LAFAYETTE, La., Jan. 25, 2011 /PRNewswire/ -- MidSouth Bancorp, Inc. ("MidSouth") (NYSE Amex: MSL) today reported net earnings available to common shareholders of $1.6 million for the fourth quarter of 2010, an increase of 74.8% compared to net earnings available to common shareholders of $890,000 reported for the fourth quarter of 2009, and an increase of 65.7% compared to $939,000 in net earnings available to common shareholders for the third quarter of 2010. Diluted earnings for the fourth quarter of 2010 were $0.16 per common share, an increase of 23.1% from $0.13 per common share reported for the fourth quarter of 2009, and an increase of 77.8% from $0.09 per common share reported for the third quarter of 2010.
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For the year ended December 31, 2010, net earnings available to common shareholders totaled $4.6 million, a 33.8% increase from earnings of $3.4 million for the year ended December 31, 2009. Diluted earnings per share were $0.47 for the year ended December 31, 2010, compared to $0.51 for 2009. Although net earnings increased, diluted earnings per share decreased due to the common shares issued as a result of our capital offering in December 2009. Dividends recorded on MidSouth's Fixed Rate Cumulative Perpetual Preferred Stock, Series A ("Series A Preferred Stock") issued under the Capital Purchase Plan reduced net earnings available to common shareholders by $1.2 million for each of the two years ended December 31, 2010 and December 31, 2009.
MidSouth is currently evaluating its options for repayment of the Series A Preferred Stock and intends to apply for funds under the Small Business Lending Fund ("SBLF") authorized by Congress. Under the SBLF, MidSouth would refinance its existing $20.0 million in Series A Preferred Stock and possibly issue additional preferred stock up to the maximum amount allowed by SBLF regulations. MidSouth estimates the maximum amount of preferred stock that it can issue under the SBLF to be approximately $32.0 million.
Total assets at December 31, 2010 were $1.0 billion, compared to $972.1 million in total assets reported at December 31, 2009. Total loans were $580.8 million at December 31, 2010 compared to $585.0 million at December 31, 2009 and deposits totaled $800.8 million as of December 31, 2010, compared to $773.3 million on December 31, 2009. Tangible common equity totaled $107.9 million at December 31, 2010, compared to $100.6 million at December 31, 2009.
MidSouth's leverage capital ratio increased to 14.00% at December 31, 2010 from 13.95% at December 31, 2009. Tier 1 risk-weighted capital and total risk-weighted capital ratios were 21.11% and 22.36% at December 31, 2010, compared to 19.34% and 20.54% at December 31, 2009, respectively. The Tier 1 common equity ratio at December 31, 2010 was 10.52% and tangible book value was $11.09 per common share for the same period.
Fourth Quarter 2010 vs. Fourth Quarter 2009 Comparisons
Net interest income increased $665,000 in quarterly comparison due to a $782,000 decrease in interest expense on interest-bearing liabilities that offset a decrease of $117,000 in interest income from earning assets. A $480,000 reduction in the provision for loan losses and a $171,000 decrease in non-interest expense also contributed to the improvement in earnings in quarterly comparison. Non-interest expense decreased primarily due to reductions of $441,000 in salary and benefits costs and $353,000 in occupancy expenses, which were partially offset by increases in other non-interest expense categories. Non-interest income decreased $230,000 in quarterly comparison due primarily to a $501,000 decrease in service charges on deposit accounts, which was partially offset by a $115,000 increase in ATM/Debit card income. Additionally, MidSouth recorded a $178,000 impairment charge on an equity security in the fourth quarter of 2009, which reduced non-interest income reported for that period.
C. R. "Rusty" Cloutier, President and Chief Executive Officer, commenting on fourth quarter noted, "MidSouth finished 2010 on a strong note with over $1.0 billion in assets, a solid capital position and a continued focus on expense controls. Although we were not successful with an FDIC-assisted acquisition due to the modest level of bank failures in our footprint, based on recent industry trends, we are very optimistic about significant opportunities for unassisted, open-bank acquisitions in Louisiana and Texas. We believe capitalizing on these opportunities will increase franchise value for our shareholders, customers and employees."
Fourth Quarter 2010 vs. Third Quarter 2010 Comparisons
In linked-quarter comparison, net earnings available to common shareholders increased $617,000, primarily due to a $630,000 decrease in the provision for loan losses. Net interest income increased $207,000 in linked-quarter comparison primarily due to a $191,000 decrease in interest expense. Non-interest income decreased $280,000 primarily due to a reduction in service charges on deposit accounts of $239,000. Non-interest expense decreased $319,000, primarily due to a $263,000 decrease in data processing expense related to a one-time charge for a data processing contract cancellation taken in the third quarter of 2010.
Full Year 2010 vs. Full Year 2009 Comparisons
In year-to-date comparison, the $1.2 million increase in net earnings available to common shareholders resulted primarily from a $908,000 increase in net interest income, which was driven by a $2.8 million reduction in interest expense. An $875,000 decrease in non-interest expense also contributed to the improvement in earnings, with significant decreases recorded in salary and benefits costs ($1.4 million), occupancy expense ($561,000), and FDIC premiums ($353,000). The decrease in salaries and benefit costs resulted primarily from a $1.2 million reduction in group health insurance expense as MidSouth's partially self-funded group health insurance plan experienced a lower amount of insurance claims in 2010. The reduction in occupancy expense resulted primarily from a $265,000 decrease in depreciation cost and a $139,000 decrease in lease expense. These decreases were partially offset by increases in other non-interest expense categories, including $451,000 in data processing expense, $274,000 in expenses on other real estate owned, and $235,000 in ATM/Debit card processing expense.
Additionally, the provision for loan loss decreased $430,000 in year-over-year comparison. The earnings improvement from increased net interest income combined with decreases in non-interest expense and the provision for loan losses was partially offset by an $843,000 increase in tax expense, an $189,000 decrease in non-interest income, and a $23,000 increase in preferred dividends.
Asset Quality. Nonaccrual loans totaled $19.6 million as of December 31, 2010, compared to $16.2 million as of December 31, 2009 and $23.6 million as of September 30, 2010. The $3.4 million increase in nonaccruals in year-over-year comparison resulted primarily from a $3.4 million commercial development loan in the Texas market added in the third quarter of 2010. Of the remaining $16.2 million in nonaccrual loans, $10.4 million, or 64.2%, represented two large commercial real estate loan relationships in the Baton Rouge market. The $4.0 million decrease in nonaccruals in linked-quarter comparison resulted primarily from the resolution of a $3.9 million commercial loan secured primarily by a marine vessel, which was paid off in the fourth quarter of 2010. Loans past due 90 days or more and still accruing totaled $66,000 at December 31, 2010, a decrease of $312,000 from December 31, 2009 and a decrease of $558,000 from September 30, 2010. Total nonperforming assets to total assets were 2.09% at December 31, 2010, compared to 1.79% at December 31, 2009 and 2.58% at September 30, 2010. Loans classified as troubled debt restructurings during the fourth quarter of 2010 consisted primarily of two small commercial loans totaling $640,000. The two loans were classified as trouble debt restructurings due to a reduction in monthly payments granted to the borrowers.
Allowance coverage for nonperforming loans was 44.81% at December 31, 2010, compared to 48.28% at December 31, 2009 and 34.91% at September 30, 2010. Annualized net charge-offs were 0.72% of total loans for the fourth quarter of 2010 compared to 0.86% for the fourth quarter of 2009 and 0.83% for the third quarter of 2010. The ALLL/total loans ratio was 1.52% for the quarter ended December 31, 2010, compared to 1.37% at December 31, 2009 and 1.41% at September 30, 2010.
Mr. Cloutier, commenting on MidSouth's asset quality, remarked "As we indicated in previous comments, credit quality deterioration appears to have bottomed in the near term and we were pleased to see a meaningful reduction in nonperforming assets and charge-offs in the fourth quarter."
Net Interest Income. Fully taxable-equivalent ("FTE") net interest income totaled $10.9 million for the fourth quarter of 2010, an increase of 6.1%, or $624,000, from the $10.3 million reported for the fourth quarter of 2009. The increase in FTE net interest income resulted primarily from a 46 basis point reduction in the average rate paid on interest-bearing liabilities, from 1.44% at December 31, 2009 to 0.98% at December 31, 2010. The $782,000 reduction in interest expense offset a $158,000 decrease in interest income on earning assets for the period. Interest income on loans declined due to a 7 basis point decrease in the average yield on loans partially offset by a $4.3 million increase in the average volume in quarterly comparison. Interest income on investment securities decreased as the impact of a 78 basis point decline in the average yield on investments offset a $38.7 million increase in the average volume. As a result of these changes in volume and yield on earning assets and interest bearing liabilities, the FTE net interest margin increased 3 basis points, from 4.67% for the fourth quarter of 2009 to 4.70% for the fourth quarter of 2010.
Included in fourth quarter 2010 FTE net interest income, is a $298,000 one-time recovery of interest income on a $3.9 million nonaccrual commercial loan that was paid off in December 2010. The $298,000 recovery contributed 13 basis points to the FTE net interest margin for the fourth quarter of 2010. Net of the recovery, the FTE margin would have decreased 10 basis points in quarterly comparison, from 4.67% for the fourth quarter of 2009 to 4.57% for the fourth quarter of 2010.
In year-to-date comparison, FTE net interest income increased $733,000, as a $2.8 million reduction in interest expense offset a $2.1 million decrease in interest income. The decrease in interest income on earning assets resulted primarily from a $9.4 million decrease in the average volume of loans, combined with an 11 basis point decline in the average yield on loans, from 6.96% at December 31, 2009 to 6.85% at December 31, 2010. Additionally, interest income on investment securities decreased as a 110 basis point reduction in the average yield earned on investment securities offset the impact of a $45.8 million increase in the average volume of investment securities. Interest expense decreased primarily due to a 47 basis point reduction in the average rate paid on interest-bearing deposits, from 1.40% at December 31, 2009 to 0.93% at December 31, 2010. As a result, the taxable-equivalent net interest margin declined 16 basis points, from 4.88% for the year ended December 31, 2009 to 4.72% for the year ended December 31, 2010. Net of the $298,000 recovery of interest income described above, the FTE margin would have decreased 19 basis points in year-to-date comparison, from 4.88% at year-end 2009 to 4.69% at year-end 2010.
In linked-quarter comparison, FTE net interest income increased $194,000, primarily due to lower average rates paid on deposit accounts combined with increase in the average volume of loans. Balance sheet and yield changes in linked-quarter comparison resulted in a 2 basis point decrease in the FTE net interest margin, from 4.72% at September 30, 2010 to 4.70% at December 31, 2010. Net of the $298,000 recovery of interest income described above, the FTE margin would have decreased 15 basis points in linked-quarter comparison, from 4.72% at September 30, 2010 to 4.57% at December 31, 2010.
About MidSouth Bancorp, Inc.
MidSouth Bancorp, Inc. is a bank holding company headquartered in Lafayette, Louisiana with assets of $1.0 billion as of December 31, 2010. Through our wholly owned subsidiary, MidSouth Bank, N.A., we offer a full range of banking services to commercial and retail customers in south Louisiana and southeast Texas. MidSouth Bank has 34 locations in Louisiana and Texas and 48 ATMs.
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, statements regarding future results, changes in the local and national economy, the work-out of nonaccrual loans, and potential acquisitions. 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 coverages, and changes in the U.S. Treasury's Capital Purchase Program; and other factors discussed under the heading "Risk Factors" in MidSouth's Annual Report on Form 10-K for the year ended December 31, 2009 filed with the SEC on March 16, 2010 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.
MIDSOUTH BANCORP, INC. and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands except per share data) ------------------------------------ For the Quarter Ended December 31, % EARNINGS DATA 2010 2009 Change ---- ---- ------ Total interest income $12,136 $12,253 -1.0% Total interest expense 1,630 2,412 -32.4% ----- ----- Net interest income 10,506 9,841 6.8% ------ ----- FTE net interest income 10,899 10,275 6.1% ------ ------ Provision for loan losses 870 1,350 -35.6% --- ----- Non-interest income 3,456 3,686 -6.2% Non-interest expense 10,798 10,969 -1.6% ------ ------ Earnings before income taxes 2,294 1,208 89.9% Income tax expense 438 18 2333.3% --- --- Net earnings 1,856 1,190 56.0% Dividends on preferred stock 300 300 0.0% Net earnings available to common shareholders $1,556 $890 74.8% ====== ==== PER COMMON SHARE DATA Basic earnings per share $0.16 $0.13 23.1% Diluted earnings per share 0.16 0.13 23.1% Quarterly dividends per share 0.07 0.07 0.0% Book value at end of period 12.05 11.81 2.0% Tangible book value at period end 11.09 10.79 2.8% Market price at end of period 15.36 13.90 10.5% Shares outstanding at period end (1) 9,730,266 9,318,267 4.4% Weighted average shares outstanding Basic 9,712,600 6,888,406 41.0% Diluted 9,727,588 6,906,206 40.9% AVERAGE BALANCE SHEET DATA Total assets $1,004,098 $954,441 5.2% Loans and leases 588,004 583,756 0.7% Total deposits 789,784 776,784 1.7% Total common equity (1) 118,301 81,593 45.0% Total tangible common equity 108,906 72,099 51.1% Total equity (2) 137,687 100,781 36.6% SELECTED RATIOS 12/31/2010 12/31/2009 ---------- ---------- Annualized return on average assets 0.61% 0.37% 64.9% Annualized return on average tangible common equity 5.67% 4.90% 15.7% Average loans to average deposits 74.45% 75.15% -0.9% Taxable-equivalent net interest margin 4.70% 4.67% 0.6% Leverage capital ratio (1) (2) 14.00% 13.95% 0.4% CREDIT QUALITY Allowance for loan losses (ALLL) as a % of total loans 1.52% 1.37% 10.9% Nonperforming assets to tangible equity + ALLL 15.37% 13.62% 12.8% Nonperforming assets to total loans, other real estate owned and other foreclosed assets 3.59% 2.97% 20.9% Annualized net YTD charge-offs to total loans 0.72% 0.86% -15.9% For the Quarter Ended September 30, % EARNINGS DATA 2010 Change ---- ------ Total interest income $12,120 0.1% Total interest expense 1,821 -10.5% ----- Net interest income 10,299 2.0% ------ FTE net interest income 10,705 1.8% ------ Provision for loan losses 1,500 -42.0% ----- Non-interest income 3,736 -7.5% Non-interest expense 11,117 -2.9% ------ Earnings before income taxes 1,418 61.8% Income tax expense 179 144.7% --- Net earnings 1,239 49.8% Dividends on preferred stock 300 0.0% Net earnings available to common shareholders $939 65.7% ==== PER COMMON SHARE DATA Basic earnings per share $0.09 77.8% Diluted earnings per share 0.09 77.8% Quarterly dividends per share 0.07 0.0% Book value at end of period 12.17 -1.0% Tangible book value at period end 11.20 -1.0% Market price at end of period 14.15 8.6% Shares outstanding at period end (1) 9,725,252 0.1% Weighted average shares outstanding Basic 9,709,538 0.03% Diluted 9,725,368 0.02% AVERAGE BALANCE SHEET DATA Total assets $985,782 1.9% Loans and leases 587,596 0.1% Total deposits 774,013 2.0% Total common equity (1) 118,051 0.2% Total tangible common equity 108,634 0.3% Total equity (2) 137,387 0.2% SELECTED RATIOS 9/30/2010 --------- Annualized return on average assets 0.38% 60.5% Annualized return on average tangible common equity 3.43% 65.3% Average loans to average deposits 75.92% -1.9% Taxable-equivalent net interest margin 4.72% -0.4% Leverage capital ratio (1) (2) 14.16% -1.1% CREDIT QUALITY Allowance for loan losses (ALLL) as a % of total loans 1.41% 7.8% Nonperforming assets to tangible equity + ALLL 18.76% -18.1% Nonperforming assets to total loans, other real estate owned and other foreclosed assets 4.28% -16.1% Annualized net YTD charge-offs to total loans 0.83% -12.8% (1) On December 22, 2009, the Company completed an underwritten capital offering of 2.7 million shares of common stock at $12.75 per share. On January 7, 2010, the underwriters of the offering exercised their overallotment option and the Company issued an additional 405,000 of common stock at $12.75. (2) 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 in the form of preferred stock. MIDSOUTH BANCORP, INC. and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands) -------------- December December BALANCE SHEET 31, 31, % 2010 2009 Change ---- ---- ------ Assets Cash and cash equivalents $91,907 $23,351 293.6% ------- ------- Securities available-for- sale 263,809 271,808 -2.9% Securities held-to-maturity 1,588 3,043 -47.8% ----- ----- Total investment securities 265,397 274,851 -3.4% ------- ------- Time deposits held in banks 5,164 26,122 -80.2% Other investments 5,062 4,902 3.3% Total loans 580,812 585,042 -0.7% Allowance for loan losses (8,813) (7,995) 10.2% ------ ------ Loans, net 571,999 577,047 -0.9% ------- ------- Premises and equipment 36,592 38,737 -5.5% Goodwill and other intangibles 9,386 9,483 -1.0% Other assets 16,832 17,649 -4.6% ------ ------ Total assets $1,002,339 $972,142 3.1% ========== ======== Liabilities and Stockholders' Equity Non-interest bearing deposits 199,460 175,173 13.9% Interest-bearing deposits 601,312 598,112 0.5% ------- ------- Total deposits 800,772 773,285 3.6% Securities sold under agreements to repurchase and other short term borrowings 43,826 48,759 -10.1% Junior subordinated debentures 15,465 15,465 0.0% Other liabilities 5,623 5,356 5.0% ----- ----- Total liabilities 865,686 842,865 2.7% ------- ------- Total shareholders' equity (1) 136,653 129,277 5.7% ------- ------- Total liabilities and shareholders' equity $1,002,339 $972,142 3.1% ========== ======== September BALANCE SHEET 30, June 30, 2010 2010 ---- ---- Assets Cash and cash equivalents $53,379 $36,291 ------- ------- Securities available-for- sale 274,291 277,707 Securities held-to-maturity 1,588 1,588 ----- ----- Total investment securities 275,879 279,295 ------- ------- Time deposits held in banks 5,060 10,060 Other investments 5,065 5,068 Total loans 598,311 586,062 Allowance for loan losses (8,446) (8,471) ------ ------ Loans, net 589,865 577,591 ------- ------- Premises and equipment 36,814 37,213 Goodwill and other intangibles 9,406 9,431 Other assets 17,361 16,832 ------ ------ Total assets $992,829 $971,781 ======== ======== Liabilities and Stockholders' Equity Non-interest bearing deposits 195,496 177,840 Interest-bearing deposits 584,110 592,067 ------- ------- Total deposits 779,606 769,907 Securities sold under agreements to repurchase and other short term borrowings 53,091 44,668 Junior subordinated debentures 15,465 15,465 Other liabilities 6,970 6,018 ----- ----- Total liabilities 855,132 836,058 ------- ------- Total shareholders' equity (1) 137,697 135,723 ------- ------- Total liabilities and shareholders' equity $992,829 $971,781 ======== ======== (1) On December 22, 2009, the Company completed an underwritten capital offering of 2.7 million shares of common stock at $12.75 per share. On January 7, 2010, the underwriters of the offering exercised their overallotment option and the Company issued an additional 405,000 shares of common stock at $12.75. 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 in the form of preferred stock. MIDSOUTH BANCORP, INC. and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands except per share data) ------------------------------------ Three Months Ended EARNINGS STATEMENT December 31, % 2010 2009 Change ---- ---- ------ Interest income $12,136 $12,253 -1.0% Interest expense 1,630 2,412 -32.4% ----- ----- Net interest income 10,506 9,841 6.8% ----- Provision for loan losses 870 1,350 -35.6% --- ----- Service charges on deposit accounts 2,188 2,689 -18.6% Other charges and fees 1,268 997 27.2% ----- --- Total non-interest income 3,456 3,686 -6.2% ----- ----- Salaries and employee benefits 5,046 5,487 -8.0% Occupancy expense 2,018 2,371 -14.9% FDIC premiums 345 303 13.9% Other non-interest expense 3,389 2,808 20.7% ----- ----- Total non-interest expense 10,798 10,969 -1.6% ------ ------ Earnings before income taxes 2,294 1,208 89.9% Income tax expense 438 18 2333.3% --- --- Net earnings 1,856 1,190 56.0% Dividends on preferred stock 300 300 0.0% Net earnings available to common shareholders $1,556 $890 74.8% ====== ==== Earnings per common share, diluted $0.16 $0.13 23.1% ===== ===== Year Ended EARNINGS STATEMENT December 31, % 2010 2009 Change ---- ---- ------ Interest income $48,124 $50,041 -3.8% Interest expense 7,395 10,220 -27.6% ----- ------ Net interest income 40,729 39,821 2.3% ------ ------ Provision for loan losses 5,020 5,450 -7.9% ----- ----- Service charges on deposit accounts 9,673 10,389 -6.9% Other charges and fees 5,184 4,657 11.3% ----- ----- Total non-interest income 14,857 15,046 -1.3% ------ ------ Salaries and employee benefits 20,352 21,743 -6.4% Occupancy expense 8,727 9,288 -6.0% FDIC premiums 1,331 1,684 -21.0% Other non-interest expense 13,408 11,978 11.9% ------ ------ Total non-interest expense 43,818 44,693 -2.0% ------ ------ Earnings before income taxes 6,748 4,724 42.8% Income tax expense 968 125 674.4% --- --- Net earnings 5,780 4,599 25.7% Dividends on preferred stock 1,198 1,175 2.0% Net earnings available to common shareholders $4,582 $3,424 33.8% ====== ====== Earnings per common share, diluted $0.47 $0.51 -7.8% ===== ===== MIDSOUTH BANCORP, INC. and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands except per share data) ------------------------------------ EARNINGS STATEMENT Fourth Third Second First Fourth QUARTERLY TRENDS Quarter Quarter Quarter Quarter Quarter 2010 2010 2010 2010 2009 ---- ---- ---- ---- ---- Interest income $12,136 $12,120 $11,929 $11,939 $12,253 Interest expense 1,630 1,821 1,905 2,039 2,412 ----- ----- ----- ----- ----- Net interest income 10,506 10,299 10,024 9,900 9,841 Provision for loan losses 870 1,500 1,500 1,150 1,350 --- ----- ----- ----- ----- Net interest income after provision for loan loss 9,636 8,799 8,524 8,750 8,491 Total non-interest income 3,456 3,736 4,024 3,641 3,686 Total non-interest expense 10,798 11,117 11,169 10,734 10,969 ------ ------ ------ ------ ------ Earnings before income taxes 2,294 1,418 1,379 1,657 1,208 Income tax expense (benefit) 438 179 129 222 18 --- --- --- --- --- Net earnings 1,856 1,239 1,250 1,435 1,190 Dividends on preferred stock 300 300 299 299 300 Net earnings available to common shareholders $1,556 $939 $951 $1,136 $890 ====== ==== ==== ====== ==== Earnings per common share, diluted $0.16 $0.09 $0.10 $0.12 $0.13 ===== ===== ===== ===== ===== MIDSOUTH BANCORP, INC. and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands) -------------- December December September 31, 31, % 30, June 30, COMPOSITION OF LOANS 2010 2009 Change 2010 2010 ---- ---- ------ ---- ---- Commercial, financial, and agricultural $177,598 $193,350 -8.1% $194,729 $195,113 Lease financing receivable 4,748 7,589 -37.4% 5,192 5,956 Real estate - construction 54,164 39,544 37.0% 47,407 43,289 Real estate - commercial 208,764 188,045 11.0% 208,491 196,678 Real estate - residential 72,460 77,130 -6.1% 74,820 74,662 Installment loans to individuals 62,272 77,069 -19.2% 66,544 68,283 Other 806 2,315 -65.2% 1,128 2,081 --- ----- ----- ----- Total loans $580,812 $585,042 -0.7% $598,311 $586,062 ======== ======== ======== ======== MIDSOUTH BANCORP, INC. and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands) -------------- December December September June 31, 31, % 30, 30, ASSET QUALITY DATA 2010 2009 Change 2010 2010 ---- ---- ------ ---- ---- Nonaccrual loans $19,603 $16,183 21.1% $23,569 $19,772 Loans past due 90 days and over 66 378 -82.5% 624 1,459 --- --- --- ----- Total nonperforming loans 19,669 16,561 18.8% 24,193 21,231 Other real estate owned 1,206 792 52.3% 1,401 1,002 Other repossessed assets 36 51 -29.4% 55 65 --- --- --- --- Total nonperforming assets $20,911 $17,404 20.2% $25,649 $22,298 ======= ======= ======= ======= Troubled debt restructurings $653 $- 100.0% $661 $1,198 ==== === ==== ====== Nonperforming assets to total assets 2.09% 1.79% 16.8% 2.58% 2.29% Nonperforming assets to total loans + OREO + other repossessed assets 3.59% 2.97% 20.9% 4.28% 3.80% ALLL to nonperforming loans 44.81% 48.28% -7.2% 34.91% 39.90% ALLL to total loans 1.52% 1.37% 10.9% 1.41% 1.45% Year-to-date charge- offs $4,456 $5,268 -15.4% $3,908 $2,325 Year-to-date recoveries 254 227 11.9% 209 151 --- --- --- --- Year-to-date net charge-offs $4,202 $5,041 -16.6% $3,699 $2,174 ====== ====== ====== ====== Annualized YTD net charge-offs to total loans 0.72% 0.86% -15.9% 0.83% 0.75% MIDSOUTH BANCORP, INC. and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands) -------------- Three Months Ended YIELD ANALYSIS December 31, 2010 ----------------- Tax Average Equivalent Yield/ Balance Interest Rate ------- -------- ---- Taxable securities $156,994 $883 2.25% Tax-exempt securities 106,292 1,351 5.08% ------- ----- Total investment securities 263,286 2,234 3.39% ----- Federal funds sold 6,227 3 0.19% Time and interest bearing deposits in other banks 57,396 60 0.41% Other investments 5,063 35 2.77% Loans 588,004 10,197 6.88% ------- ------ Total interest earning assets 919,976 12,529 5.40% ------ Non-interest earning assets 84,122 ------ Total assets $1,004,098 ========== Interest-bearing liabilities: Deposits $587,781 $1,152 0.78% Repurchase agreements 53,863 235 1.73% Federal funds purchased - - - Other borrowings - - - Junior subordinated debentures 15,465 243 6.15% ------ --- Total interest-bearing liabilities 657,109 1,630 0.98% ----- Non-interest bearing liabilities 209,302 Shareholders' equity 137,687 ------- Total liabilities and shareholders' equity $1,004,098 ========== Net interest income (TE) and margin $10,899 4.70% ======= Net interest spread 4.42% Three Months Ended YIELD ANALYSIS December 31, 2009 ----------------- Tax Average Equivalent Yield/ Balance Interest Rate ------- -------- ---- Taxable securities $112,170 $859 3.06% Tax-exempt securities 112,386 1,482 5.27% ------- ----- Total investment securities 224,556 2,341 4.17% ----- Federal funds sold 18,209 8 0.17% Time and interest bearing deposits in other banks 41,495 85 0.81% Other investments 4,638 31 2.67% Loans 583,756 10,222 6.95% ------- ------ Total interest earning assets 872,654 12,687 5.77% ------ Non-interest earning assets 81,787 ------ Total assets $954,441 ======== Interest-bearing liabilities: Deposits $596,822 $1,875 1.25% Repurchase agreements 53,913 295 2.17% Federal funds purchased 180 - - Other borrowings - - - Junior subordinated debentures 15,465 242 6.12% ------ --- Total interest-bearing liabilities 666,380 2,412 1.44% ----- Non-interest bearing liabilities 187,280 Shareholders' equity 100,781 ------- Total liabilities and shareholders' equity $954,441 ======== Net interest income (TE) and margin $10,275 4.67% ======= Net interest spread 4.33% MIDSOUTH BANCORP, INC. and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands) -------------- Year Ended YIELD ANALYSIS December 31, 2010 ----------------- Tax Average Equivalent Yield/ Balance Interest Rate ------- -------- ---- Taxable securities $153,545 $3,699 2.41% Tax-exempt securities 109,020 5,598 5.13% ------- ----- Total investment securities 262,565 9,297 3.54% ----- Federal funds sold 3,328 7 0.21% Time and interest bearing deposits in other banks 41,999 274 0.64% Other investments 5,007 148 2.96% Loans 584,190 40,029 6.85% ------- ------ Total interest earning assets 897,089 49,755 5.55% ------ Non-interest earning assets 84,682 ------ Total assets $981,771 ======== Interest-bearing liabilities: Deposits $589,168 $5,468 0.93% Repurchase agreements 49,054 948 1.93% Federal funds purchased 243 2 0.81% Other borrowings 682 3 0.44% Junior subordinated debentures 15,465 974 6.21% ------ --- Total interest-bearing liabilities 654,612 7,395 1.13% ----- Non-interest bearing liabilities 190,876 Shareholders' equity 136,283 ------- Total liabilities and shareholders' equity $981,771 ======== Net interest income (TE) and margin $42,360 4.72% ======= Net interest spread 4.42% Year Ended YIELD ANALYSIS December 31, 2009 ----------------- Tax Average Equivalent Yield/ Balance Interest Rate ------- -------- ---- Taxable securities $101,556 $3,905 3.85% Tax-exempt securities 115,176 6,159 5.35% ------- ----- Total investment securities 216,732 10,064 4.64% ------ Federal funds sold 17,617 37 0.21% Time and interest bearing deposits in other banks 20,222 274 1.35% Other investments 4,445 130 2.92% Loans 593,589 41,342 6.96% ------- ------ Total interest earning assets 852,605 51,847 6.08% ------ Non-interest earning assets 81,929 ------ Total assets $934,534 ======== Interest-bearing liabilities: Deposits $580,814 $8,103 1.40% Repurchase agreements 44,318 1,070 2.41% Federal funds purchased 622 5 0.79% Other borrowings 4,625 23 0.50% Junior subordinated debentures 15,465 1,019 6.50% ------ ----- Total interest-bearing liabilities 645,844 10,220 1.58% ------ Non-interest bearing liabilities 191,225 Shareholders' equity 97,465 ------ Total liabilities and shareholders' equity $934,534 ======== Net interest income (TE) and margin $41,627 4.88% ======= Net interest spread 4.50% MIDSOUTH BANCORP, INC. and SUBSIDIARIES Reconciliation of Non-GAAP Financial Measures (in thousands except per share data) ------------------------------------ For the Quarter Ended December December September 31, 31, 30, Per Common Share Data 2010 2009 2010 ---- ---- ---- Book value per common share $12.05 $11.81 $12.17 Effect of intangible assets per share 0.96 1.02 0.97 ---- ---- ---- Tangible book value per common share $11.09 $10.79 $11.20 ====== ====== ====== Average Balance Sheet Data Total equity $137,687 $100,781 $137,387 Preferred equity 19,386 19,188 19,336 ------ ------ ------ Total common equity $118,301 $81,593 $118,051 Intangible assets 9,395 9,494 9,417 ----- ----- ----- Tangible common equity $108,906 $72,099 $108,634 ======== ======= ======== Certain financial information included in the earnings release and the associated Condensed Consolidated Financial Information (unaudited) is determined by methods other than in accordance with GAAP. The non-GAAP financial measure above is calculated by using "tangible common equity," which is defined as total common equity reduced by intangible assets. "Tangible book value per common share" is defined as tangible common equity divided by total common shares outstanding. We use non-GAAP measures because we believe they are useful for evaluating our financial condition and performance over periods of time, as well as in managing and evaluating our business and in discussions about our performance. We also believe these non-GAAP financial measures provide users of our financial information with a meaningful measure for assessing our financial condition as well as comparison to financial results for prior periods. These results should not be viewed as a substitute for results determined in accordance with GAAP, and are not necessarily comparable to non- GAAP performance measures that other companies may use.
PRN Photo Desk, photodesk@prnewswire.com
MidSouth Bancorp, Inc.
CONTACT: Investor, Rusty Cloutier, President & CEO or Jim McLemore, CFA,
Sr. EVP & CFO, +1-337-237-8343, or Media, Alex Calicchia, Chief Marketing
Officer, +1-337-593-3008, all of MidSouth Bancorp, Inc.
