MIDSOUTH BANCORP INC - FORM 8-K/A - EX-99.3 - EXHIBIT 99.3 - March 15, 2013

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EX-99.1 - EXHIBIT 99.1 - MIDSOUTH BANCORP INCex99_1.htm
EX-99.2 - EXHIBIT 99.2 - MIDSOUTH BANCORP INCex99_2.htm
EX-23.1 - EXHIBIT 23.1 - MIDSOUTH BANCORP INCex23_1.htm
8-K/A - MIDSOUTH BANCORP INC 8-K A 12-28-2012 - MIDSOUTH BANCORP INCform8ka.htm
EXHIBIT 99.3
 
The following unaudited pro forma statement of operations data for the nine months ended September 30, 2012, and for the year ended December 31, 2011, give effect to the merger as if it occurred on January 1, 2011. The unaudited pro forma combined balance sheet data was computed as if the merger had been completed on September 30, 2012. This information is based on the historical consolidated balance sheets and related adjusted historical consolidated statements of income of MidSouth and PSB and gives effect to the merger using the purchase method of accounting for business combinations. The pro forma financial information assumes that no adjustments are made to the merger consideration as a result of the credit losses on the specified loans for purposes of the CVR payment exceeding the threshold that would require adjustment thereto.
 
The companies may have performed differently had they been combined at the date or for the periods presented. You should not rely on the selected unaudited pro forma combined financial data as being indicative of the historical results that would have been achieved had the companies always been combined or the future results that MidSouth will experience after the merger.

The unaudited pro forma combined financial data includes estimated adjustments to record assets and liabilities of PSB at their respective fair values and represents estimates based on available information. The pro forma adjustments included herein are subject to change as additional information becomes available.  The final allocation of the purchase price will be determined after further analyses with respect to the fair value of tangible and intangible assets as of the date the merger is completed.  The excess of the total purchase price over the net of the amounts assigned to tangible and identifiable intangible assets acquired and liabilities assumed is recognized as goodwill.  The final adjustments may be materially different from the unaudited pro forma adjustments presented herein.
 
MidSouth Bancorp, Inc. and Subsidiaries
  
Unaudited Pro Forma Combined Consolidated Statement of Operations
  
(in thousands)
  
       
   
For the Nine Months Ended September 30, 2012
  
   
MidSouth
    
PSB Financial
    
Pro Forma
            
   
Bancorp, Inc.
    
Corp
    
Acquisition
        
Combined
  
   
Historical
    
Historical
    
Adjustments
        
Pro Forma
  
Interest income:
                            
Loans, including fees
   $ 37,298     $ 11,003     $ 1,517   (1 )   $ 49,818  
Investments
     8,609       3,208       (675 ) (2 )     11,022  
                      (120 ) (3 )        
Federal funds sold
     6       13       -           19  
Interest bearing deposits in other banks
     73       37       -           110  
Total interest income
     45,986       14,261       722           60,969  
                                     
Interest expense:
                                    
Deposits
     3,189       1,675       (149 ) (4 )     4,715  
Other borrowings
     564       559       (274 ) (5 )     849  
Junior subordinated debentures
     733       401       -           1,134  
Total interest expense
     4,486       2,635       (423 )         6,698  
                                     
Net interest income
     41,500       11,626       1,145           54,271  
Provision for loan losses
     1,550       154       -           1,704  
Net interest income after provision for loan losses
     39,950       11,472       1,145           52,567  
                                     
Non-interest income:
                                    
Service charges on deposits
     5,590       1,492       -           7,082  
Gain or loss on securities, net
     204       (194 )     -           10  
Other charges and fees
     5,453       1,072       -           6,525  
Total non-interest income
     11,247       2,370       -           13,617  
                                     
Non-interest expenses:
                                    
Salaries and employee benefits
     18,511       5,425       (1,486 ) (6 )     22,450  
Occupancy expense
     8,283       1,449       -           9,732  
FDIC Insurance
     695       229       -           924  
Other
     12,599       3,870       (705 ) (7 )     15,764  
Total non-interest expenses
     40,088       10,973       (2,191 )         48,870  
                                     
Income before income taxes
     11,109       2,869       3,336           17,314  
Provision for income taxes
     3,096       703       1,168           4,967  
Net earnings
   $ 8,013     $ 2,166     $ 2,168         $ 12,347  
                                     
Dividends on preferred stock
     1,180       146       300   (8 )     1,626  
Net earnings available to common shareholders
   $ 6,833     $ 2,020     $ 1,868         $ 10,721  
                                     
Weighted average common shares outstanding:
                                    
Basic
     10,471       73                   11,228  
Diluted
     10,499       73                   11,812  
Earnings per share:
                                    
Basic
   $ 0.65     $ 27.75                 $ 0.95  
Diluted
   $ 0.65     $ 27.75                 $ 0.94  

(1)
To record the accretion of the fair value adjustments to loans
(2)
To record the increase in bond amortization as a result of the acquisition
(3)
To record the opportunity cost of cash paid out to PSB shareholders
(4)
To record the amortization of the fair value adjustments to deposits
(5)
To record the amortization of the fair value adjustments to FHLB advances
(6)
To record the estimated cost savings resulting from the acquisition
(7)
To record the estimated cost savings resulting from the acquisition, net of the core deposit intangible amortization
(8)
To record the dividend on preferred stock issued to PSB shareholders
 
 
 
 
 
MidSouth Bancorp, Inc. and Subsidiaries
  
Unaudited Pro Forma Combined Consolidated Statement of Operations
  
(in thousands)
  
       
   
For the Twelve Months Ended December 31, 2011
  
   
MidSouth
    
PSB Financial
    
Pro Forma
            
   
Bancorp, Inc.
    
Corp
    
Acquisition
        
Combined
  
   
Historical
    
Historical
    
Adjustments
        
Pro Forma
  
Interest income:
                            
Loans, including fees
   $ 41,887     $ 14,001     $ 3,905   (1 )   $ 59,793  
Investments
     8,910       4,971       (1,000 ) (2 )     12,721  
                      (160 ) (3 )        
Federal funds sold
     14       17       -           31  
Interest bearing deposits in other banks
     196       19       -           215  
Total interest income
     51,007       19,008       2,745           72,760  
                                     
Interest expense:
                                    
Deposits
     4,023       3,074       (399 ) (4 )     6,698  
Other borrowings
     808       1,392       (368 ) (5 )     1,832  
Junior subordinated debentures
     971       778       -           1,749  
Total interest expense
     5,802       5,244       (767 )         10,279  
                                     
Net interest income
     45,205       13,764       3,512           62,481  
Provision for loan losses
     3,925       729       -           4,654  
Net interest income after provision for loan losses
     41,280       13,035       3,512           57,827  
                                     
Non-interest income:
                                    
Service charges on deposits
     6,921       3,076       -           9,997  
Gain or loss on securities, net
     99       1,816       -           1,915  
Other charges and fees
     6,041       139       -           6,180  
Total non-interest income
     13,061       5,031       -           18,092  
                                     
Non-interest expenses:
                                    
Salaries and employee benefits
     21,763       7,867       (1,237 ) (6 )     28,393  
Occupancy expense
     9,281       1,129       -           10,410  
Other
     18,260       5,756       (445 ) (7 )     23,571  
Total non-interest expenses
     49,304       14,752       (1,682 )         62,374  
                                     
Income before income taxes
     5,037       3,314       5,194           13,545  
Provision for income taxes
     564       854       1,766           3,184  
Net earnings
   $ 4,473     $ 2,460     $ 3,428         $ 10,361  
                                     
Dividends on preferred stock
     1,802       195       400   (8 )     2,397  
Net earnings available to common shareholders
   $ 2,671     $ 2,265     $ 3,028         $ 7,964  
                                     
Weighted average common shares outstanding:
                                    
Basic
     9,787       73                   10,544  
Diluted
     9,799       73                   11,112  
Earnings per share:
                                    
Basic
   $ 0.27     $ 31.02                 $ 0.76  
Diluted
   $ 0.27     $ 31.02                 $ 0.75  
 
(1)
To record the accretion of the fair value adjustments to loans
(2)
To record the increase in bond amortization as a result of the acquisition
(3)
To record the opportunity cost of cash paid out to PSB shareholders
(4)
To record the amortization of the fair value adjustments to deposits
(5)
To record the amortization of the fair value adjustments to FHLB advances
(6)
To record the estimated cost savings resulting from the acquisition
(7)
To record the estimated cost savings resulting from the acquisition, net of the core deposit intangible amortization
(8)
To record the dividend on preferred stock issued to PSB shareholders
 
 
 
 
 
MidSouth Bancorp, Inc. and Subsidiaries
  
Unaudited Pro Forma Combined Consolidated Balance Sheet
  
(in thousands)
  
       
   
September 30, 2012
  
   
MidSouth
    
PSB Financial
    
Pro Forma
            
   
Bancorp, Inc.
    
Corp
    
Acquisition
        
Combined
  
Assets
  
Historical
    
Historical
    
Adjustments
        
Pro Forma
  
                             
Cash and due from banks
   $ 57,155     $ 22,348     $ (25,606 ) (1 )   $ 53,897  
Federal funds sold
     2,500       5,800       -           8,300  
Time Deposits in other banks
     709       -       -           709  
Securities available-for-sale
     341,170       162,849       -           504,019  
Securities held-to-maturity
     117,628       -       -           117,628  
Other investments
     5,820       2,489       -           8,309  
Loans
     808,833       269,684       (12,535 ) (2 )     1,065,982  
Allowance for loan losses
     (7,374 )     (3,580 )     3,580   (3 )     (7,374 )
Loans, net of allowance
     801,459       266,104       (8,955 )         1,058,608  
Bank premises and equipment, net
     48,086       11,834       578   (4 )     60,498  
Accrued interest receivable
     5,562       2,055       -           7,617  
Goodwill
     24,824       3,364       14,061   (5 )     42,249  
Other assets
     24,023       16,586       2,662   (6 )     43,585  
                      314   (7 )        
Total Assets
   $ 1,428,936     $ 493,429     $ (16,946 )       $ 1,905,419  
                                     
Liabilities and Stockholders' Equity
                                    
Liabilities:
                                    
Deposits
   $ 1,179,012     $ 402,995     $ 722   (8 )   $ 1,582,729  
Notes payable
     -       27,483       1,832   (9 )     29,315  
Securities sold under repurchase agreements
     55,233       1,085       -           56,318  
Junior subordinated debenture
     15,465       13,919       -           29,384  
Other liabilities
     10,891       7,667       (2,747 ) (10 )     17,811  
                      2,000   (11 )        
Total liabilities
     1,260,601       453,149       1,807           1,715,557  
Stockholders' Equity:
                                 -  
Preferred stock
     32,000       9,603       394   (12 )     41,997  
Common stock
     1,063       720       (644 ) (13 )     1,139  
Additional paid-in-capital
     99,066       477       10,977   (14 )     110,520  
Unearned ESOP shares
     -       (173 )     173   (15 )     -  
Accumulated other comprehensive income
     9,390       3,245       (3,245 ) (16 )     9,390  
Treasury stock
     (3,286 )     -       -           (3,286 )
Retained earnings
     30,102       26,408       (26,408 ) (17 )     30,102  
Total stockholders' equity
     168,335       40,280       (18,753 )         189,862  
Total Liabilities and Stockholders' Equity
   $ 1,428,936     $ 493,429     $ (16,946 )       $ 1,905,419  
 
(1) 
To record $16.0 million of cash paid to PSB common stockholders and $9.603 million paid to PSB preferred stockholder for redemption of CDCI shares
(2) 
To record estimated fair value adjustment of PSB's loans
(3) 
To eliminate preacquisition allowance for loan losses on PSB's financial statements
(4) 
To record estimated fair value adjustment of PSB's premises and equipment
(5) 
To eliminate preacquisition goodwill on PSB's financial statements and record goodwill on acquisition
(6) 
To record estimated fair value of the core deposit intangible of PSB
(7) 
To record estimated fair value adjustment of PSB's other assets
(8) 
To record estimated fair value adjustment of PSB's time deposits
(9) 
To record estimated fair value adjustment of PSB's FHLB advances
(10)
To record the estimated deferred income taxes of PSB
(11)
To record liability for expected payment amount of Contingent Value Right (CVR) of $2.0 million, the maximum potential payout under thethe terms of the CVR agreement
(12)
To record the redemption of PSB preferred stock and the issuance of MidSouth preferred stock to be issued to PSB's stockholders
(13)
To eliminate the par value of PSB common stock and to record the par value of MidSouth stock to be issued to PSB's stockholders
(14)
To eliminate the the additional paid-in-capital on PSB's financial statements and record the excess of fair value over par value ofMidSouth common stock to be issued to PSB's stockholders
(15)
To eliminate value of preacquisition unearned ESOP shares on PSB's financial statements
(16)
To eliminate preacquisition accumulated other comprehensive income on PSB's financial statements
(17)
To eliminate preacquisition retained earnings on PSB's financial statements
 
 

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