LAFAYETTE, La., April 30, 2013 /PRNewswire/ --MidSouth Bancorp, Inc. ("MidSouth") (NYSE MKT: MSL) today reported record quarterly net earnings available to common shareholders of $3.1 million for the first quarter of 2013, compared to net earnings available to common shareholders of $2.5 million reported for the first quarter of 2012 and $1.3 million in net earnings available to common shareholders for the fourth quarter of 2012. Diluted earnings for the first quarter of 2013 were $0.27 per common share, compared to $0.24 per common share reported for the first quarter of 2012 and $0.12 per common share reported for the fourth quarter of 2012. The first quarter of 2013 included after-tax merger and conversion related expenses of $0.01 per share and the fourth quarter of 2012 included $0.06 per share of after-tax merger related expenses. Excluding these non-operating expenses, operating earnings per share for the first quarter of 2013 were $0.28 compared to fourth quarter of 2012 of $0.18.
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Dividends paid on the Series B Preferred Stock issued to the Treasury as a result of our participation in the Small Business Lending Fund ("SBLF") totaled $192,000 for the first quarter of 2013 based on a dividend rate of 2.40%. The Series C Preferred Stock issued with the December 28, 2012 acquisition of PSB Financial Corporation ("PSB") paid dividends totaling $100,000 for the three months ended March 31, 2013.
Rusty Cloutier, President and CEO, commenting on first quarter 2013 said, "During the first quarter, we transitioned the operations of our branches of The Peoples State Bank as the new Timber Region for our MidSouth Bank franchise and converted the core processing system late in the quarter. Combined with the 2011 acquisitions and de novo expansion, our franchise has roughly doubled over the past eighteen months. We believe this growth will greatly benefit shareholders long term as we continue to expand in some of the most attractive growth markets in the country. Loan demand is increasing in the second quarter and we have a very solid loan pipeline. Our roadmap for 2013 includes a continued focus on strong asset quality, growing the loan portfolio, and realizing the cost savings from the PSB acquisition."
Balance Sheet
Total consolidated assets at March 31, 2013 and December 31, 2012 were $1.9 billion, compared to $1.4 billion at March 31, 2012. Deposits totaled $1.6 billion at March 31, 2013 and December 31, 2012, compared to $1.2 billion at March 31, 2012. Our stable core deposit base, excluding time deposits, accounted for 83% of deposits at March 31, 2013 compared to 80% of deposits at year end 2012. The low cost of our interest-bearing deposits declined 3 basis points from 0.42% compared to 0.39% over the three months ended March 31, 2013.
Loans totaled $1.0 billion at March 31, 2013 and December 31, 2012, compared to $747.8 million at March 31, 2012. Total loans declined $9.1 million in the first quarter of 2013 primarily due to pay-offs related to asset quality improvement in the portfolio. The loan mix reflected a minimal decrease in commercial and residential real estate loans, which was partially offset by an increase in real estate construction loans.
MidSouth's Tier 1 leverage capital ratio was 8.98% at March 31, 2013 compared to 11.82% at December 31, 2012. The Tier 1 leverage capital ratio declined as a result of a full quarter's impact of the PSB assets acquired on total average assets. Tier 1 risk-based capital and total risk-based capital ratios were 13.75% and 14.41% at March 31, 2013, compared to 13.46% and 14.10% at December 31, 2012, respectively. The Tier 1 common equity to total risk-weighted assets at March 31, 2013 was 7.71%. Tangible common equity totaled $97.4 million at March 31, 2013, compared to $95.4 million at December 31, 2012. Tangible book value per share at March 31, 2013 was $8.67 versus $8.49 at December 31, 2012.
Asset Quality
Nonperforming assets totaled $15.3 million at March 31, 2013, a decrease of $3.2 million over the $18.5 million reported for year-end 2012. The decrease resulted from a $1.4 million reduction in nonaccrual loans and a $1.8 million decrease in loans past due 90 days and over. Allowance coverage for nonperforming loans was 96.98% at March 31, 2013 compared to 67.78% at December 31, 2012. The ALL/total loans ratio remained relatively constant at 0.72% compared to 0.70% for the fourth quarter of 2012. The ratio of annualized net charge-offs to total loans was 0.18% for the three months ended March 31, 2013 compared to 0.19% for the three months ended December 31, 2012.
Total nonperforming assets to total loans plus ORE and other assets repossessed decreased to 1.46% at March 31, 2013 from 1.76% at December 31, 2012. Loans classified as troubled debt restructurings ("TDRs") totaled $5.0 million at March 31, 2013 compared to $5.1 million at December 31, 2012. A total of $4.8 million in TDRs were acquired with PSB and included four credits, two of which are large commercial credits. Classified assets, including ORE, decreased $5.2 million, or 15.1% during the three months ended March 31, 2013, from $34.4 million at December 31, 2012 to $29.2 million. The decrease in classified assets resulted primarily fromapproximately $2.9 million in pay-offs received on three loan relationships and the upgrade of a $1.0 million loan. The exposure on other classified loans decreased an additional $1.2 million due to charge-offs and scheduled payments in the first quarter of 2013.
First Quarter 2013 vs. First Quarter 2012 Earnings Comparison
First quarter 2013 net earnings available to common shareholders totaled $3.1 million compared to $2.5 million for the first quarter of 2012. The first quarter of 2013 included a full quarter of revenues and expenses from PSB operations. Revenues from consolidated operations increased $5.5 million in quarterly comparison and included $2.2 million in purchase accounting adjustments on the 2012 and 2011 acquisitions. Noninterest income increased $903,000 in quarterly comparison, from $3.5 million for the three months ended March 31, 2012 to $4.4 million for the three months ended March 31, 2013. Increases in noninterest income consisted primarily of $347,000 in service charges on deposit accounts, $230,000 in ATM/debit card income and $204,000 in gain on sales of securities.
Non-interest expenses increased $4.8 million for the first quarter 2013 compared to first quarter 2012 and included approximately $1.6 million in operating expenses for the Timber Region and approximately $0.5 million in operating costs for five new branches opened in late 2012 and early 2013. Additionally, first quarter 2013 included an increase of $94,000 in core deposit intangibles expense and $214,000 of net merger and conversion related expenses. The increased operating costs consisted primarily of $2.3 million in salaries and benefits costs, $1.0 million in occupancy expense, $260,000 in marketing expense, $223,000 in the cost of printing and supplies and $226,000 in data processing costs. Expenses on ORE and other assets repossessed decreased $189,000 in prior year quarterly comparison. The provision for loan losses decreased $125,000 and income tax expense increased $331,000 in quarterly comparison.
Fully taxable-equivalent ("FTE") net interest income totaled $18.8 million and $14.1 million for the quarters ended March 31, 2013 and 2012, respectively.The FTE net interest income increased $4.7 million in prior year quarterly comparison primarily due to a $388.3 million increase in the volume of average earning assets as a result of the PSB acquisition. The average volume of loans increased $301.2 million in quarterly comparison and the average yield on loans decreased 7 basis points, from 6.72% to 6.65%. Purchase accounting adjustments on acquired loans added 80 basis points to the average yield on loans for the first quarter of 2013 and 32 basis points to the average yield on loans for the first quarter of 2012. Net of the impact of the purchase accounting adjustments, average loan yields declined 55 basis points in prior year quarterly comparison, from 6.40% to 5.85%. Loan yields have declined primarily as the result of a sustained low market interest rate environment.
Investment securities totaled $555.4 million, or 29.7% of total assets at March 31, 2013, versus $462.8 million, or 32.7% of total assets at March 31, 2012. The investment portfolio had an effective duration of 3.5 years and an unrealized gain of $11.2 million at March 31, 2013. The average volume of investment securities increased $81.7 million in quarterly comparison primarily due to $152.7 million in securities acquired with the PSB acquisition at year end December 2012, of which $28.8 million were sold early in the first quarter of 2013. Additionally, a portion of excess cash from the 2011 acquisitions was used to purchase securities for the investment portfolio in 2012. The average tax equivalent yield on investment securities decreased 36 basis points, from 2.80% to 2.44% primarily due to lower reinvestment rates. The average yield on all earning assets increased 5 basis points in prior year quarterly comparison, from 4.98% for the first quarter of 2012 to 5.03% for the first quarter of 2013. Net of the impact of purchase accounting adjustments, the average yield on total earning assets declined 27 basis points, from 4.80% to 4.53% for the three month periods ended March 31, 2012 and 2013, respectively.
The impact to interest expense of a $278.0 million increase in the average volume of interest bearing liabilities was partially offset by an 8 basis point decrease in the average rate paid on interest-bearing liabilities, from 0.64% at March 31, 2012 to 0.56% at March 31, 2013. Net of purchase accounting adjustments on acquired certificates of deposit, the average rate paid on interest bearing liabilities was 0.80% for the first quarter of 2012 compared to 0.67% for the first quarter of 2013.
As a result of these changes in volume and yield on earning assets and interest bearing liabilities, the FTE net interest margin increased 12 basis points, from 4.49% for the first quarter of 2012 to 4.61% for the first quarter of 2013. Net of purchase accounting adjustments on loans, deposits and FHLB borrowings, the FTE margin decreased 17 basis points, from 4.20% for the first quarter of 2012 to 4.03% for the first quarter of 2013, primarily due to the addition of the relatively low margin on the earning assets acquired from PSB.
First Quarter 2013 vs. Fourth Quarter 2012 Earnings Comparison
In sequential quarter comparison, net earnings available to common shareholders increased $1.9 million primarily due to increased revenues as a result of the PSB acquisition, net of operating costs associated with the fifteen PSB branches acquired. Noninterest income increased $734,000 in sequential quarter comparison. The improvement in noninterest income resulted primarily from increases of $331,000 in service charges on deposit accounts, $204,000 in gain on sales of securities and an increase of $149,000 in ATM/debit card income.
Noninterest expenses increased $2.9 million and consisted primarily of increases of $2.2 million in salaries and benefits costs (approximately $1.1 million from the Timber Region and five new branches added in late 2012 and early 2013), $560,000 in occupancy expenses, $170,000 in shares tax expense, $133,000 in regulatory fees, $80,000 in corporate development expenses, and $79,000 in the costs of printing and supplies. The provision for loan losses increased $50,000 to $550,000 for the first quarter of 2013 compared to $500,000 the fourth quarter of 2012.
FTE net interest income increased $4.8 million in sequential quarter comparison primarily due to the increase in volume of average earning assets as a result of the 2012 PSB acquisition. Average earning assets increased $387.7 million, from $1.3 billion for the quarter ended December 31, 2012 to $1.7 billion for the quarter ended March 31, 2013. The average yield on earning assets increased 21 basis points for the same period, from 4.82% to 5.03%, respectively. The average volume of interest-bearing liabilities increased $310.0 million, from $929.1 million for the fourth quarter of 2012 compared to $1.2 billion for the first quarter of 2013. As a result of these changes in volume and yield on earning assets and interest bearing liabilities, the FTE net interest margin increased 21 basis points in sequential quarter comparison, from 4.40% to 4.61%. Net of purchase accounting adjustments, the FTE net interest margin decreased 18 basis points, from 4.21% for the quarter ended December 31, 2012 to 4.03% for the quarter ended March 31, 2013.
About MidSouth Bancorp, Inc.
MidSouth Bancorp, Inc. is a financial holding company headquartered in Lafayette, Louisiana, with assets of $1.9 billion as of March 31, 2013. Through its wholly owned subsidiary, MidSouth Bank, N.A., MidSouth offers a full range of banking services to commercial and retail customers in Louisiana and Texas. MidSouth Bank currently has 59 banking centers in Louisiana and Texas and is connected to a worldwide ATM network that provides customers with access to more than 50,000 surcharge-free ATMs. Additional corporate information is available at www.midsouthbank.com.
Forward-Looking Statements
Certain statements contained herein are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties. These statements include, among others, the expected impacts of the recently completed PSB acquisition, future expansion plans and future operating results. Actual results may differ materially from the results anticipated in these forward-looking statements. Factors that might cause such a difference include, among other matters, the ability of MidSouth to integrate the PSB operations and capitalize on new market opportunities resulting from the acquisition; the effect of the PSB acquisition on relations with customers and employees; changes in interest rates and market prices that could affect the net interest margin, asset valuation, and expense levels; changes in local economic and business conditions, including, without limitation, changes related to the oil and gas industries, that could adversely affect customers and their ability to repay borrowings under agreed upon terms, adversely affect the value of the underlying collateral related to their borrowings, and reduce demand for loans; the timing and ability to reach any agreement to restructure nonaccrual loans; increased competition for deposits and loans which could affect compositions, rates and terms; the timing and impact of future acquisitions, the success or failure of integrating operations, and the ability to capitalize on growth opportunities upon entering new markets; loss of critical personnel and the challenge of hiring qualified personnel at reasonable compensation levels; legislative and regulatory changes, including changes in banking, securities and tax laws and regulations and their application by our regulators, changes in the scope and cost of FDIC insurance and other coverage; and other factors discussed under the heading "Risk Factors" in MidSouth's Annual Report on Form 10-K for the year ended December 31, 2012 filed with the SEC on March 18, 2013 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 | For the Quarter Ended | |||||||||
March 31, | % | December 31, | % | |||||||
EARNINGS DATA | 2013 | 2012 | Change | 2012 | Change | |||||
Total interest income | $ 20,129 | $ 15,333 | 31.3% | $ 15,036 | 33.9% | |||||
Total interest expense | 1,717 | 1,529 | 12.3% | 1,354 | 26.8% | |||||
Net interest income | 18,412 | 13,804 | 33.4% | 13,682 | 34.6% | |||||
FTE net interest income | 18,761 | 14,121 | 32.9% | 13,972 | 34.3% | |||||
Provision for loan losses | 550 | 675 | -18.5% | 500 | 10.0% | |||||
Non-interest income | 4,431 | 3,528 | 25.6% | 3,697 | 19.9% | |||||
Non-interest expense | 17,431 | 12,668 | 37.6% | 14,567 | 19.7% | |||||
Earnings before income taxes | 4,862 | 3,989 | 21.9% | 2,312 | 110.3% | |||||
Income tax expense | 1,434 | 1,103 | 30.0% | 683 | 110.0% | |||||
Net earnings | 3,428 | 2,886 | 18.8% | 1,629 | 110.4% | |||||
Dividends on preferred stock | 292 | 400 | -27.0% | 367 | -20.4% | |||||
Net earnings available to common shareholders | $ 3,136 | $ 2,486 | 26.1% | $ 1,262 | 148.5% | |||||
PER COMMON SHARE DATA | ||||||||||
Basic earnings per share | $ 0.28 | $ 0.24 | 16.7% | $ 0.12 | 133.3% | |||||
Diluted earnings per share | 0.27 | 0.24 | 12.5% | 0.12 | 125.0% | |||||
Quarterly dividends per share | 0.07 | 0.07 | 0.0% | 0.07 | 0.0% | |||||
Book value at end of period | 13.24 | 12.55 | 5.5% | 13.10 | 1.1% | |||||
Tangible book value at period end | 8.67 | 9.51 | -8.8% | 8.49 | 2.1% | |||||
Market price at end of period | 16.26 | 13.60 | 19.6% | 16.35 | -0.6% | |||||
Shares outstanding at period end | 11,238,786 | 10,465,506 | 7.4% | 11,236,159 | 0.0% | |||||
Weighted average shares outstanding | ||||||||||
Basic | 11,237,916 | 10,465,506 | 7.4% | 10,512,255 | 6.9% | |||||
Diluted | 11,866,108 | 10,480,207 | 13.2% | 10,599,583 | 11.9% | |||||
AVERAGE BALANCE SHEET DATA | ||||||||||
Total assets | $ 1,850,759 | $ 1,395,964 | 32.6% | $ 1,400,244 | 32.2% | |||||
Loans and leases | 1,043,780 | 742,595 | 40.6% | 799,316 | 30.6% | |||||
Total deposits | 1,542,726 | 1,161,756 | 32.8% | 1,153,728 | 33.7% | |||||
Total common equity | 148,565 | 131,477 | 13.0% | 136,006 | 9.2% | |||||
Total tangible common equity | 96,692 | 99,557 | -2.9% | 104,343 | -7.3% | |||||
Total equity | 190,564 | 163,477 | 16.6% | 168,115 | 13.4% | |||||
SELECTED RATIOS | 3/31/2013 | 3/31/2012 | 12/31/2012 | |||||||
Annualized return on average assets | 0.69% | 0.72% | -4.2% | 0.36% | 91.7% | |||||
Annualized return on average common equity | 8.56% | 7.60% | 12.6% | 3.69% | 132.0% | |||||
Average loans to average deposits | 67.66% | 63.92% | 5.8% | 69.28% | -2.3% | |||||
Taxable-equivalent net interest margin | 4.61% | 4.49% | 2.7% | 4.41% | 4.5% | |||||
Tier 1 leverage capital ratio | 8.98% | 10.29% | -12.7% | 11.82% | -24.0% | |||||
CREDIT QUALITY | ||||||||||
Allowance for loan losses (ALLL) as a %of total loans | 0.72% | 0.95% | -24.2% | 0.70% | 2.9% | |||||
Nonperforming assets to tangible equity + ALLL | 10.39% | 11.19% | -7.1% | 12.79% | -18.8% | |||||
Nonperforming assets to total loans, other real estate | ||||||||||
owned and other repossessed assets | 1.46% | 2.05% | -28.8% | 1.76% | -17.1% | |||||
Annualized QTD net charge-offs to total loans | 0.18% | 0.47% | -61.5% | 0.19% | -4.8% | |||||
MIDSOUTH BANCORP, INC. and SUBSIDIARIES | ||||||||||
Condensed Consolidated Financial Information (unaudited) | ||||||||||
(in thousands) | ||||||||||
BALANCE SHEET | March 31, | March 31, | % | December 31, | September 31, | |||||
2013 | 2012 | Change | 2012 | 2012 | ||||||
Assets | ||||||||||
Cash and cash equivalents | $ 118,009 | $ 104,326 | 13.1% | $ 73,745 | $ 59,655 | |||||
Securities available-for-sale | 387,786 | 366,010 | 5.9% | 424,617 | 341,170 | |||||
Securities held-to-maturity | 167,617 | 96,817 | 73.1% | 153,524 | 117,628 | |||||
Total investment securities | 555,403 | 462,827 | 20.0% | 578,141 | 458,798 | |||||
Time deposits held in banks | - | 710 | -100.0% | 709 | 709 | |||||
Other investments | 10,017 | 5,634 | 77.8% | 8,310 | 5,820 | |||||
Total loans | 1,037,859 | 747,767 | 38.8% | 1,046,940 | 808,833 | |||||
Allowance for loan losses | (7,457) | (7,078) | 5.4% | (7,370) | (7,374) | |||||
Loans, net | 1,030,402 | 740,689 | 39.1% | 1,039,570 | 801,459 | |||||
Premises and equipment | 66,797 | 44,130 | 51.4% | 63,461 | 48,086 | |||||
Goodwill and other intangibles | 51,447 | 31,785 | 61.9% | 51,831 | 31,391 | |||||
Other assets | 34,981 | 23,538 | 48.6% | 35,964 | 23,018 | |||||
Total assets | $1,867,056 | $1,413,639 | 32.1% | $ 1,851,731 | $ 1,428,936 | |||||
Liabilities and Shareholders' Equity | ||||||||||
Non-interest bearing deposits | $ 390,774 | $ 271,447 | 44.0% | $ 381,083 | $ 306,463 | |||||
Interest-bearing deposits | 1,169,352 | 905,719 | 29.1% | 1,170,821 | 872,549 | |||||
Total deposits | 1,560,126 | 1,177,166 | 32.5% | 1,551,904 | 1,179,012 | |||||
Securities sold under agreements to | ||||||||||
repurchaseand other short term | ||||||||||
borrowings | 48,557 | 49,055 | -1.0% | 41,447 | 55,233 | |||||
Other borrowings | 28,772 | - | 100.0% | 29,128 | - | |||||
Junior subordinated debentures | 29,384 | 15,465 | 90.0% | 29,384 | 15,465 | |||||
Other liabilities | 9,384 | 8,618 | 8.9% | 10,624 | 10,891 | |||||
Total liabilities | 1,676,223 | 1,250,304 | 34.1% | 1,662,487 | 1,260,601 | |||||
Total shareholders' equity | 190,833 | 163,335 | 16.8% | 189,244 | 168,335 | |||||
Total liabilities and shareholders' equity | $1,867,056 | $1,413,639 | 32.1% | $ 1,851,731 | $ 1,428,936 | |||||
MIDSOUTH BANCORP, INC. and SUBSIDIARIES | ||||||
Condensed Consolidated Financial Information (unaudited) | ||||||
(in thousands except per share data) | ||||||
Three Months Ended | ||||||
EARNINGS STATEMENT | March 31, | % | ||||
2013 | 2012 | Change | ||||
Interest income | $20,129 | $15,333 | 31.3% | |||
Interest expense | 1,717 | 1,529 | 12.3% | |||
Net interest income | 18,412 | 13,804 | 33.4% | |||
Provision for loan losses | 550 | 675 | -18.5% | |||
Service charges ondeposit accounts | 2,171 | 1,824 | 19.0% | |||
Other charges and fees | 2,260 | 1,704 | 32.6% | |||
Total non-interest income | 4,431 | 3,528 | 25.6% | |||
Salaries and employeebenefits | 8,392 | 6,086 | 37.9% | |||
Occupancy expense | 3,597 | 2,548 | 41.2% | |||
FDIC premiums | 345 | 258 | 33.7% | |||
Other non-interest expense | 5,097 | 3,776 | 35.0% | |||
Total non-interest expense | 17,431 | 12,668 | 37.6% | |||
Earnings before income taxes | 4,862 | 3,989 | 21.9% | |||
Income tax expense | 1,434 | 1,103 | 30.0% | |||
Net earnings | 3,428 | 2,886 | 18.8% | |||
Dividends on preferred stock | 292 | 400 | -27.0% | |||
Net earnings available to common shareholders | $ 3,136 | $ 2,486 | 26.1% | |||
Earnings per common share, diluted | $ 0.27 | $ 0.24 | 12.5% | |||
MIDSOUTH BANCORP, INC. and SUBSIDIARIES | ||||||||||
Condensed Consolidated Financial Information (unaudited) | ||||||||||
(in thousands except per share data) | ||||||||||
EARNINGS STATEMENT | First | Fourth | Third | Second | First | |||||
QUARTERLY TRENDS | Quarter | Quarter | Quarter | Quarter | Quarter | |||||
2013 | 2012 | 2012 | 2012 | 2012 | ||||||
Interest income | $20,129 | $15,036 | $15,355 | $15,298 | $15,333 | |||||
Interest expense | 1,717 | 1,354 | 1,468 | 1,489 | 1,529 | |||||
Net interest income | 18,412 | 13,682 | 13,887 | 13,809 | 13,804 | |||||
Provision for loan losses | 550 | 500 | 300 | 575 | 675 | |||||
Net interest income after provision for loan loss | 17,862 | 13,182 | 13,587 | 13,234 | 13,129 | |||||
Total non-interest income | 4,431 | 3,697 | 3,754 | 3,965 | 3,528 | |||||
Total non-interest expense | 17,431 | 14,567 | 13,630 | 13,790 | 12,668 | |||||
Earnings before income taxes | 4,862 | 2,312 | 3,711 | 3,409 | 3,989 | |||||
Income tax expense | 1,434 | 683 | 1,062 | 931 | 1,103 | |||||
Net earnings | 3,428 | 1,629 | 2,649 | 2,478 | 2,886 | |||||
Dividends on preferred stock | 292 | 367 | 400 | 380 | 400 | |||||
Net earnings available to common shareholders | $ 3,136 | $ 1,262 | $ 2,249 | $ 2,098 | $ 2,486 | |||||
Earnings per common share, diluted | $ 0.27 | $ 0.12 | $ 0.21 | $ 0.20 | $ 0.24 | |||||
MIDSOUTH BANCORP, INC. and SUBSIDIARIES | ||||||||||
Condensed Consolidated Financial Information (unaudited) | ||||||||||
(in thousands) | ||||||||||
COMPOSITION OF LOANS | March 31, | March 31, | % | December 31, | September 31, | |||||
2013 | 2012 | Change | 2012 | 2012 | ||||||
Commercial, financial, and agricultural | $ 315,397 | $ 221,855 | 42.2% | $ 315,655 | $ 266,046 | |||||
Lease financing receivable | 4,962 | 3,840 | 29.2% | 5,769 | 5,041 | |||||
Real estate - construction | 82,508 | 55,320 | 49.1% | 75,334 | 57,727 | |||||
Real estate - commercial | 405,705 | 283,114 | 43.3% | 414,384 | 293,579 | |||||
Real estate - residential | 138,284 | 112,142 | 23.3% | 142,858 | 110,735 | |||||
Installment loans to individuals | 88,898 | 70,085 | 26.8% | 90,561 | 73,334 | |||||
Other | 2,105 | 1,411 | 49.2% | 2,379 | 2,371 | |||||
Total loans | $1,037,859 | $ 747,767 | 38.8% | $ 1,046,940 | $ 808,833 | |||||
COMPOSITION OF DEPOSITS | March 31, | March 31, | % | December 31, | September 31, | |||||
2013 | 2012 | Change | 2012 (1) | 2012 | ||||||
Noninterest bearing | $ 390,774 | $ 271,447 | 44.0% | $ 381,083 | $ 306,463 | |||||
NOW & Other | 432,540 | 242,695 | 78.2% | 402,121 | 239,937 | |||||
Money Market/Savings | 465,954 | 367,910 | 26.6% | 456,222 | 377,405 | |||||
Time Deposits of less than $100,000 | 125,020 | 128,415 | -2.6% | 133,304 | 111,356 | |||||
Time Deposits of $100,000 or more | 145,838 | 166,699 | -12.5% | 179,174 | 143,851 | |||||
Total deposits | $1,560,126 | $1,177,166 | 32.5% | $ 1,551,904 | $ 1,179,012 | |||||
(1) | A restatement of the deposit mix acquired from The Peoples State Bank is included in the Composition of Deposits for December 31, 2012. A total of $64.3 million in Money Market/Savings deposits were reclassed to NOW & Other deposits ($63.8 million) and to Noninterest bearing balances ($0.5 million). | ||||||||||
MIDSOUTH BANCORP, INC. and SUBSIDIARIES | ||||||||||
Condensed Consolidated Financial Information (unaudited) | ||||||||||
(in thousands) | ||||||||||
ASSET QUALITY DATA | March 31, | March 31, | % | December 31, | September 30, | |||||
2013 | 2012 | Change | 2012 | 2012 | ||||||
Nonaccrual loans | $ 7,526 | $ 7,655 | -1.7% | $ 8,887 | $ 8,307 | |||||
Loans past due 90days and over | 163 | 418 | -61.0% | 1,986 | 532 | |||||
Total nonperforming loans | 7,689 | 8,073 | -4.8% | 10,873 | 8,839 | |||||
Other real estate owned | 7,552 | 7,120 | 6.1% | 7,496 | 6,608 | |||||
Other repossessed assets | 16 | 321 | -95.0% | 151 | 51 | |||||
Total nonperforming assets | $ 15,257 | $ 15,514 | -1.7% | $ 18,520 | $ 15,498 | |||||
Troubled debt restructurings | $ 5,032 | $ 421 | 1095.2% | $ 5,062 | $ 242 | |||||
Nonperforming assets tototal assets | 0.82% | 1.10% | -25.5% | 1.00% | 1.08% | |||||
Nonperforming assets to total loans + | ||||||||||
OREO + otherrepossessed assets | 1.46% | 2.05% | -28.8% | 1.76% | 1.90% | |||||
ALLL to nonperforming loans | 96.98% | 87.67% | 10.6% | 67.78% | 83.43% | |||||
ALLL to total loans | 0.72% | 0.95% | -24.2% | 0.70% | 0.91% | |||||
Quarter-to-date charge-offs | $ 523 | $ 939 | -44.3% | $ 557 | $ 234 | |||||
Quarter-to-date recoveries | 60 | 66 | -9.1% | 53 | 86 | |||||
Quarter-to-date net charge-offs | $ 463 | $ 873 | -47.0% | $ 504 | $ 148 | |||||
Annualized QTD net charge-offs to total loans | 0.18% | 0.47% | -61.5% | 0.19% | 0.07% | |||||
MIDSOUTH BANCORP, INC. and SUBSIDIARIES | ||||||||||||
Condensed Consolidated Financial Information (unaudited) | ||||||||||||
(in thousands) | ||||||||||||
YIELD ANALYSIS | Three Months Ended | Three Months Ended | ||||||||||
March 31, 2013 | March 31, 2012 | |||||||||||
Tax | Tax | |||||||||||
Average | Equivalent | Yield/ | Average | Equivalent | Yield/ | |||||||
Balance | Interest | Rate | Balance | Interest | Rate | |||||||
Taxable securities | $ 426,017 | $ 2,059 | 1.93% | $ 365,302 | $ 2,069 | 2.27% | ||||||
Tax-exempt securities | 106,982 | 1,188 | 4.44% | 85,964 | 1,093 | 5.09% | ||||||
Total investment securities | 532,999 | 3,247 | 2.44% | 451,266 | 3,162 | 2.80% | ||||||
Federal funds sold | 8,021 | 4 | 0.20% | 4,108 | 2 | 0.19% | ||||||
Time and interest bearing deposits in | ||||||||||||
other banks | 57,829 | 38 | 0.26% | 60,045 | 39 | 0.26% | ||||||
Other investments | 9,317 | 72 | 3.09% | 5,636 | 45 | 3.19% | ||||||
Loans (1) | 1,043,780 | 17,117 | 6.65% | 742,595 | 12,402 | 6.72% | ||||||
Total interest earning assets | 1,651,946 | 20,478 | 5.03% | 1,263,650 | 15,650 | 4.98% | ||||||
Non-interest earning assets | 198,813 | 132,314 | ||||||||||
Total assets | $1,850,759 | $1,395,964 | ||||||||||
Interest-bearing liabilities: | ||||||||||||
Deposits (2) | $1,133,087 | $ 1,078 | 0.39% | $ 899,646 | $ 1,100 | 0.49% | ||||||
Repurchase agreements | 45,644 | 179 | 1.59% | 45,867 | 181 | 1.59% | ||||||
Federal funds purchased | - | - | - | 4 | - | - | ||||||
FHLB borrowings (3) | 27,076 | 88 | 1.30% | 2 | - | - | ||||||
Notes Payable | 1,836 | 15 | 3.27% | - | - | - | ||||||
Contingent value right payable | 2,000 | 20 | 4.00% | - | - | - | ||||||
Junior subordinated debentures | 29,384 | 337 | 4.59% | 15,465 | 248 | 6.34% | ||||||
Total interest-bearing liabilities | 1,239,027 | 1,717 | 0.56% | 960,984 | 1,529 | 0.64% | ||||||
Non-interest bearing liabilities | 421,168 | 271,503 | ||||||||||
Shareholders' equity | 190,564 | 163,477 | ||||||||||
Total liabilities and shareholders' | ||||||||||||
equity | $1,850,759 | $1,395,964 | ||||||||||
Net interest income (TE) and spread | $ 18,761 | 4.47% | $ 14,121 | 4.34% | ||||||||
Net interest margin | 4.61% | 4.49% | ||||||||||
(1) | Includes $1,867,000 and $515,000 of interest income from accretable yield on purchased loans from acquisitions for the three months ended March 31, 2013 and 2012, respectively. | |||||||||||
(2) | Includes $231,000 and $374,000 of reduction in interest expense from premium amortization on time deposits acquired from acquisitions for the three months ended March 31, 2013 and 2012, respectively. | |||||||||||
(3) | Includes $92,000 of reduction in interest expense from premium amortization on FHLB borrowings acquired from PSB for the three months ended March 31, 2013. | |||||||||||
MIDSOUTH BANCORP, INC. and SUBSIDIARIES | ||||||
Reconciliation of Non-GAAP Financial Measures (unaudited) | ||||||
(in thousands except per share data) | ||||||
For the Quarter Ended | ||||||
March 31, | March 31, | December 31, | ||||
Per Common Share Data | 2013 | 2012 | 2012 | |||
Book value per common share | $ 13.24 | $ 12.55 | $ 13.10 | |||
Effect of intangible assets per share | 4.57 | 3.04 | 4.61 | |||
Tangible book value per common share | $ 8.67 | $ 9.51 | $ 8.49 | |||
Diluted earnings per share | $ 0.27 | $ 0.24 | $ 0.12 | |||
Effect of merger-related costs, after-tax | 0.01 | - | 0.06 | |||
Operating earnings per share | $ 0.28 | $ 0.24 | $ 0.18 | |||
Average Balance Sheet Data | ||||||
Total equity | $ 190,564 | $ 163,477 | $ 168,115 | |||
Less preferred equity | 41,999 | 32,000 | 32,109 | |||
Total common equity | $ 148,565 | $ 131,477 | $ 136,006 | |||
Less intangible assets | 51,873 | 31,920 | 31,663 | |||
Tangible common equity | $ 96,692 | $ 99,557 | $ 104,343 | |||
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. | ||||||
SOURCE MidSouth Bancorp, Inc.
