MidSouth Bancorp, Inc. Reports Third Quarter 2016 Results and Declares Quarterly Dividends

Consolidated assets totaled $2.0 billion at September 30, 2016 and 2015, compared to $1.9 billion at June 30, 2016.  Our stable core deposit base, which excludes time deposits, totaled $1.4 billion at September 30, 2016 and June 30, 2016 and accounted for 90.0% of deposits compared to 89.5% of deposits, respectively.  Net loans totaled $1.2 billion at September 30, 2016 and June 30, 2016, compared to $1.3 billion at September 30, 2015.

MidSouth's Tier 1 leverage capital ratio was 10.27% at September 30, 2016, compared to 10.25% at June 30, 2016.  Tier 1 risk-based capital and total risk-based capital ratios were 13.07% and 14.33% at September 30, 2016, compared to 13.14% and 14.39% at June 30, 2016, respectively.  Tier 1 common equity to total risk-weighted assets at September 30, 2016 was 8.83%, compared to 8.86% at June 30, 2016.  Tangible common equity totaled $129.9 million at September 30, 2016, compared to $129.5 million at June 30, 2016.  Tangible book value per share at September 30, 2016 was $11.44 versus $11.40 at June 30, 2016.

Asset Quality

Nonperforming assets totaled $64.1 million at September 30, 2016, an increase of $1.2 million compared to $62.9 million reported at June 30, 2016.  The increase is primarily attributable to a $912,000 increase in loans past due ninety days and over and accruing, which is the result of one loan relationship.  Allowance coverage for nonperforming loans increased to 37.84% at September 30, 2016, compared to 35.68% at June 30, 2016.  The ALLL/total loans ratio was 1.83% at September 30, 2016 and 1.69% at June 30, 2016.  Including valuation accounting adjustments on acquired loans, the total valuation accounting adjustment plus ALLL was 2.02% of loans at September 30, 2016.  The ratio of annualized net charge-offs to total loans decreased to 0.32% for the three months ended September 30, 2016 compared to 0.40% for the three months ended June 30, 2016.

Total nonperforming assets to total loans plus ORE and other assets repossessed was 5.03% at September 30, 2016 compared to 4.97% at June 30, 2016.  Loans classified as troubled debt restructurings, accruing ("TDRs, accruing") totaled $153,000 at September 30, 2016 and $154,000 at June 30, 2016.  Classified assets, including ORE, increased $23.1 million, or 24.2%, to $118.6 million at September 30, 2016 compared to $95.5 million at June 30, 2016.  The increase in classified assets during the quarter ended September 30, 2016 is primarily due to the downgrade of three energy-related credits totaling $23.7 million.  Two of the three credits  downgraded are Shared National Credits that were downgraded by the OCC during their recent review.  These two credits totaled $15.0 million at September 30, 2016.

Third Quarter 2016 vs. Third Quarter 2015 Earnings Comparison

Third quarter 2016 net earnings available to common shareholders totaled $1.6 million compared to $2.4 million for the third quarter of 2015. Revenues from consolidated operations decreased $504,000 in quarterly comparison, from $23.9 million for the three months ended September 30, 2015 to $23.4 million for the three months ended September 30, 2016.  Net interest income decreased $602,000 in quarterly comparison primarily due to a $619,000 decrease in interest income earned on loans.  Noninterest income increased $98,000 in quarterly comparison and consisted primarily of a $57,000 increase in ATM/debit card income and a $28,000 increase in the income earned from the cash surrender value of life insurance.

Noninterest expenses increased $622,000 in quarterly comparison and consisted primarily of a $381,000 increase in salaries and employee benefits costs, a $131,000 increase in legal and professional fees, a $63,000 increase in ATM and debit card processing fees and a $78,000 increase in losses on wire fraud, which were partially offset by a $180,000 decrease in occupancy expense.  The provision for loan losses decreased $900,000 in quarterly comparison, from $3.8 million for the three months ended September 30, 2015 to $2.9 million for the three months ended September 30, 2016.  Income tax expense decreased $35,000 in quarterly comparison.

Dividends on the Series B Preferred Stock issued to the Treasury as a result of our participation in the Small Business Lending Fund ("SBLF") totaled $720,000 for the third quarter of 2016 based on a dividend rate of 9%.  Dividends on the Series C Preferred Stock issued with the December 28, 2012 acquisition of PSB Financial Corporation ("PSB") totaled $91,000 for the three months ended September 30, 2016.

Fully taxable-equivalent ("FTE") net interest income totaled $18.8 million and $19.4 million for the quarters ended September 30, 2016 and 2015, respectively.  The FTE net interest income decreased $666,000 in prior year quarterly comparison primarily due to a $620,000 decrease in interest income on loans.  Interest income on loans decreased due to a $17.7 million decrease in the average balance of loans, as well a decrease in the average yield on loans of 10 basis points, from 5.55% to 5.45%.  Purchase accounting adjustments added 14 basis points to the average yield on loans for the third quarter of 2016 and 20 basis points to the average yield on loans for the third quarter of 2015.  Excluding the impact of the purchase accounting adjustments, average loan yields declined 4 basis points in prior year quarterly comparison, from 5.35% to 5.31%.  Loan yields have declined primarily as the result of a sustained low interest rate environment and a higher volume of loans on nonaccrual status.

Investment securities totaled $420.0 million, or 21.5% of total assets at September 30, 2016, versus $406.5 million, or 20.6% of total assets at September 30, 2015.  The investment portfolio had an effective duration of 3.2 years and a net unrealized gain of $5.0 million at September 30, 2016.  The average volume of investment securities increased $599,000 in prior year quarterly comparison.  The average tax equivalent yield on investment securities decreased 7 basis points, from 2.59% to 2.52%.

The average yield on all earning assets decreased 10 basis points in prior year quarterly comparison, from 4.65% for the third quarter of 2015 to 4.55% for the third quarter of 2016.  Excluding the impact of purchase accounting adjustments, the average yield on total earning assets decreased 5 basis points, from 4.51% to 4.46% for the three month periods ended September 30, 2015 and 2016, respectively.

Interest expense increased $23,000 in prior year quarterly comparison.  Increases in interest expenses included a $32,000 increase in interest expense on deposits and a $20,000 increase in interest expense on junior subordinated debentures.  These increases were partially offset by a $16,000 decrease in interest expense on short-term FHLB advances and a $13,000 decrease in interest expense on securities sold under agreements to repurchase.  Excluding purchase accounting adjustments on acquired certificates of deposit and FHLB borrowings, the average rate paid on interest-bearing liabilities was 0.46% for the three months ended September 30, 2016 and 0.45% for the three months ended September 30, 2015.

As a result of these changes in volume and yield on earning assets and interest-bearing liabilities, the FTE net interest margin decreased 10 basis points, from 4.34% for the third quarter of 2015 to 4.24% for the third quarter of 2016.  Excluding purchase accounting adjustments on loans, deposits and FHLB borrowings, the FTE margin decreased 5 basis points, from 4.17% for the third quarter of 2015 to 4.12% for the third quarter of 2016.

Third Quarter 2016 vs. Second Quarter 2016 Earnings Comparison

In sequential-quarter comparison, net earnings available to common shareholders decreased $95,000, from $1.7 million for the three months ended June 30, 2016 to $1.6 million for the three months ended September 30, 2016.  Net interest income increased $548,000 in sequential-quarter comparison, primarily due to a $535,000 increase in interest income earned on loans.  Noninterest income decreased $7,000 in sequential-quarter comparison.

Noninterest expense increased $73,000 in sequential-quarter comparison.  The increase in noninterest expense consisted primarily of increases of $80,000 in legal and professional fees,  $91,000 in marketing expense, $64,000 in net expenses on ORE and $49,000 in data processing costs, which were partially offset by a $148,000 decrease in salaries and benefits costs and a $55,000 decrease in FDIC premiums.  The provision for loan losses increased $600,000 in sequential-quarter comparison.

Dividends on preferred stock totaled $811,000 for the three months ended September 30, 2016 and the three months ended June 30, 2016.

FTE net interest income increased $545,000 in sequential-quarter comparison primarily due to a $534,000 increase in interest income on loans.  The increase in interest income on loans resulted from an increase in the average yield on loans of 6 basis points, from 5.39% for the second quarter of 2016 to 5.45% for the third quarter of 2016 in addition to an increase in the average volume of loans of $12.1 million in sequential-quarter comparison.  Excluding purchase accounting adjustments, the loan yield increased 1 basis point, from 5.30% to 5.31% during the same period.  The average yield on total earning assets increased 6 basis points for the same period, from 4.49% to 4.55%, respectively.  As a result of these changes in volume and yield on earning assets, the FTE net interest margin increased 7 basis points, from 4.17% to 4.24%.  Excluding purchase accounting adjustments, the FTE net interest margin increased 4 basis points, from 4.08% for the second quarter of 2016 to 4.12% for the third quarter of 2016.

Year-To-Date Earnings Comparison

In year-to-date comparison, net earnings available to common shareholders decreased $3.5 million, from $8.7 million at September 30, 2015 to $5.2 million at September 30, 2016.  The first nine months of 2016 included $20,000 in gain on sales of securities.  The first nine months of 2015 included $1.2 million in gain on sales of securities and $160,000 of income from a death benefit on bank owned life insurance.  Excluding these non-operating revenues, net earnings available to common shareholders decreased $2.1 million in year-to-date comparison.  The $2.1 million decrease in operating earnings in year-to-date comparison resulted primarily from a $2.9 million decrease in net interest income, an increase of $1.3 million of noninterest expense and an increase of $1.5 million in dividends on preferred stock, which were partially offset by a $2.9 million decrease in the provision for loan losses and an $831,000 decrease in income tax expense.

Excluding non-operating income, noninterest income decreased $137,000 and consisted primarily of $73,000 in mortgage banking fees and $88,000 in letter of credit income.  Increases in noninterest expense primarily included $414,000 in salaries and benefits costs, $284,000 in ATM and debit card processing fees, $211,000 in FDIC premiums, $223,000 in legal and professional fees, $137,000 in recruiting expense and $142,000 in shares tax expense, which were partially offset by a $466,000 decrease in occupancy expense.

In year-to-date comparison, FTE net interest income decreased $3.1 million primarily due to a $3.0 million decrease in interest income on loans.  The average volume of loans decreased $39.8 million in year-over-year comparison, and the average yield on loans decreased 14 basis points, from 5.59% to 5.45%.  The average volume of investment securities decreased $751,000 in year-over-year comparison, and the average yield on investment securities decreased 8 basis points for the same period.  The average yield on earning assets decreased in year-over-year comparison, from 4.70% at September 30, 2015 to 4.54% at September 30, 2016.  The purchase accounting adjustments added 17 basis points to the average yield on loans for the nine months ended September 30, 2015 and 13 basis points for the nine months ended September 30, 2016.  Net of purchase accounting adjustments, the average yield on earning assets decreased 13 basis points, from 4.58% at September 30, 2015 to 4.45% at September 30, 2016.

Interest expense decreased $1,000 in year-over-year comparison.  A $26,000 decrease in interest expense on deposits, a $14,000 decrease in interest expense on short-term FHLB advances and a $19,000 decrease in interest expense on securities sold under agreements to purchase were partially offset by a $56,000 increase in interest expense on junior subordinated debentures.  The average rate paid on interest-bearing liabilities was 0.43% for the nine months ended September 30, 2016, compared to 0.42% for the nine months ended September 30, 2015.  Net of purchase accounting adjustments, the average rate paid on interest-bearing liabilities remained unchanged at 0.46% for the nine months ended September 30, 2016 and 2015.  The FTE net interest margin decreased 16 basis points, from 4.38% for the nine months ended September 30, 2015 to 4.22% for the nine months ended September 30, 2016.  Net of purchase accounting adjustments, the FTE net interest margin decreased 14 basis points, from 4.24% to 4.10% for the nine months ended September 30, 2015 and 2016, respectively, primarily due to a decline in the average rate earned on loans and the decreased average volume of loans.

Dividends

MidSouth's Board of Directors announced a cash dividend was declared in the amount of $0.09 per share to be paid on its common stock on January 3, 2017 to shareholders of record as of the close of business on December 15, 2016.  Additionally, a quarterly cash dividend of 1.00% per preferred share on its 4.00% Non-Cumulative Perpetual Convertible Preferred Stock, Series C was declared payable on January 16, 2017 to shareholders of record as of the close of business on January 3, 2017.

About MidSouth Bancorp, Inc.

MidSouth Bancorp, Inc. is a financial holding company headquartered in Lafayette, Louisiana, with assets of $2.0 billion as of September 30, 2016. 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 57 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, the expected loan loss provision and future operating results.  Actual results may differ materially from the results anticipated in these forward-looking statements.  Factors that might cause such a difference include, among other matters, changes in interest rates and market prices that could affect the net interest margin, asset valuation, and expense levels; changes in local economic and business conditions, including, without limitation, changes related to the oil and gas industries, that could adversely affect customers and their ability to repay borrowings under agreed upon terms, adversely affect the value of the underlying collateral related to their borrowings, and reduce demand for loans; the timing and ability to reach any agreement to restructure nonaccrual loans;  increased competition for deposits and loans which could affect compositions, rates and terms; the timing and impact of future acquisitions, the success or failure of integrating operations, and the ability to capitalize on growth opportunities upon entering new markets; loss of critical personnel and the challenge of hiring qualified personnel at reasonable compensation levels; legislative and regulatory changes, including changes in banking, securities and tax laws and regulations and their application by our regulators, changes in the scope and cost of FDIC insurance and other coverage; and other factors discussed under the heading "Risk Factors" in MidSouth's Annual Report on Form 10-K for the year ended December 31, 2015 filed with the SEC on March 15, 2016 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		9/30/2016		6/30/2016		3/31/2016		12/31/2015		9/30/2015
Total interest income		$     19,953		$     19,388		$     19,804		$      19,886		$     20,532
Total interest expense		1,414		1,397		1,420		1,349		1,391
Net interest income		18,539		17,991		18,384		18,537		19,141
FTE net interest income		18,758		18,212		18,625		18,806		19,423
Provision for loan losses		2,900		2,300		2,800		3,000		3,800
Non-interest income		4,866		4,873		4,487		4,575		4,768
Non-interest expense		17,114		17,041		16,759		17,508 Werbung Mehr Nachrichten zur Midsouth Bancorp Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 04:20 - PR Newswire Capital Gearing Trust Plc - Total Voting Rights 02:00 - PR Newswire BlackRock Sustainable American Income Trust Plc - Total Voting Rights Importverbot für Uran    Hammernachricht im Uran-Superzyklus weiterlesen» Anzeige wo-site-teaser-box-17145_site-teaser-box_2024-06-03_07%253A00%253A00_2024-06-04_09%253A00%253A59