Gulf South Bank Conference
May 8 – 9, 2017 | New Orleans
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 performance of new hires, performance in non-energy
related lending, expected loan loss provision and other financial 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, 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.
2
Company Profile
Headquarters: Lafayette, LA Offices: 57 in 26 parishes/counties
Founded: 1985 Average daily trading volume: 19,207 shares*
Total assets: (3/31/17) $1.93 billion Insider ownership: (3/31/17) 17.75%
Shareholders’ equity: (3/31/17) $216 million Institutional ownership : 36%*
Market Capitalization: $170.8 million* *As of 05/01/2017 SNL Financial LC
3
Diversified Loan Portfolio
Total loans at 3/31/17 - $1.272 Billion
4
Commercial &
Industrial (C&I) and Ag
37%
Owner Occupied CRE
20%
Non Owner Occupied
CRE
16%
Real estate-residential
13%
Real estate--
construction
8%
Consumer
6%
Other
0%
Loans by Type
Lafayette
20%
New Iberia - Breaux
Bridge
8%
Houma - Thibodaux -
Morgan City
8%
Baton Rouge
12% Alexandria - Many -
Natchitoches -
Shreveport
10%
Lake Charles -
Sulphur - Jennings
10%
Beaumont
3%
Houston - Conroe -
College Station
15%
Dallas - Tyler -
Texarkana
14%
Loans by Region
LA 68% TX 32%
Attractive Core Deposits
Total deposits at 3/31/17 - $1.573 Billion
5
Interest bearing
checking
31%
Money market
& savings
32%
Time deposits
10%
Non-interest
bearing
checking
27%
Deposits by Type
Lafayette
30%
New Iberia -
Breaux Bridge
14%
Houma - Thibodaux
- Morgan City
4%
Baton Rouge
5%
Alexandria - Many
- Natchitoches -
Shreveport
22%
[CATEGORY NAME]
[PERCENTAGE]
Beaumont
6%
Houston - Conroe -
College Station
4%
Dallas - Fort Worth
- Tyler - Texarkana
8%
Deposits by Region
LA 82% TX 18%
Management Team of MidSouth Bank
• Chief Executive Officer , President and Chief Financial Officer
• 57 years of age with 31 years of banking experience
James R. McLemore
• SEVP & Chief Credit Officer
• 48 years of age with 23 years of banking experience
Jeff Blum
• Chief Information Officer
• 52 years of age with 33 years of banking experience
Kade Peterson
• Chief Risk Officer
• 38 years of age with 17 years of banking experience
Erin DeWitt
• SVP & Treasurer
• 53 years of age with 28 years of banking experience
Lorraine Miller
6
1Q17 Summary Results
Diluted EPS $0.15 versus $0.12 for 4Q 2016
Loan Loss Provision of $2.8 million, up from $2.6 million in 4Q
Total Valuation Accounting Adjustment plus ALLL 2.08% of loans
Energy Lending Update
Outstandings down $5.6 million in 1Q, or 2.4%
18.2% of loans, down from 18.5% at 12/31/16
Seven energy loan relationships had rating changes during the quarter.
1 relationship totaling $108,000 downgraded to SM
5 relationships totaling $23.4 million downgraded to SS
1 relationship totaling $438,000 upgraded to Pass
Three energy-related charge-offs totaling $657,000 during 1Q.
Cycle to date net charge-offs - $4.1 million, or 1.6% of 12/31/14 energy loans
Two energy-related impairments totaling $177,000 were identified during 1Q17 and
one additional impairment charge of $272,000 was recorded related to an existing
impaired loan identified prior to 1Q17.
Energy reserve stands at 5.5% of energy loans at 3/31/17
Reserves on C&I energy loans 6.5%
Reserves on energy-related CRE/Res RE 1.0%
7
Energy Lending – Through 6 Major Cycles
Inflation-Adjusted Oil Prices 1985-Present
8
#1 Feb ‘85 MSL opens doors Oil
Price $61.00
#2 Nov ‘85
$67.01
#3 Mar ‘86 $22.33
(Peak to Trough 4
months) -67%
#6 Sep ‘90
$70.64
#7 Feb ‘91
$33.91 (5
mos.) -52%
#4 July ‘87
$44.66
# 5 Sept ’88
$26.38 (14
mos.) -41%
1st Six Years - 3 major Cycles
#8 Dec ‘96
$38.92
#9 Nov. ‘98 $16.44
(23 mos.) -57%
#10 June ‘08
$151.72
#11 Jan ‘09
$46.86 (7 mos.) -
69%
#12 Jun ‘14
$105.54
#13 Jan ‘16 $28.50 (27
mos.) -73%
#14 Feb ’17
$54.45
Energy Lending – our 30 year track record
1985 – 2017 YTD - $5.8 million cumulative energy charge-offs
Highest year – 2015 – $1.7 million (8 relationships)
9
Energy Lending – Asset Quality
Past Dues >30 days plus nonaccruals of $28.7 million or 12.4% of energy
portfolio
Risk Ratings – 52% of energy loans are Pass Rated
48% of energy loans are criticized vs 50% at 12/31/16
Total criticized down $7.7 million to $111.5 million
42 out of 375 energy customers (11%) are criticized
Classified Energy Loans are collateralized primarily by boats and equipment
Energy Reserves approximately $12.7 million or 5.5% of energy loans
Energy reserves allocated to C&I approx. $12.4 M or 6.5%
Total ALLL of $24.6 million available to absorb losses in all loan categories
10
11
Loan Growth Being Impacted by Energy-
related Paydowns
$
1
,2
9
4,
86
9
$
1
,2
7
8,
3
44
$
1
,2
8
2
,5
13
$
1
,2
4
4,
63
4
$
1
,2
2
9
,7
02
$
1
,2
4
1
,0
11
$
1
,2
4
9
,5
32
$
1
,2
5
9,
7
10
$
1
,2
4
7
,4
22
5.55%
5.29%
5.00%
5.10%
5.20%
5.30%
5.40%
5.50%
5.60%
$1,180,000
$1,200,000
$1,220,000
$1,240,000
$1,260,000
$1,280,000
$1,300,000
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17
Lo
an
Y
ie
ld
s
To
ta
l l
o
an
s,
n
et
o
f
A
LL
(
th
o
u
sa
n
d
s)
Total loans, net of ALL (thousands) Loan Yields
LOC Utilization - Revolvers
12
$14
8
,89
4
$16
6
,98
1
$17
9
,44
7
$19
1
,96
9
$20
9
,12
1
$20
0
,62
4
$18
4
,63
0
$18
7
,76
2
$19
8
,98
3
$19
1
,32
4
$18
7
,77
6
$20
4
,81
5
$22
2
,35
7
$22
6
,17
0
$17
1
,15
0
$16
9
,72
5
$17
4
,48
9
$18
5
,24
4
$18
8
,21
4
$20
0
,85
6
$22
5
,20
9
$22
2
,98
7
$22
3
,27
5
$23
2
,17
4
$23
5
,45
3
$24
5
,38
9
$21
6
,75
0
$22
3
,43
0
46.52%
50.30%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
$500,000
4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17
Line Balance Unfunded Line Utilization %
Deposit Base – Source of Stable Low Cost Funding
13
$
1
,6
1
6
,0
9
8
$
1
,5
5
8
,2
50
$
1
,5
4
3
,4
2
1
$
1
,5
5
0
,8
50
$
1
,5
5
8
,2
0
3
$
1
,5
6
0
,0
6
6
$
1
,5
8
5
,2
07
$
1
,5
7
9
,4
30
$
1
,5
7
2
,9
44
0.24%
0.24%
0.20%
0.20%
0.21%
0.21%
0.22%
0.22%
0.23%
0.23%
0.24%
0.24%
0.25%
$1,500,000
$1,520,000
$1,540,000
$1,560,000
$1,580,000
$1,600,000
$1,620,000
$1,640,000
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17
D
ep
o
si
t
C
o
st
s
(%
)
Pe
ri
o
d
E
n
d
D
ep
o
si
ts
(
th
o
u
sa
n
d
s)
Period End Deposits (thousands) Deposit Costs % (Annualized)
Core NIM
Yield Analysis
3/31/17
NIM core of 4.11% for 1Q17
vs. 3.98% for 4Q16 increased
primarily due to:
An increase in the
average yield on
securities of 9 basis
points
Average yield on new loan
production:
1Q17 – 5.41%
4Q16 – 5.28%
3Q16 – 5.12%
2Q16 – 5.28%
1Q16 – 5.45%
4Q15 – 5.69%
3Q15 – 5.12%
2Q15 – 5.10%
14
5.55% 5.49% 5.46%
5.32% 5.41% 5.31% 5.36% 5.31% 5.29%
4.37% 4.31% 4.27% 4.16% 4.18% 4.11% 4.17% 4.09% 4.18%
4.26% 4.15% 4.11% 4.03% 4.05% 4.02% 4.05% 3.98%
4.11%
0.32% 0.32% 0.31% 0.30% 0.32% 0.32% 0.32% 0.32% 0.29%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
1Q-2015 2Q-2015 3Q-2015 4Q-2015 1Q-2016 2Q-2016 3Q-2016 4Q-2016 1Q-2017
Yield on loans
NIM
Core NIM
Cost of Funds
Conservative Balance Sheet Management
15
SBLF preferred
$32 million O/S
Rate reset to 9% on
2/25/16
Current SBLF plans
Retire SBLF with excess
cash at parent plus portion
of future earnings
$16.7 million parent cash at
3/31
Parent cash flow needs
met with upstreamed
dividends of $2mm/qtr
Stabilization and
improvement of asset
quality – will release excess
cash to pay SBLF currently
reserved for capital
injection into Bank
Bank Leverage Ratio
9.45%
Future excess earnings from
Bank upstreamed to retire
balance of SBLF
10.17%
8.90%
13.28%
14.53%
10.27%
8.91%
13.14%
14.40%
0.00%
5.00%
10.00%
15.00%
20.00%
Tier 1 leverage ratio Tier 1 common
equity ratio
Tier 1 risk-based
capital ratio
Total risk-based
capital ratio
3/31/2016 3/31/2017
Investment Considerations
Deep & experienced management team and
board of directors with significant insider
ownership
Lending to Energy sector – core competency
since Bank started in 1985
Located in resilient markets with growth
opportunities
Long-term conservative operating philosophy
Well capitalized, well diversified loan portfolio
and great core deposit base
16
MSL Team
17
James R. McLemore
• Interim President & CEO
Jeff Blum
• SEVP & Chief Credit Officer
Erin DeWitt
• Chief Risk Officer
Kade Peterson
• Chief Information Officer
Lorraine Miller
• SVP & Treasurer
Appendix
18
Energy Exploration
Current MSL Locations Source: US Energy Information Administration
Shale oil and gas is
extracted from
shale, an
unconventional
reservoir of
hydrocarbons
Shale oil and gas
reserves will be a
big part of the US
energy supply for
many years to come
Four shale
formations cover our
area and include:
Barnett, Eagle Ford,
Haynesville/ Bossier,
and the prospective
Tuscaloosa
Cheaper natural gas
is promoting petro-
chemical expansion
and growth of LNG
exports in SE Texas
and SW Louisiana
19
Energy Lending – Portfolio Characteristics
No Reserve-Based Lending / Redeterminations
Two SNCs - $14.2 million (6.1% of energy loans)
Substandard – downgraded 3Q16
With exception of one loan i/a/o $11.2 million, all of
top 25 lending relationships have personal
guarantees
20
Energy Loans – All Inclusive Definition
Total energy and energy related exposure of $231.8 million or 18.2% of loans
Includes both Direct C&I and other non-C&I categories
Commercial Real Estate (CRE) - $34.9 MM
15.1% of Energy Loans
94.5% of CRE is Owner Occupied
Residential Real Estate - $3.4 MM
1.5% of Energy Loans
C&I - $193.1 MM
83.3% of Energy Loans
A/R - $51.7 MM (22.3% of Energy Loans)
Weighted average maturity - 3.2 years
Unfunded commitments
$45.5 million at 3/31/17 – Utilization rate of 56.7% vs 50.7% at 12/31/16
A/R – 82% of commitments, Equipment 11%, CRE 2%
A/R customers have lockbox agreements and/or at minimum provide monthly
borrowing base certificates
Houston non-owner occupied CRE - $32 million, 2.5% of total loans
21
Energy Portfolio as of 3/31/17 (*)
$231.8 million in Energy Loans to 375 customers
Top 10 Energy customers account for 47% of energy loans
Energy portfolio down $5.6 million, or 2.4% vs. 4Q16
*Includes loans where the borrower's ability to repay could be disproportionately impacted by prolonged low oil and gas prices
22
Collateral
Total $’s
(Millions)
% of Energy
Portfolio
# of
Loans
# of
Relationships
Avg $ per
Relationship
Wt'd Avg
Maturity (Yrs)
Accounts Receivables $ 51.7 22.3% 64 60 $ 0.9 0.2
Barges, Crew Boats, Marine Vessels 61.1 26.3% 30 22 2.8 5.7
Equipment 73.0 31.5% 170 83 0.9 3.3
Inventory 2.0 0.9% 6 6 0.3 2.1
CD/Mkt. Securities 2.2 0.9% 17 12 0.2 0.8
All Other 3.2 1.4% 90 79 0.0 0.0
Sub Total C & I 193.1 83.3% 377 262 $ 0.7 3.2
Commercial Real Estate 34.9 15.1% 65 55 0.6 11.0
Consumer Real Estate 3.4 1.5% 43 38 0.1 10.9
Other 0.4 0.2% 20 20 0.0 0.0
Sub Total Non C & I $ 38.7 16.7% 128 113 $ 0.3 10.9
Total $ 231.8 100.0% 505 375 $ 0.6 4.5
Past Due Energy Loans as of 3/31/17 (*)
*Includes loans where the borrower's ability to repay could be disproportionately impacted by prolonged low oil and gas prices
> 30 days + nonaccruals =
12.40% of energy loans
23
Collateral
Total $’s
(Millions)
% of
Energy
Portfolio
Total Past
Due $’s
(Millions)
% of
Energy
Portfolio
0-29
30-59
60-89
90+
Non-
Accruals
Accounts Receivables $ 51.7 22.3% $ 10.69 4.6% $ 9.35 - - - $ 1.35
Barges, Crew Boats, Marine Vessels 61.1 26.3% 23.43 10.1% 4.86 0.30 - - 18.27
Equipment 73.0 31.5% 7.80 3.4% 0.81 0.58 0.54 0.37 5.50
Commercial Real Estate 34.9 15.1% 1.62 0.7% - - - - 1.62
Consumer Real Estate 3.4 1.5% 0.61 0.3% 0.41 - - - 0.20
Inventory 2.0 0.9% 0.50 0.2% 0.50 - - - -
CD/Mkt. Securities 2.2 0.9% 0.34 0.1% 0.34 - - - -
All Other 3.6 1.5% 0.53 0.2% 0.52 0.01 - - 0.01
Total $ 231.8 100.0% $ 45.53 19.6% $ 16.79 $ 0.89 $ 0.54 $0.37 $ 26.95
Accruing – Past Due ($ Millions)
Energy Loans by Risk Rating & Loan Type
as of 3/31/17 (*) ($’s in Millions)
*Includes loans where the borrower's ability to repay could be disproportionately impacted by prolonged low oil and gas prices
24
Risk Rating
Rating
# C & I
R/E
Comm
Consumer
Real
Estate
CD/Mkt.
Securities Other
1Q17
Total
1Q17 %
of Energy
Portfolio
4Q16
Total
4Q16 %
of
Energy
Portfolio
Prime 1 - - - $ 1.2 - $ 1.2 0.5% $ 1.3 0.5%
Excellent 2 0.3 0.1 - 0.5 - 0.9 0.4% 1.1 0.5%
Above Average 3 30.6 2.4 0.1 - - 33.1 14.3% 40.4 17.0%
Satisfactory 4 60.5 19.9 2.7 0.4 1.4 85.0 36.7% 75.5 31.8%
Total Pass Rated $ 91.5 $ 22.4 $ 2.8 $ 2.2 $ 1.4 $ 120.2 51.9% $ 118.2 49.8%
Other Assets
Special Mention 5 5.1 0.9 0.4 - - 6.3 2.7% 31.0 13.0%
Substandard 6 94.3 10.4 0.4 - 0.1 105.2 45.4% 88.2 37.2%
Doubtful 7 0.0 - - - 0.0 0.0 0.0% 0.0 0.0%
Total $ 190.9 $ 33.6 $ 3.6 $ 2.2 $ 1.5 $ 231.8 100.0% $ 237.4 100.0%
Energy Loans by Risk Rating & Collateral Type
as of 3/31/17 (*)
* Includes loans where the borrower's ability to repay could be disproportionately impacted by prolonged low oil and gas prices
25
($’s in millions)
Collateral
Pass
Other Assets
Special
Mention
Substandard
Doubtful
1Q17
Total
1Q17 % of
Energy
Portfolio
4Q16
Total
4Q16 % of
Energy
Portfolio
Accounts Receivables $ 18.8 $ 1.9 $ 30.9 - $ 51.7 22.3% $ 47.0 19.8%
Barges, Crew Boats, Marine Vessels 22.5 - 38.6 - 61.1 26.3% 64.1 27.0%
Equipment 45.7 3.2 24.0 - 73.0 31.5% 72.9 30.7%
Commercial Real Estate 23.6 0.9 10.4 - 34.9 15.1% 41.4 17.4%
Real Estate 2.6 0.4 0.4 - 3.4 1.5% 3.5 1.5%
Inventory 1.5 - 0.5 - 2.0 0.9% 2.2 0.9%
CD Secured 2.2 - - - 2.2 0.9% 2.2 0.9%
All Other 3.3 0.0 0.2 0.0 3.5 1.5% 4.0 1.7%
Total $ 120.2 $ 6.3 $ 105.2 $ 0.0 $ 231.8 100.0% $ 237.4 100.0%
Energy Loans by Type of Facility
as of 3/31/17 (*)
* Includes loans where the borrower's ability to repay could be disproportionately impacted by prolonged low oil and gas prices
26
Facility Type
Bal 03.31.17
($'s in Millions)
% of
Energy
Portfolio
Bal 12.31.16
($'s in Millions)
% of Energy
Portfolio
Net Change
1Q17
Closed-End LOC $ 158.5 68.4 % $ 164.9 69.4 % - $ 6.4
Revolving LOC 68.2 29.4 % 64.9 27.4 % 3.2
Other 5.1 2.2 % 7.6 3.2 % - 2.5
Total $ 231.8 100.0 % $ 237.4 100.0 % - $ 5.6
Unfunded Commitments on Energy Loans
as of 3/31/17 (*)
* Includes loans where the borrower's ability to repay could be disproportionately impacted by prolonged low oil and gas prices
27
Revolving Lines of Credit ($’s in Millions)
Collateral Original Line Amount Current Balance Unfunded Amount
Accounts Receivables $ 88.7 $ 51.7 $ 37.1
Barges, Crew Boats, Marine Vessels 0.5 0.2 0.3
Equipment 16.6 11.8 4.8
Commercial Real Estate 3.2 2.1 1.1
Real Estate 0.4 0.4 0.0
Inventory 0.8 0.6 0.2
CD Secured 2.0 0.9 1.2
All Other 1.4 0.6 0.8
Total $ 113.7 $ 68.2 $ 45.5
Combined utilization rate (including straight lines of credit) was 56.7% compared to 50.7% at 12/31/2016. The increased utilization rate
was impacted by an $13.9 million decrease in original lines and $.8 million increase in ending balances.
Financial Highlights
28
12/31/2015 3/31/2016 6/30/2016 9/30/2016 12/31/2016 3/31/2017
EARNINGS DATA
Net earnings available to common shareholders $1,667 $1,922 $1,682 $1,587 $1,387 $1,680
PER COMMON SHARE DATA
Diluted earnings per share $0.15 $0.17 $0.15 $0.14 $0.12 $0.15
Quarterly dividends per share 0.09 0.09 0.09 0.09 0.09 0.09
Book value at end of period 15.14 15.38 15.56 15.58 15.25 15.37
Tangible book value at period end (Non-GAAP) 10.92 11.19 11.40 11.44 11.13 11.28
Market price at end of period 9.08 7.63 10.04 10.40 13.60 15.30
BALANCE SHEET DATA (in thousands)
Total assets $1,927,733 $1,916,551 $1,922,524 $1,953,920 $1,943,340 $1,934,939
Total loans 1,263,645 1,250,049 1,262,389 1,272,800 1,284,082 1,272,000
Total deposits 1,550,850 1,558,203 1,560,066 1,585,207 1,579,430 1,572,944
Total common equity 172,017 174,734 176,831 177,016 173,266 174,952
Total equity 213,137 215,854 217,941 218,126 214,376 216,062
Average tangible common equity (Non-GAAP) 125,919 127,722 128,516 130,662 129,821 128,124
SELECTED RATIOS
Annualized return on average assets, operating (Non-GAAP) 0.34% 0.40% 0.35% 0.33% 0.28% 0.35%
Annualized return on average common equity, operating (Non-GAAP) 3.80% 4.41% 3.81% 3.55% 3.12% 3.89%
Annualized return on average tangible common equity, operating (Non-
GAAP) 5.25% 6.05% 5.22% 4.83% 4.25% 5.31%
Pre-tax, pre-provision annualized return on average assets, operating (Non-
GAAP) 1.15% 1.27% 1.21% 1.30% 1.15% 1.23%
Average loans to average deposits 81.62% 80.71% 80.38% 81.19% 80.26% 81.20%
Taxable-equivalent net interest margin 4.16% 4.18% 4.11% 4.17% 4.09% 4.18%
Core net interest margin (Non-GAAP) 4.03% 4.05% 4.02% 4.05% 3.98% 4.11%
Tier 1 leverage capital ratio 10.10% 10.17% 10.25% 10.27% 10.11% 10.27%
Efficiency ratio, operating (Non-GAAP) 75.69% 72.65% 74.49% 73.04% 75.67% 74.51%
Reconciliation of Non-GAAP Financial Measures
29
Average Balance Sheet Data 12/31/2015 3/31/2016 6/30/2016 9/30/2016 12/31/2016 3/31/2017
Total average assets A 1,938,235$ 1,931,904$ 1,921,004$ 1,927,351$ 1,960,436$ 1,932,818$
Total equity 215,072$ 216,599$ 217,112$ 218,976$ 217,857$ 215,895$
Less preferred equity 41,122 41,120 41,118 41,110 41,110 41,110
Total common equity B 173,950$ 175,479$ 175,994$ 177,866$ 176,747$ 174,785$
Less intangible assets 48,031 47,757 47,478 47,204 46,926 46,661
Tangible common equity C 125,919$ 127,722$ 128,516$ 130,662$ 129,821$ 128,124$
Return Ratios
Net earnings available to common shareholders 1,667$ 1,922$ 1,682$ 1,587$ 1,387$ 1,680$
Gain on sale of securities, after-tax - - (13) - - (4)
Net earnings available to common shareholders, operating D 1,667$ 1,922$ 1,669$ 1,587$ 1,387$ 1,676$
Annualized return on average assets, operating D/A 0.34% 0.40% 0.35% 0.33% 0.28% 0.35%
Annualized return on average common equity, operating D/B 3.80% 4.41% 3.81% 3.55% 3.12% 3.89%
Annualized return on average tangible common equity, operating D/C 5.25% 6.05% 5.22% 4.83% 4.28% 5.31%
Earnings before income taxes 2,604$ 3,312$ 3,523$ 3,391$ 3,070$ 3,080$
Gain on sale of securities - - (20) - - (6)
Provision for loan losses 3,000 2,800 2,300 2,900 2,600 2,800
Pre-tax, pre-provision earnings, operating E 5,604$ 6,112$ 5,803$ 6,291$ 5,670$ 5,874$
Pre-tax, pre-provision annualized return on average assets, operating E/A 1.15% 1.27% 1.21% 1.30% 1.15% 1.23%
Reconciliation of Non-GAAP Financial Measures
(continued)
30
3/31/2015 6/30/2015 9/30/2015 12/31/2015 3/31/2016 6/30/2016 9/30/2016 12/31/2016 3/31/2017
Core Net Interest Margin
Net interest income (FTE) 19,268$ 19,379$ 19,134$ 18,530$ 18,368$ 17,946$ 18,472$ 18,478$ 18,279$
Less purchase accounting adjustments (465) (678) (689) (510) (565) (341) (493) (458) (274)
Net interest income, net of purchase accounting adjustments J 18,803$ 18,701$ 18,445$ 18,020$ 17,803$ 17,605$ 17,979$ 18,020$ 18,005$
Total average earnings assets 1,786,397$ 1,803,295$ 1,776,649$ 1,769,222$ 1,765,639$ 1,757,467$ 1,761,984$ 1,797,907$ 1,773,647$
Add average balance of loan valuation discount 5,179 4,888 4,269 3,712 3,323 2,931 2,634 2,316 1,964
Average earnings assets, excluding loan valuation discount K 1,791,576$ 1,808,183$ 1,780,918$ 1,772,934$ 1,768,962$ 1,760,398$ 1,764,618$ 1,800,223$ 1,775,611$
Core net interest margin J/K 4.26% 4.15% 4.11% 4.03% 4.05% 4.02% 4.05% 3.98% 4.11%
Efficiency Ratio 12/31/2015 3/31/2016 6/30/2016 9/30/2016 12/31/2016 3/31/2017
Net interest income 18,261$ 18,127$ 17,725$ 18,253$ 18,235$ 18,066$
Noninterest income 4,851$ 4,744$ 5,139$ 5,152$ 5,071$ 5,044$
Net gain on sale of securities - - (20) - - (6)
Noninterest income (non-GAAP) 4,851$ 4,744$ 5,119$ 5,152$ 5,071$ 5,038$
Total revenue F 23,112$ 22,871$ 22,864$ 23,405$ 23,306$ 23,110$
Total revenue (non-GAAP) G 23,112$ 22,871$ 22,844$ 23,405$ 23,306$ 23,104$
Noninterest expense H 17,508$ 16,759$ 17,041$ 17,114$ 17,636$ 17,230$
Net loss on sale/valuation of other real estate owned (14) (144) (24) (19) - (15)
Noninterest expense (non-GAAP) I 17,494$ 16,615$ 17,017$ 17,095$ 17,636$ 17,215$
Efficiency ratio (GAAP) H/F 75.75% 73.28% 74.53% 73.12% 75.67% 74.56%
Efficiency ratio (non-GAAP) I/G 75.69% 72.65% 74.49% 73.04% 75.67% 74.51%
Per Common Share Data
Book value per common share 15.14$ 15.38$ 15.56$ 15.58$ 15.25$ 15.37$
Effect of intangible assets per share 4.22 4.19 4.16 4.14 4.12 4.09
Tangibl book value per common share 10.92$ 11.19$ 1 . 0$ 11.44$ 11.13$ 11.28$
Core Noninterest Income Ratio
31
3/31/2016 6/30/2016 9/30/2016 12/31/2016 3/31/2017
Service charges on deposit accounts 2,369$ 2,451$ 2,584$ 2,479$ 2,480$
ATM and debit card income 1,609 1,668 1,620 1,682 1,703
Gain/loss on securities, net - 20 - - 6
Mortgage lending 109 123 190 164 143
Other charges and fees 657 877 758 746 712
Total noninterest income 4,744$ 5,139$ 5,152$ 5,071$ 5,044$
Less: Gain/loss on securities, net - (20) - - (6)
Core noninterest income 4,744$ 5,119$ 5,152$ 5,071$ 5,038$
Total Assets (Quarterly Average) 1,931,904$ 1,921,004$ 1,927,351$ 1,960,436$ 1,932,818$
Noninterest Income/Average Assets 1.00% 1.08% 1.06% 1.03% 1.06%
Core Noninterest Income/Average Assets 1.00% 1.07% 1.06% 1.03% 1.06%
Core Noninterest Expense Ratio
32
3/31/2016 6/30/2016 9/30/2016 12/31/2016 3/31/2017
Salaries and employee benefits 7,990$ 8,182$ 8,034$ 8,726$ 8,689$
Occupancy expense 3,597 3,667 3,635 3,731 3,624
ATM and debit card 785 792 833 829 721
Legal and professional fees 383 436 516 520 385
FDIC premiums 429 420 365 387 397
Marketing 381 351 442 349 280
Corporate development 335 419 395 423 316
Data processing 458 478 527 500 621
Printing and supplies 188 223 191 158 183
Expenses on ORE, net 194 36 100 59 79
Amortization of core deposit intangibles 277 276 277 277 277
Other noninterest expense 1,742 1,761 1,799 1,677 1,658
Total non-interest expense 16,759$ 17,041$ 17,114$ 17,636$ 17,230$
Core noninterest expense (excludes ORE expense) 16,565$ 17,005$ 17,014$ 17,577$ 17,151$
Total Assets (Quarterly Average) 1,931,904$ 1,921,004$ 1,927,351$ 1,960,436$ 1,932,818$
Noninterest expense/Total Average Assets 3.49% 3.57% 3.53% 3.58% 3.62%
Core Noninterest expense/Total Average Assets 3.45% 3.56% 3.51% 3.57% 3.60%