-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FwUxhBK+k/SpOYS0UgGl7oBoE76cAXlhItfUrKwoSqhC6pw0HfDfvFGXn6IrqtyJ eYo10iWNUgZDH/XRYDNlqQ== 0001144204-07-020836.txt : 20070426 0001144204-07-020836.hdr.sgml : 20070426 20070426161716 ACCESSION NUMBER: 0001144204-07-020836 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070426 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070426 DATE AS OF CHANGE: 20070426 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MIDSOUTH BANCORP INC CENTRAL INDEX KEY: 0000745981 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 721020809 STATE OF INCORPORATION: LA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11826 FILM NUMBER: 07791572 BUSINESS ADDRESS: STREET 1: 102 VERSAILLES BLVD STREET 2: VERSAILLES CENTRE CITY: LAFAYETTE STATE: LA ZIP: 70501 BUSINESS PHONE: 3182378343 MAIL ADDRESS: STREET 1: 102 VERSAILLES BLVD CITY: LAFAYETTE STATE: LA ZIP: 70501 8-K 1 v072689_8k.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) April 26, 2007 ----------------- MidSouth Bancorp, Inc. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Louisiana 1-11826 72-1020809 - -------------------------------------------------------------------------------- (State or other jurisdiction (Commission (I.R.S. Employer of incorporation) File Number) Identification No.) 102 Versailles Boulevard, Lafayette, Louisiana 70501 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code 337-237-8343 - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report.) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: |_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION Item 8.01. OTHER EVENTS AND REGULATION FD DISCLOSURE On April 26, 2007, MidSouth Bancorp, Inc. (the "Company") issued a press release regarding the Company's earnings for the quarter ending March 31, 2007. The Company's earnings release, including financial highlights, is attached as Exhibit 99.1. Item 9.01. FINANCIAL STATEMENTS AND EXHIBITS (d) Exhibits 99.1 Press Release dated April 26, 2007. Signature Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date April 26, 2007 /s/ C. R. Cloutier -------------------- President & CEO Exhibit 99.1 Press Release dated April 26, 2007 announcing earnings for the first quarter of 2007. EX-99.1 2 v072689_ex99-1.txt MidSouth Bancorp, Inc. Reports First Quarter 2007 Earnings LAFAYETTE, La., April 26 /PRNewswire-FirstCall/ -- MidSouth Bancorp, Inc. (Amex: MSL) today reported earnings of $1,946,000 for the first quarter ended March 31, 2007, an increase of 7.0% over net income of $1,819,000 reported for the first quarter of 2006 and an increase of 11.3% over net income of $1,749,000 reported for the fourth quarter of 2006. A decrease in the provision for loan losses of $320,000 was responsible for the positive change in earnings in quarterly comparison. Diluted earnings per share for the first quarter of 2007 were $0.31, an increase of 7.6% over the $0.29 per share for the first quarter of 2006 and 10.7% above the $0.28 per share for the fourth quarter of 2006. These amounts reflect a five-for-four (25%) stock dividend distributed on October 23, 2006. Revenues for the Company, defined as net interest income and non-interest income, increased $1,361,000 for the first quarter of 2007 compared to the first quarter of 2006. A $1,583,000 increase in non-interest expenses attributed to franchise expansion offset the improvement in revenues. Rusty Cloutier, President and Chief Executive Officer of MidSouth Bancorp, Inc., commented, "We are pleased to report a 13.07% return on equity and a 7.0% increase in earnings for our shareholders in the first quarter of 2007, despite a market environment of shrinking net interest margins and intense competition for loans and deposits. The execution of our growth plan, adding 7 branches in existing and new markets over the next 12 months, will continue to impact earnings in the short-term, but is the key to building long-term shareholder value." The Company's total assets ended the first quarter of 2007 at $814.7 million, an 8.8% increase over the $748.6 in total assets recorded at March 31, 2006. Deposits were $728.8 million as of March 31, 2007, compared to $674.4 million on March 31, 2006, an increase of $54.4 million, or 8.1%. Total loans were $510.6 million, an increase of $59.4 million, or 13.2%, from $451.2 million as of March 31, 2006. Credit quality remained strong, as nonperforming assets to total assets were 0.28% for the first quarter of 2007, compared to 0.29% for the fourth quarter of 2006 and 0.26% for the first quarter of 2006. "Asset quality is always top priority," said Cloutier. "We have worked hard to continue double-digit loan growth in year-over-year comparison, while maintaining sound underwriting practices that enhance credit quality." In linked-quarter comparison loans grew $11.5 million, most of which was added late in the quarter. Loan growth slowed in the fourth quarter 2006 and for most of the first quarter 2007 as a result of higher levels of prepayments due to sales of customers' businesses, higher levels of liquidity and cash flow reported by customers, and highly competitive pricing. Addressing expectations for loan growth for the remainder of 2007, Cloutier added, "We are optimistic about the pipeline at the end of the first quarter 2007 and the positive demographic and economic data recently reported in the markets we serve." Earnings Analysis Net Interest Income. Net interest income totaled $8,354,000 for the first quarter of 2007, an increase of 12.9%, or $957,000, from the $7,397,000 reported for the first quarter of 2006. The improvement in net interest income resulted primarily from an increase of $81.3 million in average earning assets. Total interest income from earning assets increased $2.4 million for the first quarter of 2007 compared to 2006. The volume increase in earning assets was supported by a 71 basis points increase in the yield on loans, from 8.20% to 8.91%, and a 30 basis point increase in the taxable-equivalent yield on investment securities, from 4.63% to 4.93%, in quarterly comparison. Yields on loans improved as the Prime rate increased 50 basis points over the past twelve months and adjusted rates on a portion of MidSouth Bancorp's loan portfolio that floats with changes in Prime. The impact of increased interest income on earnings was partially offset by the increased volume and cost of interest-bearing liabilities realized in quarterly comparison. A $77.0 million increase in average volume and a 63 basis point increase in the average rate paid on interest-bearing liabilities resulted in a $1.5 million increase in interest expense for the first quarter of 2007 compared to the first quarter 2006. The average rate paid on interest-bearing liabilities increased to 3.66% from 3.03%, respectively. Growth in interest-bearing liabilities was primarily in money market and NOW checking deposit products paying competitive market rates of interest. In linked-quarter comparison, the increase in average earning assets was held to $6.2 million as a result of the slowed loan growth for most of the first quarter of 2007. The average yield on earning assets improved 14 basis points. The average volume of interest-bearing liabilities increased $11.5 million in linked-quarter comparison and the average yield on interest- bearing liabilities increased 9 basis points. As a result, net interest income decreased $96,000 despite a 3 basis point improvement in the taxable equivalent net yield on earning assets, from 4.83% for the fourth quarter of 2006 to 4.86% for the first quarter of 2007. Non-interest income. Non-interest income for the first quarter of 2007 totaled $3.2 million, or 14.2% above the $2.8 million earned in the first quarter of 2006 and 7.9% above the $3.0 million earned in the fourth quarter of 2006. The increases from prior year and linked-quarter comparisons resulted primarily from increases in fee income from service charges on deposit accounts, including non-sufficient funds ("NSF") fees, due to increased activity on the accounts. Operating Expenses. Non-interest expenses increased $1.6 million in the first quarter 2007 compared to the first quarter 2006 primarily due to increased salaries and benefits costs. The number of full-time equivalent employees increased from 339 at March 31, 2006 to 387 at March 31, 2007 as a result of franchise expansion and recruitment of talented leaders to support the expansion. Additional increases were recorded in occupancy and data processing expenses, professional fees, marketing costs, and other growth- related expenses. In linked-quarter comparison non-interest expenses remained relatively unchanged, as increased salaries and benefits costs were offset by decreases primarily in occupancy expense, marketing costs, and education and travel expenses. The decrease in occupancy expense is due to an impairment loss of $248,000 recorded in the fourth quarter of 2006. An impairment charge was taken on existing network and phone assets as the company began upgrading its communications equipment and network capabilities to support business growth and additional locations. The total cost of the initiative approximates $2,200,000. The network will tie all locations together for voice and data communications and is expected to be completed in the second quarter of 2007. Asset Quality. At March 31, 2007, nonperforming assets totaled $2,271,000 or 0.28% of total assets, as compared to $1,921,000, or 0.26% of total assets, recorded at March 31, 2006. Nonperforming assets decreased $43,000 in linked- quarter comparison. Allowance coverage for nonperforming assets was 215.76% at March 31, 2007. Net year-to-date charge-offs were 0.02% of total loans for the first quarter of 2007, compared to 0.01% at March 31, 2006, and 0.05% at December 31, 2006. Continued strong credit quality ratios, supported by management's most recent analysis of the ALLL, indicated that the ALLL/total loans ratio of .96% was appropriate at March 31, 2007. Accordingly, no provision expense for loan losses was recorded in the first quarter 2007, compared to $320,000 in provision expense recorded for the first quarter of 2006 and $180,000 recorded for the fourth quarter of 2006. Franchise Growth. In 2007, the Company plans to continue its expansion in southern Louisiana as well as solidifying and expanding its banking presence and commercial lending base throughout Houston and southeast Texas. Cloutier commented, "We are continually receptive to new growth opportunities in both our existing markets and locations that are in accordance with our long-term strategic goal of building shareholder wealth. Over the next twelve months, we will add several branches to service our customers throughout south Louisiana and southeast Texas." Two branches are planned to open in the Baton Rouge market in late May 2007 and January of 2008. A new branch in Cutoff and a second branch in Lake Charles are scheduled to open in July and November 2007, respectively. In the existing Texas markets, new locations in both Conroe and College Station are scheduled to open in August and November, respectively. Expansion into the Houston market will be anchored with a new branch on the Sam Houston Parkway anticipated to open in May 2007. MidSouth Bancorp, Inc. is a two-bank holding company headquartered in Lafayette, Louisiana whose wholly-owned active subsidiaries are MidSouth Bank, N.A., also headquartered in Lafayette, and MidSouth Bank, headquartered in Beaumont, Texas. The MidSouth franchise consists of 29 branches throughout south Louisiana and southeast Texas. MidSouth's common stock is traded on the American Stock Exchange under the symbol MSL. The Private Securities Litigation Act of 1995 provides a safe harbor for disclosure of information about a company's anticipated future financial performance. This act protects a company from unwarranted litigation if actual results differ from management expectations. This press release reflects management's current views and estimates of future economic circumstances, industry conditions, MidSouth's performance and financial results. A number of factors and uncertainties could cause actual results to differ from anticipated results and expectations. MIDSOUTH BANCORP, INC. and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands except per share data) For the Quarter Ended March 31, % Dec. 31, % EARNINGS DATA 2007 2006 Chg 2006 Chg Total interest income $13,442 $11,035 21.8% $13,405 0.3% Total interest expense 5,088 3,638 39.9% 4,955 2.7% Net interest income 8,354 7,397 12.9% 8,450 -1.1% Provision for loan losses - 320 -100.0% 180 -100.0% Non-interest income 3,247 2,843 14.2% 3,010 7.9% Non-interest expense 9,079 7,496 21.1% 9,070 0.1% Provision for income tax 576 605 -4.8% 461 24.9% Net income $1,946 $1,819 7.0% $1,749 11.3% PER COMMON SHARE DATA Basic earnings per share $0.31 $0.30 3.3% $0.28 10.7% Diluted earnings per share $0.31 $0.29 7.6% $0.28 10.7% Book value at end of period $9.83 $8.67 13.4% $9.58 2.6% Market price at end of period $27.02 $22.92 17.9% $31.16 -13.3% Weighted avg shares outstanding Basic 6,240,259 6,176,613 1.0% 6,230,314 0.2% Diluted 6,329,813 6,349,699 -0.3% 6,351,208 -0.3% AVERAGE BALANCE SHEET DATA Total assets $803,458 $717,159 12.0% $796,305 0.9% Earning assets 731,564 650,252 12.5% 725,384 0.9% Loans and leases 500,271 443,610 12.8% 498,681 0.3% Interest-bearing deposits 541,808 468,757 15.6% 529,741 2.3% Total deposits 717,808 642,368 11.7% 709,703 1.1% Total stockholders' equity 60,372 53,706 12.4% 59,369 1.7% SELECTED RATIOS 3/31/2007 3/31/2006 12/31/2006 Return on average assets 0.98% 1.03% -4.5% 0.87% 12.7% Return on average total equity 13.07% 13.74% -4.8% 11.69% 11.8% Return on average realized equity (1) 12.82% 13.46% -4.8% 11.49% 11.6% Average equity to average assets 7.51% 7.49% 0.3% 7.46% 0.8% Leverage capital ratio 8.50% 8.48% 0.2% 8.34% 1.9% Taxable-equivalent net interest margin 4.86% 4.80% 1.2% 4.83% 0.6% CREDIT QUALITY Allowance for loan losses as a % of total loans 0.96% 1.03% -6.8% 1.00% -4.0% Nonperforming assets to total assets 0.28% 0.26% 7.7% 0.29% -3.4% Net YTD charge-offs to total loans 0.02% 0.01% 100.0% 0.05% -60.0% (1) Excluding net unrealized gain (loss) on securities available for sale. MIDSOUTH BANCORP, INC. and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands except per share data) Period Ended % Period Ended % BALANCE SHEET Mar. 31, Mar. 31, Chg Dec. 31, Chg Assets 2007 2006 2006 Cash and cash equivalents $ 55,027 $ 66,750 -17.6% $ 57,404 4.3% Securities available-for- sale 182,285 165,411 10.2% 180,674 -0.9% Securities held-to-maturity 13,404 18,368 -27.0% 15,901 18.6% Total investment securities 195,689 183,779 6.5% 196,575 0.5% Total loans 510,561 451,162 13.2% 499,046 -2.3% Allowance for loan losses (4,900) (4,652) 5.3% (4,977 ) 1.6% Loans, net 505,661 446,510 13.2% 494,069 -2.3% Premises and equipment 31,488 27,003 16.6% 30,609 -2.8% Goodwill and other intangibles 9,905 10,174 -2.6% 9,957 0.5% Other assets 16,890 14,344 17.7% 16,408 -2.9% Total assets $814,660 $748,560 8.8% $805,022 -1.2% Liabilities and Stockholders' Equity Non-interest bearing deposits $180,435 $182,324 -1.0% $182,596 1.2% Interest bearing deposits 548,404 492,055 11.5% 533,584 -2.7% Total deposits 728,839 674,379 8.1% 716,180 -1.7% Securities sold under agreements to repurchase and FHLB borrowings 4,791 2,911 64.6% 10,125 111.3% Junior subordinated debentures 15,465 15,465 0.0% 15,465 0.0% Other liabilities 3,889 2,159 80.1% 3,509 -9.8% Total liabilities 752,984 694,914 8.4% 745,279 -1.0% Total shareholders' equity 61,676 53,646 15.0% 59,743 -3.1% Total liabilities and shareholders' equity $814,660 $748,560 8.8% $805,022 -1.2% MIDSOUTH BANCORP, INC. and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands except per share data) Three Months Ended INCOME STATEMENT March 31, % Dec. 31, % 2007 2006 Chg 2006 Chg Interest income $13,442 $11,035 21.8% $13,405 0.28% Interest expense 5,088 3,638 39.9% 4,956 2.66% Net interest income 8,354 7,397 12.9% 8,449 -1.12% Provision for loan losses -- 320 -100.0% 180 -100.00% Service charges on deposit accounts 2,306 1,927 19.7% 2,197 4.96% Gains on securities,net -- -- -- Other charges and fees 941 916 2.7% 813 15.74% Total non-interest income 3,247 2,843 14.2% 3,010 7.87% Salaries and employee benefits 4,787 3,786 26.4% 4,357 9.87% Occupancy expense 1,715 1,486 15.4% 1,655 3.63% Intangible amortization 52 82 -36.6% 52 0.00% Other non-interest expense 2,525 2,142 17.9% 3,006 -16.00% Total non-interest expense 9,079 7,496 21.1% 9,070 0.10% Income before income taxes 2,522 2,424 4.0% 2,209 14.17% Provision for income taxes 576 605 -4.8% 460 25.22% Net income $ 1,946 $ 1,819 7.0% $ 1,749 11.26% Earnings per share, diluted $0.31 $0.29 6.9% $0.28 10.71% MIDSOUTH BANCORP, INC. and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands except per share data) INCOME STATEMENT First Fourth Third Second First Quarterly Trends Quarter Quarter Quarter Quarter Quarter 2007 2006 2006 2006 2006 Interest income $13,442 $13,405 $13,104 $12,691 $11,035 Interest expense 5,088 4,955 4,662 4,396 3,638 Net interest income 8,354 8,450 8,442 8,295 7,397 Provision for loan losses - 180 50 300 320 Net interest income after provision for loan losses 8,354 8,270 8,392 7,995 7,077 Total non-interest income 3,247 3,010 3,414 3,071 2,843 Total non-interest expense 9,079 9,070 8,489 8,069 7,496 Income before income taxes 2,522 2,210 3,317 2,997 2,424 Income taxes 576 461 900 762 605 Net income $ 1,946 $ 1,749 $ 2,417 $ 2,235 $ 1,819 Earnings per share, basic $0.31 $0.28 $0.39 $0.36 $0.30 Earnings per share, diluted $0.31 $0.28 $0.38 $0.35 $0.29 Book value per share $9.83 $9.58 $9.41 $8.78 $8.67 Return on Average Equity 13.07% 11.69% 16.98% 16.48% 13.74% MIDSOUTH BANCORP, INC. and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands except per share data) Asset Quality Data Period Ended % Period Ended Mar. 31, Mar. 31, Chg Dec. 31, Sept. 30, 2007 2006 2006 2006 Nonaccrual loans $ 1,574 $ 672 134.2% $ 1,793 $ 501 Loans past due 90 days and over 481 1,127 -57.3% 98 1,789 Total nonperforming loans 2,055 1,799 14.2% 1,891 2,290 Other real estate owned 158 68 132.4% 368 24 Other foreclosed assets 58 54 7.4% 55 58 Total nonperforming assets $ 2,271 $ 1,921 18.2% $ 2,314 $ 2,372 Nonperforming assets to total assets 0.28% 0.26% 7.7% 0.29% 0.31% Nonperforming assets to total loans + OREO + other foreclosed assets 0.44% 0.43% 2.3% 0.46% 0.48% ALL to nonperforming assets 215.76% 242.16% -10.9% 215.08% 207.00% ALL to nonperforming loans 238.44% 258.59% -7.8% 263.19% 214.41% ALL to total loans 0.96% 1.03% -6.9% 1.00% 0.99% Year-to-date charge-offs $ 95 $ 132 -28.0% $ 542 $ 381 Year-to-date recoveries 18 109 -83.5% 314 266 Year-to-date net charge-offs $ 77 $ 23 234.8% $ 228 $ 115 Net YTD charge-offs to total loans 0.02% 0.01% 300.0% 0.05% 0.02% MIDSOUTH BANCORP, INC. AND SUBSIDIARIES YIELD ANALYSIS (UNAUDITED)
(in thousands) Three Months Ended Three Months Ended 31-Mar-07 31-Mar-06 Tax Tax Average Equivalent Yield/ Average Equivalent Yield/ Balance Interest Rate Balance Interest Rate Taxable securities 85,373 981 4.60% 85,638 917 4.28% Tax-exempt securities 109,859 1,435 5.22% 81,630 1,020 5.00% Equity securities 2,511 22 3.50% 2,025 24 4.74% Federal Funds Sold 33,550 430 5.20% 37,349 406 4.41% Loans and leases 500,271 10,993 8.91% 443,610 8,964 8.20% Total interest earning assets 731,564 13,861 7.68% 650,252 11,331 7.07% Noninterest earning assets 71,894 66,907 Total assets $ 803,458 $ 717,159 Interest bearing liabilities: Deposits $ 541,808 $ 4,682 3.50% $ 468,757 $ 3,304 2.86% Repurchase agreements and federal funds purchased 4,346 49 4.57% 2,038 20 3.98% Short term borrowings 1,593 27 6.87% -- -- 0.00% Junior subordinated debentures 15,465 330 8.65% 15,465 314 8.23% Total interest bearing liabilities 563,212 5,088 3.66% 486,260 3,638 3.03% Noninterest bearing liabilities 179,874 177,193 Shareholders' equity 60,372 53,706 Total interest bearing liabilities and shareholders' equity $ 803,458 $ 717,159 Net interest income (TE) and margin $ 8,773 4.86% $ 7,693 4.80%
SOURCE MidSouth Bancorp, Inc. -0- 04/26/2007 /CONTACT: C. R. Rusty Cloutier, President & CEO, or J. Eustis Corrigan, Jr., Chief Financial Officer, both of MidSouth Bancorp, Inc., +1-337-237-8343/ (MSL) -----END PRIVACY-ENHANCED MESSAGE-----