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EMPLOYEE BENEFITS
12 Months Ended
Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract]  
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS
 
The Company sponsors a leveraged employee stock ownership plan (“ESOP”) that covers all employees who meet minimum age and service requirements. The Company makes annual contributions to the ESOP in amounts as determined by the Board of Directors. These contributions are used to pay debt service and purchase additional shares. Certain ESOP shares are pledged as collateral for this debt. As the debt is repaid, shares are released from collateral and allocated to active employees, based on the proportion of debt service paid in the year.    During 2014, the ESOP borrowed $283,000 payable to MidSouth Bank, N.A for the purpose of purchasing additional shares of MidSouth Bancorp, Inc.’s common stock.  The note payable matures on June 25, 2018. The loan proceeds were used to purchase a total of 16,000 shares at an average price of $17.71 per share.  During 2015, the ESOP borrowed an additional $997,000 payable to MidSouth Bank, N.A. The notes payable mature on February 20, 2019 and October 5, 2019. A total of 76,526 shares at an average price of $13.02 per share were purchased with the loan proceeds. During 2016, the ESOP borrowed an additional $499,000 payable to MidSouth Bank, N.A. The note payable matures on July 29, 2020. A total of 62,014 shares at an average price of $8.05 were purchased with the loan proceeds. The balances of the notes payable of the ESOP were $1.2 million and $1.1 million at December 31, 2016 and December 31, 2015, respectively.
 
Because the source of the loan payments are contributions received by the ESOP from the Company, the related notes receivable is shown as a reduction of stockholders’ equity.  In accordance with GAAP, compensation costs relating to shares purchased are based on the fair value of shares committed to be released.  The difference between the average fair market value and the cost of the shares allocated by the ESOP is recorded as an adjustment to additional paid-in capital. The unreleased shares are not considered outstanding in the computation of earnings per common share.  Dividends on unreleased shares are recorded as compensation expense; dividends on allocated ESOP shares are recorded as a reduction of stockholders’ equity. Dividends received on ESOP shares are allocated based on shares held for the benefit of each participant and used to purchase additional shares of stock for each participant.  ESOP compensation expense consisting of both cash contributions and shares committed to be released for 2016, 2015 and 2014 was approximately $603,000, $720,000 and $720,000, respectively. ESOP shares as of December 31, 2016 and 2015 were as follows:
 
 
2016
 
2015
Allocated shares
 
604,385

 
570,905

Shares released for allocation
 
28,451

 
10,130

Unreleased shares
 
114,067

 
80,504

Total ESOP shares
 
746,903

 
661,539

 
 
 
 
 
Fair value of unreleased shares at December 31
 
$
1,551,000

 
$
731,000


 
The Company has deferred compensation arrangements with certain officers, which will provide them a fixed benefit after retirement. During 2016, distributions related to these agreements totaled $49,000. The Company recorded a liability of approximately $1.4 million at December 31, 2016 and 2015 in connection with these agreements.  Deferred compensation expense recognized in 2016, 2015, and 2014 was approximately $60,000, $82,000, and $80,000, respectively.
 
The Company sponsors defined contribution post-retirement benefit agreements to provide death benefits for the designated beneficiaries of certain of the Company's executive officers.  Under the agreements, split-dollar whole life insurance contracts were purchased on certain executive officers. The increase in the cash surrender value of the contracts, less the Bank's cost of funds, constitutes the Company's contribution to the agreements each year.  In the event the insurance contracts fail to produce positive returns, the Company has no obligation to contribute to the agreements.  During 2016, 2015, and 2014, the Company incurred expenses of $2,000, $14,000 and $7,000, respectively, related to the agreements.
 
The Company has a 401(k) retirement plan covering substantially all employees who have been employed for 90 days and meet certain other requirements.  Under this plan, employees can contribute a portion of their salary within the limits provided by the Internal Revenue Code into the plan.  The Company made contributions to the plan totaling $60,000 in 2016, 2015 and 2014, respectively.