LAFAYETTE, La., Oct. 27 /PRNewswire-FirstCall/ -- MidSouth Bancorp, Inc. (NYSE Amex: MSL) today reported net income available to common shareholders of $1,132,000 for the third quarter ended September 30, 2009, an increase of 153.8% over net income available to common shareholders of $446,000 reported for the second quarter of 2009, and a decrease of 39.0% below net income available to common shareholders of $1,857,000 reported for the third quarter of 2008. Diluted earnings per common share for the third quarter of 2009 were $0.17 per share, an increase of 142.9% above the $0.07 per common share for the second quarter of 2009, and a decrease of 39.3% from the $0.28 per common share for the third quarter of 2008. Beginning the first quarter of 2009, the Company recorded dividends on its Fixed Rate Cumulative Perpetual Preferred Stock, Series A ("Series A Preferred Stock") issued to the U. S. Department of the Treasury on January 9, 2009 under the Capital Purchase Plan. Dividends recorded on the Series A Preferred Stock reduced net income available to common shareholders by $299,000 for the third and second quarters of 2009 and $277,000 for the first quarter of 2009.
For the nine months ended September 30, 2009, net income available to common shareholders totaled $2,534,000, a 43.3% decrease from net income available to common shareholders of $4,473,000 for the first nine months of 2008. Dividends recorded on the Series A Preferred Stock reduced net income available to common shareholders by $875,000 for the nine months ended September 30, 2009. Diluted earnings per common share were $0.38 for the first nine months of 2009, compared to $0.67 for the first nine months of 2008.
The Company's total assets ended the third quarter of 2009 at $947.8 million, a 3.4% increase over the $916.5 million in total assets recorded at September 30, 2008. Deposits remained relatively flat, totaling $772.1 million as of September 30, 2009, compared to $771.1 million on September 30, 2008. Total loans were $588.6 million, an increase of $9.1 million, or 1.6%, over the $579.5 million reported as of September 30, 2008. Loans grew $29.5 million in the fourth quarter of 2008, but decreased $20.4 million in the nine months ending September 30, 2009 as commercial customers used cash flows to pay down debt and continued economic concerns stemmed loan production in both commercial and retail credits.
C. R. "Rusty" Cloutier, President and Chief Executive Officer, commenting on third quarter 2009 results noted, "Many of our commercial customers went through hard times in the late '80's and the experience made them cautious. Many have communicated to us that they are in a "wait and see" mode, delaying expansion projects until they have a greater comfort level with economic conditions. This "wait and see" mode has equated to a decrease in our loan portfolio during 2009. We're ready to lend to our customers, but they're not ready to borrow."
In prior-year quarterly comparison, third quarter 2009 net earnings before dividends on Series A Preferred Stock totaled $1,431,000, a decrease of $426,000 below the $1,857,000 earned in the third quarter of 2008. Third quarter 2009 earnings were impacted by a $1.0 million provision for loan losses compared to $500,000 in the third quarter of 2008. Quarterly revenues for the Company, defined as net interest income and non-interest income, decreased $133,000 primarily due to margin compression as earning asset yields continued to decline. Non-interest expenses increased $91,000, as increased salaries and benefit costs and FDIC premiums were partially offset by decreases in other non-interest expense categories. Third quarter 2009 earnings were positively impacted by a $298,000 reduction in tax expense due to the effect of lower pre-tax profits combined with sustained tax exempt income levels and certain federal tax credits.
In linked-quarter comparison, net earnings before dividends on Series A Preferred Stock increased $686,000, primarily due to the $2.1 million provision for loan losses recorded in the second quarter of 2009 compared to the $1.0 million provision recorded for the third quarter of 2009. Net interest income increased $10,000 in linked-quarter comparison and non-interest income increased $114,000, primarily due to a higher volume of insufficient funds transactions on deposit accounts. Non-interest expense increased $194,000, primarily due to increases of $233,000 in salary and benefit costs, $119,000 in expenses on other real estate owned and other assets repossessed, and $87,000 in provisions for unfunded loan commitments. Additionally, data processing expenses increased $71,000 and marketing costs increased $62,000 in linked-quarter comparison. These increases were partially offset by a $424,000 decrease in FDIC insurance premiums, from $752,000 in the second quarter of 2009 to $328,000 in the third quarter of 2009. During the second quarter of 2009, the Company accrued for a special assessment as required by the FDIC.
In year-to-date comparison, net earnings before dividends on Series A Preferred Stock decreased $1,064,000 primarily due to a $1,545,000 increase in provisions for loan losses and a $1,101,000 increase in non-interest expense in 2009. The increases in provisions for loan losses and non-interest expense were partially offset by an $811,000 improvement in net interest income and a $784,000 reduction in income tax expense. Included in the $1,101,000 increase in non-interest expense, is a $1,017,000 increase in FDIC premiums, a $485,000 increase in salaries and benefits costs, and a $635,000 increase in occupancy expense. Significant decreases in other non-interest expense categories, including $737,000 in marketing costs and $223,000 in data processing expenses, reduced the impact of the increased FDIC premiums in year-to-date comparison. Income tax expense decreased $784,000 due to the effect of certain federal tax credits combined with lower pre-tax profits and sustained tax exempt income levels.
Asset Quality. Nonaccrual loans totaled $15.5 million as of September 30, 2009, compared to $8.1 million as of September 30, 2008 and $15.7 million at June 30, 2009. Of the $15.5 million at September 30, 2009, $12.6 million, or 81.3%, represented two large commercial real estate loan relationships in the Baton Rouge market. Loans totaling approximately $588,000 were placed on nonaccrual during the third quarter of 2009, many of which were smaller consumer credits. Loans past due 90 days or more totaled $1.6 million at September 30, 2009, an increase of $411,000 over the $1.2 million reported for September 30, 2008 and an increase of $809,000 from the $791,000 at June 30, 2009. Total nonperforming assets to total assets were 1.90% for the third quarter of 2009, compared to 1.13% for the third quarter of 2008 and 1.89% for the second quarter of 2009.
With respect to the $12.6 million in the two large commercial real estate loan relationships in Baton Rouge that are nonaccrual, $4.2 million is related to a national participation loan. In the third quarter of 2009, an additional $400,000 was charged off on the loan, bringing the total charged off in 2009 to $ 1.5 million. The loan will be a long term work-out based on actions taken by the lead bank. The second loan is an $8.4 million commercial real estate loan relationship in the Baton Rouge market which primarily funded construction of a condominium complex. As part of a work-out plan, the units are now being leased as apartments, with 67% of the units under lease agreements.
Allowance coverage for nonperforming loans was 46.82% at September 30, 2009, compared to 67.41% at September 30, 2008 and 48.85% at June 30, 2009. Excluding the effect of the two large commercial real estate loan relationships in the Baton Rouge market, allowance coverage for nonperforming loans was 213.23% at September 30, 2009, 277.22% at September 30, 2008, and 242.05% at June 30, 2009. Annualized year-to-date net charge-offs were 0.83% of total loans for the third quarter of 2009 compared to 0.61% for the third quarter of 2008 and 0.90% for the second quarter of 2009. The ALL/total loans ratio was 1.36% at September 30, 2009, 1.08% at September 30, 2008 and 1.35% at June 30, 2009.
Earnings Analysis
Net Interest Income. Net interest income totaled $9,932,000 for the third quarter of 2009, a decrease of 1.2%, or $124,000, from the $10,056,000 reported for the third quarter of 2008. The decrease in net interest income resulted primarily from a decrease of $1.1 million in interest income which exceeded a decrease of $1.0 million in interest expense. The impact to interest income of a $21.4 million increase in the average volume of loans, from $572.7 million at September 30, 2008 to $594.1 million at September 30, 2009, was offset by a 75 basis point reduction in the average yield on loans in quarterly comparison. The average yields on loans declined from 7.71% in the third quarter of 2008 to 6.96% in the third quarter of 2009 as New York Prime Rate ("Prime") fell 175 basis points, from 5.00% to 3.25% during the same period. A decrease in the volume of investment securities combined with decreases in yields on investment securities, federal funds sold and time deposits in other banks further reduced interest income in the third quarter of 2009 compared to 2008.
The decrease in interest expense in quarterly comparison resulted from a 63 basis point decrease in the average rate paid on interest-bearing liabilities, from 2.19% at September 30, 2008 to 1.56% at September 30, 2009. The average volume of interest-bearing deposits remained relatively flat, while the average volume of retail repurchase agreements, included in securities sold under agreements to repurchase, increased $11.6 million in quarterly comparison. The impact of decreased yields on average earning assets exceeded the decrease in yields on average interest-bearing liabilities and resulted in a 19 basis point decline in the taxable-equivalent net interest margin, from 5.01% for the third quarter of 2008 to 4.82% for the third quarter of 2009.
In linked-quarter comparison, net interest income remained consistent, with minimal changes in interest income and interest expense over the past quarter. Interest income increased $2,000 despite a reduction in the average yield on earning assets from 6.15% at June 30, 2009 to 6.01% at September 30, 2009. Lower yields on investment securities, federal funds sold and interest-bearing and time deposits in other banks reduced the average earnings assets yield. With average loan volume declining slightly, cash flows from both the loan and investment securities portfolio were invested in lower yielding overnight funds and short-term certificates of deposit. Interest expense decreased $8,000 in linked-quarter comparison due primarily to a 7 basis point decrease in the average rate paid on interest-bearing liabilities, from 1.63% to 1.56%. Balance sheet and yield changes in linked-quarter comparison resulted in a 10 basis point decrease in the taxable-equivalent net interest margin, from 4.92% at June 30, 2009 to 4.82% at September 30, 2009.
In year-to-date comparison, net interest income increased $811,000 as interest expense decreased $4,797,000, offsetting a $3,986,000 decline in interest income. Interest expense decreased primarily due to a 93 basis point reduction in the average rate paid on interest-bearing liabilities, from 2.56% at September 30, 2008 to 1.63% at September 30, 2009. Additionally, the average volume of interest-bearing liabilities decreased $18.1 million in year-to-date comparison. The decrease in interest income on average earning assets resulted primarily from a 109 basis point decline in the average yield earned on loans, from 8.06% at September 30, 2008 to 6.97% at September 30, 2009. An average volume increase of $28.4 million in loans partially offset the impact of lower yields. As a result, the taxable-equivalent net interest margin improved 7 basis points, from 4.89% for the nine months ended September 30, 2008 to 4.96% for the nine months ended September 30, 2009.
Non-interest income. Non-interest income for the third quarter of 2009 totaled $3,972,000, or 0.2% below the $3,981,000 earned in the third quarter of 2008 and 3.0% above the $3,858,000 earned in the second quarter of 2009. In prior-year quarterly comparison, a $43,000 increase in ATM and debit card fee income offset a $25,000 decrease in service charges on deposit accounts, including NSF fee income, and decreases in other non-interest income categories.
In linked-quarter comparison, a $158,000 increase in service charges on deposit accounts offset decreases in other non-interest income categories, including $64,000 in safe deposit box rental income assessed annually in June.
In year-to-date comparison, a $347,000 increase in ATM and debit card fee income was offset by decreases in other non-interest income categories, primarily income from a third-party investment advisory firm ($106,000), mortgage processing fees ($52,000), and a one-time payment received from VISA during the first quarter of 2008 ($131,000). The one-time payment was related to VISA's redemption of a portion of its Class B shares outstanding in connection with an initial public offering. Income from service charges on deposit accounts remained flat in year-to-date comparison.
Non-interest Expense. Non-interest expense increased $91,000 in prior-year quarterly comparison, primarily due to increases of $155,000 in FDIC premiums, $110,000 in salaries and benefits costs, $57,000 in provisions for unfunded loan commitments, and $56,000 in expenses on other real estate and other assets repossessed. Increased non-interest expenses were partially offset by a $378,000 decrease in marketing costs.
In linked-quarter comparison, non-interest expense increased $194,000, as increases of $233,000 in salaries and benefits costs, $119,000 in expenses on other real estate owned and other assets repossessed, $87,000 in provisions for unfunded loan commitments, $71,000 in data processing expenses, and $62,000 in marketing costs were mostly offset by a $424,000 decrease in FDIC insurance premiums primarily due to a special assessment accrual in the second quarter of 2009. The $233,000 increase in salaries and benefits costs resulted primarily from annual salary adjustments made in July 2009.
In year-to-date comparison, non-interest expense increased $1.1 million, as increases of $1,017,000 in FDIC premiums (including a special assessment), $635,000 in occupancy expense and $485,000 in salary and benefit costs exceeded expense reductions in other categories. Expense reductions were recorded primarily in marketing costs ($737,000), data processing expenses ($223,000) and in education, travel and corporate development expenses ($198,000). The decrease recorded in year-to-date comparison of data processing expenses resulted from conversion costs associated with the merger of our Texas bank charter into our Louisiana MidSouth Bank, N.A. charter in March of 2008.
About MidSouth Bancorp
MidSouth Bancorp, Inc. is a bank holding company headquartered in Lafayette, Louisiana, with 35 locations in Louisiana and Texas and more than 170 ATMs. Through its wholly owned subsidiary, MidSouth Bank, N.A., the Company offers complete banking services to commercial and retail customers in south Louisiana and southeast Texas. MidSouth Bank is community oriented and focuses primarily on offering commercial and consumer loan and deposit services to individuals and to small and middle market businesses.
Established in 1985, the Company has 28 offices extending along the Interstate 10 corridor in south Louisiana located in Lafayette (9), Baton Rouge (3), New Iberia (3), Lake Charles (2), Houma (2), Sulphur, Jeanerette, Jennings, Thibodaux, Larose, Opelousas, Breaux Bridge, Cecilia, and Morgan City. Additionally, the Company has seven full-service offices in the southeast region of Texas, including Beaumont (3), Conroe, Houston, Vidor, and College Station. It also has a mortgage loan center in Conroe.
MidSouth Bancorp's common stock is traded on the New York Stock Exchange AMEX (NYSE Amex) under the symbol MSL.
Forward Looking Statements
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 materially from anticipated results and expectations. These factors include, but are not limited to, factors identified in the Company's Annual Report on Form 10-K for the year ended December 31, 2008 in the sections titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" under the captions "Forward Looking Statements" and "Risk Factors."
MIDSOUTH BANCORP, INC. and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands except per share data) For the Quarter For the Quarter Ended Ended September 30, % June 30, % EARNINGS DATA 2009 2008 Change 2009 Change ---- ---- ------ ---- ------ Total interest income $12,498 $13,635 -8.3% $12,496 0.0% Total interest expense 2,566 3,579 -28.3% 2,574 -0.3% ------- ------- ------- Net interest income 9,932 10,056 -1.2% 9,922 0.1% ------- ------- ------- Provision for loan losses 1,000 500 100.0% 2,100 -52.4% ------- ------- ------- Non-interest income 3,972 3,981 -0.2% 3,858 3.0% Non-interest expense 11,326 11,235 0.8% 11,132 1.7% Provision for income tax 147 445 -67.0% (197) -174.6% ------- ------- ------- Net income 1,431 1,857 -22.9% 745 92.1% Dividends on preferred stock 299 - 100.0% 299 0.0% ------- ------- ------- Net income available to common shareholders $1,132 $1,857 -39.0% $446 153.8% ======= ======= ======= PER COMMON SHARE DATA Basic earnings per share $0.17 $0.28 -39.3% $0.07 142.9% Diluted earnings per share $0.17 $0.28 -39.3% $0.07 142.9% Book value at end of period $11.83 $10.65 11.1% $11.28 4.9% Market price at end of period $13.20 $16.40 -19.5% $16.80 -21.4% Weighted avg shares outstanding Basic 6,592,110 6,614,054 -0.3% 6,589,264 0.0% Diluted 6,612,428 6,635,969 -0.4% 6,607,366 0.1% AVERAGE BALANCE SHEET DATA Total assets $934,519 $916,628 2.0% $926,878 0.8% Earning assets 854,505 833,810 2.5% 845,272 1.1% Loans and leases 594,050 572,675 3.7% 595,955 -0.3% Interest-bearing deposits 584,933 587,053 -0.4% 575,103 1.7% Total deposits 765,776 776,957 -1.4% 765,200 0.1% Total common shareholders' equity 76,659 71,767 6.8% 76,200 0.6% Total shareholders' equity (1) 96,738 71,767 34.8% 96,229 0.5% SELECTED RATIOS 9/30/2009 9/30/2008 6/30/2009 --------- --------- --------- Return on average assets 0.48% 0.81% -40.7% 0.19% 152.6% Return on average common equity 5.86% 10.29% -43.1% 2.35% 149.4% Average equity to average assets 10.35% 7.83% 32.2% 10.38% -0.3% Leverage capital ratio 10.62% 8.42% 26.1% 10.63% -0.1% Taxable-equivalent net interest margin 4.82% 5.01% -3.8% 4.92% -2.0% CREDIT QUALITY Allowance for loan losses as a % of total loans 1.36% 1.08% 25.9% 1.35% 0.7% Nonperforming assets to total assets 1.90% 1.13% 68.1% 1.89% 0.5% Annualized net YTD charge-offs to total loans 0.83% 0.61% 36.7% 0.90% -7.3% (1) On January 9, 2009, the Company participated in the Capital Purchase Plan of the U. S. Department of the Treasury, which added $20 million in capital for the purpose of funding loans. ----------- MIDSOUTH BANCORP, INC. and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands) BALANCE SHEET September 30, September 30, % June 30, March 31, 2009 2008 Change 2009 2009 ---- ---- ------ ---- ---- Assets Cash and cash equivalents $62,585 $28,853 116.9% $39,653 $36,981 ------- ------- ------- ------- Securities available- for-sale 218,795 222,478 -1.7% 204,918 212,515 Securities held-to- maturity 3,218 7,534 -57.3% 3,668 4,677 ----- ----- ----- ----- Total investment securities 222,013 230,012 -3.5% 208,586 217,192 ------- ------- ------- ------- Total loans 588,589 579,454 1.6% 596,114 597,209 Allowance for loan losses (8,015) (6,270) 27.8% (8,039) (7,802) ------ ------ ------ ------ Loans, net 580,574 573,184 1.3% 588,075 589,407 ------- ------- ------- ------- Premises and equipment 39,049 40,349 -3.2% 39,580 40,219 Time deposits held in banks 16,023 15,000 6.8% 21,023 9,023 Goodwill and other intangibles 9,508 9,637 -1.3% 9,540 9,572 Other assets 18,078 19,467 -7.1% 17,737 20,697 ------ ------ ------ ------ Total assets $947,830 $916,502 3.4% $924,194 $923,091 ======== ======== ======== ======== Liabilities and Stockholders' Equity Non-interest bearing deposits $181,115 $190,770 -5.1% $185,332 $198,803 Interest-bearing deposits 590,976 580,341 1.8% 577,320 570,625 ------- ------- ------- ------- Total deposits 772,091 771,111 0.1% 762,652 769,428 Securities sold under agreements to repurchase and other short term borrowings 55,366 54,041 2.5% 45,809 37,612 Junior subordinated debentures 15,465 15,465 - 15,465 15,465 Other liabilities 7,466 5,381 38.7% 6,470 6,875 ----- ----- ----- ----- Total liabilities 850,388 845,998 0.5% 830,396 829,380 ------- ------- ------- ------- Total shareholders' equity (1) 97,442 70,504 38.2% 93,798 93,711 ------ ------ ------ ------ Total liabilities and shareholders' equity $947,830 $916,502 3.4% $924,194 $923,091 ======== ======== ======== ======== (1) On January 9, 2009, the Company participated in the Capital Purchase Plan of the U. S. Department of the Treasury, which added $20 million in capital for the purpose of funding loans. -------------- MIDSOUTH BANCORP, INC. and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands except per share data) ---------------------------------------------------- Three Months Nine Months Ended Ended INCOME STATEMENT September 30, % September 30, % 2009 2008 Change 2009 2008 Change ---- ---- ------ ---- ---- ------ Interest income $12,498 $13,635 -8.3% $37,788 $41,774 -9.5% Interest expense 2,566 3,579 -28.3% 7,808 12,605 -38.1% ----- ----- ----- ------ Net interest income 9,932 10,056 -1.2% 29,980 29,169 2.8% ----- ------ ------ ------ Provision for loan losses 1,000 500 100.0% 4,100 2,555 60.5% ----- --- ----- ----- Service charges on deposit accounts 2,736 2,761 -0.9% 7,700 7,693 0.1% Other charges and fees 1,236 1,220 1.3% 3,660 3,680 -0.5% ----- ----- ----- ----- Total non-interest income 3,972 3,981 -0.2% 11,360 11,373 -0.1% ----- ----- ------ ------ Salaries and employee benefit 5,505 5,395 2.0% 16,257 15,772 3.1% Occupancy expense 2,287 2,283 0.2% 6,916 6,281 10.1% FDIC premiums 328 173 89.6% 1,380 363 280.2% Other non-interest expense 3,206 3,384 -5.3% 9,171 10,207 -10.1% ----- ----- ----- ------ Total non-interest expense 11,326 11,235 0.8% 33,724 32,623 3.4% ------ ------ ------ ------ Income before income taxes 1,578 2,302 -31.5% 3,516 5,364 -34.5% Provision for income taxes 147 445 -67.0% 107 891 -88.0% --- --- --- --- Net income 1,431 1,857 -22.9% 3,409 4,473 -23.8% Dividends on preferred stock 299 - 100.0% 875 - 100.0% --- --- --- --- Net income available to common shareholders $1,132 $1,857 -39.0% $2,534 $4,473 -43.3% ====== ====== ====== ====== Earnings per common share, diluted $0.17 $0.28 -39.3% $0.38 $0.67 ===== ===== ===== ===== MIDSOUTH BANCORP, INC. and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands except per share data) INCOME STATEMENT Third Second First Fourth Third QUARTERLY TRENDS Quarter Quarter Quarter Quarter Quarter 2009 2009 2009 2008 2008 ---- ---- ---- ---- ---- Interest income $12,498 $12,496 $12,794 $13,699 $13,635 Interest expense 2,566 2,574 2,668 3,480 3,579 ----- ----- ----- ----- ----- Net interest income 9,932 9,922 10,126 10,219 10,056 Provision for loan losses 1,000 2,100 1,000 2,000 500 ----- ----- ----- ----- --- Net interest income after provision for loan loss 8,932 7,822 9,126 8,219 9,556 Total non-interest income 3,972 3,858 3,530 3,755 3,981 Total non-interest expense 11,326 11,132 11,266 11,352 11,235 ------ ------ ------ ------ ------ Income before income taxes 1,578 548 1,390 622 2,302 Income taxes 147 (197) 157 (442) 445 --- ---- --- ---- --- Net income 1,431 745 1,233 1,064 1,857 Dividends on preferred stock 299 299 277 - - --- --- --- --- --- Net income available to common shareholders $1,132 $446 $956 $1,064 $1,857 ====== ==== ==== ====== ====== Earnings per share, basic $0.17 $0.07 $0.14 $0.16 $0.28 Earnings per share, diluted $0.17 $0.07 $0.14 $0.16 $0.28 Book value per share $11.83 $11.28 $11.28 $11.04 $10.65 Return on average common equity 5.86% 2.35% 5.13% 6.02% 10.29% MIDSOUTH BANCORP, INC. and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands) COMPOSITION OF LOANS September 30, September 30, % June 30, March 31, 2009 2008 Change 2009 2009 ---- ---- ------ ---- ---- Commercial, financial, and agricultural $196,436 $185,842 5.7% $200,192 $202,315 Lease financing receivable 7,112 5,239 35.8% 7,538 7,377 Real estate - mortgage 264,242 226,321 16.8% 242,595 236,594 Real estate - construction 37,403 69,570 -46.2% 60,062 64,389 Installment loans to individuals 82,138 91,356 -10.1% 84,602 85,604 Other 1,258 1,126 11.7% 1,125 930 ----- ---- ----- --- Total loans $588,589 $579,454 1.6% $596,114 $597,209 ======== ======== ======== ======== MIDSOUTH BANCORP, INC. and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands) ASSET QUALITY DATA September 30, September 30, % June 30, March 31, 2009 2008 Change 2009 2009 ---- ---- ------ ---- ---- Nonaccrual loans $15,520 $8,112 91.3% $15,664 $15,713 Loans past due 90 days and over 1,600 1,189 34.6% 791 1,250 ----- ----- --- ----- Total nonperforming loans 17,120 9,301 84.1% 16,455 16,963 Other real estate owned 758 643 17.9% 829 843 Other foreclosed assets 89 453 -80.4% 203 255 -- --- --- --- Total nonperforming assets $17,967 $10,397 72.8% $17,487 $18,061 ======= ======= ======= ======= Nonperforming assets to total assets 1.90% 1.13% 68.1% 1.89% 1.96% Nonperforming assets to total loans + OREO + other foreclosed assets 3.05% 1.79% 70.4% 2.93% 3.02% ALLL to nonperforming loans 46.82% 67.41% -30.5% 48.85% 45.99% ALLL to total loans 1.36% 1.08% 25.9% 1.35% 1.31% Year-to-date charge-offs $3,872 $1,872 106.8% $2,779 $856 Year-to-date recoveries 201 125 60.8% 132 71 --- --- --- -- Year-to-date net charge-offs $3,671 $1,747 110.1% $2,647 $785 ====== ====== ====== ==== Annualized net YTD charge-offs to total loans 0.83% 0.61% 36.7% 0.90% 0.53% MIDSOUTH BANCORP, INC. AND SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands) YIELD ANALYSIS Three Months Ended Three Months Ended September 30, 2009 September 30, 2008 ------------------ ------------------ Tax Tax Average Equivalent Yield/ Average Equivalent Yield/ Balance Interest Rate Balance Interest Rate ------- -------- ---- ------- -------- ---- Taxable securities $99,178 $898 3.62% $108,346 $1,182 4.36% Tax-exempt securities 112,670 1,511 5.36% 115,660 1,551 5.36% Other investments and interest bearing deposits 7,562 40 2.12% 5,607 45 3.21% Federal funds sold 24,587 10 0.16% 9,882 49 1.94% Time deposits in other banks 16,458 56 1.35% 21,640 162 2.98% Loans 594,050 10,426 6.96% 572,675 11,101 7.71% ------- ------ ------- ------ Total interest earning assets 854,505 12,941 6.01% 833,810 14,090 6.72% Noninterest earning assets 80,014 82,818 ------ ------ Total assets $934,519 $916,628 ======== ======== Interest bearing liabilities: Deposits $584,933 $2,014 1.37% $587,053 3,016 2.04% Repurchase agreements 50,359 303 2.39% 38,712 210 2.15% Federal funds purchased - - - 5,738 40 2.73% Other borrowings - - - 2,758 16 2.31% Junior subordinated debentures 15,465 249 6.30% 15,465 297 7.51% ------ --- ------ --- Total interest bearing liabilities 650,757 2,566 1.56% 649,726 3,579 2.19% ----- ----- Noninterest bearing liabilities 187,024 195,135 Shareholders' equity 96,738 71,767 ------ ------ Total liabilities and shareholders' equity $934,519 $916,628 ======== ======== Net interest income (TE) and margin $10,375 4.82% $10,511 5.01% ======= ======= Net interest spread 4.45% 4.53% MIDSOUTH BANCORP, INC. AND SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands) YIELD ANALYSIS Nine Months Ended Nine Months Ended September 30, 2009 September 30, 2008 ------------------ ------------------ Tax Tax Average Equivalent Yield/ Average Equivalent Yield/ Balance Interest Rate Balance Interest Rate ------- -------- ---- ------- -------- ---- Taxable securities $97,979 $3,046 4.15% $94,162 $3,182 4.51% Tax-exempt securities 116,116 4,678 5.37% 110,480 4,482 5.41% Other investments and interest bearing deposits 5,539 102 2.46% 6,320 138 2.91% Federal funds sold 17,418 29 0.22% 37,709 657 2.29% Time deposits in other banks 11,895 187 2.10% 15,297 322 2.81% Loans 596,903 31,119 6.97% 568,510 34,310 8.06% ------- ------ ------- ------ Total interest earning assets 845,850 39,161 6.19% 832,478 43,091 6.91% Noninterest earning assets 81,972 83,882 ------ ------ Total assets $927,822 $916,360 ======== ======== Interest bearing liabilities: Deposits $575,418 $6,228 1.45% $605,152 $11,024 2.43% Repurchase agreements 41,085 775 2.52% 32,896 587 2.38% Federal funds purchased 770 5 0.86% 1,941 41 2.78% Other borrowings 6,183 23 0.50% 1,528 34 2.97% Junior subordinated debentures 15,465 777 6.63% 15,465 919 7.81% ------ --- ------ --- Total interest bearing liabilities 638,921 7,808 1.63% 656,982 12,605 2.56% ---- ---- Noninterest bearing liabilities 193,284 187,850 Shareholders' equity 95,617 71,528 ------ ------ Total liabilities and shareholders' equity $927,822 $916,360 ======== ======== Net interest income (TE) and margin $31,353 4.96% $30,486 4.89% ======= ======= Net interest spread 4.56% 4.35%
MidSouth Bancorp, Inc.
CONTACT: Rusty Cloutier or Jim McLemore, both of MidSouth Bancorp, Inc.,
+1-337-237-8343
