended March 31, 2016 and December 31, 2015. The average yield on total earning assets increased 5 basis points for the same period, from 4.52% to 4.57%, respectively. As a result of these changes in volume and yield on earning assets, the FTE net interest margin increased 2 basis points, from 4.22% to 4.24%. Excluding purchase accounting adjustments, the FTE net interest margin increased 2 basis points, from 4.09% for the fourth quarter of 2015 to 4.11% for the first quarter of 2016.
Dividends
MidSouth’s Board of Directors announced a cash dividend was declared in the amount of $0.09 per share to be paid on its common stock on July 1, 2016 to shareholders of record as of the close of business on June 15, 2016. 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 July 15, 2016 to shareholders of record as of the close of business on July 1, 2016.
About MidSouth Bancorp, Inc.
MidSouth Bancorp, Inc. is a financial holding company headquartered in Lafayette, Louisiana, with assets of $1.9 billion as of March 31, 2016. 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, the expected loan loss provision 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, 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, 2014 filed with the SEC on March 13, 2015 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.
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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 | | 3/31/2016 | | 12/31/2015 | | 9/30/2015 | | 6/30/2015 | | 3/31/2015 |
Total interest income | | $ | 19,804 |
| | $ | 19,886 |
| | $ | 20,532 |
| | $ | 20,798 |
| | $ | 20,681 |
|
Total interest expense | | 1,420 |
| | 1,349 |
| | 1,391 |
| | 1,417 |
| | 1,424 |
|
Net interest income | | 18,384 |
| | 18,537 |
| | 19,141 |
| | 19,381 |
| | 19,257 |
|
FTE net interest income | | 18,625 |
| | 18,806 |
| | 19,423 |
| | 19,676 |
| | 19,565 |
|
Provision for loan losses | | 2,800 |
| | 3,000 |
| | 3,800 |
| | 1,100 |
| | 6,000 |
|
Non-interest income | | 4,487 |
| | 4,575 |
| | 4,768 |
| | 6,137 |
| | 4,841 |
|
Non-interest expense | | 16,759 |
| | 17,508 |
| | 16,492 |
| | 16,976 |
| | 16,161 |
|
Earnings before income taxes | | 3,312 |
| | 2,604 |
| | 3,617 |
| | 7,442 |
| | 1,937 |
|
Income tax expense | | 963 |
| | 766 |
| | 1,028 |
| | 2,343 |
| | 446 |
|
Net earnings | | 2,349 |
| | 1,838 |
| | 2,589 |
| | 5,099 |
| | 1,491 |
|
Dividends on preferred stock | | 427 |
| | 171 |
| | 172 |
| | 172 |
| | 173 |
|
Net earnings available to common shareholders | | $ | 1,922 |
| | $ | 1,667 |
| | $ | 2,417 |
| | $ | 4,927 |
| | $ | 1,318 |
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PER COMMON SHARE DATA | | | | | | | | | | |
Basic earnings per share | | 0.17 |
| | 0.15 |
| | 0.21 |
| | 0.43 |
| | 0.12 |
|
Diluted earnings per share | | 0.17 |
| | 0.15 |
| | 0.21 |
| | 0.42 |
| | 0.12 |
|
Diluted earnings per share, operating (Non-GAAP)(*) | | 0.17 |
| | 0.15 |
| | 0.21 |
| | 0.35 |
| | 0.11 |
|
Quarterly dividends per share | | 0.09 |
| | 0.09 |
| | 0.09 |
| | 0.09 |
| | 0.09 |
|
Book value at end of period | | 15.38 |
| | 15.14 |
| | 15.21 |
| | 15.04 |
| | 14.92 |
|
Tangible book value at period end (Non-GAAP)(*) | | 11.19 |
| | 10.92 |
| | 10.97 |
| | 10.78 |
| | 10.63 |
|
Market price at end of period | | 7.63 |
| | 9.08 |
| | 11.70 |
| | 15.26 |
| | 14.75 |
|
Shares outstanding at period end | | 11,362,150 |
| | 11,362,150 |
| | 11,361,839 |
| | 11,359,396 |
| | 11,349,285 |
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Weighted average shares outstanding | | | | | | | | | | |
Basic | | 11,261,644 |
| | 11,281,286 |
| | 11,311,841 |
| | 11,323,506 |
| | 11,317,667 |
|
Diluted | | 11,261,644 |
| | 11,281,286 |
| | 11,830,540 |
| | 11,849,683 |
| | 11,351,239 |
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AVERAGE BALANCE SHEET DATA | | | | | | | | | | |
Total assets | | $ | 1,931,904 |
| | $ | 1,938,235 |
| | $ | 1,949,352 |
| | $ | 1,976,574 |
| | $ | 1,966,752 |
|
Loans and leases | | 1,252,742 |
| | 1,271,106 |
| | 1,285,991 |
| | 1,312,359 |
| | 1,298,317 |
|
Total deposits | | 1,552,217 |
| | 1,557,272 |
| | 1,559,308 |
| | 1,593,318 |
| | 1,592,153 |
|
Total common equity | | 175,479 |
| | 173,950 |
| | 173,466 |
| | 170,885 |
| | 170,638 |
|
Total tangible common equity (Non-GAAP)(*) | | 127,722 |
| | 125,919 |
| | 125,156 |
| | 122,299 |
| | 121,778 |
|
Total equity | | 216,599 |
| | 215,072 |
| | 214,623 |
| | 212,112 |
| | 211,985 |
|
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SELECTED RATIOS | | | | | | | | | | |
Annualized return on average assets, operating (Non-GAAP)(*) | | 0.40 | % | | 0.34 | % | | 0.49 | % | | 0.82 | % | | 0.26 | % |
Annualized return on average common equity, operating (Non-GAAP)(*) | | 4.41 | % | | 3.80 | % | | 5.53 | % | | 9.47 | % | | 2.95 | % |
Annualized return on average tangible common equity, operating (Non-GAAP)(*) | | 6.05 | % | | 5.25 | % | | 7.66 | % | | 13.23 | % | | 4.14 | % |
Pre-tax, pre-provision annualized return on average assets, operating (Non-GAAP)(*) | | 1.27 | % | | 1.15 | % | | 1.51 | % | | 1.47 | % | | 1.61 | % |
Efficiency ratio, operating (Non-GAAP)(*) | | 73.28 | % | | 75.69 | % | | 68.65 | % | | 69.89 | % | | 67.48 | % |
Average loans to average deposits | | 80.71 | % | | 81.62 | % | | 82.47 | % | | 82.37 | % | | 81.54 | % |
Taxable-equivalent net interest margin | | 4.24 | % | | 4.22 | % | | 4.34 | % | | 4.38 | % | | 4.44 | % |
Tier 1 leverage capital ratio | | 10.17 | % | | 10.10 | % | | 9.98 | % | | 9.79 | % | | 9.63 | % |
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CREDIT QUALITY | | | | | | | | | | |
Allowance for loan and lease losses (ALLL) as a % of total loans | | 1.63 | % | | 1.50 | % | | 1.46 | % | | 1.24 | % | | 1.23 | % |
Nonperforming assets to tangible equity + ALLL | | 30.83 | % | | 29.54 | % | | 30.51 | % | | 16.18 | % | | 9.87 | % |
Nonperforming assets to total loans, other real estate owned and other repossessed assets | | 4.64 | % | | 4.29 | % | | 4.32 | % | | 2.24 | % | | 1.34 | % |
Annualized QTD net charge-offs to total loans | | 0.47 | % | | 0.92 | % | | 0.28 | % | | 0.34 | % | | 0.36 | % |
| | | | | | | | | | |
(*) See reconciliation of Non-GAAP financial measures on pages 12-14. |
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MIDSOUTH BANCORP, INC. and SUBSIDIARIES |
Condensed Consolidated Financial Information (unaudited) |
(in thousands) |
| | | | | | | | | | |
| | | | | | |
BALANCE SHEET | | March 31, | | December 31, | | September 30, | | June 30, | | March 31, |
| | 2016 | | 2015 | | 2015 | | 2015 | | 2015 |
Assets | | | | | | | | | | |
Cash and cash equivalents | | $ | 112,410 |
| | $ | 89,201 |
| | $ | 125,437 |
| | $ | 82,636 |
| | $ | 104,402 |
|
Securities available-for-sale | | 302,151 |
| | 318,159 |
| | 285,485 |
| | 300,335 |
| | 299,690 |
|
Securities held-to-maturity | | 113,623 |
| | 116,792 |
| | 121,043 |
| | 126,529 |
| | 137,592 |
|
Total investment securities | | 415,774 |
| | 434,951 |
| | 406,528 |
| | 426,864 |
| | 437,282 |
|
Other investments | | 11,195 |
| | 11,188 |
| | 12,063 |
| | 10,598 |
| | 9,644 |
|
Total loans | | 1,250,049 |
| | 1,263,645 |
| | 1,301,452 |
| | 1,294,392 |
| | 1,310,929 |
|
Allowance for loan losses | | (20,347 | ) | | (19,011 | ) | | (18,939 | ) | | (16,048 | ) | | (16,060 | ) |
Loans, net | | 1,229,702 |
| | 1,244,634 |
| | 1,282,513 |
| | 1,278,344 |
| | 1,294,869 |
|
Premises and equipment | | 68,482 |
| | 69,105 |
| | 68,718 |
| | 69,263 |
| | 69,762 |
|
Goodwill and other intangibles | | 47,622 |
| | 47,899 |
| | 48,175 |
| | 48,452 |
| | 48,729 |
|
Other assets | | 31,366 |
| | 30,755 |
| | 30,874 |
| | 32,627 |
| | 30,570 |
|
Total assets | | $ | 1,916,551 |
| | $ | 1,927,733 |
| | $ | 1,974,308 |
| | $ | 1,948,784 |
| | $ | 1,995,258 |
|
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Liabilities and Shareholders' Equity | | | | | | | | | | |
Non-interest bearing deposits | | $ | 383,684 |
| | $ | 374,261 |
| | $ | 406,118 |
| | $ | 408,742 |
| | $ | 421,897 |
|
Interest-bearing deposits | | 1,174,519 |
| | 1,176,589 |
| | 1,137,303 |
| | 1,149,508 |
| | 1,194,201 |
|
Total deposits | | 1,558,203 |
| | 1,550,850 |
| | 1,543,421 |
| | 1,558,250 |
| | 1,616,098 |
|
Securities sold under agreements to repurchase | | 87,879 |
| | 85,957 |
| | 92,085 |
| | 84,547 |
| | 87,346 |
|
Short-term FHLB advances | | — |
| | 25,000 |
| | 70,000 |
| | 40,000 |
| | 25,000 |
|
Other borrowings | | 25,744 |
| | 25,851 |
| | 25,958 |
| | 26,064 |
| | 26,171 |
|
Junior subordinated debentures | | 22,167 |
| | 22,167 |
| | 22,167 |
| | 22,167 |
| | 22,167 |
|
Other liabilities | | 6,704 |
| | 4,771 |
| | 6,713 |
| | 5,720 |
| | 7,820 |
|
Total liabilities | | 1,700,697 |
| | 1,714,596 |
| | 1,760,344 |
| | 1,736,748 |
| | 1,784,602 |
|
Total shareholders' equity | | 215,854 |
| | 213,137 |
| | 213,964 |
| | 212,036 |
| | 210,656 |
|
Total liabilities and shareholders' equity | | $ | 1,916,551 |
| | $ | 1,927,733 |
| | $ | 1,974,308 |
| | $ | 1,948,784 |
| | $ | 1,995,258 |
|
|
| | | | | | | | | | | | | | | | | | | | |
MIDSOUTH BANCORP, INC. and SUBSIDIARIES | | | | | |
Condensed Consolidated Financial Information (unaudited) |
(in thousands except per share data) |
| | | | | | | | | | |
| | | | | | |
EARNINGS STATEMENT | | Three Months Ended |
| | 3/31/2016 | | 12/31/2015 | | 9/30/2015 | | 6/30/2015 | | 3/31/2015 |
| | | | | | | | | | |
Interest income: | | | | | | | | | | |
Loans, including fees | | $ | 16,661 |
| | $ | 16,914 |
| | $ | 17,413 |
| | $ | 17,709 |
| | $ | 17,717 |
|
Investment securities | | 2,494 |
| | 2,440 |
| | 2,386 |
| | 2,412 |
| | 2,509 |
|
Accretion of purchase accounting adjustments | | 462 |
| | 405 |
| | 579 |
| | 559 |
| | 337 |
|
Other interest income | | 187 |
| | 127 |
| | 154 |
| | 118 |
| | 118 |
|
Total interest income | | 19,804 |
| | 19,886 |
| | 20,532 |
| | 20,798 |
| | 20,681 |
|
| | | | | | | | | | |
Interest expense: | | | | | | | | | | |
Deposits | | 920 |
| | 850 |
| | 903 |
| | 949 |
| | 984 |
|
Borrowings | | 436 |
| | 442 |
| | 448 |
| | 436 |
| | 418 |
|
Junior subordinated debentures | | 167 |
| | 162 |
| | 150 |
| | 151 |
| | 150 |
|
Accretion of purchase accounting adjustments | | (103 | ) | | (105 | ) | | (110 | ) | | (119 | ) | | (128 | ) |
Total interest expense | | 1,420 |
| | 1,349 |
| | 1,391 |
| | 1,417 |
| | 1,424 |
|
| | | | | | | | | | |
Net interest income | | 18,384 |
| | 18,537 |
| | 19,141 |
| | 19,381 |
| | 19,257 |
|
Provision for loan losses | | 2,800 |
| | 3,000 |
| | 3,800 |
| | 1,100 |
| | 6,000 |
|
Net interest income after provision for loan losses | | 15,584 |
| | 15,537 |
| | 15,341 |
| | 18,281 |
| | 13,257 |
|
| | | | | | | | | | |
Noninterest income: | | | | | | | | | | |
Service charges on deposit accounts | | 2,313 |
| | 2,353 |
| | 2,491 |
| | 2,347 |
| | 2,332 |
|
ATM and debit card income | | 1,609 |
| | 1,616 |
| | 1,563 |
| | 1,655 |
| | 1,629 |
|
Gain on securities, net (non-operating)(*) | | — |
| | — |
| | — |
| | 1,128 |
| | 115 |
|
Mortgage lending | | 109 |
| | 123 |
| | 197 |
| | 145 |
| | 153 |
|
Income from death benefit on bank owned life insurance (non-operating)(*) | | — |
| | — |
| | — |
| | 160 |
| | — |
|
Other charges and fees | | 456 |
| | 483 |
| | 517 |
| | 702 |
| | 612 |
|
Total non-interest income | | 4,487 |
| | 4,575 |
| | 4,768 |
| | 6,137 |
| | 4,841 |
|
| | | | | | | | | | |
Noninterest expense: | | | | | | | | | | |
Salaries and employee benefits | | 7,990 |
| | 8,244 |
| | 7,653 |
| | 8,197 |
| | 7,942 |
|
Occupancy expense | | 3,597 |
| | 3,687 |
| | 3,815 |
| | 3,865 |
| | 3,685 |
|
ATM and debit card | | 785 |
| | 825 |
| | 770 |
| | 693 |
| | 663 |
|
Legal and professional fees | | 383 |
| | 448 |
| | 385 |
| | 382 |
| | 345 |
|
FDIC premiums | | 429 |
| | 510 |
| | 391 |
| | 331 |
| | 281 |
|
Marketing | | 381 |
| | 452 |
| | 408 |
| | 417 |
| | 287 |
|
Corporate development | | 335 |
| | 453 |
| | 371 |
| | 387 |
| | 320 |
|
Data processing | | 458 |
| | 488 |
| | 476 |
| | 467 |
| | 457 |
|
Printing and supplies | | 188 |
| | 215 |
| | 228 |
| | 255 |
| | 225 |
|
Expenses on ORE, net | | 194 |
| | 56 |
| | 113 |
| | 85 |
| | 13 |
|
Amortization of core deposit intangibles | | 277 |
| | 276 |
| | 277 |
| | 276 |
| | 277 |
|
Other non-interest expense | | 1,742 |
| | 1,854 |
| | 1,605 |
| | 1,621 |
| | 1,666 |
|
Total non-interest expense | | 16,759 |
| | 17,508 |
| | 16,492 |
| | 16,976 |
| | 16,161 |
|
Earnings before income taxes | | 3,312 |
| | 2,604 |
| | 3,617 |
| | 7,442 |
| | 1,937 |
|
Income tax expense | | 963 |
| | 766 |
| | 1,028 |
| | 2,343 |
| | 446 |
|
Net earnings | | 2,349 |
| | 1,838 |
| | 2,589 |
| | 5,099 |
| | 1,491 |
|
Dividends on preferred stock | | 427 |
| | 171 |
| | 172 |
| | 172 |
| | 173 |
|
Net earnings available to common shareholders | | $ | 1,922 |
| | $ | 1,667 |
| | $ | 2,417 |
| | $ | 4,927 |
| | $ | 1,318 |
|
| | | | | | | | | | |
Earnings per common share, diluted | | $ | 0.17 |
| | $ | 0.15 |
| | $ | 0.21 |
| | $ | 0.42 |
| | $ | 0.12 |
|
| | | | | | | | | | |
Operating earnings per common share, diluted (Non-GAAP)(*) | | $ | 0.17 |
| | $ | 0.15 |
| | $ | 0.21 |
| | $ | 0.35 |
| | $ | 0.11 |
|
| | | | | | | | | | |
(*) See reconciliation of Non-GAAP financial measures on pages 12-14. |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
MIDSOUTH BANCORP, INC. and SUBSIDIARIES |
Condensed Consolidated Financial Information (unaudited) |
(in thousands) |
| | | |
COMPOSITION OF LOANS | | March 31, | | Percent | | December 31, | | September 30, | | June 30, | | March 31, | | Percent |
| 2016 | | of Total | | 2015 | | 2015 | | 2015 | | 2015 | | of Total |
Commercial, financial, and agricultural | | $ | 441,160 |
| | 35.29 | % | | $ | 454,028 |
| | $ | 482,452 |
| | $ | 471,397 |
| | $ | 484,508 |
| | 36.96 | % |
Lease financing receivable | | 1,590 |
| | 0.13 | % | | 1,968 |
| | 4,790 |
| | 5,561 |
| | 6,350 |
| | 0.48 | % |
Real estate - construction | | 84,790 |
| | 6.78 | % | | 74,952 |
| | 74,279 |
| | 79,176 |
| | 76,964 |
| | 5.87 | % |
Real estate - commercial | | 467,648 |
| | 37.41 | % | | 471,141 |
| | 473,319 |
| | 469,022 |
| | 471,737 |
| | 35.98 | % |
Real estate - residential | | 149,961 |
| | 12.00 | % | | 149,064 |
| | 151,667 |
| | 153,820 |
| | 153,647 |
| | 11.72 | % |
Installment loans to individuals | | 103,181 |
| | 8.25 | % | | 111,009 |
| | 113,199 |
| | 113,626 |
| | 115,284 |
| | 8.79 | % |
Other | | 1,719 |
| | 0.14 | % | | 1,483 |
| | 1,746 |
| | 1,790 |
| | 2,439 |
| | 0.19 | % |
| | | | | | | | | | | | | | |
Total loans | | $ | 1,250,049 |
| | | | $ | 1,263,645 |
| | $ | 1,301,452 |
| | $ | 1,294,392 |
| | $ | 1,310,929 |
| | |
| | | | | | | | | | | | | | |
COMPOSITION OF DEPOSITS | | | | | | | | | | | | | | |
| March 31, | | Percent | | December 31, | | September 30, | | June 30, | | March 31, | | Percent |
| | 2016 | | of Total | | 2015 | | 2015 | | 2015 | | 2015 | | of Total |
Noninterest bearing | | $ | 383,684 |
| | 24.62 | % | | $ | 374,261 |
| | $ | 406,118 |
| | $ | 408,742 |
| | $ | 421,897 |
| | 26.11 | % |
NOW & Other | | 472,309 |
| | 30.31 | % | | 475,346 |
| | 448,938 |
| | 458,338 |
| | 480,454 |
| | 29.73 | % |
Money Market/Savings | | 534,854 |
| | 34.33 | % | | 531,449 |
| | 468,297 |
| | 453,902 |
| | 463,625 |
| | 28.69 | % |
Time Deposits of less than $100,000 | | 80,802 |
| | 5.19 | % | | 81,638 |
| | 85,589 |
| | 90,348 |
| | 94,730 |
| | 5.86 | % |
Time Deposits of $100,000 or more | | 86,554 |
| | 5.55 | % | | 88,156 |
| | 134,479 |
| | 146,920 |
| | 155,392 |
| | 9.62 | % |
| | | | | | | | | | | | | | |
Total deposits | | $ | 1,558,203 |
| | | | $ | 1,550,850 |
| | $ | 1,543,421 |
| | $ | 1,558,250 |
| | $ | 1,616,098 |
| | |
| | | | | | | | | | | | | | |
ASSET QUALITY DATA | | | | | | | | | | | | | | |
| March 31, | | | | December 31, | | September 30, | | June 30, | | March 31, | | |
| | 2016 | | | | 2015 | | 2015 | | 2015 | | 2015 | | |
Nonaccrual loans | | $ | 53,714 |
| | | | $ | 50,051 |
| | $ | 51,616 |
| | $ | 23,873 |
| | $ | 12,894 |
| | |
Loans past due 90 days and over | | 258 |
| | | | 147 |
| | 82 |
| | 609 |
| | 40 |
| | |
Total nonperforming loans | | 53,972 |
| | | | 50,198 |
| | 51,698 |
| | 24,482 |
| | 12,934 |
| | |
Other real estate | | 3,908 |
| | | | 4,187 |
| | 4,661 |
| | 4,542 |
| | 4,589 |
| | |
Other repossessed assets | | 265 |
| | | | 38 |
| | — |
| | 38 |
| | 43 |
| | |
Total nonperforming assets | | $ | 58,145 |
| | | | $ | 54,423 |
| | $ | 56,359 |
| | $ | 29,062 |
| | $ | 17,566 |
| | |
| | | | | | | | | | | | | | |
Troubled debt restructurings, accruing | | $ | 5,675 |
| | | | $ | 164 |
| | $ | 168 |
| | $ | 21,529 |
| | $ | 173 |
| | |
| | | | | | | | | | | | | | |
Nonperforming assets to total assets | | 3.03 | % | | | | 2.82 | % | | 2.85 | % | | 1.49 | % | | 0.88 | % | | |
Nonperforming assets to total loans + ORE + other repossessed assets | | 4.64 | % | | | | 4.29 | % | | 4.32 | % | | 2.24 | % | | 1.34 | % | | |
ALLL to nonperforming loans | | 37.70 | % | | | | 37.87 | % | | 36.63 | % | | 65.55 | % | | 124.17 | % | | |
ALLL to total loans | | 1.63 | % | | | | 1.50 | % | | 1.46 | % | | 1.24 | % | | 1.23 | % | | |
| | | | | | | | | | | | | | |
Quarter-to-date charge-offs | | $ | 1,594 |
| | | | $ | 3,091 |
| | $ | 1,000 |
| | $ | 1,151 |
| | $ | 1,332 |
| | |
Quarter-to-date recoveries | | 130 |
| | | | 163 |
| | 91 |
| | 39 |
| | 166 |
| | |
Quarter-to-date net charge-offs | | $ | 1,464 |
| | | | $ | 2,928 |
| | $ | 909 |
| | $ | 1,112 |
| | $ | 1,166 |
| | |
Annualized QTD net charge-offs to total loans | | 0.47 | % | | | | 0.92 | % | | 0.28 | % | | 0.34 | % | | 0.36 | % | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
MIDSOUTH BANCORP, INC. and SUBSIDIARIES | | | | | | | | | | | | | | | | | | |
Condensed Consolidated Financial Information (unaudited) | | | | | | | | | | | | | | | | | | |
(in thousands) | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
YIELD ANALYSIS | | Three Months Ended | | Three Months Ended | | Three Months Ended | | Three Months Ended | | Three Months Ended |
| March 31, 2016 | | December 31, 2015 | | September 30, 2015 | | June 30, 2015 | | March 31, 2015 |
| | | | | | | | | | | | | | | | | | | | |
| | | | 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 | | $ | 358,623 |
| | $ | 2,036 |
| | 2.27 | % | | $ | 339,033 |
| | $ | 1,917 |
| | 2.26 | % | | $ | 341,192 |
| | $ | 1,864 |
| | 2.19 | % | | $ | 345,108 |
| | $ | 1,853 |
| | 2.15 | % | | $ | 336,337 |
| | $ | 1,925 |
| | 2.29 | % |
Tax-exempt securities | | 64,971 |
| | 699 |
| | 4.30 | % | | 70,548 |
| | 778 |
| | 4.41 | % | | 73,523 |
| | 818 |
| | 4.45 | % | | 76,433 |
| | 854 |
| | 4.47 | % | | 78,948 |
| | 892 |
| | 4.52 | % |
Total investment securities | | 423,594 |
| | 2,735 |
| | 2.58 | % | | 409,581 |
| | 2,695 |
| | 2.65 | % | | 414,715 |
| | 2,682 |
| | 2.57 | % | | 421,541 |
| | 2,707 |
| | 2.57 | % | | 415,285 |
| | 2,817 |
| | 2.71 | % |
Federal funds sold | | 3,843 |
| | 5 |
| | 0.51 | % | | 3,922 |
| | 3 |
| | 0.30 | % | | 3,349 |
| | 1 |
| | 0.12 | % | | 3,228 |
| | 2 |
| | 0.25 | % | | 3,816 |
| | 2 |
| | 0.21 | % |
Time and interest bearing deposits in other banks | | 74,271 |
| | 94 |
| | 0.50 | % | | 73,069 |
| | 52 |
| | 0.28 | % | | 62,086 |
| | 40 |
| | 0.25 | % | | 56,110 |
| | 35 |
| | 0.25 | % | | 59,225 |
| | 37 |
| | 0.25 | % |
Other investments | | 11,189 |
| | 88 |
| | 3.15 | % | | 11,544 |
| | 86 |
| | 2.99 | % | | 10,508 |
| | 99 |
| | 3.77 | % | | 10,057 |
| | 81 |
| | 3.22 | % | | 9,754 |
| | 79 |
| | 3.24 | % |
Loans | | 1,252,742 |
| | 17,123 |
| | 5.50 | % | | 1,271,106 |
| | 17,319 |
| | 5.41 | % | | 1,285,991 |
| | 17,992 |
| | 5.55 | % | | 1,312,359 |
| | 18,268 |
| | 5.58 | % | | 1,298,317 |
| | 18,054 |
| | 5.64 | % |
Total interest earning assets | | 1,765,639 |
| | 20,045 |
| | 4.57 | % | | 1,769,222 |
| | 20,155 |
| | 4.52 | % | | 1,776,649 |
| | 20,814 |
| | 4.65 | % | | 1,803,295 |
| | 21,093 |
| | 4.69 | % | | 1,786,397 |
| | 20,989 |
| | 4.77 | % |
Non-interest earning assets | | 166,265 |
| | | | | | 169,013 |
| | | | | | 172,703 |
| | | | | | 173,279 |
| | | | | | 180,355 |
| | | | |
Total assets | | $ | 1,931,904 |
| | | | | | $ | 1,938,235 |
| | | | | | $ | 1,949,352 |
| | | | | | $ | 1,976,574 |
| | | | | | $ | 1,966,752 |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits | | $ | 1,180,581 |
| | $ | 907 |
| | 0.31 | % | | $ | 1,156,166 |
| | $ | 836 |
| | 0.29 | % | | $ | 1,150,190 |
| | $ | 883 |
| | 0.30 | % | | $ | 1,181,381 |
| | $ | 921 |
| | 0.31 | % | | $ | 1,192,086 |
| | $ | 947 |
| | 0.32 | % |
Repurchase agreements | | 85,756 |
| | 233 |
| | 1.09 | % | | 85,178 |
| | 240 |
| | 1.12 | % | | 89,025 |
| | 249 |
| | 1.11 | % | | 84,545 |
| | 242 |
| | 1.15 | % | | 79,630 |
| | 230 |
| | 1.17 | % |
Federal funds purchased | | — |
| | — |
| | — | % | | 4 |
| | — |
| | — | % | | — |
| | — |
| | — | % | | — |
| | — |
| | — | % | | — |
| | — |
| | — | % |
Short-term FHLB advances | | 22,802 |
| | 23 |
| | 0.40 | % | | 25,000 |
| | 19 |
| | 0.30 | % | | 31,196 |
| | 16 |
| | 0.20 | % | | 30,604 |
| | 13 |
| | 0.17 | % | | 25,000 |
| | 8 |
| | 0.13 | % |
Long-term FHLB advances | | 25,794 |
| | 90 |
| | 1.38 | % | | 25,900 |
| | 92 |
| | 1.39 | % | | 26,007 |
| | 93 |
| | 1.40 | % | | 26,114 |
| | 90 |
| | 1.36 | % | | 26,219 |
| | 89 |
| | 1.36 | % |
Junior subordinated debentures | | 22,167 |
| | 167 |
| | 2.98 | % | | 22,167 |
| | 162 |
| | 2.86 | % | | 22,167 |
| | 150 |
| | 2.65 | % | | 22,167 |
| | 151 |
| | 2.69 | % | | 22,167 |
| | 150 |
| | 2.71 | % |
Total interest bearing liabilities | | 1,337,100 |
| | 1,420 |
| | 0.43 | % | | 1,314,415 |
| | 1,349 |
| | 0.41 | % | | 1,318,585 |
| | 1,391 |
| | 0.42 | % | | 1,344,811 |
| | 1,417 |
| | 0.42 | % | | 1,345,102 |
| | 1,424 |
| | 0.43 | % |
Non-interest bearing liabilities | | 378,205 |
| | | | | | 408,748 |
| | | | | | 416,144 |
| | | | | | 419,651 |
| | | | | | 409,665 |
| | | | |
Shareholders' equity | | 216,599 |
| | | | | | 215,072 |
| | | | | | 214,623 |
| | | | | | 212,112 |
| | | | | | 211,985 |
| | | | |
Total liabilities and shareholders' equity | | $ | 1,931,904 |
| | | | | | $ | 1,938,235 |
| | | | | | $ | 1,949,352 |
| | | | | | $ | 1,976,574 |
| | | | | | $ | 1,966,752 |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income (TE) and spread | | $ | 18,625 |
| | 4.14 | % | | | | $ | 18,806 |
| | 4.11 | % | | | | $ | 19,423 |
| | 4.23 | % | | | | $ | 19,676 |
| | 4.27 | % | | | | $ | 19,565 |
| | 4.34 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest margin | | | | 4.24 | % | | | | | | 4.22 | % | | | | | | 4.34 | % | | | | | | 4.38 | % | | | | | | 4.44 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Core net interest margin (Non-GAAP)(*) | | | | 4.11 | % | | | | | | 4.09 | % | | | | | | 4.17 | % | | | | | | 4.21 | % | | | | | | 4.32 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(*) See reconciliation of Non-GAAP financial measures on pages 12-14. | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | |
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 |
| | March 31, | | December 31, | | September 30, | | June 30, | | March 31, |
| | 2016 | | 2015 | | 2015 | | 2015 | | 2015 |
Average Balance Sheet Data | | | | | | | | | | |
| | | | | | | | | | |
Total average assets | A | $ | 1,931,904 |
| | $ | 1,938,235 |
| | $ | 1,949,352 |
| | $ | 1,976,574 |
| | $ | 1,966,752 |
|
| | | | | | | | | | |
Total equity | | $ | 216,599 |
| | $ | 215,072 |
| | $ | 214,623 |
| | $ | 212,112 |
| | $ | 211,985 |
|
Less preferred equity | | 41,120 |
| | 41,122 |
| | 41,157 |
| | 41,226 |
| | 41,347 |
|
Total common equity | B | $ | 175,479 |
| | $ | 173,950 |
| | $ | 173,466 |
| | $ | 170,886 |
| | $ | 170,638 |
|
Less intangible assets | | 47,757 |
| | 48,031 |
| | 48,310 |
| | 48,587 |
| | 48,860 |
|
Tangible common equity | C | $ | 127,722 |
| | $ | 125,919 |
| | $ | 125,156 |
| | $ | 122,299 |
| | $ | 121,778 |
|
|
| | | | | | | | | | | | | | | | | | | | |
MIDSOUTH BANCORP, INC. and SUBSIDIARIES |
Reconciliation of Non-GAAP Financial Measures (unaudited) (continued) |
(in thousands except per share data) |
| | | | | | | | | | |
| | Three Months Ended |
| | March 31, | | December 31, | | September 30, | | June 30, | | March 31, |
Core Net Interest Margin | | 2016 | | 2015 | | 2015 | | 2015 | | 2015 |
| | | | | | | | | | |
Net interest income (TE) | | $ | 18,625 |
| | $ | 18,806 |
| | $ | 19,423 |
| | $ | 19,676 |
| | $ | 19,565 |
|
Less purchase accounting adjustments | | (565 | ) | | (510 | ) | | (689 | ) | | (678 | ) | | (465 | ) |
Net interest income, excluding purchase accounting adjustments | D | $ | 18,060 |
| | $ | 18,296 |
| | $ | 18,734 |
| | $ | 18,998 |
| | $ | 19,100 |
|
| | | | | | | | | | |
Total average earnings assets | | $ | 1,765,639 |
| | $ | 1,769,222 |
| | $ | 1,776,649 |
| | $ | 1,803,295 |
| | $ | 1,786,397 |
|
Add average balance of loan valuation discount | | 3,323 |
| | 3,712 |
| | 4,269 |
| | 4,888 |
| | 5,179 |
|
Average earnings assets, excluding loan valuation discount | E | $ | 1,768,962 |
| | $ | 1,772,934 |
| | $ | 1,780,918 |
| | $ | 1,808,183 |
| | $ | 1,791,576 |
|
| | | | | | | | | | |
Core net interest margin | D/E | 4.11 | % | | 4.09 | % | | 4.17 | % | | 4.21 | % | | 4.32 | % |
| | | | | | | | | | |
| | Three Months Ended |
| | March 31, | | December 31, | | September 30, | | June 30, | | March 31, |
Return Ratios | | 2016 | | 2015 | | 2015 | | 2015 | | 2015 |
| | | | | | | | | | |
Net earnings available to common shareholders | | $ | 1,922 |
| | $ | 1,667 |
| | $ | 2,417 |
| | $ | 4,927 |
| | $ | 1,318 |
|
Gain on sales of securities, after-tax | | — |
| | — |
| | — |
| | (733 | ) | | (75 | ) |
Income from death benefit on bank owned life insurance | | — |
| | — |
| | — |
| | (160 | ) | | — |
|
Net earnings available to common shareholders, operating | F | $ | 1,922 |
| | $ | 1,667 |
| | $ | 2,417 |
| | $ | 4,034 |
| | $ | 1,243 |
|
| | | | | | | | | | |
Earnings before income taxes | | $ | 3,312 |
| | $ | 2,604 |
| | $ | 3,617 |
| | $ | 7,442 |
| | $ | 1,937 |
|
Gain on sales of securities | | — |
| | — |
| | — |
| | (1,128 | ) | | (115 | ) |
Income from death benefit on bank owned life insurance | | — |
| | — |
| | — |
| | (160 | ) | | — |
|
Provision for loan losses | | 2,800 |
| | 3,000 |
| | 3,800 |
| | 1,100 |
| | 6,000 |
|
Pre-tax, pre-provision earnings, operating | G | $ | 6,112 |
| | $ | 5,604 |
| | $ | 7,417 |
| | $ | 7,254 |
| | $ | 7,822 |
|
| | | | | | | | | | |
Annualized return on average assets, operating | F/A | 0.40 | % | | 0.34 | % | | 0.49 | % | | 0.82 | % | | 0.26 | % |
Annualized return on average common equity, operating | F/B | 4.41 | % | | 3.80 | % | | 5.53 | % | | 9.47 | % | | 2.95 | % |
Annualized return on average tangible common equity, operating | F/C | 6.05 | % | | 5.25 | % | | 7.66 | % | | 13.23 | % | | 4.14 | % |
Pre-tax, pre-provision annualized return on average assets, operating | G/A | 1.27 | % | | 1.15 | % | | 1.51 | % | | 1.47 | % | | 1.61 | % |
|
| | | | | | | | | | | | | | | | | | | | |
MIDSOUTH BANCORP, INC. and SUBSIDIARIES |
Reconciliation of Non-GAAP Financial Measures (unaudited) (continued) |
(in thousands except per share data) |
| | | | | | | | | | |
| | Three Months Ended |
| | March 31, | | December 31, | | September 30, | | June 30, | | March 31, |
Per Common Share Data | | 2016 | | 2015 | | 2015 | | 2015 | | 2015 |
| | | | | | | | | | |
Book value per common share | | $ | 15.38 |
| | $ | 15.14 |
| | $ | 15.21 |
| | $ | 15.04 |
| | $ | 14.92 |
|
Effect of intangible assets per share | | 4.19 |
| | 4.22 |
| | 4.24 |
| | 4.26 |
| | 4.29 |
|
Tangible book value per common share | | $ | 11.19 |
| | $ | 10.92 |
| | $ | 10.97 |
| | $ | 10.78 |
| | $ | 10.63 |
|
| | | | | | | | | | |
Diluted earnings per share | | $ | 0.17 |
| | $ | 0.15 |
| | $ | 0.21 |
| | $ | 0.42 |
| | $ | 0.12 |
|
Effect of gain on sales of securities, after-tax | | — |
| | — |
| | — |
| | (0.06 | ) | | (0.01 | ) |
Effect of income from death benefit on bank owned life insurance | | — |
| | — |
| | — |
| | (0.01 | ) | | — |
|
Diluted earnings per share, operating | | $ | 0.17 |
| | $ | 0.15 |
| | $ | 0.21 |
| | $ | 0.35 |
| | $ | 0.11 |
|
| | | | | | | | | | |
| | Three Months Ended |
| | March 31, | | December 31, | | September 30, | | June 30, | | March 31, |
Efficiency Ratio | | 2016 | | 2015 | | 2015 | | 2015 | | 2015 |
| | | | | | | | | | |
Net interest income | | $ | 18,384 |
| | $ | 18,537 |
| | $ | 19,141 |
| | $ | 19,381 |
| | $ | 19,257 |
|
| | | | | | | | | | |
Noninterest income | | $ | 4,487 |
| | $ | 4,575 |
| | $ | 4,768 |
| | $ | 6,137 |
| | $ | 4,841 |
|
Income from death benefit on bank owned life insurance | | — |
| | — |
| | — |
| | (160 | ) | | — |
|
Gain on sales of securities | | — |
| | — |
| | — |
| | (1,128 | ) | | (115 | ) |
Noninterest income (non-GAAP) | | $ | 4,487 |
| | $ | 4,575 |
| | $ | 4,768 |
| | $ | 4,849 |
| | $ | 4,726 |
|
| | | | | | | | | | |
Total revenue | H | $ | 22,871 |
| | $ | 23,112 |
| | $ | 23,909 |
| | $ | 25,518 |
| | $ | 24,098 |
|
Total revenue (non-GAAP) | I | $ | 22,871 |
| | $ | 23,112 |
| | $ | 23,909 |
| | $ | 24,230 |
| | $ | 23,983 |
|
| | | | | | | | | | |
Noninterest expense | J | $ | 16,759 |
| | $ | 17,508 |
| | $ | 16,492 |
| | $ | 16,976 |
| | $ | 16,161 |
|
Net (loss) gain on sale/valuation of other real estate owned | | — |
| | (14 | ) | | (79 | ) | | (41 | ) | | 22 |
|
Noninterest expense (non-GAAP) | K | $ | 16,759 |
| | $ | 17,494 |
| | $ | 16,413 |
| | $ | 16,935 |
| | $ | 16,183 |
|
| | | | | | | | | | |
Efficiency ratio (GAAP) | J/H | 73.28 | % | | 75.75 | % | | 68.98 | % | | 66.53 | % | | 67.06 | % |
| | | | | | | | | | |
Efficiency ratio (non-GAAP) | K/I | 73.28 | % | | 75.69 | % | | 68.65 | % | | 69.89 | % | | 67.48 | % |
