-----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, BnmJOJ4UFHncGURMdNZH2J8AGIMOzzlf1ZnM3HckwKxTME3oo7Nt3bBbCzMKZ76j BqdskKddDRF6ULsJPFAxag== 0001275287-06-003813.txt : 20060725 0001275287-06-003813.hdr.sgml : 20060725 20060725172659 ACCESSION NUMBER: 0001275287-06-003813 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060724 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060725 DATE AS OF CHANGE: 20060725 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: 06979912 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 ms6492.txt FORM 8-K ================================================================================ 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) July 24, 2006 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 July 24, 2006, MidSouth Bancorp, Inc. (the "Company") issued a press release regarding the Company's earnings for the quarter ending June 30, 2006. 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 July 24, 2006. 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 July 24, 2006 /s/ C. R. Cloutier -------------------- C. R. Cloutier President & CEO Exhibit Description - ------------ ------------------------------------------------------------- Exhibit 99.1 Press Release dated July 24, 2006 announcing earnings for the second quarter of 2006. EX-99.1 2 ms6492ex991.txt EXHIBIT 99.1 Exhibit 99.1 MIDSOUTH BANCORP, INC. ANNOUNCES SECOND QUARTER EARNINGS RESULTS LAFAYETTE, La., July 24 /PRNewswire-FirstCall/ -- MidSouth Bancorp, Inc. (Amex: MSL) announced earnings of $2,235,000 for the quarter ended June 30, 2006, a 9.6% increase over earnings of $2,040,000 for the same period in 2005, and a 22.9% increase over the quarter ended March 31, 2006. Basic earnings per share were $.45 for the quarter ended June 30, 2006, compared to $.42 per share reported for the second quarter of 2005, and $.37 per share earned in the first quarter of 2006. Diluted earnings per share were $.44 for the second quarter of 2006, compared to $.40 per share for the second quarter of 2005 and $.36 for the first quarter of 2006. For the first six months of 2006, MidSouth Bancorp earned $4,054,000, a 2.3% increase over the $3,964,000 reported for the first six months of 2005. Basic earnings per share were $.82 for the first half of 2006 versus $.81 per share for the first half of 2005. Diluted earnings per share were $.80 versus $.78, respectively. The first six months of 2005 included a $631,000 pre-tax special distribution of proceeds to the Company from the merger of Pulse EFT Association and Discover Financial Services, Inc. Additionally, the first six months of 2005 included a $102,000 pre-tax write-down of a branch facility. Excluding the $349,000 after-tax effect of these non-recurring transactions, the Company's year-to-date earnings for 2006 improved by $439,000, or 12%, over 2005. Highlights for the Quarter Ended June 30, 2006 * Return on average equity was 16.48% for the second quarter of 2006 compared to 16.26% for the second quarter of 2005. The leverage capital ratio was 8.32% at June 30, 2006, compared to 9.15% at June 30, 2005. * Net interest income totaled $8,295,000 for the second quarter of 2006, up 21.0% from the $6,857,000 reported for the second quarter of 2005. Net interest income increased primarily due to a 22.3% increase in the average volume of earning assets, including a 16.0% increase in average loan volume. Additionally, the average yield on earning assets improved 75 basis points, from 6.80% for the second quarter of 2005 to 7.55% for the second quarter of 2006. The impact of the improvement in average earning asset volume and yield was partially offset by volume and rate increases in interest-bearing liabilities. * Total consolidated assets increased $148.0 million, or 23.4%, from $631.9 million at the end of the second quarter of 2005 to $779.9 million at the end of the second quarter of 2006. * Total loans grew $79.5 million, or 19.4%, from $410.0 million at June 30, 2005 to $489.5 million at June 30, 2006, primarily in commercial and real estate credits. * Nonperforming assets, including loans 90 days or more past due, totaled $2.7 million at June 30, 2006, compared to $2.3 million at June 30, 2005. As a percentage of total assets, nonperforming assets were .35% and .36% for June 30, 2006 and 2005, respectively. Included in nonperforming assets for June 30, 2006, is approximately $1.6 million in government-guaranteed loans. Net charge-offs to total loans decreased to .02% for the second quarter of 2006 compared to .05% for the second quarter of 2005. Allowance for loan loss provisions totaling $300,000 were taken in the second quarter of 2006 compared to $66,000 in the second quarter of 2005. As a percentage to total loans, the allowance for loan losses for the quarters ended June 30, 2006 and 2005 were 1.00% and .99%, respectively. The Company has not experienced an increase in delinquencies or charge-offs due to Hurricanes Katrina and Rita. * Total deposits increased $145.4 million, or 26.0%, from $558.7 million at June 30, 2005 to $704.1 million at June 30, 2006. Deposit growth has been primarily in the Company's Platinum money market and checking accounts, which represent 31.5% of total deposits at June 30, 2006. The Platinum money market and checking accounts offer competitive rates of interest that adjust to changes in market rates. Additionally, the core non-interest bearing demand accounts have continued to grow and represent 26.5% of total deposits at June 30, 2006. Components of Second Quarter Earnings Net interest income for the second quarter of 2006 increased $1.4 million, or 21.0%, compared to the second quarter of 2005 due to a 22.3% increase in the average volume of earning assets and a 75 basis point improvement in the average yield on earning assets. Average loan volume increased $64.4 million and the average yield on loans increased 107 basis points, from 7.81% in the second quarter of 2005 to 8.88% in the second quarter of 2006. The improvement in interest income was partially offset by increased interest expense resulting from a $94.7 million increase in the average volume of interest-bearing deposits and a 110 basis point increase in the average cost of interest-bearing deposits, from 2.07% in the second quarter of 2005 to 3.17% in the second quarter of 2006. The taxable-equivalent net yield on earning assets decreased 4 basis points in quarterly comparison, from 5.04% in the second quarter of 2005 to 5.00% in the second quarter of 2006. Non-interest income for the second quarter of 2006 decreased $99,000 compared to the second quarter of 2005, primarily due to $93,000 in Pulse proceeds received in the second quarter of 2005. Non-interest expense increased $882,000, or 12.3%, in quarterly comparison, primarily due to a $632,000, or 19.1%, increase in salaries and employee benefits associated with an increase in the number of full-time equivalent employees from 305 in June 2005 to 349 in June 2006. Staffing for five new retail offices added over the past twelve months contributed to the increase in salaries and benefit costs. The additional retail offices also contributed to a $295,000, or 22.2%, increase in occupancy expenses in quarterly comparison. In linked-quarter comparison, earnings increased $416,000, or 22.9%, from $1,819,000 for the quarter-ended March 31, 2006 to $2,235,000 for the quarter- ended June 30, 2006. Volume and rate increases in earning assets drove improvement in net interest income of $898,000 and non-interest income increased $228,000. The increased net interest income and non-interest income was partially offset by increased non-interest expenses of $573,000. Year-to-Date Earnings and Franchise Growth In year-to-date comparison, net of the $349,000 after-tax effect of the Pulse proceeds and the branch write-down, earnings increased $439,000. Net interest income for the six months ended June 30, 2006, increased $2.4 million or 18.1% compared to the six months ended June 20, 2005. The $2.4 million improvement in net interest income was mostly offset by a $1.4 million, or 10.1%, increase in non-interest expenses combined with a $240,000 increase in the provision for loan losses in year-to-date comparison. The increased non- interest expenses reflect the Company's investment in executing its plan to grow the franchise. In addition to the five retail offices opened over the past twelve months, six new offices are scheduled to open through mid-year 2007. Two retail stores are planned for the Baton Rouge market and scheduled to open in the first half of 2007. A new retail store in Thibodaux is under construction and a second store in Lake Charles is scheduled to begin construction in the fourth quarter of 2006. In the Texas markets, a full service retail store location for the Conroe, Texas market is scheduled to open in April 2007 and management is working on site selection for a full service retail store in the College Station market. Costs associated with opening these six new stores will continue to impact earnings throughout 2006 and any substantial contributions to income will not be reflected until the second half of 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 Lamar Bank, headquartered in Beaumont, Texas. The Company recently announced a name change for the Texas subsidiary from Lamar Bank to MidSouth Bank. The name change is expected to be executed during the fourth quarter of 2006. The Company's franchise consists of 29 banking offices throughout south Louisiana and southeast Texas. The Company'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, the Company'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 FINANCIAL HIGHLIGHTS (UNAUDITED) (in thousands except per share data)
For The For The Qtr Qtr Ended Ended Jun. 30, Mar. 31, ----------------------- % ---------- % 2006 2005 Chg 2006 Chg ---------- ---------- ---------- ---------- ---------- EARNINGS DATA Total interest income $ 12,691 $ 9,333 36.0% $ 11,035 15.0% Total interest expense 4,396 2,476 77.5% 3,638 20.8% Net interest income 8,295 6,857 21.0% 7,397 12.1% Provision for loan losses 300 66 354.5% 320 -6.3% Non-interest income 3,071 3,170 -3.1% 2,843 8.0% Non-interest expense 8,069 7,187 12.3% 7,496 7.6% Provision for income tax 762 734 3.8% 605 26.0% Net income $ 2,235 $ 2,040 9.6% $ 1,819 22.9% PER COMMON SHARE DATA (A) Basic earnings per share $ 0.45 $ 0.42 7.1% $ 0.37 21.6% Diluted earnings per share $ 0.44 $ 0.40 10.0% $ 0.36 22.2% Book value at end of period $ 10.97 $ 10.49 4.6% $ 10.84 1.2% Market price at end of period $ 30.20 $ 22.27 35.6% $ 28.65 5.4% Weighted avg shares outstanding Basic 4,958,809 4,897,241 1.3% 4,941,290 0.4% Diluted 5,055,539 5,068,921 -0.3% 5,079,759 -0.5% AVERAGE BALANCE SHEET DATA Total assets $ 761,294 $ 623,095 22.2% $ 717,159 6.2% Earning assets 692,869 566,505 22.3% 650,252 6.6% Loans and leases 465,954 401,581 16.0% 443,610 5.0% Interest-bearing deposits 509,732 415,034 22.8% 468,757 8.7% Total deposits 684,896 547,347 25.1% 642,368 6.6% Total stockholders' equity 54,408 50,314 8.1% 53,706 1.3%
SELECTED RATIOS 06/30/2006 06/30/2005 03/31/2006 - -------------------------------- ---------- ---------- ---------- Return on average assets 1.18% 1.31% -10.3% 1.03% 14.5% Return on average total equity 16.48% 16.26% 1.3% 13.74% 20.0% Return on average realized equity (A) 15.91% 16.13% -1.4% 13.46% 18.2% Average equity to average assets 7.15% 8.07% -11.5% 7.49% -4.6% Leverage capital ratio 8.32% 9.15% -9.1% 8.48% -1.9% CREDIT QUALITY Allowance for loan losses as a % of total loans 1.00% 0.99% 1.0% 1.03% -2.9% Nonperforming assets to total assets 0.35% 0.36% -2.8% 0.26% 34.6% Net YTD charge-offs to total loans 0.02% 0.05% -60.0% 0.01% 100.0%
(A) 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 ------------------------ Jun. 30, Mar. 31, Dec. 31, ------------------------ % ---------- ---------- BALANCE SHEET 2006 2005 Chg 2006 2005 - -------------------------------- ---------- ---------- ---------- ---------- ---------- Assets Cash and cash equivalents $ 34,070 $ 25,534 33.4% $ 66,750 $ 52,437 Securities available-for- sale 188,344 133,336 41.3% 165,411 139,429 Securities held-to- maturity 17,519 21,180 -17.3% 18,368 19,611 Total investment securities 205,863 154,516 33.2% 183,779 159,040 Total loans 489,475 410,030 19.4% 451,162 442,794 Allowance for loan losses (4,887) (4,039) 21.0% (4,652) (4,355) Loans, net 484,588 405,991 19.4% 446,510 438,439 Premises and equipment 28,572 21,036 35.8% 27,003 23,606 Goodwill and other intangibles 10,092 10,471 -3.6% 10,174 10,257 Other assets 16,663 14,345 16.2% 14,344 15,036 Total assets $ 779,848 $ 631,893 23.4% $ 748,560 $ 698,815 Liabilities and Stockholders' Equity Non-interest bearing deposits $ 186,292 $ 130,525 42.7% $ 182,324 $ 177,946 Interest bearing deposits 517,812 428,197 20.9% 492,055 446,992 Total deposits 704,104 558,722 26.0% 674,379 624,938 Securities sold under agreements to repurchase and FHLB borrowings 2,797 2,354 18.8% 2,911 1,732 Junior subordinated debentures 15,465 15,465 0.0% 15,465 15,465 Other liabilities 2,664 3,829 0.0% 2,159 3,494 Total liabilities 725,030 580,370 -30.4% 694,914 645,629 Total shareholders' equity 54,818 51,523 24.9% 53,646 53,186 Total liabilities and shareholders' equity $ 779,848 $ 631,893 23.4% $ 748,560 $ 698,815
MIDSOUTH BANCORP, INC. and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands except per share data)
Three Months Ended Six Months Ended June 30, June 30, ----------------------- % ----------------------- % INCOME STATEMENT 2006 2005 Chg 2006 2005 Change - ------------------------- ---------- ---------- ---------- ---------- ---------- ---------- Interest income $ 12,691 $ 9,333 36.0% $ 23,726 $ 17,970 32.0% Interest expense 4,396 2,476 77.5% 8,034 4,688 71.4% Net interest income 8,295 6,857 21.0% 15,692 13,282 18.1% Provision for loan losses 300 66 354.5% 620 380 63.2% Service charges on deposit accounts 2,174 2,198 -1.1% 4,100 4,326 -5.2% Other charges and fees 897 972 -7.7% 1,814 2,267 -20.0% Total non- interest income 3,071 3,170 -3.1% 5,914 6,593 -10.3% Salaries and employee benefits 3,937 3,305 19.1% 7,723 6,508 18.7% Occupancy expense 1,624 1,329 22.2% 3,110 2,584 20.4% Intangible amortization 83 134 -38.1% 165 267 -38.2% Other non-interest expense 2,425 2,419 0.2% 4,567 4,781 -4.5% Total non-interest expense 8,069 7,187 12.3% 15,565 14,140 10.1% Income before income taxes 2,997 2,774 8.0% 5,421 5,355 1.2% Provision for income taxes 762 734 3.8% 1,367 1,391 -1.7% Net income $ 2,235 $ 2,040 9.6% $ 4,054 $ 3,964 2.3% Earnings per share, diluted $ 0.44 $ 0.40 10.0% $ 0.80 $ 0.78 2.3%
MIDSOUTH BANCORP, INC. and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands except per share data)
Second First Fourth Third Second INCOME STATEMENT Quarter Quarter Quarter Quarter Quarter Quarterly Trends 2006 2006 2005 2005 2005 - -------------------------------- ---------- ---------- ---------- ---------- ---------- Interest income $ 12,691 $ 11,035 $ 10,703 $ 9,882 $ 9,333 Interest expense 4,396 3,638 3,142 2,957 2,476 Net interest income 8,295 7,397 7,561 6,925 6,857 Provision for loan losses 300 320 300 300 66 Net interest income after provision for loan losses 7,995 7,077 7,261 6,625 6,791 Total non-interest income 3,071 2,843 2,816 2,840 3,170 Total non-interest expense 8,069 7,496 7,867 7,319 7,187 Income before income taxes 2,997 2,424 2,210 2,146 2,774 Income taxes 762 605 534 512 734 Net income $ 2,235 $ 1,819 $ 1,676 $ 1,634 $ 2,040 Earnings per share, basic $ 0.45 $ 0.37 $ 0.34 $ 0.33 $ 0.42 Earnings per share, diluted $ 0.44 $ 0.36 $ 0.33 $ 0.32 $ 0.41 Book value per share $ 10.97 $ 10.84 $ 10.74 $ 10.66 $ 10.49 Return on Average Equity 16.48% 13.74% 12.62% 12.51% 16.26%
MIDSOUTH BANCORP, INC. and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands except per share data)
Period Ended Period Ended ------------------------ Jun. 30, Mar. 31, Dec. 31, ------------------------ % ---------- ---------- Asset Quality Data 2006 2005 Chg 2006 2005 - -------------------------------- ---------- ---------- ---------- ---------- ---------- Nonaccrual loans $ 543 $ 1,892 -71.3% $ 672 $ 660 Loans past due 90 days and over 2,104 128 1543.8% 1,127 2,511 Total nonperforming loans 2,647 2,020 31.0% 1,799 3,171 Other real estate owned 32 98 -67.3% 68 98 Other foreclosed assets 25 156 -84.0% 54 176 Total nonperforming assets $ 2,704 $ 2,274 18.9% $ 1,921 $ 3,445 Nonperforming assets to total assets 0.35% 0.36% -3.7% 0.26% 0.49% Nonperforming assets to total loans + OREO + other foreclosed assets 0.55% 0.55% -0.3% 0.43% 0.78% ALL to nonperforming assets 180.73% 177.62% 1.8% 242.16% 126.42% ALL to nonperforming loans 184.62% 199.95% -7.7% 258.59% 137.34% ALL to total loans 1.00% 0.99% 1.4% 1.03% 0.98% Year-to-date charge-offs $ 310 $ 310 0.0% $ 132 $ 702 Year-to-date recoveries 223 119 87.4% 109 226 Year-to-date net charge-offs $ 87 $ 191 -54.5% $ 23 $ 476 Net YTD charge-offs to total loans 0.02% 0.05% -57.1% 0.01% 0.11%
SOURCE MidSouth Bancorp, Inc. -0- 07/24/2006 /CONTACT: C. R. Rusty Cloutier, President, +1-337-267-4201, or +1-337-962-9900, or J. E. Corrigan, Jr., Chief Financial Officer, +1-337-291-4984, both of MidSouth Bancorp, Inc./ (MSL) -----END PRIVACY-ENHANCED MESSAGE-----