Attached files
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| EX-99.1 - EARNINGS RELEASE 3Q 10-25-11 - MIDSOUTH BANCORP INC | earnings_release.htm |
| EX-99.2 - DIVIDEND RELEASE 10-25-11 - MIDSOUTH BANCORP INC | dividend_release.htm |
| 8-K - MIDSOUTH BANCORP FORM 8-K - MIDSOUTH BANCORP INC | form8_k.htm |
MidSouth Bancorp, Inc.
NYSE-Amex: MSL
NYSE-Amex: MSL
3Q11 Supplemental Materials
October 25, 2011
Forward Looking Statements
2
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, improvements
in classified and criticized assets, changes in the local and national economy, the work-out of nonaccrual loans, the completion of the
Beacon Federal and First Louisiana National Bank branch acquisitions, the competition for other potential acquisitions the impacts from the
integration of operations from completed acquisitions and the impact of regulatory changes regarding electronic transactions. Actual results
may differ materially from the results anticipated in these forward-looking statements.
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, improvements
in classified and criticized assets, changes in the local and national economy, the work-out of nonaccrual loans, the completion of the
Beacon Federal and First Louisiana National Bank branch acquisitions, the competition for other potential acquisitions the impacts from the
integration of operations from completed acquisitions and the impact of regulatory changes regarding electronic transactions. Actual results
may differ materially from the results anticipated in these forward-looking statements.
Factors that might cause such a difference include, among other matters, changes in interest rates and market prices that could affect the net
interest margin, asset valuation, and expense levels; changes in local economic and business conditions, including, without limitation,
changes related to the oil and gas industries, that could adversely affect customers and their ability to repay borrowings under agreed upon
terms, adversely affect the value of the underlying collateral related to their borrowings, and reduce demand for loans; the timing and ability
to reach any agreement to restructure nonaccrual loans; increased competition for deposits and loans which could affect compositions, rates
and terms; the timing and impact of future acquisitions, the success or failure of integrating operations, and the ability to capitalize on
growth opportunities upon entering new markets; loss of critical personnel and the challenge of hiring qualified personnel at reasonable
compensation levels; legislative and regulatory changes, including changes in banking, securities and tax laws and regulations and their
application by our regulators, changes in the scope and cost of FDIC insurance and other coverages; and other factors discussed under the
heading “Risk Factors” in MidSouth’s Annual Report on Form 10-K for the year ended December 31, 2010 filed with the SEC on March
16, 2011 and in its other filings with the SEC.
interest margin, asset valuation, and expense levels; changes in local economic and business conditions, including, without limitation,
changes related to the oil and gas industries, that could adversely affect customers and their ability to repay borrowings under agreed upon
terms, adversely affect the value of the underlying collateral related to their borrowings, and reduce demand for loans; the timing and ability
to reach any agreement to restructure nonaccrual loans; increased competition for deposits and loans which could affect compositions, rates
and terms; the timing and impact of future acquisitions, the success or failure of integrating operations, and the ability to capitalize on
growth opportunities upon entering new markets; loss of critical personnel and the challenge of hiring qualified personnel at reasonable
compensation levels; legislative and regulatory changes, including changes in banking, securities and tax laws and regulations and their
application by our regulators, changes in the scope and cost of FDIC insurance and other coverages; and other factors discussed under the
heading “Risk Factors” in MidSouth’s Annual Report on Form 10-K for the year ended December 31, 2010 filed with the SEC on March
16, 2011 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.
information, future events or otherwise, except as required by law.
3rd Quarter 2011 Highlights
Ø Operating EPS of $0.14 versus $0.09 for 3Q10 excluding special items:
Ø GAAP diluted EPS of $0.03
Ø Significant Mergers and Acquisition expenses of $0.06 per share
Ø Jefferson Bank - Dallas - closed 7/29/11
Ø Beacon Federal - P&A agreement signed to purchase Tyler, TX branch
Ø First Louisiana National Bank - P&A agreement signed to purchase bank in
Breaux Bridge, LA (in-market)
Breaux Bridge, LA (in-market)
Ø Discount acceleration of $0.05 per share
Ø Associated with repayment of $20 million of TARP following closing of $32
million Preferred Stock issued under Small Business Lending Fund
million Preferred Stock issued under Small Business Lending Fund
Ø $12 million of remaining proceeds injected into MidSouth Bank
Ø Coupon rate for 4Q11 and 1Q12 = 5% based on qualifying small business
loans
loans
3
Jefferson Bank - Purchase Accounting Impact
4
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Fair Value
($000's) |
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Cash and Due From
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$ 93,800
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Investments
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175
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Loans, net
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57,694
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(1)
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Premises and Equipment, net
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3,632
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Core Deposit Intangible
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2,702
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(2)
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Goodwill
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7,725
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Other Assets
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327
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Total Assets
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$ 166,055
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DDA and Savings
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$ 35,621
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Time Deposits
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130,151
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(3)
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Other Liabilities
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283
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Total Liabilities
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$ 166,055
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(1) Loans do not include $9.1 million in loan participations of loans originated by First Bank & Trust and purchased under P&A agreement
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Face value of loans purchased were $59.8 million, which resulted in a fair value mark of $2.1 million or 3.5%.
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No impaired loans purchased. All discount is accretable yield, which is estimated to be approx. $177,000 per quarter (3Q11=$118,000)
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(2) CDI amortized over 10 years using straight line method, or approximately $68,000 per quarter (3Q11=$45,000)
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(3) CD's include a fair value mark of $1.4 million. Results in reduction of effective interest expense recognized on CD's.
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Amount of reduction in interest expense declines over time as CD's mature.
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Estimated reduction of interest expense - 4Q11 - $277,000, 1Q12 - $220,000, 2Q12 - $181,000, 3Q12 - $162,000, 4Q12 - $139,000 (3Q11=$228,000)
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Non-GAAP Reconciliation
Non-GAAP Financial Measures
This presentation also includes non-GAAP financial measures determined by methods other than in accordance with generally accepted accounting principles (“GAAP”). Such
non-GAAP financial measures include (1) the ratio of tangible common equity to tangible assets, (2) tangible book value per share, (3) pre-tax pre-provision earnings and (4) operating
earnings per share. The most comparable GAAP measures to these measures are the ratio of equity to total assets, book value per share, earnings before taxes and earnings per share,
respectively. We use these non-GAAP financial measures because we believe they are useful for evaluating our financial condition, operations and performance over periods of time, as
well as in managing and evaluating our business and in discussions about our operations and performance. With respect to operating per share, such financial measure excludes unusual
expenses related to our recently completed or announced acquisitions and the repayment of TARP funds that are not expected to reoccur. We also believe these non-GAAP financial
measures provides users of our financial information with a meaningful measure for assessing our financial condition, financial results and credit trends, as well as comparison to financial
results for prior periods. These disclosures 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.
5
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As of and for the year ended December 31,
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2007
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2008
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2009
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2010
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As of
9/30/11 |
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Book value per common share
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$10.41
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$11.04
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$11.81
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$12.05
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$12.47
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Effect of intangible assets per share
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1.48
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1.45
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1.02
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0.96
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2.02
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Tangible book value per common share
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$8.93
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$9.59
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$10.79
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$11.09
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$10.45
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Equity to total assets at period end
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8.02
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%
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7.80
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%
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13.30
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%
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13.63
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%
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12.55
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%
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Effect of intangible assets
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1.07
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0.96
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0.86
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0.82
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1.43
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Tangible equity to tangible assets at period end
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6.95
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%
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6.84
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%
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12.44
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%
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12.82
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%
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11.12
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%
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Effect of preferred equity
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0.00
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0.00
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1.99
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1.95
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2.66
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%
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Tangible common equity to tangible assets at period end
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6.95
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%
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6.84
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%
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10.45
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%
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10.86
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%
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8.46
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%
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6
Non-GAAP Reconciliation (cont’d)
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(1) 3Q11 Non-recurring noninterest expense items - Merger related charges ($876,000)
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(2) 2Q11 Non-recurring noninterest expense items - Merger related charges ($115,000)
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(3) 4Q10 Non-recurring interest income - recovery of interest on large non-accrual loan ($298,000)
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Third
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Second
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First
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Fourth
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Third
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Quarter
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Quarter
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Quarter
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Quarter
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Quarter
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2011
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2011
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2011
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2010
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2010
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Net Interest Income
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$ 11,658
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$ 10,531
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$ 9,941
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$ 10,506
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$ 10,299
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FTE Adjustment
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334
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349
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382
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393
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406
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Less: Other Adjustments
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-
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-
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-
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(298)
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(3)
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-
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Net Interest Income, FTE, as adjusted
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11,992
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10,880
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10,323
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10,601
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10,705
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Noninterest Income
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3,398
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3,213
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3,030
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3,456
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3,736
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Less: Realized Gains on Securities Sold
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(58)
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(41)
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3
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-
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-
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Total Revenues, as adjusted (FTE)
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15,332
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14,052
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13,356
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14,057
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14,441
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Noninterest Expense
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13,175
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11,233
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10,727
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10,798
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11,117
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Less: Adjustments
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(876)
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(1)
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(115)
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(2)
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-
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-
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-
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Noninterest Expense, as adjusted
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12,299
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11,118
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10,727
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10,798
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11,117
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Pre-tax, pre-provision earnings, as adjusted
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$ 2,699
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$ 2,585
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$ 2,247
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$ 2,866
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$ 2,918
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Earnings per share, as reported
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$ 0.03
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$ 0.10
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$ 0.05
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$ 0.16
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$ 0.09
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Effect of merger related costs, after-tax
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0.06
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-
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-
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-
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Effect of accretion - repayment of TARP
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0.05
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-
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-
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-
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Operating Earnings per share
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$ 0.14
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$ 0.10
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$ 0.05
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$ 0.16
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$ 0.09
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