-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MYO66awrivaG/L08RUlmuI9UyAetEfaV2YTfEIWo8zQCN5n7eIl4OxsmQzybmTM5 JawRv3Vv99XUT5YGtwhMiQ== 0000948688-00-000004.txt : 20000516 0000948688-00-000004.hdr.sgml : 20000516 ACCESSION NUMBER: 0000948688-00-000004 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20000331 FILED AS OF DATE: 20000515 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MIDSOUTH BANCORP INC CENTRAL INDEX KEY: 0000745981 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 721020809 STATE OF INCORPORATION: LA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 001-11826 FILM NUMBER: 635136 BUSINESS ADDRESS: STREET 1: 102 VERSAILLES BLVD STREET 2: VERSAILLES CENTRE CITY: LAFAYETTE STATE: LA ZIP: 70501 BUSINESS PHONE: 3182378343 MAIL ADDRESS: STREET 1: 102 VERSAILLES BLVD CITY: LAFAYETTE STATE: LA ZIP: 70501 10QSB 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10QSB __X___QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended............. March 31, 2000 _____ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ..... to ..... COMMISSION FILE NUMBER 2-91-000FW MIDSOUTH BANCORP, INC. Louisiana 72 -1020809 102 Versailles Boulevard, Lafayette, Louisiana 70501 (318) 237-8343 Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES __X__ NO _____ State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date. Outstanding as of March 31, 2000 Common stock, $.10 par value 2,483,342 Preferred stock, no par value, $14.25 stated value 152,236 Transitional Small Business Disclosure Format: Yes _______ No X Page 1 Page 2 PART 1 - FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) Page Financial Highlights 3 Statements of Condition - March 31, 2000 and December 31, 1999 4 Statements of Income - Three Months Ended March 31, 2000 and 1999 and Year Ended December 31, 1999 5 Statement of Stockholders' Equity - Three Months Ended March 31, 2000 6 Statements of Cash Flows - Three Months Ended March 31, 2000 and 1999 7 Notes to Financial Statements 8 Item 2. Management's Discussion and Analysis or Plan of Operation 9 PART II - OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K 16 Signatures 17
MIDSOUTH BANCORP, INC. AND SUBSIDIARIES FINANCIAL HIGHLIGHTS (UNAUDITED) Three Months Ended Year-ended March 31, December 31, EARNINGS DATA 2000 1999 1999 ___________________________________________________ Net interest income $3,472,727 $3,022,140 $13,184,382 Provision for loan losses 216,962 266,950 906,950 Non-interest income 1,037,270 909,140 3,980,496 Non-interest expense 3,588,791 2,903,093 12,740,307 Provision for income tax 155,976 164,387 867,417 Net income 548,268 596,850 2,650,204 Preferred dividend requirement 38,059 33,383 131,582 Income available to common sharehol $510,209 $563,467 $2,518,622 ======================================================================================== PER COMMON SHARE DATA Basic earnings per share $0.21 $0.23 $1.03 Diluted earnings per share $0.18 $0.20 $0.90 Book value at end of period $6.09 $5.69 $5.94 Market price at end of period $8.75 $11.06 $9.00 Market price of preferred stock at $26.25 $33.00 $28.00 Weighted average shares outstanding Basic 2,470,551 2,439,256 2,441,461 Diluted 2,964,655 2,965,203 2,956,262 ======================================================================================== AVERAGE BALANCE SHEET DATA Total assets $280,297,144 $259,152,871 $272,717,308 Earning assets 254,271,309 235,583,534 247,539,655 Loans and leases 171,516,801 155,183,050 161,894,252 Interest-bearing deposits 195,751,863 180,383,947 186,668,547 Total deposits 257,107,157 239,070,515 246,860,657 Common stockholders' equity 14,619,601 13,532,186 14,431,725 Total stockholders' equity 16,796,089 15,762,518 16,632,896 ======================================================================================== SELECTED RATIOS Return on average assets (annualize 0.78% 0.93% 0.97% Return on average common equity (an 14.00% 16.89% 17.45% Return on average total equity ( an 13.09% 15.36% 15.93% Leverage capital ratio 6.29% 6.09% 6.23% Tier 1 risk-based capital ratio 9.36% 9.25% 9.47% Total risk-based capital ratio 10.40% 10.35% 10.55% Allowance for loan losses as a % of total loans 1.12% 1.21% 1.15% ======================================================================================== PERIOD ENDING BALANCE SHEET DATA 3/31/00 3/31/99 Net Change Total assets $284,109,042 $270,432,493 $13,676,549 Earning assets 257,204,936 247,726,379 $9,478,557 Loans and leases, net 172,555,428 153,914,963 $18,640,465 Interest-bearing deposits 197,324,171 191,352,663 $5,971,508 Total deposits 261,386,833 250,018,682 $11,368,151 Common stockholders' equity 15,122,519 13,910,065 $1,212,454 Total stockholders' equity 17,299,007 16,135,587 $1,163,420 ========================================================================================
MIDSOUTH BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CONDITION =================================================================================== March 31, December 31, 2000 1999 * ASSETS (unaudited) ___________ ___________ Cash and due from banks $12,104,172 $13,587,690 Federal funds sold 800,000 900,000 ___________ ___________ Total cash and cash equivalents 12,904,172 14,487,690 Interest bearing deposits in banks 75,313 356,124 Securities available-for-sale, at fair value (cost of $60,529,603 in March 2000 and $57,106,793 in December 1999) 59,081,353 55,689,863 Securities held-to-maturity (estimated market value of $22,388,655 in March 2000 and $20,776,767 in December 1999) 22,730,393 21,287,597 Loans, net of allowance for loan losses of $1,962,449 in March 2000 and $1,967,326 in December 1999 172,555,428 168,501,407 Bank premises and equipment, net 11,645,617 11,367,815 Other real estate owned, net 460,088 569,963 Accrued interest receivable 2,113,271 1,919,182 Goodwill, net 538,883 554,153 Other assets 2,004,524 1,990,047 ___________ ___________ Total assets $284,109,042 $276,723,841 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Non-interest bearing $64,062,662 $63,668,676 Interest bearing 197,324,171 188,021,530 ___________ ___________ Total deposits 261,386,833 251,690,206 Securities sold under repurchase agreements 612,487 606,601 FHLB advances - 3,000,000 Accrued interest payable 790,211 715,171 Long-term notes payable 3,617,390 3,459,097 Other liabilities 403,114 327,605 ___________ ___________ Total liabilities 266,810,035 259,798,680 ___________ ___________ Commitments and contingencies - - Stockholders' Equity: Preferred Stock, no par value, $14.25 stated value - 5,000,000 shares authorized, 152,236 and 152,736 issued and outstanding on March 31, 2000 and December 31, 1999, respectively 2,169,363 2,176,488 Common stock, $.10 par value- 5,000,000 shares authorized, 2,483,342 and 2,481,843 issued and outstanding on December 31, 1999 and December 31, 1998, respectively 248,334 248,184 Surplus 10,990,689 10,983,714 Unearned ESOP shares (79,885) (89,044) Unrealized gains(losses) on securities available-for-sale, net of deferred taxes of $478,465 in March 2000 and $468,500 in December 1999 (969,785) (948,430) Retained earnings 4,940,291 4,554,249 ___________ ___________ Total stockholders' equity 17,299,007 16,925,161 ___________ ___________ Total liabilities and stockholders' equity $284,109,042 $276,723,841 =========== =========== * The consolidated statement of condition at December 31, 1999 is taken from the audited balance sheet for 1999. See notes to consolidated financial statements.
MIDSOUTH BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME ================================================================================ Three Months Ended Year Ended March 31, December 31, 2000 1999 1999 * (unaudited) ____________________________ ____________ INTEREST INCOME: Loans, including fees $4,392,800 $3,757,538 $16,282,923 Securities Taxable 858,853 684,979 3,277,619 Nontaxable 288,134 260,682 1,105,320 Federal funds sold 52,238 158,633 406,871 ___________ ___________ ___________ TOTAL 5,592,025 4,861,832 21,072,733 ___________ ___________ ___________ INTEREST EXPENSE: Deposits 2,021,987 1,775,266 7,371,194 Securities sold under repurchase agreements, federal funds purchased and advances 24,098 - 253,869 Long term debt 73,213 64,426 263,288 ___________ ___________ ___________ TOTAL 2,119,298 1,839,692 7,888,351 ___________ ___________ ___________ NET INTEREST INCOME 3,472,727 3,022,140 13,184,382 PROVISION FOR LOAN LOSSES 216,962 266,950 906,950 ___________ ___________ ___________ NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 3,255,765 2,755,190 12,277,432 ___________ ___________ ___________ OTHER OPERATING INCOME: Service charges on deposits 740,885 705,997 2,972,024 Gains on securities, net 1,770 - - Credit life insurance 57,294 16,167 159,014 Other charges and fees 237,321 186,976 849,458 ___________ ___________ ___________ TOTAL OTHER INCOME 1,037,270 909,140 3,980,496 ___________ ___________ ___________ OTHER EXPENSES: Salaries and employee benefits 1,654,237 1,381,608 6,037,935 Occupancy expense 780,532 650,758 2,850,428 Other 1,154,022 870,727 3,851,944 ___________ ___________ ___________ TOTAL OTHER EXPENSES 3,588,791 2,903,093 12,740,307 ___________ ___________ ___________ INCOME BEFORE INCOME TAXES 704,244 761,237 3,517,621 PROVISION FOR INCOME TAXES 155,976 164,387 867,417 ___________ ___________ ___________ NET INCOME $548,268 $596,850 2,650,204 PREFERRED DIVIDEND REQUIREMENT 38,059 33,383 131,582 ___________ ___________ ___________ INCOME AVAILABLE TO COMMON SHAREHOLDERS $510,209 $563,467 $2,518,622 =========== =========== =========== BASIC EARNINGS PER COMMON SHARE $0.21 $0.23 $1.03 =========== =========== =========== DILUTED EARNINGS PER COMMON SHARE $0.18 $0.20 $0.90 =========== =========== ===========
* The consolidated statement of income at December 31, 1999 is taken from the audited income statement for 1999. See notes to consolidated financial statements.
MIDSOUTH BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY FOR THE QUARTER ENDED MARCH 31, 2000 (UNAUDITED) =================================================================================================================================== UNREALIZED (GAINS)LOSSES ON SECURITIES PREFERRED STOCK COMMON STOCK ESOP AVAILABLE RETAINED SHARES AMOUNT SHARES AMOUNT SURPLUS OBLIGATION FOR-SALE EARNINGS TOTAL ___________________ ___________________ ___________ __________ _______________________ ___________ BALANCE, DECEMBER 31, 1999 152,736 $2,176,488 2,481,843 $248,184 $10,983,714 ($89,044) ($948,430) $4,554,249 $16,925,161 Dividends on common stock (124,167) (124,167) Dividends on preferred stock (38,059) (38,059) Preferred stock conversion (500) (7,125) 1,499 150 6,975 Net income 548,268 548,268 ESOP obligation, net of repayments 9,159 9,159 Net change in unrealized gain/loss on securities available-for-sale, net of tax (21,355) (21,355) _______ __________ _________ ________ ___________ ________ _________ __________ ___________ BALANCE, March 31, 2000 152,236 $2,169,363 2,483,342 $248,334 $10,990,689 ($79,885) ($969,785) $4,940,291 $17,299,007 ======= ========== ========= ======== =========== ======== ========= ========== =========== See notes to consolidated financial statements.
MIDSOUTH BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE QUARTER ENDED MARCH 31, 2000 and 1999 ========================================================================================== March 31, 2000 March 31, 1999 ______________ ______________ CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $548,268 $596,850 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 332,219 268,220 Provision for loan losses 216,962 266,950 Provision for deferred income taxes 4,548 12,228 Discount accretion (premium amortization), net 20,719 (4,737) Gain on sale of premises and equipment (5,088) - Change in accrued interest receivable (194,089) (30,933) Change in accrued interest payable 75,040 42,662 Write-down of other real estate owned 93,000 - Other, net 60,888 267,001 ______________ ______________ NET CASH PROVIDED BY OPERATING ACTIVITIES 1,152,467 1,418,241 ______________ ______________ CASH FLOWS FROM INVESTING ACTIVITIES: Net decrease (increase) in interest-bearing deposits in banks 280,811 (112) Proceeds from maturities and calls of securities available-for-sale 1,995,674 2,775,453 Proceeds from sales of securities available-for-sale 661,030 - Purchases of securities available-for-sale (6,099,358) (13,058,167) Purchases of securities held-to-maturity (1,443,671) - Loan originations, net of repayments (4,261,824) (571,181) Purchases of premises and equipment (595,663) (819,460) Proceeds from sales of premises and equipment 6,000 - Proceeds from sales of other real estate owned 16,875 19,624 ______________ ______________ NET CASH USED IN INVESTING ACTIVITIES (9,440,126) (11,653,843) ______________ ______________ CASH FLOWS FROM FINANCING ACTIVITIES: Net increase in deposits 9,696,627 20,094,380 Net decrease in securities sold under repurchase agreements and federal funds purchased (2,994,114) - Issuance of notes payable 170,000 75,000 Repayments of notes payable (11,707) (185,676) Proceeds from issuance of common stock - 109,051 Payment of dividends (156,665) (155,529) ______________ ______________ NET CASH PROVIDED BY FINANCING ACTIVITIES 6,704,141 19,937,226 NET DECREASE IN CASH & CASH EQUIVALENTS (1,583,518) 9,701,624 CASH & CASH EQUIVALENTS AT BEGINNING OF PERIOD 14,487,690 20,603,536 ______________ ______________ CASH & CASH EQUIVALENTS AT END OF PERIOD $12,904,172 $30,305,160 ============== ============== See notes to consolidated financial statements.
MIDSOUTH BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. STATEMENT BY MANAGEMENT CONCERNING THE REVIEW OF UNAUDITED FINANCIAL INFORMATION The accompanying unaudited consolidated financial statements and notes thereto contain all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the financial position of MidSouth Bancorp, Inc. ("MidSouth") and its subsidiaries as of March 31, 2000 and the results of their operations and their cash flows for the periods presented. The consolidated financial statements should be read in conjunction with the annual consolidated financial statements and the notes thereto included in MidSouth's 1999 annual consolidated report and Form 10-KSB. The results of operations for the three month period ended March 31, 2000 are not necessarily indicative of the results to be expected for the entire year. 2. ALLOWANCE FOR LOAN AND LEASE LOSSES An analysis of the activity in the allowance for loan and lease losses is as follows:
Three Months Ended March 31, 2000 1999 __________ __________ Balance at beginning of period $1,967,326 $1,860,490 Provision for loan losses 216,962 266,950 Recoveries 34,144 40,293 Loans charged off (255,983) (284,180) __________ __________ Balance at end of period $1,962,449 $1,883,553 ========== ==========
3. COMPREHENSIVE INCOME MidSouth adopted Statement of Financial Accounting Standards No. 130 "Reporting Comprehensive Income" ("SFAS 130") effective January 1, 1998. SFAS 130 establishes standards for reporting and display of comprehensive income and its components. Comprehensive income includes net income and other comprehensive income (losses) which, in the case of MidSouth, only includes unrealized gains and losses on securities available-for-sale. Following is a summary of MidSouth's comprehensive income for the three months ended March 31, 2000 and 1999.
2000 1999 ________ ________ Net income $548,268 $596,850 Other comprehensive income (losses), net of tax (21,355) (105,490) ________ ________ Total comprehensive income $526,913 $491,360 ======== ========
MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION This review should be read in conjunction with MidSouth Bancorp Inc.'s ("MidSouth") consolidated financial statements and accompanying notes contained herein, as well as with MidSouth's 1999 annual consolidated financial statements, the notes thereto and the related Management's Discussion and Analysis. MidSouth Bancorp, Inc. recorded net income of $548,268 for the first quarter of 2000, a decrease from net income of $596,850 reported for the first quarter of 1999. Income available to common shareholders totaled $510,209 for the first quarter of 2000, compared to $563,467 for the first quarter of 1999. Basic earnings per share were $.21 and $.23 for the quarters ended March 31, 2000 and 1999, respectively. Diluted earnings per share were $.18 for the first quarter of 2000 compared to $.20 for the first quarter of 1999. The decrease in earnings resulted from increases in salaries and employee benefits of $272,629, occupancy expenses of $129,774, and other expenses of $283,295. The salary and occupancy expense increases were primarily related to the addition of two branch offices in the third and fourth quarters of 1999, as well as the development of an electronic banking program that includes an internet banking product to be introduced during the second quarter of 2000. The other expense increase was principally due to expenses incurred in negotiating an affiliation with a major corporation to enhance MidSouth's internet product, and in a loss of $93,000 on the valuation of one commercial property held as other real estate owned in the first quarter of 2000. Total consolidated assets increased $13.7 million, from $270.4 million at March 31, 1999 to $284.1 million at March 31, 2000. Deposits grew $11.4 million, from $250.0 million at March 31, 1999 to $261.4 million at March 31, 2000. Interest-bearing deposits reported at March 31, 2000 totaled $197.3 million compared to $191.4 million at March 31, 1999. Loans, net of Allowance for Loan Losses ("ALL"), increased $18.6 million or 12%, from $153.9 million in the first quarter of 1999 to $172.5 million in the first quarter of 2000. Provisions for loan losses totaled $216,962 in March 2000 compared to $266,950 in March 1999. Nonperforming loans as a percentage of total loans decreased from .41% in March of 1999 to .12% in March of 2000. The decrease resulted primarily from the transfer of two commercial credits to other real estate owned during 1999. A $93,000 loss on valuation of other real estate was recorded on one of these commercial credits during the first quarter of 2000. Loans past due ninety days and over increased slightly in quarterly comparison, from $596,072 at March 31, 1999 to $608,680 at March 31, 2000. The ALL represented 280% of nonperforming assets as of March 31, 2000 compared to 277% as of March 31, 1999. Earnings Analysis Net Interest Income Average earning assets increased 8%, or $18.7 million, from $235.6 million for the three months ended March 31, 1999 to $254.3 million for the three months ended March 31, 2000. The mix of average earning assets remained relatively constant, as loans represented 66% of average earning assets in the first quarter of 1999 compared to 67% in the first quarter of 2000. Average loan volume increased $16.3 million, from $155.2 million in the first quarter of 1999 to $171.5 million in the first quarter of 2000. The average yield on loans increased 45 basis points in quarterly comparison, from 9.82% to 10.27% at March 31, 2000. The increase in loan yields resulted primarily from increases in the prime lending rate (both New York prime and MidSouth's internal prime rate) during 1999 and the first quarter of 2000. New York prime rose 75 basis points in the second half of 1999, while MidSouth's prime rate rose 50 basis points late in the fourth quarter of 1999. In February 2000, both rates increased another 25 basis points. In addition, insurance premium financing loans acquired in May 1999 boosted loan yields with an average rate of 24% earned on an average portfolio of $3.3 million. Investment volume increased $12.5 million, from $66.3 million at March 31, 1999 to $78.8 million at March 31, 2000, funded primarily by federal funds sold. The average taxable-equivalent yield on investments remained unchanged for the two quarters reviewed at 6.48%. Additionally, federal funds sold yields increased 75 basis points, from 4.58% to 5.33%. Improvement in yields on average earning assets, combined with volume increases resulted in increased interest income of $730,193 in quarterly comparison. An average volume increase of $17.1 million in interest- bearing liabilities combined with a 17 basis point increase in the average rate paid resulted in a $279,606 increase in interest expense for the quarter ended March 31, 2000 compared to the quarter ended March 31, 1999. The percentage of average interest-bearing deposits to average total deposits remained relatively constant at 76% in quarterly comparison. The average rate paid on interest- bearing deposits increased 15 basis points, from 3.99% at March 31, 1999 to 4.14% at March 31, 2000. The net effect of changes in the yields and volume of earning assets and interest-bearing liabilities increased net interest income $450,587 in quarterly comparison. The net taxable- equivalent yield on average earning assets increased 28 basis points, from 5.40% for the quarter ended March 31, 1999, to 5.68% for the quarter ended March 31, 2000. Non-interest Income MidSouth's primary source of non-interest income, service charges on deposit accounts, increased $34,888 for the three months ended March 31, 2000 as compared to the same period in 1999. The increase resulted primarily from an increase in the volume of accounts serviced. Income from the sale of credit life insurance increased $41,127 and other non-interest income increased $50,345 in quarterly comparison. Non-interest Expense Non-interest expense increased $685,698 or 24% for the three months ended March 31, 2000 compared to the three months ended March 31, 1999. Increases were recorded in the categories of salaries and employee benefits, occupancy expense and other expenses. The increase in other expenses resulted primarily from an increase in expenses on other real estate owned. Salaries and employee benefits increased primarily due to new hires to staff and develop the seventh Lafayette office, the Sulphur office, and an electronic banking program that includes an internet banking product. Additionally, hires after the first quarter of 1999 included a retail manager for the Lafayette market, a marketing analyst, two Finance Company employees, and five employees to manage an insurance premium financing portfolio purchased in May 1999. The number of full-time equivalent ("FTE") employees increased by 34 from 155 in March 1999 to 189 in March 2000. Occupancy expense increased in the three-month period ended March 31, 2000 compared to the same period of 1999 due to increases in depreciation and maintenance expenses associated with buildings, furniture and equipment, utilities and ad valorem taxes. The increase in depreciation expense and utilities resulted primarily from the addition of the two new offices in the third and fourth quarters of 1999. Other expense increased primarily due to a $93,000 loss on valuation of one commercial property held in other real estate owned in the first quarter of 2000. Additional non-interest expenses were incurred in negotiating an affiliation with a major corporation to enhance MidSouth's internet product. Balance Sheet Analysis MidSouth ended the first quarter of 2000 with consolidated assets of $284.1 million, an increase of $7.4 million over the $276.7 million reported for December 31, 1999. Deposits increased over the three months ended March 31, 2000 by $9.7 million, from $251.7 million at December 31, 1999 to $261.4 million at March 31, 2000. The majority of the deposit growth was in interest-bearing money market accounts. Loans grew $4.0 million, from $170.5 million at December 31, 1999 to $174.5 at March 31, 2000. Loan growth has been hampered by payoffs on existing credits and competitive pricing for loan dollars in MidSouth's market. Subsequently, excess funds were used to purchase additional securities. Purchases of $7.5 million in agency securities and municipals were added to the investment portfolio in the first quarter of 2000. Unrealized losses in the securities available-for-sale portfolio, net of unrealized gains and tax effect, were $969,785 at March 31, 2000, compared to a net unrealized loss of $948,430 at December 31, 1999. These amounts result from interest rate fluctuations and do not represent permanent adjustments of value. Moreover, classification of securities as available- for-sale does not necessarily indicate that the securities will be sold prior to maturity. Capital As of March 31, 2000, MidSouth's leverage ratio was 6.29% as compared to 6.23% at December 31, 1999. Tier 1 capital to risk-weighted assets was 9.36% and total capital to risk-weighted assets was 10.40% at the end of the first quarter of 2000. At year-end 1999, Tier 1 capital to risk- weighted assets was 9.47% and total capital to risk- weighted assets was 10.55%. The Year 2000 Issue To maintain safe and sound banking practices, MidSouth took appropriate measures to insure efficient operations of computer systems beyond the year 2000. Beginning in June of 1997, MidSouth's Board of Directors established a Year 2000 compliance committee. The committee identified mission critical systems and completed testing and updating of these systems in 1999. To further reduce the risks associated with the century change, MidSouth requested and received assurances of Year 2000 readiness from all material third party providers and customers. Contingency plans to provide short-term and long-term processing capabilities were developed and tested in 1999. In addition, contingency plans for liquidity needs due to potentially significant deposit withdrawals during the fourth quarter of 1999 were completed. As of March 31, 2000, MidSouth had not experienced any processing errors other than those typically encountered and corrected daily by banks. Management is not aware of any significant issues related to the Year 2000 that had an adverse affect on MidSouth's third party providers or customers. MidSouth plans to continue to monitor processing systems for possible remaining uncertainties. The costs incurred with testing and preparation for the Year 2000 were not significant to MidSouth's earnings. Nonperforming Assets and Past Due Loans Table 1 summarizes MidSouth's nonaccrual, past due and restructured loans and nonperforming assets.
TABLE 1 Nonperforming Assets and Loans Past Due 90 Days ============================================================== March December March 31, 31, 31, 2000 1999 1999 ============================================================== Nonperforming loans $213,994 $234,962 $636,943 Other real estate owned, net 460,088 569,963 39,100 Other assets repossessed 26,373 31,755 5,039 __________ ________ ________ Total nonperforming assets $700,455 $836,680 $681,082 ========== ======== ======== Loans past due 90 days or more and still accruing $608,680 $793,823 $596,072 Nonperforming loans as a % of total loans .12% 0.14% 0.41% Nonperforming assets as a % of total loans, other real estate owned and other assets Repossessed 0.40% 0.49% 0.44% ALLL as a % of nonperforming assets 280.17% 235.13% 276.55%
Nonperforming assets were $700,455 as of March 31, 2000, a decrease of $136,255 from the $836,680 reported for December 31, 1999 and an increase of $19,373 from the $681,082 reported for March 31, 1999. The decrease from year-end 1999 resulted primarily from a $93,000 loss on valuation of one commercial property held in other real estate owned. Loans past due 90 days or more increased from $596,072 in March 1999 to $793,823 in December 1999 and decreased to $608,680 as of March 31, 2000. Of the $608,680 in loans past due 90 days or more at March 31, 2000, $93,263 were past due loans reported by the Finance Company. Specific reserves have been established in the ALL to cover potential losses on nonperforming assets. The ALL is analyzed quarterly and additional reserves, if needed, are allocated at that time. Management believes the $1,962,449 in the reserve as of March 31, 2000 is sufficient to cover potential losses in nonperforming assets and in the loan and lease portfolios. Loans classified for regulatory purposes but not included in Table 1 do not represent material credits about which management has serious doubts as to the ability of the borrower to comply with loan repayment terms. Item 6. Exhibits and Reports on Form 8-K (a) Exhibits Exihibit Number Document Description 3.1 Amended and Restated Articles of Incorporation of MidSouth Bancorp, Inc. is included as Exhibit 3.1 to the MidSouth's Report on Form 10-K for the year ended December 31, 1993, and is incorporated herein by reference. 3.2 Articles of Amendment to Amended and Restated Articles of Incorporation dated July 19, 1995 are included as Exhibit 4.2 to MidSouth's Registration Statement on Form S-8 filed September 20, 1995 and is incorporated herein by reference. 3.3 Amended and Restated By-laws adopted by the Board of Directors on April 12, 1995 are included as Exhibit 3.2 to Amendment No. 1 to MidSouth's Registration Statement on Form S-4 (Reg. No. 33-58499) filed on June 1, 1995. 10.1 MidSouth National Bank Lease Agreement with Southwest Bank Building Limited Partnership is included as Exhibit 10.7 to the Company's annual report on Form 10-K for the Year Ended December 31, 1992, and is incorporated herein by reference. 10.2 First Amendment to Lease between MBL Life Assurance Corporation, successor in interest to Southwest Bank Building Limited Partnership in Commendam, and MidSouth National Bank is included as Exhibit 10.1 to Report on the Company's annual report on Form 10-KSB for the year ended December 31, 1994, and is incorporated herein by reference. 10.3 Amended and Restated Deferred Compensation Plan and Trust is included as Exhibit 10.3 to the Company's annual report on Form 10-K for the year ended December 31, 1992 and is incorporated herein by reference. 10.4 Employment Agreements with C. R. Cloutier and Karen L. Hail are included as Exhibit 5(c) to MidSouth's Form 1-A and are incorporated herein by reference. 10.6 MidSouth Bancorp, Inc.'s 1997 Stock Incentive Plan is included as Exhibit 4.5 to MidSouth's definitive Proxy Statement filed April 11, 1997, and is incorporated herein by reference. 10.7 The MidSouth Bancorp, Inc. Dividend Reinvestment and Stock Purchase Plan is included as Exhibit 4.6 to MidSouth Bancorp, Inc.'s Form S-3D filed on July 25, 1997 and is incorporated herein by reference. 10.8 Loan Agreements and Master Notes for lines of credit established for MidSouth Bancorp, Inc. and Financial Services of the South, Inc. are included as Exhibit 10.7 of MidSouth's Form 10-QSB filed on August 14, 1997 and is incorporated herein by reference. 11 Computation of earnings per share 27 Financial Data Schedule (b) Reports Filed on Form 8-K (none) Signatures In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. MidSouth Bancorp, Inc. (Registrant) Date: May 15,2000 /s/ C. R. Cloutier ___________________________ C. R. Cloutier, President & CEO /s/ Karen L. Hail _______________________________________ Karen L. Hail, Executive Vice President & CFO /s/ Teri S. Stelly __________________________________ Teri S. Stelly, Senior Vice President & Controller EX-11 2
MIDSOUTH BANCORP, INC. AND SUBSIDIARIES EXHIBIT 11 COMPUTATION OF EARNINGS PER SHARE (Unaudited) FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999 AND FOR THE TWELVE MONTHS ENDED DECEMBER 1999 First Quarter First Quarter Year-to-Date March 31, March 31, December 31, BASIC 2000 1999 1999 _____________ _____________ ____________ Earnings: Income applicable to common stock $510,209 $563,467 $2,518,622 ============ ============ ============ Shares: Weighted average number of common shares outstanding 2,470,551 2,439,256 2,441,461 ============ ============ ============ Earnings per common share: Income applicable to common stock $0.21 $0.23 $1.03 ============ ============ ============ DILUTED Earnings: Net income $548,268 $596,850 $2,650,204 ============ ============ ============ Weighted average number of common shares outstanding 2,470,551 2,439,256 2,441,461 Assuming exercise of options, reduced by the number of shares which could have been purchased with the proceeds from exercise of such options at the average issue price 36,951 56,604 51,616 Assuming conversion of preferred stock at a conversion rate of 1 to 2.998 shares 457,153 469,343 463,185 ____________ ____________ ____________ Weighted average number of common shares outstanding, as adjusted 2,964,655 2,965,203 2,956,262 ============ ============ ============ Fully diluted earnings per common share $0.18 $0.20 $0.90 ============ ============ ============
EX-27 3
9 3-MOS DEC-31-1999 MAR-31-2000 12,104,172 75,313 800,000 0 59,081,353 22,730,393 22,388,655 174,517,877 1,962,449 284,109,042 261,386,833 612,487 1,193,325 3,617,390 0 2,169,363 248,334 14,881,310 17,299,007 4,392,800 1,146,987 52,238 5,592,025 2,021,987 2,119,298 3,472,727 216,962 1,770 3,588,791 704,244 704,244 0 0 548,268 .21 .18 5.42 213,994 608,680 0 0 1,967,326 255,983 34,144 1,962,449 72,000 0 1,890,449
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