Quarterly Highlights
- Diluted operating EPS for Q2 2018
was $0.16 versus $0.21 for Q1 2018
- Reported EPS for Q2 2018 was a loss
of $0.09 versus a loss of $0.03 for Q1 2018
- Bank level classified assets to
capital declined sequentially to 53% from 54%
- FTE net interest margin decreased 19
bps sequentially to 3.98% on lower loan yields due to loan
paydowns
- Core deposits were stable at 88.5%
of $1.5 billion total deposits and funding costs remain low at 45
bps. Cost of deposits increased 6 bps sequentially for a 15%
Deposit Beta for the quarter
- Tangible common equity to tangible
assets declined 11 bps sequentially to 8.96%
MidSouth Bancorp, Inc. (“MidSouth”) (NYSE:MSL) today reported a
quarterly net loss available to common shareholders of $1.5 million
for the second quarter of 2018, compared to net loss available to
common shareholders of $6.2 million reported for the second quarter
of 2017 and a $450,000 net loss available to common shareholders
for the first quarter of 2018. The second quarter of 2018 included
an after-tax charge of $4.2 million for regulatory remediation
costs, and an after-tax charge of $15,000 for costs associated with
the bulk loan sale. For comparison purposes, the first quarter of
2018 included an after-tax charge of $761,000 resulting from costs
associated with the bulk loan sale, an after-tax charge of $3.1
million for regulatory remediation costs, and an after-tax charge
of $115,000 related to the branch closures during the quarter.
Excluding these non-operating expenses, diluted earnings for the
second quarter of 2018 were $0.16 per common share, compared to
$0.21 per diluted share for the first quarter of 2018, and a loss
of $0.38 per diluted share for the second quarter of 2017.
Commenting on the quarter, Jim McLemore, President and CEO,
noted, “As indicated in our fourth quarter 2017 earnings release,
we expected 2018 to be a heavy year for costs to remediate issues
resulting from our 2017 Written Agreement with the OCC. This
continues to be the case as we incurred over $5 million of expenses
in the second quarter. As a result of these costs, we reported a
loss for the quarter of $1.5 million. Excluding these expenses, the
after-tax operating earnings of the Bank would have been $2.6
million.”
Mr. McLemore, commenting on MidSouth Bank’s ongoing
transformation, remarked, “It’s been roughly a year since we began
our transformation and we are making good progress in our efforts
to significantly improve franchise value. Our path to increasing
franchise value means reducing risk, becoming more efficient and
becoming a more focused commercial banking franchise. In the second
quarter, we completed the build out of our senior management team
and believe we have put an extremely talented management team in
place. Our new talent additions come to us from larger institutions
where they bring us insights and experience from a process maturity
standpoint that will greatly aid in our transformation efforts. At
the same time, these individuals understand the competitive
strengths an institution our size has to offer our customers and
will help us capitalize on these strengths.”
“On the credit transformation, we continue to meaningfully
reduce credit risk while we make good progress improving the Bank’s
credit culture. Credit costs were muted again this quarter at only
$440,000. We have reduced our level of classified assets from a
high of 80% of capital in the second quarter of 2017 down to 53% of
capital at the end of the second quarter of 2018.”
“We have rationalized our branch network and reduced our number
of branches by 25% over the last year, reflecting the reduction in
branch traffic most banks are experiencing. We reallocated $2
million of annual operating costs from these branches to
remediation investments to improve the long-term value of the Bank.
Despite the closure of these branches, the loss of deposits from
these branches has been significantly less than what we estimated.
Overall, our deposit franchise continues to perform very well, with
steady balances and our cost of funds increasing only 14bps over
the second quarter of 2017.”
Remediation Update
Mr. McLemore continued, “In the third quarter of 2017, we began
a process of a top-to-bottom review to identify opportunities to
strengthen the Bank. Some of the areas we identified for review
directly resulted from remediation issues identified in the OCC
Written Agreement. At mid-year 2018, expenses in 5 of the 6 major
areas are almost complete. In the second quarter, we substantially
completed the evaluation phase of the last of these major areas to
strengthen our BSA/AML/OFAC program. As a result, we are increasing
our total estimated remediation costs for 2018 to $18-$20 million
from our previous estimate of $10-$12 million. We recognize there
is a significant cost to these remediation efforts but we believe
these investments will pay off many times over in terms of
increasing the value of the franchise through the reduction of risk
and through more efficient and effective processes. We are focused
on doing the right things and doing them well.”
Balance Sheet
Consolidated assets remained constant at $1.9 billion for the
quarters ended June 30, 2018 and 2017 and March 31, 2018. Our
stable core deposit base, which excludes time deposits, totaled
$1.3 billion at June 30, 2018 and March 31, 2018 and accounted for
88.5% and 88.3% of deposits at June 30, 2018 and March 30, 2018,
respectively. Net loans totaled $1.0 billion at June 30, 2018,
compared to $1.1 billion at March 31, 2018 and $1.2 billion at June
30, 2017.
MidSouth’s Tier 1 leverage capital ratio was 12.71% at June 30,
2018, compared to 12.80% at March 31, 2018. Tier 1 risk-based
capital and total risk-based capital ratios were 18.07% and 19.33%
at June 30, 2018, compared to 17.08% and 18.34% at March 31, 2018,
respectively. Tier 1 common equity to total risk-weighted assets at
June 30, 2018 was 13.20%, compared to 12.50% at March 31, 2018.
Tangible common equity totaled $162.6 million at June 30, 2018,
compared to $164.4 million at March 31, 2018. Tangible book value
per share at June 30, 2018 was $9.78 versus $9.89 at March 31,
2018.
Asset Quality
Nonperforming assets totaled $74.9 million at June 30, 2018, a
decrease of $10.2 million compared to $85.1 million reported at
March 31, 2018. The decrease in non-performing assets was primarily
attributable to customer payoffs/ paydowns of $17 million of
non-accrual loans in the second quarter. These decreases were
partially offset by $8.6 million of loans placed on non-accrual
during the quarter. Allowance coverage for nonperforming loans
increased to 31.97% at June 30, 2018, compared to 30.84% at March
31, 2018. The ALLL/total loans ratio was 2.22% at June 30, 2018 and
2.23% at March 31, 2018. Including valuation accounting adjustments
on acquired loans, the total valuation accounting adjustment plus
ALLL was 2.30% of loans at June 30, 2018. The ratio of annualized
net charge-offs to total loans increased to 0.87% for the three
months ended June 30, 2018 compared to 0.54% for the three months
ended March 31, 2018.
Total nonperforming assets to total loans plus ORE and other
assets repossessed was 7.07% at June 30, 2018 compared to 7.47% at
March 31, 2018. Loans classified as troubled debt restructurings,
accruing (“TDRs, accruing”) totaled $1.0 million at June 30, 2018
compared to $1.2 million at March 31, 2018. Also included in
nonperforming assets were nonperforming loans transferred to held
for sale that totaled $808,000 at March 31, 2018; no loans were
transferred to held for sale in the second quarter of 2018. Total
classified assets, including ORE, were $105.8 million at June 30,
2018 compared to $113.7 million at March 30, 2018. The classified
to capital ratio at MidSouth Bank was 52.9% at June 30, 2018 versus
54.3% at March 31, 2018.
More information on our energy loan portfolio and other
information on quarterly results can be found on our website at
MidSouthBank.com under Investor Relations/Presentations.
Mr. McLemore noted, “The second quarter’s credit costs continue
to be muted, with the provision for loan losses totaling $440,000
this quarter. This follows a $0 loan loss provision in the first
quarter. As we’ve cautioned before, credit costs could very well be
choppy and should be evaluated over a longer-term horizon. We did
see a reduction in NPA’s this quarter of $10 million and our
classified/capital ratio came down to 53%. Overall, we are seeing
good progress on asset quality so far in 2018, but also understand
the nature of our credit transformation could be uneven in terms of
downgrades of credit and charge-off content. Since the Bank’s
turnaround began in the second quarter of 2017, credit costs have
been $28 million versus an initial estimate of $31-$50
million.”
Second Quarter 2018 vs. First Quarter 2018
Earnings Comparison
MidSouth reported a net loss available to common shareholders of
$1.5 million for the three months ended June 30, 2018, compared to
a net loss available to common shareholders of $450,000 for the
three months ended March 31, 2018. Revenues from consolidated
operations decreased $341,000 in sequential-quarter comparison, not
including the loss on mutual fund of $51,000. Net interest income
decreased $445,000 in sequential-quarter comparison, resulting from
a $258,000 decrease in interest income and a $187,000 increase in
interest expense. Operating noninterest income decreased $53,000 in
sequential-quarter comparison.
The second quarter of 2018 included non-operating expenses
totaling $5.3 million which consisted of $5.3 million of regulatory
remediation costs compared to $3.9 million of regulatory
remediation costs for the three months ended March 31, 2017.
Excluding these non-operating expenses, noninterest expense
increased $91,000 in sequential-quarter comparison and consisted
primarily of a $663,000 increase in noninterest expense, and offset
by a $587,000 decrease in legal expense. The provision for loan
losses increased $440,000 in sequential-quarter comparison. We
recorded an income tax benefit of $237,000 for the second quarter
of 2018 compared to an income tax benefit of $34,000 in the first
quarter of 2018.
Dividends on the Series B Preferred Stock issued to the U.S.
Treasury as a result of our participation in the Small Business
Lending Fund totaled $720,000 for the second quarter of 2018 based
on a dividend rate of 9%, unchanged from $720,000 for the first
quarter of 2018. Dividends on the Series C Preferred Stock issued
with the December 28, 2012 acquisition of PSB Financial Corporation
totaled $90,000 for the three months ended June 30, 2018 and March
31, 2018.
Fully taxable-equivalent (“FTE”) net interest income decreased
$455,000 in sequential-quarter comparison, primarily due to a
decrease of $671,000 in interest income on loans, a $171,000
increase in interest expense on deposits, offset primarily by a
$403,000 increase in other interest income. Interest income on
loans decreased in sequential-quarter comparison due to a decrease
in the average yield on loans of 5 bps from 5.60% to 5.55%, as well
as a $50.3 million decrease in the average balance of loans. There
was no change in the average yield on investment securities in
sequential quarters and remained at 2.54%, and the average balance
of investment securities decreased $1.0 million. The average yield
on total earning assets decreased 16 bps for the same period, from
4.56% to 4.40%, respectively. The FTE net interest margin decreased
19 bps in sequential-quarter comparison, from 4.17% for the first
quarter of 2018 to 3.98% for the second quarter of 2018. Excluding
purchase accounting adjustments, the FTE net interest margin
decreased 19 bps, from 4.14% for the first quarter of 2018 to 3.95%
for the second quarter of 2018.
Second Quarter 2018 vs. Second Quarter
2017 Earnings Comparison
MidSouth reported a net loss available to common shareholders of
$1.5 million for the three months ended June 30, 2018, compared to
net loss available to common shareholders of $6.2 million for the
three months ended June 30, 2017. Revenues from consolidated
operations decreased $1.6 million in quarterly comparison, from
$23.5 million for the three months ended June 30, 2017 to $21.8
million for the three months ended June 30, 2018. Net interest
income decreased $1.3 million in quarterly comparison, resulting
from a $1.0 million decrease in interest income and a $302,000
increase in interest expense. Noninterest income decreased $341,000
in quarterly comparison.
Excluding non-operating expenses of $5.3 million for the second
quarter of 2018 and $2.4 million for the second quarter of 2017,
noninterest expenses decreased $298,000 in quarterly comparison and
consisted primarily of a $194,000 decrease in salaries and employee
benefits costs and a $235,000 decrease in occupancy expense, which
were partially offset by a $164,000 increase in legal and
professional fees. The provision for loan losses decreased $12.1
million in quarterly comparison. The provision decrease is
primarily due to payoffs and charge offs of large energy nonaccrual
loans and a release of general energy reserves. A $237,000 income
tax benefit was reported for the second quarter of 2018, compared
to a $3.2 million income tax benefit that was reported in the
second quarter of 2017.
Dividends on preferred stock totaled $810,000 for the three
months ended June 30, 2018 and $811,000 for the three months ended
June 30, 2017. Dividends on the Series B Preferred Stock were
$720,000 for the second quarter of 2018, unchanged from $720,000
for the second quarter of 2017. Dividends on the Series C Preferred
Stock totaled $90,000 for the three months ended June 30, 2018 and
$91,000 for the three months ended June 30, 2017.
FTE net interest income decreased $1.4 million in prior year
quarterly comparison. Interest income on loans decreased $1.4
million due to a decrease in the average balance of loans of $145.0
million in prior year quarterly comparison. The average yield on
loans increased 20 bps in prior year quarterly comparison, from
5.35% to 5.55%.
Investment securities totaled $376.7 million, or 20.3% of total
assets at June 30, 2018, versus $436.0 million, or 22.4% of total
assets at June 30, 2017. The investment portfolio had an effective
duration of 3.53 years and a net unrealized loss of $9.3 million at
June 30, 2018. FTE interest income on investments decreased
$544,000 in prior year quarterly comparison. The average volume of
investment securities decreased $60.1 million in prior year
quarterly comparison, and the average tax equivalent yield on
investment securities decreased 15 bps, from 2.69% to 2.54%.
The average yield on all earning assets decreased 12 bps in
prior year quarterly comparison, from 4.52% for the second quarter
of 2017 to 4.40% for the second quarter of 2018.
Interest expense increased $302,000 in prior year quarterly
comparison. Increases in interest expense included a $437,000
increase in interest expense on deposits and a $29,000 increase in
interest expense on FHLB advances, which were partially offset by a
$211,000 decrease in interest expense on repurchase agreements.
Excluding purchase accounting adjustments on acquired certificates
of deposit and FHLB borrowings, the average rate paid on
interest-bearing liabilities was 0.63% for the three months ended
June 30, 2018 and 0.51% for the three months ended June 30,
2017.
As a result of these changes in volume and yield on earning
assets and interest-bearing liabilities, the FTE net interest
margin decreased 20 bps, from 4.18% for the second quarter of 2017
to 3.98% for the second quarter of 2018. Excluding purchase
accounting adjustments on loans, deposits and FHLB borrowings, the
FTE margin decreased 14 bps, from 4.09% for the second quarter of
2017 to 3.95% for the second quarter of 2018.
Year-To-Date Earnings
Comparison
MidSouth reported a net loss available to common shareholders of
$1.9 million for the six months ended June 30, 2018, compared to
net loss available to common shareholders of $4.5 million for the
six months ended June 30, 2017. Revenues from consolidated
operations decreased $2.6 million in year-over-year comparison,
from $46.6 million for the six months ended June 30, 2017 to $44.0
million for the six months ended June 30, 2018. Net interest income
decreased $2.0 million in year-over-year comparison, resulting from
a $1.6 million decrease in interest income and a $464,000 increase
in interest expense. Noninterest income decreased $556,000 in
year-over-year comparison and consisted primarily of a $605,000
decrease in service charges on deposits accounts with an offset of
a $192,000 increase in ATM/debit card income.
Excluding non-operating expenses of $10.4 million for the six
months ended June 30, 2018 and $2.4 million for the six months
ended June 30, 2017, noninterest expenses decreased $690,000 in
year-over-year comparison and consisted primarily of a $1.2 million
decrease in salaries and benefits costs, a $814,000 decrease in
occupancy expense, and a $211,000 decrease in ATM/debit card
expense, which were partially offset by increases of $1.5 million
in legal and professional fees and $110,000 in FDIC premiums. The
provision for loan losses decreased $14.9 million in year-over-year
comparison, from $15.3 million for the six months ended June 30,
2017 to $440,000 for the six months ended June 30, 2018. A $271,000
income tax benefit was reported for the first six months of 2018,
compared to an income tax benefit of $2.6 million for the first six
months of 2017.
In year-to-date comparison, FTE net interest income decreased
$2.3 million primarily due to a $2.0 million decrease in interest
income from total loans as a result of lower average balances of
loans of $130,000 for the period as problem loans have been sold or
reduced and exposure to energy credits has been limited. This more
than offset the 24bps increase in average loan yields from 5.33% to
5.57%. The average volume of investment securities decreased $60.0
million in year-over-year comparison, and the average yield on
investment securities decreased from 2.68% to 2.58% for the same
period primarily as a result of recent tax law changes that have
reduced yield on tax-exempt municipal bonds. The average yield on
earning assets decreased from 4.53% at June 30, 2017 to 4.48% at
June 30, 2018. The purchase accounting adjustments added 4 bps to
the average yield on loans for the six months ended June 30, 2018
and 18 bps for the six months ended June 30, 2017. Net of purchase
accounting adjustments, the average yield on earning assets
decreased 11 bps, from 4.18% at June 30, 2017 to 4.07% at June 30,
2018.
Interest expense increased $464,000 in year-over-year
comparison. Increases in interest expense included a $739,000
increase in interest expense on deposits. This increase was
partially offset by a $502,000 decrease in interest expense on
repurchase agreements and short-term FHLB advances. The average
rate paid on interest-bearing liabilities was 0.59% for the six
months ended June 30, 2018, compared to 0.47% for the six months
ended June 30, 2017. Net of purchase accounting adjustments, the
average rate paid on interest-bearing liabilities increased 9 bps,
from 0.50% for the six months ended June 30, 2017 to 0.59% for the
six months ended June 30, 2018. The FTE net interest margin
decreased from 4.19% for the six months ended June 30, 2017 to
4.07% for the six months ended June 30, 2018. Net of purchase
accounting adjustments, the FTE net interest margin decreased from
4.11% to 4.05% for the six months ended June 30, 2017 and 2018,
respectively.
About MidSouth Bancorp,
Inc.
MidSouth Bancorp, Inc. is a bank holding company headquartered
in Lafayette, Louisiana, with total assets of $1.9 billion as of
June 30, 2018. MidSouth Bancorp, Inc. trades on the NYSE under the
symbol “MSL.” 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 42 locations in Louisiana and Texas and is
connected to a worldwide ATM network that provides customers with
access to more than 55,000 surcharge-free ATMs. Additional
corporate information is available at 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,
statements regarding expected future financial results, the
strength of the Company's balance sheet and its positioning to
address problem assets and achieve operating efficiencies and the
implementation of the provisions of the formal agreement with the
OCC. The words “anticipate,” “believe,” “estimate,”
“expect,” “intend,” “may,” “plan,” “will,” “would,” “could,”
“should,” “guidance,” “potential,” “continue,” “project,”
“forecast,” “confident,” and similar expressions are typically used
to identify forward-looking statements.
These statements are based on assumptions and assessments
made by management in light of their experience and their
perception of historical trends, current conditions, expected
future developments and other factors they believe to be
appropriate. Any forward-looking statements are not
guarantees of our future performance and are subject to risks and
uncertainties and may be affected by various factors that may cause
actual results, developments and business decisions to differ
materially from those in the 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 in the
markets we serve, 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; increases in
competitive pressure in the banking and financial services
industries; increased competition for deposits and loans which
could affect compositions, rates and terms; changes in the levels
of prepayments received on loans and investment securities that
adversely affect the yield and value of the earning assets; our
ability to successfully implement and manage our recently announced
strategic initiatives; costs and expenses associated with our
strategic initiatives and possible changes in the size and
components of the expected costs and charges associated with our
strategic initiatives; our ability to realize the anticipated
benefits and cost savings from our strategic initiatives within the
anticipated time frame, if at all; the ability of the Company to
comply with the terms of the formal agreement with the Office of
the Comptroller of the Currency; credit losses due to loan
concentration, particularly our energy lending and commercial real
estate portfolios; a deviation in actual experience from the
underlying assumptions used to determine and establish our
allowance for loan losses (“ALLL”), which could result in greater
than expected loan losses; the adequacy of the level of our ALLL
and the amount of loan loss provisions required in future periods
including the impact of implementation of the new CECL (current
expected credit loss) methodology; future examinations by our
regulatory authorities, including the possibility that the
regulatory authorities may, among other things, impose conditions
on our operations or require us to increase our allowance for loan
losses or write-down assets; changes in the availability of funds
resulting from reduced liquidity or increased costs; the timing and
impact of future acquisitions or divestitures, the success or
failure of integrating acquired operations, and the ability to
capitalize on growth opportunities upon entering new markets; the
ability to acquire, operate, and maintain effective and efficient
operating systems; increased asset levels and changes in the
composition of assets that would impact capital levels and
regulatory capital ratios; loss of critical personnel and the
challenge of hiring qualified personnel at reasonable compensation
levels; legislative and regulatory changes, including the impact of
regulations under the Dodd-Frank Wall Street Reform and Consumer
Protection Act of 2010 and other 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;
regulations and restrictions resulting from our participation in
government-sponsored programs such as the U.S. Treasury’s Small
Business Lending Fund, including potential retroactive changes in
such programs; changes in accounting principles, policies, and
guidelines applicable to financial holding companies and banking;
increases in cybersecurity risk, including potential business
disruptions or financial losses; acts of war, terrorism, cyber
intrusion, weather, or other catastrophic events beyond our
control; and other factors discussed under the heading “Risk
Factors” in MidSouth’s Annual Report on Form 10-K for the year
ended December 31, 2017 filed with the SEC on March 16, 2018 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) Quarter
Quarter Quarter Quarter
Quarter Ended Ended Ended Ended
Ended EARNINGS DATA 6/30/2018 3/31/2018
12/31/2017 9/30/2017 6/30/2017 Total interest
income $ 18,739 $ 18,997 $ 20,955 $ 20,379 $ 19,758 Total interest
expense 1,814 1,627 1,483 1,566 1,512
Net interest income 16,925 17,370 19,472
18,813 18,246 FTE net interest income 16,996
17,451 19,658 19,003 18,442
Provision for loan losses 440 — 10,600 4,300
12,500 Non-interest income 4,882 4,829 6,028 5,486
5,223 Non-interest expense 22,273 21,873 25,944
17,759 19,604 Earnings (loss) before income
taxes (906 ) 326 (11,044 ) 2,240 (8,635 ) Income tax (benefit)
expense (237 ) (34 ) (540 ) 574 (3,221 ) Net earnings (loss)
(669 ) 360 (10,504 ) 1,666 (5,414 ) Dividends on preferred stock
810 810 810 810 811 Net (loss)
earnings available to common shareholders $ (1,479 ) $ (450 ) $
(11,314 ) $ 856 $ (6,225 )
PER COMMON SHARE
DATA Basic (loss) earnings per share (0.09 ) (0.03 ) (0.69 )
0.05 (0.51 ) Diluted (loss) earnings per share (0.09 ) (0.03 )
(0.69 ) 0.05 (0.51 ) Diluted earnings (loss) per share, operating
(Non-GAAP)(*) 0.16 0.21 (0.15 ) 0.10 (0.38 ) Quarterly dividends
per share 0.01 0.01 0.01 0.01 0.09 Book value at end of period
12.50 12.62 12.87 13.70 13.76 Tangible book value at period end
(Non-GAAP)(*) 9.78 9.89 10.11 10.92 10.87 Market price at end of
period 13.25 12.65 13.25 12.05 11.75 Shares outstanding at period
end 16,619,894 16,621,811 16,548,829 16,548,829 16,026,355 Weighted
average shares outstanding Basic 16,525,571 16,495,438 16,460,124
16,395,317 12,227,456 Diluted 16,529,128 16,500,230 16,462,550
16,395,740 12,237,299
AVERAGE BALANCE SHEET DATA
Total assets $ 1,860,906 $ 1,860,070 $ 1,907,735 $ 1,954,343 $
1,926,408 Loans and leases 1,109,371 1,159,671 1,238,846 1,254,885
1,254,402 Total deposits 1,514,321 1,495,907 1,513,156 1,546,837
1,551,498 Total common equity 210,291 214,183 228,385 227,948
187,762 Total tangible common equity (Non-GAAP)(*) 165,024 168,629
182,567 181,851 141,389 Total equity 251,278 255,170 269,373
269,035 228,871
SELECTED RATIOS Annualized return on
average assets, operating (Non-GAAP)(*) 0.60 % 0.77 % (0.52 )% 0.36
% (0.97 )% Annualized return on average common equity, operating
(Non-GAAP)(*) 5.30 % 6.68 % (4.36 )% 3.10 % (10.00 )% Annualized
return on average tangible common equity, operating (Non-GAAP)(*)
6.76 % 8.48 % (5.45 )% 3.88 % (13.28 )% Pre-tax, pre-provision
annualized return on average assets, operating (Non-GAAP)(*) 1.06 %
1.17 % 1.58 % 1.62 % 1.30 % Efficiency ratio, operating
(Non-GAAP)(*) 77.00 % 75.64 % 68.05 % 66.85 % 73.11 % Average loans
to average deposits 73.26 % 77.52 % 81.87 % 81.13 % 80.85 %
Taxable-equivalent net interest margin 3.98 % 4.17 % 4.45 % 4.20 %
4.18 % Tier 1 leverage capital ratio 12.71 % 12.80 % 12.53 % 12.84
% 12.66 %
CREDIT QUALITY Allowance for loan and lease
losses (ALLL) as a % of total loans 2.22 % 2.23 % 2.27 % 2.03 %
1.99 % Nonperforming assets to tangible equity + ALLL 32.99 % 36.86
% 24.35 % 21.83 % 23.50 % Nonperforming assets to total loans,
other real estate owned and other repossessed assets 7.07 % 7.47 %
4.83 % 4.35 % 4.54 % Annualized QTD net charge-offs to total loans
0.87 % 0.54 % 2.94 % 1.26 % 4.01 % (*) See reconciliation of
Non-GAAP financial measures on pages 17-19.
MIDSOUTH BANCORP, INC. and SUBSIDIARIES Condensed
Consolidated Balance Sheets (unaudited) (in thousands)
BALANCE SHEET
June 30, March 31, December 31, September
30, June 30, 2018 2018 2017
2017 2017 Assets Cash and cash equivalents $
278,776 $ 211,486 $ 152,964 $ 163,123 $
131,437 Securities available-for-sale 308,937 293,970
309,191 326,222 348,580 Securities held-to-maturity 67,777
73,255 81,052 83,739 87,462 Total
investment securities 376,714 367,225 390,243
409,961 436,042 Other investments 14,927 12,896
12,214 12,200 11,666 Loans held for sale — 1,117 15,737 — — Total
loans 1,057,963 1,137,255 1,183,426 1,235,969 1,240,253 Allowance
for loan losses (23,514 ) (25,371 ) (26,888 ) (25,053 ) (24,674 )
Loans, net 1,034,449 1,111,884 1,156,538
1,210,916 1,215,579 Premises and equipment 56,834
57,848 59,057 64,969 65,739 Goodwill and other intangibles 45,133
45,409 45,686 45,963 46,239 Other assets 52,084 49,890
48,713 39,934 38,867 Total assets $
1,858,917 $ 1,857,755 $ 1,881,152 $ 1,947,066
$ 1,945,569
Liabilities and
Shareholders' Equity Non-interest bearing deposits $ 419,517 $
427,504 $ 416,547 $ 428,183 $ 428,419 Interest-bearing deposits
1,103,503 1,076,433 1,063,142 1,127,752
1,107,801 Total deposits 1,523,020 1,503,937 1,479,689
1,555,935 1,536,220 Securities sold under agreements to
repurchase 14,886 33,026 67,133 54,875 90,799 Short-term FHLB
advances 27,500 27,500 40,000 12,500 — Long-term FHLB advances
10,011 10,016 10,021 25,110 25,211 Junior subordinated debentures
22,167 22,167 22,167 22,167 22,167 Other liabilities 12,661
10,272 8,127 8,836 9,602 Total
liabilities 1,610,245 1,606,918 1,627,137
1,679,423 1,683,999 Total shareholders' equity $
248,672 $ 250,837 $ 254,015 $ 267,643 $
261,570 Total liabilities and shareholders' equity $
1,858,917 $ 1,857,755 $ 1,881,152 $ 1,947,066
$ 1,945,569
MIDSOUTH BANCORP, INC.
and SUBSIDIARIES Condensed Consolidated Income Statements
(unaudited) (in thousands except per share data)
Percent
Change EARNINGS STATEMENT Three Months Ended
2Q18 vs.
1Q18
2Q18 vs.
2Q17
Six Months Ended Percent 6/30/2018
3/31/2018 6/30/2017 6/30/2018 6/30/2017
Change Interest income: Loans, including fees $
15,251 $ 15,905 $ 16,440 (4.1 )% (7.2 )% $ 31,156 $ 32,877 (5.2 )%
Investment securities 2,370 2,363 2,790 0.3 % (15.1 )% 4,733 5,524
(14.3 )% Accretion of purchase accounting adjustments 93 110 291
(15.5 )% (68.0 )% 203 476 (57.4 )% Other interest income 1,025
619 237 65.6 % 332.5 % 1,644 412
299.0 % Total interest income 18,739 18,997 19,758
(1.4 )% (5.2 )% 37,736 39,289 (4.0 )%
Interest expense: Deposits 1,410 1,238 973 13.9 % 44.9 % 2,647
1,908 38.7 % Borrowings 150 174 416 (13.8 )% (63.9 )% 325 827 (60.7
)% Junior subordinated debentures 259 220 212 17.7 % 22.2 % 479 420
14.0 % Accretion of purchase accounting adjustments (5 ) (5 ) (89 )
— % (94.4 )% (10 ) (178 ) (94.4 )% Total interest expense 1,814
1,627 1,512 11.5 % 20.0 % 3,441 2,977
15.6 % Net interest income 16,925 17,370 18,246 (2.6
)% (7.2 )% 34,295 36,312 (5.6 )% Provision for loan losses 440
— 12,500 — % (96.5 )% 440 15,300
(97.1 )% Net interest income after provision for loan losses 16,485
17,370 5,746 (5.1 )% 186.9 % 33,855
21,012 61.1 % Noninterest income: Service charges on
deposit accounts 2,065 2,206 2,396 (6.4 )% (13.8 )% 4,271 4,876
(12.4 )% ATM and debit card income 1,877 1,784 1,766 5.2 % 6.3 %
3,661 3,469 5.5 % Mortgage Lending 66 92 167 (28.3 )% (60.5 )% 158
310 (49.0 )% Gain on securities, net (non-operating)(*) — — 3 — %
(100.0 )% — 9 (100.0 )% Gain/(loss) on equity securities not
trading, net (51 ) — — — % — % (51 ) — — % Gain on sale of branches
(non-operating)(*) — — — — % — % — — — % Other charges and fees 925
747 891 23.8 % 3.8 % 1,672 1,603
4.3 % Total non-interest income 4,882 4,829 5,223
1.1 % (6.5 )% 9,711 10,267 (5.4 )%
Noninterest expense: Salaries and employee benefits 7,916 7,719
8,110 2.6 % (2.4 )% 15,635 16,799 (6.9 )% Occupancy expense 3,193
3,045 3,428 4.9 % (6.9 )% 6,238 7,052 (11.5 )% ATM and debit card
648 576 713 12.5 % (9.1 )% 1,223 1,434 (14.7 )% Legal and
professional fees 1,100 1,689 936 (34.9 )% 17.5 % 2,789 1,321 111.1
% FDIC premiums 507 430 430 17.9 % 17.9 % 937 827 13.3 % Marketing
281 195 262 44.1 % 7.3 % 476 542 (12.2 )% Corporate development 248
237 253 4.6 % (2.0 )% 485 569 (14.8 )% Data processing 666 665 667
0.2 % (0.1 )% 1,331 1,288 3.3 % Printing and supplies 133 123 135
8.1 % (1.5 )% 256 318 (19.5 )% Expenses on ORE, net 138 76 92 81.6
% 50.0 % 214 171 25.1 % Amortization of core deposit intangibles
276 277 276 (0.4 )% — % 553 553 — % Severance and retention
accruals (non-operating)(*) — — 1,341 — % (100.0 )% — 1,341 (100.0
)% One-time charge related to closure of branches
(non-operating)(*) — 145 — (100.0 )% — % 145 — — % Write-down of
assets held for sale (non-operating) (*) — — 570 — % (100.0 )% —
570 (100.0 )% Loss on transfer of loans to held for sale
(non-operating)(*) 8 875 — (99.1 )% — % 883 — — % Regulatory
remediation costs (non-operating)(*) 5,323 3,926 — 35.6 % — % 9,249
— — % Legal fees related to bulk loan sale (non-operating)(*) 12 88
— (86.4 )% — % 100 — — % Other non-interest expense 1,824
1,807 1,926 0.9 % (5.3 )% 3,631 3,584
1.3 % Total non-interest expense 22,273 21,873 19,604
1.8 % 13.6 % 44,145 36,834 19.8 % Earnings
(loss) before income taxes (906 ) 326 (8,635 ) (377.9 )% (89.5 )%
(579 ) (5,555 ) (89.6 )% Income tax (benefit) expense (237 ) (34 )
(3,221 ) 597.1 % (92.6 )% (271 ) (2,632 ) (89.7 )% Net earnings
(loss) (669 ) 360 (5,414 ) (285.8 )% (87.6 )% (308 ) (2,923 ) (89.5
)% Dividends on preferred stock 810 810 811 —
% (0.1 )% 1,620 1,622 (0.1 )% Net (loss) earnings
available to common shareholders $ (1,479 ) $ (450 ) $ (6,225 )
228.7 % (76.2 )% $ (1,928 ) $ (4,545 ) (57.6 )% (Loss)
earnings per common share, diluted $ (0.09 ) $ (0.03 ) $ (0.51 )
200.0 % (82.4 )% $ (0.12 ) $ (0.39 ) (69.2 )% Operating
earnings (loss) per common share, diluted (Non-GAAP)(*) $ 0.16
$ 0.21 $ (0.38 ) (23.8 )% (142.1 )% $ 0.37 $
(0.26 ) (242.3 )% (*) See reconciliation of Non-GAAP
financial measures on pages 17-19.
MIDSOUTH
BANCORP, INC. and SUBSIDIARIES Composition of Loans and
Deposits and Asset Quality Data (unaudited) (in
thousands) COMPOSITION OF LOANS
June 30, March 31,
Jun 18 vs Mar 18
December 31, September 30, June
30,
Jun 18 vs Jun 17
2018 2018
% Change
2017 2017 2017
% Change
Commercial, financial, and agricultural $ 354,944 $ 401,048 (11.5
)% $ 435,207 $ 447,482 $ 451,767 (21.4 )% Lease financing
receivable 632 692 (8.7 )% 732 760 866 (27.0 )% Real estate -
construction 98,108 94,679 3.6 % 90,287 90,088 98,695 (0.6 )% Real
estate - commercial 414,526 438,779 (5.5 )% 448,406 473,046 461,064
(10.1 )% Real estate - residential 141,104 145,671 (3.1 )% 146,751
155,676 156,394 (9.8 )% Installment loans to individuals 47,406
50,888 (6.8 )% 56,398 63,148 70,031 (32.3 )% Other 1,243
5,498 (77.4 )% 5,645 5,769 1,436 (13.4
)% Total loans $ 1,057,963 $ 1,137,255 (7.0 )%
$ 1,183,426 $ 1,235,969 $ 1,240,253 (14.7 )%
COMPOSITION OF DEPOSITS June 30, March
31,
Jun 18 vs Mar 18
December 31, September 30, June 30,
Mar 18 vs Mar 17
2018 2018
% Change
2017 2017 2017
% Change
Noninterest bearing $ 419,517 $ 427,504 (1.9 )% $ 416,547 $ 428,183
$ 428,419 (2.1 )% NOW & other 461,726 459,394 0.5 % 434,646
461,740 465,505 (0.8 )% Money market/savings 466,711 441,801 5.6 %
446,215 473,023 493,232 (5.4 )% Time deposits of less than $100,000
111,758 113,665 (1.7 )% 116,309 120,685 75,196 48.6 % Time deposits
of $100,000 or more 63,308 61,573 2.8 % 65,972
72,304 73,868 (14.3 )% Total deposits $
1,523,020 $ 1,503,937 1.3 % $ 1,479,689 $
1,555,935 $ 1,536,220 (0.9 )%
ASSET QUALITY
DATA June 30, March 31, December 31,
September 30, June 30, 2018 2018
2017 2017 2017 Nonaccrual loans $ 73,538 $
82,275 $ 49,278 $ 51,289 $ 54,810 Loans past due 90 days and over 3
1 728 402 165 Total
nonperforming loans 73,541 82,276 50,006 51,691 54,975
Nonperforming loans held for sale — 808 5,067 — — Other real estate
1,365 1,803 2,001 1,931 1,387 Other repossessed assets — 194
192 234 36 Total nonperforming assets $
74,906 $ 85,081 $ 57,266 $ 53,856 $
56,398 Troubled debt restructurings, accruing $ 1,010
$ 1,153 $ 1,360 $ 1,557 $ 1,653
Nonperforming assets to total assets 4.03 % 4.58 % 3.04 %
2.77 % 2.90 % Nonperforming assets to total loans + ORE + other
repossessed assets 7.07 % 7.47 % 4.83 % 4.35 % 4.54 % ALLL to
nonperforming loans 31.97 % 30.84 % 53.77 % 48.47 % 44.88 % ALLL to
total loans 2.22 % 2.23 % 2.27 % 2.03 % 1.99 %
Quarter-to-date charge-offs 2,801 1,836 8,931 4,381 12,659
Quarter-to-date recoveries 505 319 166 460 255 Quarter-to-date net
charge-offs 2,296 1,517 8,765 3,921 12,404 Annualized QTD net
charge-offs to total loans 0.87 % 0.54 % 2.94 % 1.26 % 4.01 %
MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Loan Portfolio - Quarterly Roll Forward (unaudited) (in
thousands) Three Months Ended
June 30, March 31, June 30, 2018
2018 2017 LOAN ACTIVITY Loans
originated $ 35,030 $ 26,121 $ 72,316 Repayments (118,118 ) (62,884
) (116,885 ) Increases on renewals 2,574 3,026 2,531 Change in
lines of credit (919 ) (10,051 ) 9,151 Change in allowance for loan
losses 1,857 1,517 (96 ) Transfer of loans to held for sale — (769
) — Other 2,141 (1,614 ) 1,140 Net change in loans $
(77,435 ) $ (44,654 ) $ (31,843 )
MIDSOUTH
BANCORP, INC. and SUBSIDIARIES Tangible Common Equity to
Tangible Assets and Regulatory Ratios (unaudited) (in
thousands) COMPUTATION OF TANGIBLE COMMON
EQUITY TO TANGIBLE ASSETS June 30, June 30,
2018 2017 Total equity $ 248,672 $ 261,570 Less
preferred equity 40,987 41,092 Total common equity
207,685 220,478 Less goodwill 42,171 42,171 Less intangibles 2,962
4,068 Tangible common equity $ 162,552 $
174,239 Total assets $ 1,858,917 $ 1,945,569 Less
goodwill 42,171 42,171 Less intangibles 2,962 4,068
Tangible assets $ 1,813,784 $ 1,899,330
Tangible common equity to tangible assets 8.96 % 9.17 %
REGULATORY CAPITAL Common equity tier 1 capital $
169,388 $ 175,827 Tier 1 capital 231,874 238,418 Total capital
248,014 256,589
Regulatory capital ratios: Common
equity tier 1 capital ratio 13.20 % 12.15 % Tier 1 risk-based
capital ratio 18.07 % 16.48 % Total risk-based capital ratio 19.33
% 17.73 % Tier 1 leverage ratio 12.71 % 12.66 %
MIDSOUTH BANCORP, INC. and SUBSIDIARIES Quarterly Yield
Analysis (unaudited) (in thousands)
YIELD ANALYSIS Three Months Ended
Three Months Ended Three Months Ended Three Months
Ended Three Months Ended June 30, 2018 March
31, 2018 December 31, 2017 September 30, 2017
June 30, 2017
Tax Tax Tax
Tax Tax Average Equivalent
Yield/ Average Equivalent Yield/
Average Equivalent Yield/ Average
Equivalent Yield/ Average Equivalent
Yield/ Balance Interest
Rate Balance Interest
Rate Balance Interest
Rate Balance Interest
Rate Balance Interest
Rate Taxable securities $ 340,080 $ 2,093 2.46 % $
334,419 $ 2,047 2.45 % $ 348,267 $ 2,161 2.48 % $ 372,648 $ 2,276
2.44 % $ 387,441 $ 2,416 2.49 % Tax-exempt securities 43,858
349 3.18 % 50,550 397 3.14 % 53,998 540
4.00 % 55,129 553 4.01 % 56,622 570
4.03 % Total investment securities 383,938 2,442 2.54
% 384,969 2,444 2.54 % 402,265 2,701 2.69 % 427,777
2,829 2.65 % 444,063 2,986 2.69 % Federal funds sold
5,008 21 1.63 % 4,978 18 1.45 % 4,441 15 1.32 % 4,319 13 1.18 %
3,573 9 1.00 % Time and interest bearing deposits in other banks
201,281 912 1.79 % 132,940 514 1.55 % 94,394 314 1.30 % 94,675 305
1.26 % 55,331 150 1.07 % Other investments 14,924 91 2.45 % 12,721
87 2.74 % 12,201 85 2.79 % 12,098 93 3.07 % 11,493 78 2.71 % Loans
1,109,371 15,344 5.55 % 1,159,671 16,015
5.60 % 1,238,846 18,026 5.77 % 1,254,885
17,329 5.48 % 1,254,402 16,731 5.35 %
Total interest earning assets 1,714,522 18,810 4.40 %
1,695,279 19,078 4.56 % 1,752,147 21,141 4.79 %
1,793,754 20,569 4.55 % 1,768,862 19,954 4.52 %
Non-interest earning assets 146,384 164,791 155,588
160,589 157,546 Total assets $ 1,860,906
$ 1,860,070 $ 1,907,735 $ 1,954,343 $
1,926,408 Interest-bearing liabilities: Deposits $
1,087,746 $ 1,409 0.52 % $ 1,071,484 $ 1,238 0.47 % $ 1,085,349 $
1,097 0.40 % $ 1,118,593 $ 1,094 0.39 % $ 1,125,482 $ 973 0.35 %
Repurchase agreements 26,230 25 0.39 % 40,115 40 0.40 % 54,799 66
0.48 % 75,654 149 0.78 % 90,807 236 1.04 % Short-term FHLB advances
27,500 75 1.08 % 28,722 84 1.17 % 18,478 58 1.23 % 6,522 19 1.14 %
— — — % Long-term FHLB advances 10,014 45 1.79 % 10,019 45 1.80 %
21,803 64 1.15 % 25,155 92 1.43 % 25,260 91 1.43 % Junior
subordinated debentures 22,167 260 4.63 % 22,167
220 3.97 % 22,167 198 3.50 % 22,167
212 3.74 % 22,167 212 3.78 % Total
interest bearing liabilities 1,173,657 1,814 0.62 %
1,172,507 1,627 0.57 % 1,202,596 1,483 0.49 %
1,248,091 1,566 0.50 % 1,263,716 1,512 0.48 %
Non-interest bearing liabilities 435,971 447,460 435,766 437,217
433,821 Shareholders' equity 251,278 255,170 269,373
269,035 228,871 Total liabilities and
shareholders' equity 1,860,906 1,875,137 1,907,735
1,954,343 1,926,408 Net interest income
(TE) and spread $ 16,996 3.78 % $ 17,451 3.99 % $
19,658 4.30 % $ 19,003 4.05 % $ 18,442 4.04 %
Net interest margin 3.98 % 4.17 % 4.45 % 4.20 % 4.18 %
Core net interest margin (Non-GAAP)(*) 3.95 % 4.14 % 4.36 %
4.12 % 4.09 % (*) See reconciliation of Non-GAAP
financial measures on pages 17-19.
MIDSOUTH
BANCORP, INC. and SUBSIDIARIES Reconciliation of Non-GAAP
Financial Measures (unaudited) (in thousands except per
share data)
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. We are providing disclosure of the
reconciliation of these non-GAAP financial measures to the most
comparable GAAP financial measures. "Tangible common equity" is
defined as total common equity reduced by intangible assets. "Core
net interest margin" is defined as reported net interest margin
less purchase accounting adjustments. "Annualized return on average
assets, operating" is defined as net earnings available to common
shareholders adjusted for specified one-time items divided by
average assets. "Annualized return on average common equity,
operating" is defined as net earnings available to common
shareholders adjusted for specified one-time items divided by
average common equity. "Annualized return on average tangible
common equity, operating" is defined as net earnings available to
common shareholders adjusted for specified one-time items divided
by average tangible common equity. "Pre-tax, pre-provision
annualized return on average assets, operating" is defined as
pre-tax, pre-provision earnings adjusted for specified one-time
items divided by average assets. "Tangible book value per common
share" is defined as tangible common equity divided by total common
shares outstanding. "Diluted earnings per share, operating" is
defined as net earnings available to common shareholders adjusted
for specified one-time items divided by diluted weighted-average
shares. The GAAP-based efficiency ratio is measured as noninterest
expense as a percentage of net interest income plus noninterest
income. The non-GAAP efficiency ratio excludes specified one-time
items in addition to securities gains and losses and gains and
losses on the sale/valuation of other real estate owned and other
assets repossessed.
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.
Three Months Ended June 30, March
31, December 31, September 30, June 30,
2018 2018 2017 2017 2017
Average Balance Sheet Data Total average assets
A $ 1,860,906 $ 1,860,070 $ 1,907,735 $ 1,954,343 $
1,926,408 Total equity $ 251,278 $ 255,170 $ 269,373 $
269,035 $ 228,871 Less preferred equity 40,987 40,987
40,988 41,087 41,109 Total common equity
B $
210,291 $ 214,183 $ 228,385 $ 227,948 $ 187,762 Less intangible
assets 45,267 45,554 45,818 46,097
46,373 Tangible common equity
C $ 165,024 $ 168,629
$ 182,567 $ 181,851 $ 141,389
MIDSOUTH BANCORP, INC. and SUBSIDIARIES Reconciliation of
Non-GAAP Financial Measures (unaudited) (continued) (in
thousands except per share data)
Three Months Ended June 30, March 31,
December 31, September 30, June 30, Core
Net Interest Margin 2018 2018 2017
2017 2017 Net interest income (FTE) $ 16,996 $
17,451 $ 19,658 $ 19,003 $ 18,442 Less purchase accounting
adjustments (98 ) (115 ) (384 ) (355 ) (380 ) Core net interest
income, net of purchase accounting adjustments
D $ 16,898
$ 17,336 $ 19,274 $ 18,648 $ 18,062
Total average earnings assets $ 1,714,522 $ 1,695,279
$ 1,752,147 $ 1,793,754 $ 1,768,862 Add average balance of loan
valuation discount 859 971 1,242 1,504
1,720 Average earnings assets, excluding loan valuation
discount
E $ 1,715,381 $ 1,696,250 $ 1,753,389
$ 1,795,258 $ 1,770,582 Core net
interest margin
D/E 3.95 % 4.14 % 4.36 % 4.12 % 4.09 %
Three Months Ended June 30, March 31,
December 31, September 30, June 30, Return
Ratios 2018 2018 2017 2017
2017 Net (loss) earnings available to common
shareholders $ (1,479 ) $ (450 ) $ (11,314 ) $ 856 $ (6,225 ) Net
loss on equity securities not trading, after-tax 40 Severance and
retention accruals, after-tax — — 111 — 872 One-time charge related
to discontinued branch projects, after-tax — — — — 302 One-time
charge related to closure of branches, after-tax — 115 — 587 —
Write-down of assets held for sale, after-tax — — 512 — 371
Write-down of net deferred tax asset resulting from the Tax Cuts
and Jobs Act — — 3,595 — — Loss on transfer of loans to held for
sale, after-tax 6 691 3,920 — — Regulatory remediation costs,
after-tax 4,205 3,102 1,152 556 — Gain on sale of branches,
after-tax — — (484 ) — — Legal fees related to bulk loan sale 9 70
— — — Net gain on sales of securities, after-tax — —
— (220 ) (2 ) Net earnings (loss) available to common
shareholders, operating
F $ 2,781 $ 3,528 $
(2,508 ) $ 1,779 $ (4,682 ) Earnings (loss) before
income taxes $ (906 ) $ 326 $ (11,044 ) $ 2,240 $ (8,635 )
Severance and retention accruals — — 171 — 1,341 One-time charge
related to discontinued branch projects — — — — 465 One-time charge
related to closure of branches — 145 — 903 — Write-down of assets
held for sale — — 789 — 570 Loss on transfer of loans to held for
sale 8 875 6,030 — — Regulatory remediation costs 5,323 3,926 1,772
856 — Gain on sale of branches — — (744 ) — — Net gain on sales of
securities — — — (338 ) (3 ) Net loss on equity securities not
trading 51 — — — — Legal fees related to bulk loan sale 12 88 — — —
Provision for loan losses 440 — 10,600 4,300
12,500 Pre-tax, pre-provision earnings, operating
G $ 4,928 $ 5,360 $ 7,574 $ 7,961
$ 6,238 Annualized return on average assets,
operating
F/A 0.60 % 0.77 % (0.52 )% 0.36 % (0.97 )%
Annualized return on average common equity, operating
F/B
5.30 % 6.68 % (4.36 )% 3.10 % (10.00 )% Annualized return on
average tangible common equity, operating
F/C 6.76 % 8.48 %
(5.45 )% 3.88 % (13.28 )% Pre-tax, pre-provision annualized return
on average assets, operating
G/A 1.06 % 1.17 % 1.58 % 1.62 %
1.30 %
MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures (unaudited)
(continued) (in thousands except per share data)
Three Months Ended June 30,
March 31, December 31, September 30, June
30, Per Common Share Data 2018 2018
2017 2017 2017 Diluted
(loss) earnings per share $ (0.09 ) $ (0.03 ) $ (0.69 ) $ 0.05 $
(0.51 ) Effect of severance and retention accruals — — 0.01 — 0.08
Effect of one-time charge related to discontinued branch projects —
— — — 0.02 Effect of one-time charge related to closure of branches
— 0.01 — 0.03 — Effect of loss on transfer of loans to held for
sale — 0.04 0.24 — — Effect of regulatory remediation costs 0.25
0.19 0.07 0.03 — Effect of gain on sale of branches — — (0.03 ) — —
Effect of write-down of assets held for sale — — 0.03 — 0.03 Effect
of write-down of net deferred tax asset resulting from the Tax Cuts
and Jobs Act — — 0.22 — — Effect of gain on sales of securities —
— — (0.01 ) — Diluted earnings (loss)
per share, operating $ 0.16 $ 0.21 $ (0.15 ) $ 0.10
$ (0.38 ) Book value per common share $ 12.50 $ 12.62
$ 12.87 $ 13.70 $ 13.76 Effect of intangible assets per share 2.72
2.73 2.76 2.78 2.89 Tangible
book value per common share $ 9.78 $ 9.89 $ 10.11
$ 10.92 $ 10.87
Three Months
Ended June 30, March 31, December 31,
September 30, June 30, Efficiency Ratio
2018
2018
2017 2017 2017 Net interest income $
16,925 $ 17,370 $ 19,472 $ 18,813 $ 18,246 Noninterest
income $ 4,882 $ 4,829 $ 6,028 $ 5,486 $ 5,223 Net gain on sale of
securities — — — (338 ) (3 ) Net loss on equity securities not
trading 51 — — — — Gain on sale of branches — — (744
) — — Noninterest income (non-GAAP) $ 4,933 $
4,829 $ 5,284 $ 5,148 $ 5,220
Total revenue
H $ 21,807 $ 22,199 $ 25,500 $ 24,299 $ 23,469
Total revenue (non-GAAP)
I $ 21,858 $ 22,199 $ 24,756 $
23,961 $ 23,466 Noninterest expense
J $ 22,273 $
21,873 $ 25,944 $ 17,759 $ 19,604 Severance and retention accruals
— — (171 ) — (1,341 ) One-time charge related to discontinued
branch projects — — — — (465 ) One-time charge related to closure
of branches — (145 ) — (903 ) — Write-down of assets held for sale
— — (789 ) — (570 ) Loss on transfer of loans to held for sale (8 )
(875 ) (6,030 ) — — Regulatory remediation costs (5,323 ) (3,926 )
(1,772 ) (856 ) — Legal fees related to bulk loan sale (12 ) (88 )
— — — Net (loss) gain on sale/valuation of other real estate owned
(100 ) (47 ) (335 ) 19 (72 ) Noninterest expense (non-GAAP)
K $ 16,830 $ 16,792 $ 16,847 $ 16,019
$ 17,156 Efficiency ratio (GAAP)
J/H
102.14 % 98.53 % 101.74 % 73.09 % 83.53 % Efficiency ratio
(non-GAAP)
K/I 77.00 % 75.64 % 68.05 % 66.85 % 73.11 %
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version on businesswire.com: https://www.businesswire.com/news/home/20180730005809/en/
MidSouth Bancorp, Inc.Jim McLemore, CFA, 337-237-8343President
& CEOorLorraine Miller, CFA, 337-593-3143EVP & CFO
Grafico Azioni Midsouth Bancorp (NYSE:MSL)
Storico
Da Ago 2024 a Set 2024
Grafico Azioni Midsouth Bancorp (NYSE:MSL)
Storico
Da Set 2023 a Set 2024