Attached files
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| 8-K - MIDSOUTH BANCORP FORM 8-K - MIDSOUTH BANCORP INC | form_8-k.htm |
Investor Contacts: Rusty Cloutier
President
& CEO or
Jim
McLemore, CFA
Sr. EVP and
CFO
337.237.8343
Media
Contact: Alex Calicchia
Chief Marketing
Officer
337.593.3008
MidSouth
Bancorp, Inc. Reports Fourth Quarter 2009 Results
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·
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Strong
Capital Position with Total Risk Weighted Capital of
20.69%
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·
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Net
Earnings before Preferred Dividends Increased 11.8%
Year-Over-Year
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·
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Nonperforming
Assets to Total Assets a Modest
1.79%
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LAFAYETTE, LA., January 28,
2010/PRNewswire-FirstCall/ -- MidSouth Bancorp, Inc. (“MidSouth”) (NYSE Amex:
MSL) today
reported net earnings available to common shareholders of $890,000 for the
fourth quarter ended December 31, 2009, a decrease of 16.4% from net earnings
available to common shareholders of $1,064,000 reported for the fourth quarter
of 2008, and a decrease of 21.4% from net earnings available to common
shareholders of $1,132,000 reported for the third quarter of
2009. Diluted earnings for the fourth quarter of 2009 were $0.13 per
common share, a decrease of 18.8% from $0.16 per common share reported for the
fourth quarter of 2008, and a decrease of 23.5% from $0.17 per common share
reported for the third quarter of 2009. MidSouth 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 which reduced net earnings available to
common shareholders by $300,000 for the fourth quarter of 2009 and $299,000 for
the third quarter of 2009. Fourth quarter 2009 net earnings before
dividends on Series A Preferred Stock totaled $1,190,000, an increase of
$126,000, or 11.8%, over the $1,064,000 earned in the fourth quarter of
2008.
For the
year ended December 31, 2009, net earnings available to common shareholders
totaled $3,424,000, a 38.2% decrease from net earnings available to common
shareholders of $5,537,000 reported for the year ended December 31,
2008. Dividends recorded on the Series A Preferred Stock reduced net
earnings available to common shareholders by $1,175,000 for the year ended
December 31, 2009. Diluted earnings per common share were $0.51 for
the year ended December 31, 2009, compared to $0.83 for 2008.
C. R.
“Rusty” Cloutier, President and Chief Executive Officer, commenting on fourth
quarter and annual 2009 results noted, “We ended the year with
significantly stronger capital levels, increased our allowance for loan losses
and reduced controllable expenses. We appreciate
the hard work of our employees and the support of our investors who have helped
MidSouth during the past year to continue to execute on our business strategy to
be well-positioned in the coming quarters to serve our commercial and retail
customers once demand for credit improves in our markets.”
MidSouth’s
total assets at December 31, 2009 were $972.1 million, a 3.8% increase over the
$936.8 million in total assets reported at December 31, 2008. The
$35.3 million increase in assets resulted primarily from a public offering of
2.7 million shares of MidSouth’s common stock at $12.75 per share which closed
on December 22, 2009 with net proceeds of approximately $32.4
million. The additional capital increased MidSouth’s leverage capital
ratio from 8.38% at December 31, 2008 to 13.95% at December 31,
2009. Tier 1 risk weighted capital and total risk weighted capital
ratios were 19.48% and 20.69% at December 31, 2009, compared to 11.04% and
12.16% at December 31, 2008, respectively. MidSouth plans to use the
net proceeds from the offering for general purposes including potential
acquisition opportunities.
-1-
Deposits
totaled $773.3 million as of December 31, 2009, an increase of $6.6 million,
compared to $766.7 million on December 31, 2008. Total loans were
$585.0 million, a decrease of $24.0 million, or 3.9%, from the $609.0 million
reported as of December 31, 2008. Loans decreased throughout 2009 as
commercial customers used cash flows to pay down debt and continued economic
concerns stemmed loan production in both commercial and retail
credits.
Fourth
quarter 2009 net earnings before dividends on Series A Preferred Stock increased
$126,000 from fourth quarter 2008 net earnings and were positively impacted by a
$650,000 decrease in the provision for loan losses and a $383,000 decrease in
non-interest expense, which offset a $447,000 decrease in quarterly revenues and
a $460,000 increase in income tax expense. Decreases in non-interest
expenses primarily consisted of $242,000 in shares tax expense, $240,000 in
marketing costs, $80,000 in corporate development and training expenses, $72,000
in professional fees, and $57,000 in directors’ fees, offset by a $308,000
increase in salaries and benefit costs. The increased salaries and
benefit expense resulted primarily from $246,000 in additional costs associated
with group health insurance coverage. Quarterly revenues, defined as
net interest income and non-interest income, decreased primarily due to a
$378,000 reduction in net interest income, which was driven by a decline in
earning asset yields and loan volume in quarterly
comparison. Additionally, MidSouth recorded a $178,000 impairment
charge on an equity security in the fourth quarter of 2009, which reduced
non-interest income. Increased service charges on deposit accounts
partially offset the impact of the impairment charge. The equity
security is an investment in a portfolio of common stocks of community bank
holding companies. The $460,000 increase in income tax expense in
quarterly comparison resulted primarily from an increase in pre-tax earnings in
prior year quarterly comparison and from the effect of certain federal tax
credits recorded in the fourth quarter of 2008.
In
linked-quarter comparison, net earnings before dividends on Series A Preferred
Stock decreased $241,000, primarily due to the $1.35 million provision for loan
losses recorded in the fourth quarter of 2009 compared to the $1.0 million
provision recorded for the third quarter of 2009. Net interest income
decreased $91,000 in linked-quarter comparison and non-interest income decreased
$286,000, primarily due to the $178,000 impairment charge on the equity
security. Non-interest expense decreased $357,000, primarily due to a
$246,000 decrease in shares tax expense. Reductions in several other
non-interest expense categories offset increases in occupancy and marketing
expenses in linked-quarter comparison. Additionally, a $222,000
decrease in salaries expense offset a $200,000 increase in the cost of group
health insurance.
In
year-to-date comparison, net earnings before dividends on Series A Preferred
Stock decreased $938,000 primarily due to a $895,000 increase in the provision
for loan losses. Net interest income increased $434,000 as deposit
rate reductions throughout 2009 lowered interest expense and offset decreased
interest income from earning assets. Non-interest income decreased in
annual comparison primarily as a result of the $178,000 impairment charge on the
equity security, a $120,000 decrease in income from a third party investment
advisory firm, and a $131,000 one-time payment recorded in other non-interest
income in 2008. The one-time payment resulted from VISA’s mandatory
redemption of a portion of its Class B shares
-2-
outstanding
in connection with its initial public offering. The impact of these
and other decreases in other non-interest income categories was offset by a
$327,000 increase in ATM and debit card income and a $124,000 increase in
service charges on deposit accounts and resulted in a net reduction in
non-interest income of $82,000 in year-to-date
comparison. Non-interest expense increased $719,000 in
year-to-date comparison, due to higher FDIC premiums ($1,178,000),
salary and benefits costs ($792,000) and occupancy expenses ($601,000), offset
by a $1,852,000 decrease in other non-interest expenses. The
$1,852,000 reduction in non-interest expenses included significant decreases of
$977,000 in marketing costs, $278,000 in corporate development and training
expenses, $197,000 in professional fees, $157,000 in shares tax expense, and
$213,000 in expenses recorded in 2008 related to the data conversion and merger
of the Texas bank charter into the Louisiana charter. Income tax
expense decreased $324,000 due to the effect of certain federal tax credits
combined with lower annual pre-tax profits and sustained tax exempt income
levels.
Asset Quality. Nonaccrual
loans totaled $16.2 million as of December 31, 2009, compared to $9.4 million as
of December 31, 2008 and $15.5 million at September 30, 2009. Of the
$16.2 million at December 31, 2009, $12.2 million, or 75.1%, represented two
large commercial real estate loan relationships in the Baton Rouge
market. Loans past due 90 days or more and still accruing totaled
$0.4 million at December 31, 2009, a decrease of $600,000 from the $1.0 million
reported for December 31, 2008 and a decrease of $1.2 million from the $1.6
million reported for September 30, 2009. Total nonperforming assets
to total assets were 1.79% at December 31, 2009, compared to 1.17% at December
31, 2008 and 1.90% at September 30, 2009.
With
respect to the $12.2 million in two large commercial real estate loan
relationships in the Baton Rouge market that are nonaccrual, $3.9 million is
related to a national participation loan. In the fourth quarter of
2009, an additional $300,000 was charged off on the loan, bringing the total
charged off in 2009 to $1.8 million. The loan will be a long term
work-out based on actions taken by the lead bank. The second loan is
an $8.3 million commercial real estate loan 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 57% of the
units under lease agreements. Additionally, principal reductions
totaling $96,000 were recorded on the loan in the fourth quarter of
2009.
Allowance
coverage for nonperforming loans was 48.28% at December 31, 2009, compared to
73.22% at December 31, 2008 and 46.82% at September 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 158.37% at December 31, 2009, 342.88% at December 31,
2008, and 213.23% at September 30, 2009. Year-to-date net charge-offs
were 0.86% of total loans for the fourth quarter of 2009 compared to 0.40% for
the fourth quarter of 2008 and 0.83% (annualized) for the third quarter of
2009. The ALLL/total loans ratio was 1.37% at December 31, 2009,
1.25% at December 31, 2008 and 1.36% at September 30, 2009.
Earnings
Analysis
Net Interest
Income. Fully taxable-equivalent (“FTE”) net interest income
totaled $10,275,000 for the fourth quarter of 2009, a decrease of 3.9%, or
$420,000, from the $10,695,000 reported for the fourth quarter of
2008. The decrease in FTE net interest income resulted primarily from
a decrease in loan volume and yields on loans in prior year quarterly
comparison. Additionally, a higher volume of interest bearing
deposits, time deposits, and federal funds sold earned minimal rates and the
yield on investment securities declined due to a higher volume of short-term
agency securities within the portfolio. Approximately $62.6 million
in short-term agency securities were purchased late in the fourth quarter of
2009 with proceeds from the common stock offering and excess federal funds
sold. Deposit rate reductions lowered interest expense in prior year
quarterly comparison and partially offset the impact of decreased earning assets
yields. As a result,
the FTE net interest margin decreased 38 basis points, from 5.05% for the fourth
quarterof 2008 to 4.67% for the fourth quarter of 2009.
-3-
In
linked-quarter comparison, FTE net interest income declined $100,000, with
decreased interest expense from lower deposit rates partially offsetting
decreased income from earning assets. Balance sheet and yield changes
in linked-quarter comparison resulted in a 15 basis point decrease in the FTE
net interest margin, from 4.82% at September 30, 2009 to 4.67% at December 31,
2009.
In
year-to-date comparison, FTE net interest income increased $448,000 as interest
expense decreased $5,865,000, offsetting a $5,417,000 decline in FTE interest
income. Interest expense decreased primarily due to an 87 basis point
reduction in the average rate paid on interest-bearing liabilities, from 2.45%
at December 31, 2008 to 1.58% at December 31, 2009. Despite increased
FTE net interest income, the FTE net interest margin declined 5 basis points,
from 4.93% for the year ended December 31, 2008 to 4.88% for the year ended
December 31, 2009, as decreased earning asset yields offset the impact of an
increase in the average volume of earning assets.
About
MidSouth Bancorp, Inc.
MidSouth
Bancorp, Inc. is a bank holding company headquartered in Lafayette, Louisiana
with assets of $972 million as of December 31, 2009. 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 35 locations in Louisiana and Texas and more
than 50 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 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; 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 Registration Statement on Form S-1/A filed
with the SEC on December 9, 2009 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.
-4-
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MIDSOUTH BANCORP, INC. and
SUBSIDIARIES
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Condensed Consolidated
Financial Information (unaudited)
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(in thousands except per share
data)
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For
the Quarter Ended
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For
the Quarter Ended
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December
31,
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%
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September
30,
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%
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EARNINGS
DATA
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2009
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2008
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Change
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2009
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Change
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Total interest income
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$ | 12,253 | $ | 13,699 | -10.6 | % | $ | 12,498 | -2.0 | % | ||||||||||
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Total interest expense
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2,412 | 3,480 | -30.7 | % | 2,566 | -6.0 | % | |||||||||||||
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Net interest income
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9,841 | 10,219 | -3.7 | % | 9,932 | -0.9 | % | |||||||||||||
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FTE
net interest income
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10,275 | 10,695 | 10,375 | |||||||||||||||||
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Provision for loan losses
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1,350 | 2,000 | -32.5 | % | 1,000 | 35.0 | % | |||||||||||||
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Non-interest income
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3,686 | 3,755 | -1.8 | % | 3,972 | -7.2 | % | |||||||||||||
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Non-interest expense
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10,969 | 11,352 | -3.4 | % | 11,326 | -3.2 | % | |||||||||||||
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Net
earnings before income taxes
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1,208 | 622 | 1,578 | |||||||||||||||||
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Provision for income taxes
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18 | (442 | ) | -104.1 | % | 147 | -87.8 | % | ||||||||||||
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Net
earnings
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1,190 | 1,064 | 11.8 | % | 1,431 | -16.8 | % | |||||||||||||
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Dividends
on preferred stock
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300 | - | 100.0 | % | 299 | 0.3 | % | |||||||||||||
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Net
earnings available to common shareholders
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$ | 890 | $ | 1,064 | -16.4 | % | $ | 1,132 | -21.4 | % | ||||||||||
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PER
COMMON SHARE DATA
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Basic earnings per share
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$ | 0.13 | $ | 0.16 | -18.8 | % | $ | 0.17 | -23.5 | % | ||||||||||
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Diluted earnings per share
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$ | 0.13 | $ | 0.16 | -18.8 | % | $ | 0.17 | -23.5 | % | ||||||||||
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Quarterly
dividends per share
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$ | 0.07 | $ | 0.07 | 0.0 | % | $ | 0.07 | 0.0 | % | ||||||||||
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Book value at period end
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$ | 11.81 | $ | 11.04 | 7.0 | % | $ | 11.83 | -0.2 | % | ||||||||||
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Tangible book value at period end
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$ | 10.79 | $ | 9.59 | 12.5 | % | $ | 10.39 | 3.8 | % | ||||||||||
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Market price at period end
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$ | 13.90 | $ | 12.75 | 9.0 | % | $ | 13.20 | 5.3 | % | ||||||||||
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Shares
outstanding at period end (1)
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9,318,267 | 6,618,220 | 40.8 | % | 6,618,268 | 40.8 | % | |||||||||||||
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Weighted average shares outstanding
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Basic
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6,888,406 | 6,614,263 | 4.1 | % | 6,592,110 | 4.5 | % | |||||||||||||
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Diluted
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6,906,206 | 6,633,143 | 4.1 | % | 6,612,428 | 4.4 | % | |||||||||||||
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AVERAGE
BALANCE SHEET DATA
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Total assets
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$ | 954,441 | $ | 923,059 | 3.4 | % | $ | 934,519 | 2.1 | % | ||||||||||
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Loans and leases
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583,756 | 595,765 | -2.0 | % | 594,050 | -1.7 | % | |||||||||||||
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Total deposits
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776,784 | 776,201 | 0.1 | % | 765,776 | 1.4 | % | |||||||||||||
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Total
common equity (1)
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83,763 | 70,274 | 19.2 | % | 77,599 | 7.9 | % | |||||||||||||
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Total
tangible common equity
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74,269 | 60,669 | 22.4 | % | 68,077 | 9.1 | % | |||||||||||||
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Total equity (2)
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102,951 | 70,274 | 46.5 | % | 96,738 | 6.4 | % | |||||||||||||
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SELECTED
RATIOS
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12/31/2009
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12/31/2008
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9/30/2009
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Return on average assets
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0.37 | % | 0.46 | % | -19.6 | % | 0.48 | % | -22.9 | % | ||||||||||
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Return
on average tangible common equity
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4.75 | % | 6.01 | % | -21.0 | % | 6.60 | % | -28.0 | % | ||||||||||
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Average
loans to average deposits
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75.15 | % | 76.75 | % | -2.1 | % | 77.57 | % | -3.1 | % | ||||||||||
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Taxable-equivalent net interest margin
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4.67 | % | 5.05 | % | -7.5 | % | 4.82 | % | -3.1 | % | ||||||||||
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Leverage capital ratio (1)
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13.95 | % | 8.38 | % | 66.5 | % | 10.62 | % | 31.4 | % | ||||||||||
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CREDIT
QUALITY
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Allowance for loan losses (ALLL) as a % of total
loans
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1.37 | % | 1.25 | % | 9.3 | % | 1.36 | % | 0.5 | % | ||||||||||
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Nonperforming
assets to total equity + ALLL
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12.63 | % | 13.64 | % | -7.4 | % | 17.04 | % | -25.9 | % | ||||||||||
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Nonperforming assets to total loans, other real estate
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1.79 | % | 1.17 | % | 53.0 | % | 1.90 | % | -5.8 | % | ||||||||||
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owned
and other foreclosed assets
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Annualized net YTD charge-offs to total loans
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0.86 | % | 0.40 | % | 115.4 | % | 0.83 | % | 3.8 | % | ||||||||||
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(1) On
December 22, 2009, the Company completed an underwritten capital offering
of 2.7 million shares of common stock at $12.75 per
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share. On
January 7, 2010, the underwriters of the offering exercised their
overallotment option and the Company issued an additional
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405,000
of common stock at $12.75.
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(2) On
January 9, 2009, the Company participated in the Capital Purchase Plan of
the U. S. Department of the Treasury, which added
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-5-
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MIDSOUTH BANCORP, INC. and
SUBSIDIARIES
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Condensed Consolidated
Financial Information (unaudited)
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(in
thousands)
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||||||||||||||||||||
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BALANCE
SHEET
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December
31,
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December
31,
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%
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September
30,
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June
30,
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2009
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2008
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Change
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2009
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2009
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Assets
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Cash
and cash equivalents
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$ | 23,350 | $ | 24,786 | -5.8 | % | $ | 62,585 | $ | 39,653 | ||||||||||
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Securities
available-for-sale
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271,808 | 225,944 | 20.3 | % | 218,795 | 204,918 | ||||||||||||||
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Securities
held-to-maturity
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3,043 | 6,490 | -53.1 | % | 3,218 | 3,668 | ||||||||||||||
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Total
investment securities
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274,851 | 232,434 | 18.2 | % | 222,013 | 208,586 | ||||||||||||||
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Time
deposits held in banks
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26,122 | 9,023 | 189.5 | % | 16,023 | 21,023 | ||||||||||||||
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Other
investments
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4,902 | 4,309 | 13.8 | % | 4,428 | 4,429 | ||||||||||||||
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Total
loans
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585,042 | 608,955 | -3.9 | % | 588,589 | 596,114 | ||||||||||||||
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Allowance
for loan losses
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(7,995 | ) | (7,586 | ) | 5.4 | % | (8,015 | ) | (8,039 | ) | ||||||||||
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Loans,
net
|
577,047 | 601,369 | -4.0 | % | 580,574 | 588,075 | ||||||||||||||
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Premises
and equipment
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38,737 | 40,580 | -4.5 | % | 39,049 | 39,580 | ||||||||||||||
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Goodwill
and other intangibles
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9,483 | 9,605 | -1.3 | % | 9,508 | 9,540 | ||||||||||||||
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Other
assets
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17,650 | 14,709 | 20.0 | % | 13,650 | 13,308 | ||||||||||||||
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Total
assets
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$ | 972,142 | $ | 936,815 | 3.8 | % | $ | 947,830 | $ | 924,194 | ||||||||||
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Liabilities
and Stockholders' Equity
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Non-interest
bearing deposits
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$ | 175,173 | $ | 199,899 | -12.4 | % | $ | 181,115 | $ | 185,332 | ||||||||||
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Interest
bearing deposits
|
598,112 | 566,805 | 5.5 | % | 590,976 | 577,320 | ||||||||||||||
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Total
deposits
|
773,285 | 766,704 | 0.9 | % | 772,091 | 762,652 | ||||||||||||||
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Securities
sold under agreements to repurchase and other short term
borrowings
|
48,758 | 75,876 | -35.7 | % | 55,366 | 45,809 | ||||||||||||||
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Junior
subordinated debentures
|
15,465 | 15,465 | - | 15,465 | 15,465 | |||||||||||||||
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Other
liabilities
|
5,357 | 5,726 | -6.4 | % | 7,466 | 6,470 | ||||||||||||||
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Total
liabilities
|
842,865 | 863,771 | -2.4 | % | 850,388 | 830,396 | ||||||||||||||
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Total
shareholders' equity (1)
|
129,277 | 73,044 | 77.0 | % | 97,442 | 93,798 | ||||||||||||||
|
Total
liabilities and shareholders' equity
|
$ | 972,142 | $ | 936,815 | 3.8 | % | $ | 947,830 | $ | 924,194 | ||||||||||
|
(1) On
December 22, 2009, the Company completed an underwritten capital offering
of 2.7 million shares of common stock at $12.75 per
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share. On
January 7, 2010, the underwriters of the offering exercised their
overallotment option and the Company issued an additional
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additional
405,000 of common stock at $12.75. On January 9, 2009, the Company
participated in the Capital Purchase Plan
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of
the U. S. Department of the Treasury, which added $20 million in
capital.
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-6-
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MIDSOUTH BANCORP, INC. and
SUBSIDIARIES
|
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|
Condensed Consolidated
Financial Information (unaudited)
|
||||||||||||||||||||||||
|
(in thousands except per share
data)
|
||||||||||||||||||||||||
|
Three
Months Ended
|
Year
Ended
|
|||||||||||||||||||||||
|
EARNINGS
STATEMENT
|
December
31,
|
%
|
December
31,
|
%
|
||||||||||||||||||||
|
2009
|
2008
|
Change
|
2009
|
2008
|
Change
|
|||||||||||||||||||
|
Interest
income
|
$ | 12,253 | $ | 13,699 | -10.6 | % | $ | 50,041 | $ | 55,472 | -9.8 | % | ||||||||||||
|
Interest
expense
|
2,412 | 3,480 | -30.7 | % | 10,220 | 16,085 | -36.5 | % | ||||||||||||||||
|
Net
interest income
|
9,841 | 10,219 | -3.7 | % | 39,821 | 39,387 | 1.1 | % | ||||||||||||||||
|
Provision
for loan losses
|
1,350 | 2,000 | -32.5 | % | 5,450 | 4,555 | 19.6 | % | ||||||||||||||||
|
Service
charges on deposit accounts
|
2,689 | 2,571 | 4.6 | % | 10,389 | 10,265 | 1.2 | % | ||||||||||||||||
|
Other
charges and fees
|
997 | 1,184 | -15.8 | % | 4,657 | 4,863 | -4.2 | % | ||||||||||||||||
|
Total
non-interest income
|
3,686 | 3,755 | -1.8 | % | 15,046 | 15,128 | -0.5 | % | ||||||||||||||||
|
Salaries
and employee benefits
|
5,487 | 5,179 | 5.9 | % | 21,743 | 20,951 | 3.8 | % | ||||||||||||||||
|
Occupancy
expense
|
2,371 | 2,406 | -1.5 | % | 9,288 | 8,687 | 6.9 | % | ||||||||||||||||
|
FDIC
premiums
|
303 | 142 | 113.4 | % | 1,684 | 506 | 232.8 | % | ||||||||||||||||
|
Other
non-interest expense
|
2,808 | 3,625 | -22.5 | % | 11,978 | 13,830 | -13.4 | % | ||||||||||||||||
|
Total
non-interest expense
|
10,969 | 11,352 | -3.4 | % | 44,693 | 43,974 | 1.6 | % | ||||||||||||||||
|
Income
before income taxes
|
1,208 | 622 | 94.2 | % | 4,724 | 5,986 | -21.1 | % | ||||||||||||||||
|
Provision
for income taxes
|
18 | (442 | ) | -104.1 | % | 125 | 449 | -72.2 | % | |||||||||||||||
|
Net
earnings
|
1,190 | 1,064 | 11.8 | % | 4,599 | 5,537 | -16.9 | % | ||||||||||||||||
|
Dividends
on preferred stock
|
300 | - | 100.0 | % | 1,175 | - | 100.0 | % | ||||||||||||||||
|
Net
earnings available to common shareholders
|
$ | 890 | $ | 1,064 | -16.4 | % | $ | 3,424 | $ | 5,537 | -38.2 | % | ||||||||||||
|
Earnings
per common share, diluted
|
$ | 0.13 | $ | 0.16 | -18.8 | % | $ | 0.51 | $ | 0.83 | ||||||||||||||
-7-
|
|
||||||||||||||||||||
|
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
|
|||||||||||||||
|
2009
|
2009
|
2009
|
2009
|
2008
|
||||||||||||||||
|
Interest
income
|
$ | 12,253 | $ | 12,498 | $ | 12,496 | $ | 12,794 | $ | 13,699 | ||||||||||
|
Interest
expense
|
2,412 | 2,566 | 2,574 | 2,668 | 3,480 | |||||||||||||||
|
Net
interest income
|
9,841 | 9,932 | 9,922 | 10,126 | 10,219 | |||||||||||||||
|
Provision
for loan losses
|
1,350 | 1,000 | 2,100 | 1,000 | 2,000 | |||||||||||||||
|
Net
interest income after provision for loan loss
|
8,491 | 8,932 | 7,822 | 9,126 | 8,219 | |||||||||||||||
|
Total
non-interest income
|
3,686 | 3,972 | 3,858 | 3,530 | 3,755 | |||||||||||||||
|
Total
non-interest expense
|
10,969 | 11,326 | 11,132 | 11,266 | 11,352 | |||||||||||||||
|
Income before income taxes
|
1,208 | 1,578 | 548 | 1,390 | 622 | |||||||||||||||
|
Income
taxes
|
18 | 147 | (197 | ) | 157 | (442 | ) | |||||||||||||
|
Net earnings
|
1,190 | 1,431 | 745 | 1,233 | 1,064 | |||||||||||||||
|
Dividends
on preferred stock
|
300 | 299 | 299 | 277 | - | |||||||||||||||
|
Net
earnings available to common shareholders
|
$ | 890 | $ | 1,132 | $ | 446 | $ | 956 | $ | 1,064 | ||||||||||
|
Earnings
per share, diluted
|
$ | 0.13 | $ | 0.17 | $ | 0.07 | $ | 0.14 | $ | 0.16 | ||||||||||
-8-
|
|
||||||||||||||||||||
|
MIDSOUTH BANCORP, INC. and
SUBSIDIARIES
|
||||||||||||||||||||
|
Condensed Consolidated
Financial Information (unaudited)
|
||||||||||||||||||||
|
(in
thousands)
|
||||||||||||||||||||
|
COMPOSITION
OF LOANS
|
December
31,
|
December
31,
|
%
|
September
30,
|
June
30,
|
|||||||||||||||
|
2009
|
2008
|
Change
|
2009
|
2009
|
||||||||||||||||
|
Commercial,
financial, and agricultural
|
$ | 192,347 | $ | 210,058 | -8.4 | % | $ | 196,436 | $ | 200,192 | ||||||||||
|
Lease
financing receivable
|
7,589 | 8,058 | -5.8 | % | 7,112 | 7,538 | ||||||||||||||
|
Real
estate - mortgage
|
265,175 | 234,588 | 13.0 | % | 264,242 | 242,595 | ||||||||||||||
|
Real
estate - construction
|
39,544 | 65,327 | -39.5 | % | 37,403 | 60,062 | ||||||||||||||
|
Installment
loans to individuals
|
79,476 | 89,901 | -11.6 | % | 82,138 | 84,602 | ||||||||||||||
|
Other
|
911 | 1,023 | -10.9 | % | 1,258 | 1,125 | ||||||||||||||
|
Total
loans
|
$ | 585,042 | $ | 608,955 | -3.9 | % | $ | 588,589 | $ | 596,114 | ||||||||||
-9-
|
|
||||||||||||||||||||
|
MIDSOUTH BANCORP, INC. and
SUBSIDIARIES
|
||||||||||||||||||||
|
Condensed Consolidated
Financial Information (unaudited)
|
||||||||||||||||||||
|
(in
thousands)
|
||||||||||||||||||||
|
ASSET
QUALITY DATA
|
December
31,
|
December
31,
|
%
|
September
30,
|
June
30,
|
|||||||||||||||
|
2009
|
2008
|
Change
|
2009
|
2009
|
||||||||||||||||
|
Nonaccrual
loans
|
$ | 16,183 | $ | 9,355 | 73.0 | % | $ | 15,520 | $ | 15,664 | ||||||||||
|
Loans
past due 90 days and over
|
378 | 1,005 | -62.4 | % | 1,600 | 791 | ||||||||||||||
|
Total
nonperforming loans
|
16,561 | 10,360 | 59.9 | % | 17,120 | 16,455 | ||||||||||||||
|
Other
real estate owned (ORE)
|
792 | 329 | 140.7 | % | 758 | 829 | ||||||||||||||
|
Other
foreclosed assets
|
51 | 306 | -83.3 | % | 89 | 203 | ||||||||||||||
|
Total
nonperforming assets
|
$ | 17,404 | $ | 10,995 | 58.3 | % | $ | 17,967 | $ | 17,487 | ||||||||||
|
Nonperforming
assets to total assets
|
1.79 | % | 1.17 | % | 53.0 | % | 1.90 | % | 1.89 | % | ||||||||||
|
Nonperforming
assets to total loans +
|
||||||||||||||||||||
|
ORE
+ other foreclosed assets
|
2.97 | % | 1.80 | % | 65.0 | % | 3.05 | % | 2.93 | % | ||||||||||
|
ALLL
to nonperforming loans
|
48.28 | % | 73.22 | % | -34.1 | % | 46.82 | % | 48.85 | % | ||||||||||
|
ALLL
to total loans
|
1.37 | % | 1.25 | % | 9.3 | % | 1.36 | % | 1.35 | % | ||||||||||
|
Year-to-date
charge-offs
|
$ | 5,268 | $ | 2,624 | 100.8 | % | $ | 3,872 | $ | 2,779 | ||||||||||
|
Year-to-date
recoveries
|
227 | 192 | 18.2 | % | 201 | 132 | ||||||||||||||
|
Year-to-date
net charge-offs
|
$ | 5,041 | $ | 2,432 | 107.3 | % | $ | 3,671 | $ | 2,647 | ||||||||||
|
Annualized
net YTD charge-offs to total loans
|
0.86 | % | 0.40 | % | 115.4 | % | 0.83 | % | 0.90 | % | ||||||||||
-10-
|
MIDSOUTH BANCORP, INC. and
SUBSIDIARIES
|
||||||||||||||||||||||||
|
Condensed
Consolidated Financial Information (unaudited)
|
||||||||||||||||||||||||
|
(in
thousands)
|
||||||||||||||||||||||||
|
YIELD
ANALYSIS
|
Three
Months Ended
|
Three Months
Ended
|
||||||||||||||||||||||
|
December
31, 2009
|
December
31, 2008
|
|||||||||||||||||||||||
|
Tax
|
Tax
|
|||||||||||||||||||||||
|
Average
|
Equivalent
|
Yield/
|
Average
|
Equivalent
|
Yield/
|
|||||||||||||||||||
|
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
|||||||||||||||||||
|
Taxable
securities
|
$ | 112,170 | $ | 859 | 3.06 | % | $ | 106,894 | $ | 1,199 | 4.49 | % | ||||||||||||
|
Tax-exempt
securities
|
112,386 | 1,482 | 5.27 | % | 119,713 | 1,618 | 5.41 | % | ||||||||||||||||
|
Other
investments and interest bearing deposits
|
20,870 | 41 | 0.79 | % | 4,327 | 31 | 2.87 | % | ||||||||||||||||
|
Federal
funds sold
|
18,209 | 8 | 0.17 | % | 4,722 | 13 | 1.08 | % | ||||||||||||||||
|
Time
deposits in other banks
|
25,263 | 75 | 1.18 | % | 11,120 | 92 | 3.29 | % | ||||||||||||||||
|
Loans
|
583,756 | 10,222 | 6.95 | % | 595,765 | 11,222 | 7.49 | % | ||||||||||||||||
|
Total interest earning assets
|
872,654 | 12,687 | 5.77 | % | 842,541 | 14,175 | 6.69 | % | ||||||||||||||||
|
Non-interest
earning assets
|
81,787 | 80,518 | ||||||||||||||||||||||
|
Total assets
|
$ | 954,441 | $ | 923,059 | ||||||||||||||||||||
|
Interest
bearing liabilities:
|
||||||||||||||||||||||||
|
Deposits
|
$ | 596,822 | $ | 1,875 | 1.25 | % | $ | 583,453 | 2,885 | 1.97 | % | |||||||||||||
|
Repurchase agreements
|
53,913 | 295 | 2.17 | % | 35,324 | 235 | 2.60 | % | ||||||||||||||||
|
Federal
funds purchased
|
180 | - | - | 4,179 | 11 | 1.03 | % | |||||||||||||||||
|
Other borrowings
|
- | - | - | 15,116 | 49 | 1.29 | % | |||||||||||||||||
|
Junior subordinated debentures
|
15,465 | 242 | 6.12 | % | 15,465 | 300 | 7.59 | % | ||||||||||||||||
|
Total interest bearing liabilities
|
666,380 | 2,412 | 1.44 | % | 653,537 | 3,480 | 2.12 | % | ||||||||||||||||
|
Non-interest
bearing liabilities
|
185,110 | 199,248 | ||||||||||||||||||||||
|
Shareholders'
equity
|
102,951 | 70,274 | ||||||||||||||||||||||
|
Total
liabilities and shareholders' equity
|
$ | 954,441 | $ | 923,059 | ||||||||||||||||||||
|
Net
interest income (FTE) and margin
|
$ | 10,275 | 4.67 | % | $ | 10,695 | 5.05 | % | ||||||||||||||||
|
Net
interest spread
|
4.33 | % | 4.57 | % | ||||||||||||||||||||
-11-
|
MIDSOUTH BANCORP, INC. and
SUBSIDIARIES
|
||||||||||||||||||||||||
|
Condensed
Consolidated Financial Information (unaudited)
|
||||||||||||||||||||||||
|
(in
thousands)
|
||||||||||||||||||||||||
|
YIELD
ANALYSIS
|
Year
Ended
|
Year
Ended
|
||||||||||||||||||||||
|
December
31, 2009
|
December
31, 2008
|
|||||||||||||||||||||||
|
Tax
|
Tax
|
|||||||||||||||||||||||
|
Average
|
Equivalent
|
Yield/
|
Average
|
Equivalent
|
Yield/
|
|||||||||||||||||||
|
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
|||||||||||||||||||
|
Taxable
securities
|
$ | 101,556 | $ | 3,905 | 3.85 | % | $ | 97,363 | $ | 4,380 | 4.50 | % | ||||||||||||
|
Tax-exempt
securities
|
115,176 | 6,159 | 5.35 | % | 112,801 | 6,100 | 5.41 | % | ||||||||||||||||
|
Other
investments and interest bearing
|
||||||||||||||||||||||||
|
deposits
|
9,403 | 143 | 1.52 | % | 5,817 | 170 | 2.92 | % | ||||||||||||||||
|
Federal
funds sold
|
17,617 | 37 | 0.21 | % | 29,406 | 669 | 2.24 | % | ||||||||||||||||
|
Time
deposits in other banks
|
15,264 | 262 | 1.69 | % | 14,247 | 413 | 2.90 | % | ||||||||||||||||
|
Loans
|
593,589 | 41,341 | 6.96 | % | 575,355 | 45,532 | 7.91 | % | ||||||||||||||||
|
Total interest earning assets
|
852,605 | 51,847 | 6.08 | % | 834,989 | 57,264 | 6.86 | % | ||||||||||||||||
|
Non-interest
earning assets
|
81,929 | 82,898 | ||||||||||||||||||||||
|
Total assets
|
$ | 934,534 | $ | 917,887 | ||||||||||||||||||||
|
Interest
bearing liabilities:
|
||||||||||||||||||||||||
|
Deposits
|
$ | 580,814 | $ | 8,103 | 1.40 | % | $ | 599,803 | $ | 13,910 | 2.32 | % | ||||||||||||
|
Repurchase agreements
|
44,318 | 1070 | 2.41 | % | 33,506 | 822 | 2.41 | % | ||||||||||||||||
|
Federal
funds purchased
|
622 | 5 | 0.79 | % | 2,493 | 53 | 2.09 | % | ||||||||||||||||
|
Other borrowings
|
4,625 | 23 | 0.50 | % | 4,943 | 81 | 1.64 | % | ||||||||||||||||
|
Junior subordinated debentures
|
15,465 | 1019 | 6.50 | % | 15,465 | 1,219 | 7.75 | % | ||||||||||||||||
|
Total interest bearing liabilities
|
645,844 | 10,220 | 1.58 | % | 656,210 | 16,085 | 2.45 | % | ||||||||||||||||
|
Non-interest
bearing liabilities
|
191,225 | 190,579 | ||||||||||||||||||||||
|
Shareholders'
equity
|
97,465 | 71,098 | ||||||||||||||||||||||
|
Total
liabilities and shareholders' equity
|
$ | 934,534 | $ | 917,887 | ||||||||||||||||||||
|
Net
interest income (FTE) and margin
|
$ | 41,627 | 4.88 | % | $ | 41,179 | 4.93 | % | ||||||||||||||||
|
Net
interest spread
|
4.50 | % | 4.41 | % | ||||||||||||||||||||
-12-
|
MIDSOUTH BANCORP, INC. and
SUBSIDIARIES
|
|
Reconciliation
of Non-GAAP Financial Measures
|
|
(in thousands except per share
data)
|
|
|
||||||||||||
|
For
the Quarter Ended
|
||||||||||||
|
December
31,
|
December
31,
|
September
30,
|
||||||||||
|
Per
Common Share Data
|
2009
|
2008
|
2009
|
|||||||||
|
Book
value per common share
|
$ | 11.81 | $ | 11.04 | $ | 11.83 | ||||||
|
Effect
of intangible assets per share
|
1.02 | 1.45 | 1.44 | |||||||||
|
Tangible
book value per common share
|
$ | 10.79 | $ | 9.59 | $ | 10.39 | ||||||
|
Average
Balance Sheet Data
|
||||||||||||
|
Total
equity
|
$ | 102,951 | $ | 70,274 | $ | 96,738 | ||||||
|
Preferred
equity
|
19,188 | - | 19,139 | |||||||||
|
Total
common equity
|
$ | 83,763 | $ | 70,274 | $ | 77,599 | ||||||
|
Intangible
assets
|
9,494 | 9605 | 9,522 | |||||||||
|
Tangible
common equity
|
$ | 74,269 | $ | 60,669 | $ | 68,077 | ||||||
|
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.
|
-13-