MidSouth Bancorp, Inc. Reports First Quarter 2019 Results

Quarterly Highlights

• Reported EPS for the first quarter of 2019 was a loss of $0.40 versus a loss of $0.03 for the first quarter of 2018 primarily due to the impact of a $6.6 million impairment charge for a shared national healthcare credit.
• Bank level classified assets to capital declined from 29% for the fourth quarter 2018 to 25% for the first quarter of 2019 due to the successful execution of a $16.9 million loan sale partially offset by the $6.6 million impairment mentioned above.
• FTE net interest margin of 3.89% decreased 46 basis points from fourth quarter 2018 which included 18 basis points of accelerated loan accretion, and 13 basis points impact due to the reversal of accrued interest in the first quarter of 2019 for a shared national healthcare credit.
• Funding costs of 55 basis points remain below market averages with core deposits comprising a strong 88% of Total Deposits.
• Tangible common equity to tangible assets at March 31, 2019 was 8.0%.

MidSouth Bancorp, Inc. (“MidSouth”) (NYSE: MSL) today reported a quarterly net loss available to common shareholders of $6.64 million for the three months ended March 31, 2019, compared to net loss available to common shareholders of $450,000 reported for the three months ended March 31, 2018 and $23.1 million in net loss available to common shareholders for the fourth quarter of 2018. The first quarter loss is primarily due to the $6.6 million impairment charge for a shared national healthcare credit. MidSouth has one additional pass rated shared national credit for $10.3 million with a company headquartered in the Acadiana market. The first quarter of 2018 included after-tax charges of $691,000 resulting from the transfer of loans to held for sale, $3.1 million for regulatory remediation costs, $115,000 related to branch closures during the quarter and $70,000 for legal fees related to a bulk loan sale. The fourth quarter of 2018 included an after-tax charge of $3.9 million for regulatory remediation costs, a $11.4 million tax-related charge for the establishment of a valuation allowance to fully reserve against net deferred tax assets given the company’s cumulative pretax loss position. Excluding 2018 non-operating expenses, a loss of $0.40 per diluted share was reported for the first quarter of 2019, compared to diluted loss per common share of $0.73 for the fourth quarter of 2018 and diluted income per share of $0.21 for the first quarter of 2018.

Balance Sheet

Consolidated assets decreased $112.4 million to $1.7 billion at March 31, 2019 from $1.9 billion at March 31, 2018 and essentially unchanged from $1.7 billion at December 31, 2018. Our stable core deposit base, which excludes time deposits, totaled $1.3 billion at March 31, 2019 and December 31, 2018 and accounted for 87.5% and 87.6% of deposits at March 31, 2019 and December 31, 2018, respectively. Net loans totaled $868.9 million at March 31, 2019, compared to $882.4 million at December 31, 2018 and $1.1 billion at March 31, 2018. Loans held for sale of $1.5 million at March 31, 2019 declined from $23.9 million at December 31, 2018, due to the successful execution of a $16.9 million loan sale in the first quarter of 2019.

MidSouth’s Tier 1 leverage capital ratio was 11.60% at March 31, 2019, compared to 11.45% at December 31, 2018. Tier 1 risk-based capital and total risk-based capital ratios were 18.22% and 19.49% at March 31, 2019, respectively, compared to 17.79% and 19.04% at December 31, 2018, respectively. Tier 1 common equity to total risk-weighted assets at March 31, 2019 was 12.48%, compared to 12.20% at December 31, 2018. Tangible common equity totaled $135.9 million at March 31, 2019, compared to $136.4 million at December 31, 2018. Tangible book value per share at March 31, 2019 was $8.13 compared to $8.20 at December 31, 2018.

Asset Quality

Nonperforming assets totaled $23.9 million at March 31, 2019, a decrease of $6.6 million compared to $30.5 million reported at December 31, 2018. The decrease is primarily attributable to the sale of $16.9 million of nonperforming loans offset by a $13.2 million increase in non-accrual loans due primarily to a $11.4 million shared national healthcare credit. Allowance coverage for nonperforming loans decreased to 106.85% at March 31, 2019, compared to 195.40% at December 31, 2018. The ALLL/total loans ratio was 2.77% at March 31, 2019 and 1.94% at December 31, 2018. The ratio of annualized net charge-offs to total loans decreased to 0.11% for the three months ended March 31, 2019 compared to 8.45% for the three months ended December 31, 2018, primarily as a result of the charge-offs taken in the fourth quarter due to the impending bulk loan sale.

Total nonperforming assets, excluding nonperforming loans held for sale to total loans plus ORE and other assets repossessed was 2.68% at March 31, 2019 compared to 3.39% at December 31, 2018. Loans classified as troubled debt restructurings, accruing (“TDRs, accruing”) totaled $713,000 at March 31, 2019 compared to $1.3 million at December 31, 2018. Total classified assets, including ORE, were $44.4 million at March 31, 2019 compared to $51.2 million at December 31, 2018. The balance of classified loans decreased as a result of principal reductions through payoffs and/or pay-downs and settlements and the completion of problem asset sales of $18.3 million offset by the downgrade of a shared national credit in the healthcare industry in the amount of $11.4 million. The classified assets to capital ratio at MidSouth Bank was 25% at March 31, 2019 versus 29% at December 31, 2018.

More information on our energy loan portfolio and other information on quarterly results can be found on our website at MidSouthBank.com under Investor Relations/Presentations.

First Quarter 2019 vs. Fourth Quarter 2018 Earnings Comparison

MidSouth reported a net loss available to common shareholders of $6.6 million for the three months ended March 31, 2019, compared to net loss available to common shareholders of $23.1 million for the three months ended December 31, 2018. Revenues from consolidated operations decreased $324,000 from $24.0 million in the fourth quarter of 2018 to $23.7 million in the first quarter 2019, primarily as a result of the gain on sale of loans of $1.3 million and gain on sale of securities of $373,000 offset by a decrease in loan income of $1.5 million.

The first quarter of 2019 did not include any remediation costs. The fourth quarter of 2018 included a non-recurring charge of $5.0 million of regulatory remediation costs. Excluding these non-operating expenses, noninterest expense increased $212,000 and consisted primarily of a continued investment in compliance staffing and an $805,000 offset due to lower professional fees.

The provision for loan losses decreased $4.4 million from the fourth quarter 2018 to the first quarter 2019. A $11.4 million tax-related charge was recorded during the fourth quarter of 2018 associated with the establishment of a valuation reserve against the net deferred tax assets. Excluding this adjustment, we recorded income tax expense of $7.6 million for the fourth quarter of 2018, compared to no income tax expense for the first quarter of 2019.

Dividends on the Series B Preferred Stock issued to the U.S. Treasury as a result of our participation in the Small Business Lending Fund totaled $720,000 for the first quarter of 2019 and the fourth quarter of 2018 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 totaled $90,000 for the three months ended March 31, 2019 and December 31, 2018.

Fully taxable-equivalent (“FTE”) net interest income decreased $1.9 million from the fourth quarter 2018 to the first quarter 2019, primarily due to a decrease in interest income on loans and interest bearing deposits with other banks of $1.5 million and $360,000, respectively. Higher loan yields for the fourth quarter 2018 are reflective of management’s recognition of the remaining PSB loan accretion discounts into income. Excluding these purchase accounting adjustments, the loan yield decreased 11 bps, from 5.85% to 5.74% during the same period. The average yield on investment securities decreased 30 basis points, from 3.16% to 2.86%, due to a repositioning of the bond portfolio through the sale of higher yielding municipal and corporate bonds and the timing impact of the sales and reinvestments on average balances. The average yield on total earning assets decreased 54 bps for the same period, from 4.87% to 4.41%, respectively. The FTE net interest margin decreased 53 bps from 4.35% for the fourth quarter 2018 to 3.89% for the first quarter of 2019. Excluding purchase accounting adjustments, the FTE net interest margin decreased 22 bps, from 4.04% for the fourth quarter of 2018 to 3.89% for the first quarter of 2019.

First Quarter 2019 vs. First Quarter 2018 Earnings Comparison

MidSouth reported a net loss available to common shareholders of $6.6 million for the three months ended March 31, 2019, compared to net loss available to common shareholders of $450,000 for the three months ended March 31, 2018. Revenues from consolidated operations decreased $108,000 in quarterly comparison, from $23.8 million for the three months ended March 31, 2018 to $23.7 million for the three months ended March 31, 2019. Net interest income decreased $2.0 million in quarterly comparison, resulting from a $1.6 million decrease in interest income primarily driven by lower loan levels, in addition to a higher interest expense of $435,000 reflecting the impact of higher interest rates. Operating noninterest income decreased $203,000 which excludes $1.6 million gains on assets sales including loans and investments.

Excluding remediation expenses of $3.9 million for the first quarter of 2018, noninterest expenses increased $1.9 million in quarterly comparison and consisted primarily of a $2.0 million increase in salaries and employee benefits costs. The provision for loan losses increased $7.6 million in quarterly comparison, from $0 for the three months ended March 31, 2018 to $7.6 million the three months ended March 31, 2019. We recorded an income tax benefit of $34,000 for the first quarter of 2018 versus no benefit for the first quarter of 2019.

Dividends on preferred stock totaled $810,000 for the three months ended March 31, 2019 and 2018. Dividends on the Series B Preferred Stock were $720,000 for the three months ended March 31, 2019 and 2018. Dividends on the Series C Preferred Stock totaled $90,000 for the three months ended March 31, 2019 and 2018.

Interest income on loans decreased $3.0 million primarily due to a $255.4 million decline in average loans given ongoing efforts to reduce problem loans and slower loan originations due to an internal focus on improving loan portfolio management and loan operations.

Investment securities totaled $469.8 million, or 26.9% of total assets at March 31, 2019, versus $367.2 million, or 19.8% of total assets at March 31, 2018. The investment portfolio had an effective duration of 2.6 years and a net unrealized loss of $70,000 at March 31, 2019. FTE interest income on investments increased $947,000 in prior year quarterly comparison. The average volume of investment securities increased $90.0 million in prior year quarterly comparison, and the average tax equivalent yield on investment securities increased 32 basis points, from 2.54% to 2.86%.

The average yield on all earning assets decreased 15 basis points in prior year quarterly comparison, from 4.56% for the first quarter of 2018 to 4.41% for the first quarter of 2019, due to a less favorable mix of earning assets given the decline in loans on a year-over-year basis.

Interest expense increased $435,000 in prior year quarterly comparison primarily due to a $442,000 increase in interest expense on deposits and a $67,000 increase in interest expense on junior subordinated debt, which were partially offset by a $74,000 decrease in interest expense on repurchase agreements and FHLB borrowings.

As a result of these changes in volume and yield on earning assets and interest-bearing liabilities, the FTE net interest margin decreased 23 basis points, from 4.12% for the first quarter of 2018 to 3.89% for the first quarter of 2019.

About MidSouth Bancorp, Inc.

MidSouth Bancorp, Inc. is a bank holding company headquartered in Lafayette, Louisiana, with assets of $1.7 billion as of March 31, 2019. 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 42 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.

Non-GAAP Financial Measures

This press release, including the accompanying financial statement tables, contains financial information determined by methods other than in accordance with generally accepted accounting principles, or GAAP. This financial information includes certain operating performance measures, which exclude charges that are not considered part of recurring operations. Non-GAAP measures in this press release include, but are not limited to, descriptions such as “operating noninterest income,” “operating (loss) earnings per share,” “tangible common equity,” “tangible book value per share,” “operating return on average common equity,” “operating return on average assets,” and “operating efficiency ratio.” In addition, this press release, consistent with SEC Industry Guide 3, presents total revenue, net interest income, net interest margin, “non-operating expenses” and efficiency ratios on a fully taxable equivalent (“FTE”) basis, and ratios on an annualized basis. The FTE basis adjusts for the tax-favored status of net interest income from certain loans and investments using a federal tax rate of 21% for all periods beginning on or after January 1, 2018, as well as state income taxes, where applicable, to increase tax-exempt interest income to a taxable-equivalent basis. MidSouth believes this measure to be the preferred industry measurement of net interest income and it enhances comparability of net interest income arising from taxable and tax-exempt sources.

We use non-GAAP measures because we believe they are useful for evaluating our financial condition and performance over periods of time, as well as in managing and evaluating our business and in discussions about our performance. We also believe these non-GAAP financial measures provide users of our financial information with a meaningful measure for assessing our financial condition as well as comparison to financial results for prior periods. These measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented by other companies. To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable measures as reported in accordance with GAAP are included with the accompanying financial statement tables.

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, statements regarding expected future performance and shareholder value. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “will,” “would,” “could,” “should,” “guidance,” “potential,” “continue,” “project,” “forecast,” “confident,” and similar expressions are typically used to identify forward-looking statements.

These statements are based on assumptions and assessments made by management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Any forward-looking statements are not guarantees of our future performance and are subject to risks and uncertainties and may be affected by various factors that may cause actual results, developments and business decisions to differ materially from those in the 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 in the markets we serve, 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; increases in competitive pressure in the banking and financial services industries; increased competition for deposits and loans which could affect compositions, rates and terms; changes in the levels of prepayments received on loans and investment securities that adversely affect the yield and value of the earning assets; our ability to successfully implement and manage our strategic initiatives; costs and expenses associated with our strategic initiatives and regulatory remediation efforts and possible changes in the size and components of the expected costs and charges associated with our strategic initiatives and regulatory remediation efforts; our ability to realize the anticipated benefits and cost savings from our strategic initiatives within the anticipated time frame, if at all; the ability of the Company to comply with the terms of the formal agreement and the consent order with the Office of the Comptroller of the Currency; risk of noncompliance with and further enforcement actions regarding the Bank Secrecy Act and other anti-money laundering statues and regulations; credit losses due to loan concentration, particularly our energy lending and commercial real estate portfolios; a deviation in actual experience from the underlying assumptions used to determine and establish our allowance for loan and lease losses (“ALLL”), which could result in greater than expected loan losses; the adequacy of the level of our ALLL and the amount of loan loss provisions required in future periods including the impact of implementation of the new CECL (current expected credit loss) methodology; future examinations by our regulatory authorities, including the possibility that the regulatory authorities may, among other things, impose additional enforcement actions or conditions on our operations, require additional regulatory remediation efforts or require us to increase our allowance for loan losses or write-down assets; changes in the availability of funds resulting from reduced liquidity or increased costs; the timing and impact of future acquisitions or divestitures, the success or failure of integrating acquired operations, and the ability to capitalize on growth opportunities upon entering new markets; the ability to acquire, operate, and maintain effective and efficient operating systems; the identified material weaknesses in our internal control over financial reporting; increased asset levels and changes in the composition of assets that would impact capital levels and regulatory capital ratios; loss of critical personnel and the challenge of hiring qualified personnel at reasonable compensation levels; legislative and regulatory changes, including the impact of regulations under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and other 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; regulations and restrictions resulting from our participation in government-sponsored programs such as the U.S. Treasury’s Small Business Lending Fund, including potential retroactive changes in such programs; changes in accounting principles, policies, and guidelines applicable to financial holding companies and banking; increases in cybersecurity risk, including potential business disruptions or financial losses; acts of war, terrorism, cyber intrusion, weather, or other catastrophic events beyond our control; and other factors discussed under the heading “Risk Factors” in MidSouth’s Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC on March 18, 2019 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

March 31

December 31

September 30

June 30

March 31

        
      
      
        
          Total interest income
        
        
        
        
        
        
        
        
        
        
          $
        
        
          17,445
        
        
        
        
        
        
        
        
          $
        
        
          19,340
        
        
        
        
        
        
        
        
          $
        
        
          18,436
        
        
        
        
        
        
        
        
          $
        
        
          18,739
        
        
        
        
        
        
        
        
          $
        
        
          18,997
        
        
        
      
      
        
          Total interest expense
        
        
        
        
        
        
        
        
           
        
        
          2,062
        
        
           
        
        
           
        
        
           
        
        
          2,097
        
        
           
        
        
           
        
        
           
        
        
          1,970
        
        
           
        
        
        
        
        
        
          1,814
        
        
           
        
        
           
        
        
           
        
        
          1,627
        
        
           
        
      
      
        
          Net interest income
        
        
        
        
        
        
        
        
           
        
        
          15,383
        
        
           
        
        
           
        
        
           
        
        
          17,243
        
        
           
        
        
           
        
        
           
        
        
          16,466
        
        
           
        
        
        
        
        
        
          16,925
        
        
           
        
        
           
        
        
           
        
        
          17,370
        
        
           
        
      
      
        
          Provision for loan losses
        
        
        
        
        
        
        
        
           
        
        
          7,600
        
        
           
        
        
           
        
        
           
        
        
          12,000
        
        
           
        
        
           
        
        
           
        
        
          4,300
        
        
           
        
        
        
        
        
        
          440
        
        
           
        
        
           
        
        
           
        
        
          —
        
        
           
        
      
      
        
          Non-interest income
        
        
        
        
        
        
        
        
        
        
          6,273
        
        
        
        
        
        
        
        
          4,702
        
        
        
        
        
        
        
        
          5,090
        
        
        
        
        
        
        
        
          4,882
        
        
        
        
        
        
        
        
          4,829
        
        
        
      
      
        
          Non-interest expense
        
        
        
        
        
        
        
        
           
        
        
          19,886
        
        
           
        
        
           
        
        
           
        
        
          24,644
        
        
           
        
        
           
        
        
           
        
        
          23,527
        
        
           
        
        
        
        
        
        
          22,273
        
        
           
        
        
           
        
        
           
        
        
          21,873
        
        
           
        
      
      
        
          (Loss) earnings before income taxes
        
        
        
        
        
        
        
        
        
        
          (5,830
        
        
          )
        
        
        
        
        
        
          (14,699
        
        
          )
        
        
        
        
        
        
          (6,271
        
        
          )
        
        
        
        
        
        
          (906
        
        
          )
        
        
        
        
        
        
          326
        
        
        
      
      
        
          Income tax (benefit) expense
        
        
        
        
        
        
        
        
           
        
        
          —
        
        
           
        
        
           
        
        
           
        
        
          7,610
        
        
           
        
        
           
        
        
           
        
        
          (1,373
        
        
          )
        
        
        
        
        
        
          (237
        
        
          )
        
        
           
        
        
           
        
        
          (34
        
        
          )
        
      
      
        
          Net (loss) earnings
        
        
        
        
        
        
        
        
        
        
          (5,830
        
        
          )
        
        
        
        
        
        
          (22,309
        
        
          )
        
        
        
        
        
        
          (4,898
        
        
          )
        
        
        
        
        
        
          (669
        
        
          )
        
        
        
        
        
        
          360
        
        
        
      
      
        
          Dividends on preferred stock
        
        
        
        
        
        
        
        
           
        
        
          810
        
        
           
        
        
           
        
        
           
        
        
          809
        
        
           
        
        
           
        
        
           
        
        
          810
        
        
           
        
        
        
        
        
        
          810
        
        
           
        
        
           
        
        
           
        
        
          810
        
        
           
        
      
      
        
          Net loss available to common shareholders
        
        
        
        
        
        
        
        
           
        
        
          $
        
        
          (6,640
        
        
          )
        
        
           
        
        
           
        
        
          $
        
        
          (23,118
        
        
          )
        
        
           
        
        
           
        
        
          $
        
        
          (5,708
        
        
          )
        
        
        
        
        
        
          $
        
        
          (1,479
        
        
          )
        
        
           
        
        
           
        
        
          $
        
        
          (450
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          

PER COMMON SHARE DATA

        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Basic loss per share
        
        
        
        
        
        
        
        
        
        
          (0.40
        
        
          )
        
        
        
        
        
        
          (1.39
        
        
          )
        
        
        
        
        
        
          (0.34
        
        
          )
        
        
        
        
        
        
          (0.09
        
        
          )
        
        
        
        
        
        
          (0.03
        
        
          )
        
      
      
        
          Diluted loss per share
        
        
        
        
        
        
        
        
        
        
          (0.40
        
        
          )
        
        
        
        
        
        
          (1.39
        
        
          )
        
        
        
        
        
        
          (0.34
        
        
          )
        
        
        
        
        
        
          (0.09
        
        
          )
        
        
        
        
        
        
          —
        
        
        
      
      
        
          Diluted (loss) earnings per share, operating (Non-GAAP)(*)
        
        
        
        
        
        
        
        
        
        
          (0.40
        
        
          )
        
        
        
        
        
        
          (0.66
        
        
          )
        
        
        
        
        
        
          (0.08
        
        
          )
        
        
        
        
        
        
          0.17
        
        
        
        
        
        
        
        
          0.21
        
        
        
      
      
        
          Quarterly dividends per share
        
        
        
        
        
        
        
        
        
        
          0.01
        
        
        
        
        
        
        
        
          0.01
        
        
        
        
        
        
        
        
          0.01
        
        
        
        
        
        
        
        
          0.01
        
        
        
        
        
        
        
        
          0.01
        
        
        
      
      
        
          Book value per share at end of period
        
        
        
        
        
        
        
        
        
        
          10.78
        
        
        
        
        
        
        
        
          10.88
        
        
        
        
        
        
        
        
          12.05
        
        
        
        
        
        
        
        
          12.50
        
        
        
        
        
        
        
        
          12.62
        
        
        
      
      
        
          Tangible book value per share at period end (Non-GAAP)(*)
        
        
        
        
        
        
        
        
        
        
          8.13
        
        
        
        
        
        
        
        
          8.20
        
        
        
        
        
        
        
        
          9.35
        
        
        
        
        
        
        
        
          9.78
        
        
        
        
        
        
        
        
          9.89
        
        
        
      
      
        
          Market price per share at end of period
        
        
        
        
        
        
        
        
        
        
          11.41
        
        
        
        
        
        
        
        
          10.60
        
        
        
        
        
        
        
        
          15.40
        
        
        
        
        
        
        
        
          13.25
        
        
        
        
        
        
        
        
          12.65
        
        
        
      
      
        
          Shares outstanding at period end
        
        
        
        
        
        
        
        
        
        
          16,715,671
        
        
        
        
        
        
        
        
          16,641,017
        
        
        
        
        
        
        
        
          16,641,105
        
        
        
        
        
        
        
        
          16,619,894
        
        
        
        
        
        
        
        
          16,621,811
        
        
        
      
      
        
          Weighted average shares outstanding:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Basic
        
        
        
        
        
        
        
        
        
        
          16,673,818
        
        
        
        
        
        
        
        
          16,640,174
        
        
        
        
        
        
        
        
          16,557,664
        
        
        
        
        
        
        
        
          16,525,571
        
        
        
        
        
        
        
        
          16,495,438
        
        
        
      
      
        
          Diluted
        
        
        
        
        
        
        
        
        
        
          16,673,818
        
        
        
        
        
        
        
        
          16,640,174
        
        
        
        
        
        
        
        
          16,557,664
        
        
        
        
        
        
        
        
          16,525,571
        
        
        
        
        
        
        
        
          16,495,438
        
        
        
      
      
        
          

AVERAGE BALANCE SHEET DATA

        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Total assets
        
        
        
        
        
        
        
        
        
        
          $
        
        
          1,742,686
        
        
        
        
        
        
        
        
          $
        
        
          1,791,990
        
        
        
        
        
        
        
        
          $
        
        
          1,830,834
        
        
        
        
        
        
        
        
          $
        
        
          1,860,906
        
        
        
        
        
        
        
        
          $
        
        
          1,860,070
        
        
        
      
      
        
          Loans and leases
        
        
        
        
        
        
        
        
        
        
          904,293
        
        
        
        
        
        
        
        
          944,545
        
        
        
        
        
        
        
        
          1,020,834
        
        
        
        
        
        
        
        
          1,109,371
        
        
        
        
        
        
        
        
          1,159,671
        
        
        
      
      
        
          Total deposits
        
        
        
        
        
        
        
        
        
        
          1,440,961
        
        
        
        
        
        
        
        
          1,476,211
        
        
        
        
        
        
        
        
          1,503,528
        
        
        
        
        
        
        
        
          1,514,321
        
        
        
        
        
        
        
        
          1,495,907
        
        
        
      
      
        
          Total common equity
        
        
        
        
        
        
        
        
        
        
          182,231
        
        
        
        
        
        
        
        
          202,796
        
        
        
        
        
        
        
        
          209,010
        
        
        
        
        
        
        
        
          210,291
        
        
        
        
        
        
        
        
          214,183
        
        
        
      
      
        
          Total tangible common equity(*)
        
        
        
        
        
        
        
        
        
        
          137,793
        
        
        
        
        
        
        
        
          158,083
        
        
        
        
        
        
        
        
          164,020
        
        
        
        
        
        
        
        
          165,024
        
        
        
        
        
        
        
        
          168,629
        
        
        
      
      
        
          Total equity
        
        
        
        
        
        
        
        
        
        
          223,203
        
        
        
        
        
        
        
        
          243,768
        
        
        
        
        
        
        
        
          249,997
        
        
        
        
        
        
        
        
          251,278
        
        
        
        
        
        
        
        
          255,170
        
        
        
      
      
        
          

SELECTED RATIOS

        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Return on average assets, operating(*)(**)
        
        
        
        
        
        
        
        
        
        
          (1.52
        
        
          )%
        
        
        
        
        
        
          (2.70
        
        
          )%
        
        
        
        
        
        
          (0.30
        
        
          )%
        
        
        
        
        
        
          0.59
        
        
          %
        
        
        
        
        
        
          0.76
        
        
          %
        
      
      
        
          Return on average common equity, operating(*)(**)
        
        
        
        
        
        
        
        
        
        
          (14.57
        
        
          )%
        
        
        
        
        
        
          (23.83
        
        
          )%
        
        
        
        
        
        
          (2.60
        
        
          )%
        
        
        
        
        
        
          5.22
        
        
          %
        
        
        
        
        
        
          6.59
        
        
          %
        
      
      
        
          Return on average tangible common equity, operating(*)(**)
        
        
        
        
        
        
        
        
        
        
          (19.28
        
        
          )%
        
        
        
        
        
        
          (30.57
        
        
          )%
        
        
        
        
        
        
          (3.31
        
        
          )%
        
        
        
        
        
        
          6.65
        
        
          %
        
        
        
        
        
        
          8.37
        
        
          %
        
      
      
        
          Efficiency ratio, operating(*)
        
        
        
        
        
        
        
        
        
        
          91.83
        
        
          %
        
        
        
        
        
        
          89.35
        
        
          %
        
        
        
        
        
        
          83.36
        
        
          %
        
        
        
        
        
        
          77.38
        
        
          %
        
        
        
        
        
        
          75.57
        
        
          %
        
      
      
        
          Average loans to average deposits
        
        
        
        
        
        
        
        
        
        
          62.76
        
        
          %
        
        
        
        
        
        
          63.98
        
        
          %
        
        
        
        
        
        
          67.90
        
        
          %
        
        
        
        
        
        
          73.26
        
        
          %
        
        
        
        
        
        
          77.52
        
        
          %
        
      
      
        
          Tier 1 leverage capital ratio
        
        
        
        
        
        
        
        
        
        
          11.60
        
        
          %
        
        
        
        
        
        
          11.45
        
        
          %
        
        
        
        
        
        
          12.53
        
        
          %
        
        
        
        
        
        
          12.71
        
        
          %
        
        
        
        
        
        
          12.80
        
        
          %
        
      
      
        
          

CREDIT QUALITY

        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Allowance for loan and lease losses (ALLL) as a % of total loans
        
        
        
        
        
        
        
        
        
        
          2.77
        
        
          %
        
        
        
        
        
        
          1.94
        
        
          %
        
        
        
        
        
        
          2.54
        
        
          %
        
        
        
        
        
        
          2.22
        
        
          %
        
        
        
        
        
        
          2.23
        
        
          %
        
      
      
        
          Nonperforming assets to tangible equity + ALLL
        
        
        
        
        
        
        
        
        
        
          14.89
        
        
          %
        
        
        
        
        
        
          6.44
        
        
          %
        
        
        
        
        
        
          23.75
        
        
          %
        
        
        
        
        
        
          32.99
        
        
          %
        
        
        
        
        
        
          36.86
        
        
          %
        
      
      
        
          Nonperforming assets to total loans, other real estate owned and 
          other repossessed assets
        
        
        
        
        
        
        
        
        
        
          2.67
        
        
          %
        
        
        
        
        
        
          1.12
        
        
          %
        
        
        
        
        
        
          5.45
        
        
          %
        
        
        
        
        
        
          7.07
        
        
          %
        
        
        
        
        
        
          7.47
        
        
          %
        
      
      
        
          QTD net charge-offs to total loans (**)
        
        
        
        
        
        
        
        
        
        
          0.11
        
        
          %
        
        
        
        
        
        
          8.45
        
        
          %
        
        
        
        
        
        
          1.40
        
        
          %
        
        
        
        
        
        
          0.87
        
        
          %
        
        
        
        
        
        
          0.54
        
        
          %
        
      
      
        
          (**) Annualized
        
      
      
        
          (*) See reconciliation of Non-GAAP financial measures on pages 18-20.
        
      
    
    
      
        
           
        
      
      
        
           
        
      
      
        
           
        
      
      
        
           
        
      
      
        
           
        
      
      
        
           
        
      
      
        
          

MIDSOUTH BANCORP, INC. and SUBSIDIARIES

Consolidated Balance Sheets (unaudited)

(in thousands)

March 31,

December 31,

September 30,

June 30,

March 31,

2019

2018

2018

2018

2018

Assets

        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Cash and cash equivalents
        
        
        
        
        
        
        
        
        
        
          $
        
        
          243,430
        
        
        
        
        
        
        
        
          $
        
        
          205,371
        
        
        
        
        
        
        
        
          $
        
        
          302,888
        
        
        
        
        
        
        
        
          $
        
        
          278,776
        
        
        
        
        
        
        
        
          $
        
        
          211,486
        
        
        
      
      
        
          Securities available-for-sale
        
        
        
        
        
        
        
        
        
        
          434,679
        
        
        
        
        
        
        
        
          437,754
        
        
        
        
        
        
        
        
          352,606
        
        
        
        
        
        
        
        
          308,937
        
        
        
        
        
        
        
        
          293,970
        
        
        
      
      
        
          Securities held-to-maturity
        
        
        
        
        
        
        
        
        
        
          35,107
        
        
           
        
        
        
        
        
        
          37,759
        
        
           
        
        
        
        
        
        
          64,893
        
        
           
        
        
        
        
        
        
          67,777
        
        
           
        
        
        
        
        
        
          73,255
        
        
           
        
      
      
        
          Total investment securities
        
        
        
        
        
        
        
        
        
        
          469,786
        
        
           
        
        
        
        
        
        
          475,513
        
        
           
        
        
        
        
        
        
          417,499
        
        
           
        
        
        
        
        
        
          376,714
        
        
           
        
        
        
        
        
        
          367,225
        
        
           
        
      
      
        
          Other investments
        
        
        
        
        
        
        
        
        
        
          17,083
        
        
        
        
        
        
        
        
          16,614
        
        
        
        
        
        
        
        
          16,508
        
        
        
        
        
        
        
        
          14,927
        
        
        
        
        
        
        
        
          12,896
        
        
        
      
      
        
          Loans held for sale
        
        
        
        
        
        
        
        
        
        
          1,511
        
        
        
        
        
        
        
        
          23,876
        
        
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          1,117
        
        
        
      
      
        
          Total loans
        
        
        
        
        
        
        
        
        
        
          893,650
        
        
        
        
        
        
        
        
          899,785
        
        
        
        
        
        
        
        
          962,743
        
        
        
        
        
        
        
        
          1,057,963
        
        
        
        
        
        
        
        
          1,137,255
        
        
        
      
      
        
          Allowance for loan losses
        
        
        
        
        
        
        
        
        
        
          (24,779
        
        
          )
        
        
        
        
        
        
          (17,430
        
        
          )
        
        
        
        
        
        
          (24,450
        
        
          )
        
        
        
        
        
        
          (23,514
        
        
          )
        
        
        
        
        
        
          (25,371
        
        
          )
        
      
      
        
          Loans, net
        
        
        
        
        
        
        
        
        
        
          868,871
        
        
           
        
        
        
        
        
        
          882,355
        
        
           
        
        
        
        
        
        
          938,293
        
        
           
        
        
        
        
        
        
          1,034,449
        
        
           
        
        
        
        
        
        
          1,111,884
        
        
           
        
      
      
        
          Premises and equipment
        
        
        
        
        
        
        
        
        
        
          55,097
        
        
        
        
        
        
        
        
          55,382
        
        
        
        
        
        
        
        
          56,006
        
        
        
        
        
        
        
        
          56,834
        
        
        
        
        
        
        
        
          57,848
        
        
        
      
      
        
          Lease right of use asset
        
        
        
        
        
        
        
        
        
        
          8,263
        
        
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          —
        
        
        
      
      
        
          Goodwill and other intangibles
        
        
        
        
        
        
        
        
        
        
          44,303
        
        
        
        
        
        
        
        
          44,580
        
        
        
        
        
        
        
        
          44,856
        
        
        
        
        
        
        
        
          45,133
        
        
        
        
        
        
        
        
          45,409
        
        
        
      
      
        
          Deferred Tax Asset
        
        
        
        
        
        
        
        
        
        
          11,207
        
        
        
        
        
        
        
        
          11,373
        
        
        
        
        
        
        
        
          8,452
        
        
        
        
        
        
        
        
          6,659
        
        
        
        
        
        
        
        
          4,854
        
        
        
      
      
        
          Deferred Tax Asset Valuation Allowance
        
        
        
        
        
        
        
        
        
        
          (11,207
        
        
          )
        
        
        
        
        
        
          (11,373
        
        
          )
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          —
        
        
        
      
      
        
          Other assets
        
        
        
        
        
        
        
        
        
        
          36,991
        
        
           
        
        
        
        
        
        
          39,707
        
        
           
        
        
        
        
        
        
          41,752
        
        
           
        
        
        
        
        
        
          45,425
        
        
           
        
        
        
        
        
        
          45,036
        
        
           
        
      
      
        
          Total assets
        
        
        
        
        
        
        
        
        
        
          $
        
        
          1,745,335
        
        
           
        
        
        
        
        
        
          $
        
        
          1,743,398
        
        
           
        
        
        
        
        
        
          $
        
        
          1,826,254
        
        
           
        
        
        
        
        
        
          $
        
        
          1,858,917
        
        
           
        
        
        
        
        
        
          $
        
        
          1,857,755
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          

Liabilities and Shareholders' Equity

        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Non-interest bearing deposits
        
        
        
        
        
        
        
        
        
        
          $
        
        
          418,321
        
        
        
        
        
        
        
        
          $
        
        
          383,167
        
        
        
        
        
        
        
        
          $
        
        
          425,696
        
        
        
        
        
        
        
        
          $
        
        
          419,517
        
        
        
        
        
        
        
        
          $
        
        
          427,504
        
        
        
      
      
        
          Interest-bearing deposits
        
        
        
        
        
        
        
        
        
        
          1,027,314
        
        
           
        
        
        
        
        
        
          1,068,904
        
        
           
        
        
        
        
        
        
          1,083,433
        
        
           
        
        
        
        
        
        
          1,103,503
        
        
           
        
        
        
        
        
        
          1,076,433
        
        
           
        
      
      
        
          Total deposits
        
        
        
        
        
        
        
        
        
        
          1,445,635
        
        
        
        
        
        
        
        
          1,452,071
        
        
        
        
        
        
        
        
          1,509,129
        
        
        
        
        
        
        
        
          1,523,020
        
        
        
        
        
        
        
        
          1,503,937
        
        
        
      
      
        
          Securities sold under agreements to repurchase
        
        
        
        
        
        
        
        
        
        
          11,968
        
        
        
        
        
        
        
        
          11,220
        
        
        
        
        
        
        
        
          13,676
        
        
        
        
        
        
        
        
          14,886
        
        
        
        
        
        
        
        
          33,026
        
        
        
      
      
        
          Lease liability
        
        
        
        
        
        
        
        
        
        
          8,203
        
        
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          —
        
        
        
      
      
        
          FHLB advances
        
        
        
        
        
        
        
        
        
        
          27,500
        
        
        
        
        
        
        
        
          27,500
        
        
        
        
        
        
        
        
          27,506
        
        
        
        
        
        
        
        
          37,511
        
        
        
        
        
        
        
        
          37,516
        
        
        
      
      
        
          Junior subordinated debentures
        
        
        
        
        
        
        
        
        
        
          22,167
        
        
        
        
        
        
        
        
          22,167
        
        
        
        
        
        
        
        
          22,167
        
        
        
        
        
        
        
        
          22,167
        
        
        
        
        
        
        
        
          22,167
        
        
        
      
      
        
          Other liabilities
        
        
        
        
        
        
        
        
        
        
          8,696
        
        
           
        
        
        
        
        
        
          8,450
        
        
           
        
        
        
        
        
        
          12,325
        
        
           
        
        
        
        
        
        
          12,661
        
        
           
        
        
        
        
        
        
          10,272
        
        
           
        
      
      
        
          Total liabilities
        
        
        
        
        
        
        
        
        
        
          1,524,169
        
        
           
        
        
        
        
        
        
          1,521,408
        
        
           
        
        
        
        
        
        
          1,584,803
        
        
           
        
        
        
        
        
        
          1,610,245
        
        
           
        
        
        
        
        
        
          1,606,918
        
        
           
        
      
      
        
          Total shareholders' equity
        
        
        
        
        
        
        
        
        
        
          221,166
        
        
           
        
        
        
        
        
        
          221,990
        
        
           
        
        
        
        
        
        
          241,451
        
        
           
        
        
        
        
        
        
          248,672
        
        
           
        
        
        
        
        
        
          250,837
        
        
           
        
      
      
        
          Total liabilities and shareholders' equity
        
        
        
        
        
        
        
        
        
        
          $
        
        
          1,745,335
        
        
           
        
        
        
        
        
        
          $
        
        
          1,743,398
        
        
           
        
        
        
        
        
        
          $
        
        
          1,826,254
        
        
           
        
        
        
        
        
        
          $
        
        
          1,858,917
        
        
           
        
        
        
        
        
        
          $
        
        
          1,857,755
        
        
           
        
      
    
    
      
        
           
        
      
      
        
           
        
      
      
        
           
        
      
      
        
           
        
      
      
        
           
        
      
      
        
           
        
      
      
        
          

MIDSOUTH BANCORP, INC. and SUBSIDIARIES

Consolidated Statements of Operation (unaudited)

(in thousands except per share data)

Three Months Ended

3/31/2019

12/31/2018

9/30/2018

6/30/2018

3/31/2018

        
      
      
        
          Interest income:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Loans, including fees
        
        
        
        
        
        
        
        
        
        
          $
        
        
          12,987
        
        
        
        
        
        
        
        
          $
        
        
          14,536
        
        
        
        
        
        
        
        
          $
        
        
          14,590
        
        
        
        
        
        
        
        
          $
        
        
          15,344
        
        
        
        
        
        
        
        
          $
        
        
          16,015
        
        
        
      
      
        
          Investment securities
        
        
        
        
        
        
        
        
        
        
          3,326
        
        
        
        
        
        
        
        
          3,230
        
        
        
        
        
        
        
        
          2,429
        
        
        
        
        
        
        
        
          2,370
        
        
        
        
        
        
        
        
          2,363
        
        
        
      
      
        
          Other interest income
        
        
        
        
        
        
        
        
        
        
          1,132
        
        
           
        
        
        
        
        
        
          1,574
        
        
           
        
        
        
        
        
        
          1,417
        
        
           
        
        
        
        
        
        
          1,025
        
        
           
        
        
        
        
        
        
          619
        
        
           
        
      
      
        
          Total interest income
        
        
        
        
        
        
        
        
        
        
          17,445
        
        
           
        
        
        
        
        
        
          19,340
        
        
           
        
        
        
        
        
        
          18,436
        
        
           
        
        
        
        
        
        
          18,739
        
        
           
        
        
        
        
        
        
          18,997
        
        
           
        
      
      
        
          Interest expense:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Deposits
        
        
        
        
        
        
        
        
        
        
          1,680
        
        
        
        
        
        
        
        
          1,669
        
        
        
        
        
        
        
        
          1,602
        
        
        
        
        
        
        
        
          1,410
        
        
        
        
        
        
        
        
          1,238
        
        
        
      
      
        
          Securities sold under agreement to repurchase
        
        
        
        
        
        
        
        
        
        
          14
        
        
        
        
        
        
        
        
          17
        
        
        
        
        
        
        
        
          16
        
        
        
        
        
        
        
        
          25
        
        
        
        
        
        
        
        
          40
        
        
        
      
      
        
          FHLB borrowings
        
        
        
        
        
        
        
        
        
        
          81
        
        
        
        
        
        
        
        
          136
        
        
        
        
        
        
        
        
          81
        
        
        
        
        
        
        
        
          120
        
        
        
        
        
        
        
        
          129
        
        
        
      
      
        
          Other borrowings
        
        
        
        
        
        
        
        
        
        
          287
        
        
           
        
        
        
        
        
        
          275
        
        
           
        
        
        
        
        
        
          271
        
        
           
        
        
        
        
        
        
          259
        
        
           
        
        
        
        
        
        
          220
        
        
           
        
      
      
        
          Total interest expense
        
        
        
        
        
        
        
        
        
        
          2,062
        
        
           
        
        
        
        
        
        
          2,097
        
        
           
        
        
        
        
        
        
          1,970
        
        
           
        
        
        
        
        
        
          1,814
        
        
           
        
        
        
        
        
        
          1,627
        
        
           
        
      
      
        
          Net interest income
        
        
        
        
        
        
        
        
        
        
          15,383
        
        
        
        
        
        
        
        
          17,243
        
        
        
        
        
        
        
        
          16,466
        
        
        
        
        
        
        
        
          16,925
        
        
        
        
        
        
        
        
          17,370
        
        
        
      
      
        
          Provision for loan losses
        
        
        
        
        
        
        
        
        
        
          7,600
        
        
           
        
        
        
        
        
        
          12,000
        
        
           
        
        
        
        
        
        
          4,300
        
        
           
        
        
        
        
        
        
          440
        
        
           
        
        
        
        
        
        
          —
        
        
           
        
      
      
        
          Net interest income after provision for loan losses
        
        
        
        
        
        
        
        
        
        
          7,783
        
        
           
        
        
        
        
        
        
          5,243
        
        
           
        
        
        
        
        
        
          12,166
        
        
           
        
        
        
        
        
        
          16,485
        
        
           
        
        
        
        
        
        
          17,370
        
        
           
        
      
      
        
          Noninterest income:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Service charges on deposit accounts
        
        
        
        
        
        
        
        
        
        
          1,793
        
        
        
        
        
        
        
        
          1,414
        
        
        
        
        
        
        
        
          2,159
        
        
        
        
        
        
        
        
          2,065
        
        
        
        
        
        
        
        
          2,206
        
        
        
      
      
        
          Gain (loss) on securities, net
        
        
        
        
        
        
        
        
        
        
          373
        
        
        
        
        
        
        
        
          (49
        
        
          )
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          —
        
        
        
      
      
        
          Gain on sale of loans, net
        
        
        
        
        
        
        
        
        
        
          1,274
        
        
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          —
        
        
        
      
      
        
          ATM and debit card income
        
        
        
        
        
        
        
        
        
        
          1,925
        
        
        
        
        
        
        
        
          2,624
        
        
        
        
        
        
        
        
          1,796
        
        
        
        
        
        
        
        
          1,877
        
        
        
        
        
        
        
        
          1,784
        
        
        
      
      
        
          Other charges and fees
        
        
        
        
        
        
        
        
        
        
          908
        
        
           
        
        
        
        
        
        
          713
        
        
           
        
        
        
        
        
        
          1,135
        
        
           
        
        
        
        
        
        
          940
        
        
           
        
        
        
        
        
        
          839
        
        
           
        
      
      
        
          Total noninterest income
        
        
        
        
        
        
        
        
        
        
          6,273
        
        
           
        
        
        
        
        
        
          4,702
        
        
           
        
        
        
        
        
        
          5,090
        
        
           
        
        
        
        
        
        
          4,882
        
        
           
        
        
        
        
        
        
          4,829
        
        
           
        
      
      
        
          Noninterest expense:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Salaries and employee benefits
        
        
        
        
        
        
        
        
        
        
          9,700
        
        
        
        
        
        
        
        
          8,895
        
        
        
        
        
        
        
        
          7,762
        
        
        
        
        
        
        
        
          7,916
        
        
        
        
        
        
        
        
          7,719
        
        
        
      
      
        
          Occupancy expense
        
        
        
        
        
        
        
        
        
        
          3,307
        
        
        
        
        
        
        
        
          3,186
        
        
        
        
        
        
        
        
          3,077
        
        
        
        
        
        
        
        
          3,193
        
        
        
        
        
        
        
        
          3,045
        
        
        
      
      
        
          ATM and debit card
        
        
        
        
        
        
        
        
        
        
          624
        
        
        
        
        
        
        
        
          678
        
        
        
        
        
        
        
        
          653
        
        
        
        
        
        
        
        
          648
        
        
        
        
        
        
        
        
          576
        
        
        
      
      
        
          Legal and professional fees
        
        
        
        
        
        
        
        
        
        
          1,883
        
        
        
        
        
        
        
        
          3,457
        
        
        
        
        
        
        
        
          2,543
        
        
        
        
        
        
        
        
          1,100
        
        
        
        
        
        
        
        
          1,689
        
        
        
      
      
        
          Remediation expense
        
        
        
        
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          4,970
        
        
        
        
        
        
        
        
          5,502
        
        
        
        
        
        
        
        
          5,323
        
        
        
        
        
        
        
        
          3,926
        
        
        
      
      
        
          Other non-interest expense
        
        
        
        
        
        
        
        
        
        
          4,372
        
        
           
        
        
        
        
        
        
          3,458
        
        
           
        
        
        
        
        
        
          3,990
        
        
           
        
        
        
        
        
        
          4,093
        
        
           
        
        
        
        
        
        
          4,918
        
        
           
        
      
      
        
          Total noninterest expense
        
        
        
        
        
        
        
        
        
        
          19,886
        
        
           
        
        
        
        
        
        
          24,644
        
        
           
        
        
        
        
        
        
          23,527
        
        
           
        
        
        
        
        
        
          22,273
        
        
           
        
        
        
        
        
        
          21,873
        
        
           
        
      
      
        
          Earnings (loss) before income taxes
        
        
        
        
        
        
        
        
        
        
          (5,830
        
        
          )
        
        
        
        
        
        
          (14,699
        
        
          )
        
        
        
        
        
        
          (6,271
        
        
          )
        
        
        
        
        
        
          (906
        
        
          )
        
        
        
        
        
        
          326
        
        
        
      
      
        
          Income tax (benefit)/expense
        
        
        
        
        
        
        
        
        
        
          —
        
        
           
        
        
        
        
        
        
          7,610
        
        
           
        
        
        
        
        
        
          (1,373
        
        
          )
        
        
        
        
        
        
          (237
        
        
          )
        
        
        
        
        
        
          (34
        
        
          )
        
      
      
        
          Net (loss) earnings
        
        
        
        
        
        
        
        
        
        
          (5,830
        
        
          )
        
        
        
        
        
        
          (22,309
        
        
          )
        
        
        
        
        
        
          (4,898
        
        
          )
        
        
        
        
        
        
          (669
        
        
          )
        
        
        
        
        
        
          360
        
        
        
      
      
        
          Dividends on preferred stock
        
        
        
        
        
        
        
        
        
        
          810
        
        
           
        
        
        
        
        
        
          809
        
        
           
        
        
        
        
        
        
          810
        
        
           
        
        
        
        
        
        
          810
        
        
           
        
        
        
        
        
        
          810
        
        
           
        
      
      
        
          Net (loss) earnings available to common shareholders
        
        
        
        
        
        
        
        
        
        
          $
        
        
          (6,640
        
        
          )
        
        
        
        
        
        
          $
        
        
          (23,118
        
        
          )
        
        
        
        
        
        
          $
        
        
          (5,708
        
        
          )
        
        
        
        
        
        
          $
        
        
          (1,479
        
        
          )
        
        
        
        
        
        
          $
        
        
          (450
        
        
          )
        
      
      
        
          (Loss) earnings per common share, diluted
        
        
        
        
        
        
        
        
        
        
          $
        
        
          (0.40
        
        
          )
        
        
        
        
        
        
          $
        
        
          (1.39
        
        
          )
        
        
        
        
        
        
          $
        
        
          (0.34
        
        
          )
        
        
        
        
        
        
          $
        
        
          (0.09
        
        
          )
        
        
        
        
        
        
          $
        
        
          (0.03
        
        
          )
        
      
      
        
          Operating (loss) earnings per common share, diluted on pages 18-20 
          (Non-GAAP)(*)
        
        
        
        
        
        
        
        
        
        
          $
        
        
          (0.40
        
        
          )
        
        
        
        
        
        
          $
        
        
          (0.73
        
        
          )
        
        
        
        
        
        
          $
        
        
          (0.08
        
        
          )
        
        
        
        
        
        
          $
        
        
          0.17
        
        
           
        
        
        
        
        
        
          $
        
        
          0.21
        
        
           
        
      
      
        
          (*) See reconciliation of Non-GAAP financial measures.
        
      
    
    
      
        
           
        
      
      
        
           
        
      
      
        
           
        
      
      
        
           
        
      
      
        
           
        
      
      
        
           
        
      
      
        
          

MIDSOUTH BANCORP, INC. and SUBSIDIARIES

Loans, Deposits and Asset Quality (unaudited)

(in thousands)

COMPOSITION OF LOANS

March 31,

2019

December 31,

2018

September 30,

2018

June 30,

2018

March 31,

2018

        
      
      
        
          Commercial, financial, and agricultural
        
        
        
        
        
        
        
        
        
        
          $
        
        
          255,410
        
        
        
        
        
        
        
        
          $
        
        
          267,340
        
        
        
        
        
        
        
        
          $
        
        
          294,971
        
        
        
        
        
        
        
        
          $
        
        
          354,944
        
        
        
        
        
        
        
        
          $
        
        
          401,048
        
        
        
      
      
        
          Real estate - construction
        
        
        
        
        
        
        
        
        
        
          89,723
        
        
        
        
        
        
        
        
          89,621
        
        
        
        
        
        
        
        
          90,444
        
        
        
        
        
        
        
        
          98,108
        
        
        
        
        
        
        
        
          94,679
        
        
        
      
      
        
          Real estate - commercial
        
        
        
        
        
        
        
        
        
        
          376,523
        
        
        
        
        
        
        
        
          368,449
        
        
        
        
        
        
        
        
          394,416
        
        
        
        
        
        
        
        
          414,526
        
        
        
        
        
        
        
        
          438,779
        
        
        
      
      
        
          Real estate - residential
        
        
        
        
        
        
        
        
        
        
          130,700
        
        
        
        
        
        
        
        
          130,320
        
        
        
        
        
        
        
        
          136,151
        
        
        
        
        
        
        
        
          141,104
        
        
        
        
        
        
        
        
          145,671
        
        
        
      
      
        
          Consumer and other
        
        
        
        
        
        
        
        
        
        
          40,784
        
        
        
        
        
        
        
        
          43,506
        
        
        
        
        
        
        
        
          46,169
        
        
        
        
        
        
        
        
          48,649
        
        
        
        
        
        
        
        
          56,386
        
        
        
      
      
        
          Lease financing receivable
        
        
        
        
        
        
        
        
        
        
          510
        
        
           
        
        
        
        
        
        
          549
        
        
           
        
        
        
        
        
        
          592
        
        
           
        
        
        
        
        
        
          632
        
        
           
        
        
        
        
        
        
          692
        
        
           
        
      
      
        
          Total loans
        
        
        
        
        
        
        
        
        
        
          $
        
        
          893,650
        
        
           
        
        
        
        
        
        
          $
        
        
          899,785
        
        
           
        
        
        
        
        
        
          $
        
        
          962,743
        
        
           
        
        
        
        
        
        
          $
        
        
          1,057,963
        
        
           
        
        
        
        
        
        
          $
        
        
          1,137,255
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
        
           
        
        
        
        
           
        
        
           
        
        
        
        
           
        
        
           
        
        
        
        
           
        
        
           
        
        
        
        
           
        
      
      
        
          

COMPOSITION OF DEPOSITS

March 31,

2019

December 31,

2018

September 30,

2018

June 30,

2018

March 31,

2018

        
      
      
        
          Noninterest bearing
        
        
        
        
        
        
        
        
        
        
          418,321
        
        
        
        
        
        
        
        
          $
        
        
          383,167
        
        
        
        
        
        
        
        
          $
        
        
          425,696
        
        
        
        
        
        
        
        
          $
        
        
          419,517
        
        
        
        
        
        
        
        
          $
        
        
          427,504
        
        
        
      
      
        
          NOW & other
        
        
        
        
        
        
        
        
        
        
          410,792
        
        
        
        
        
        
        
        
          400,625
        
        
        
        
        
        
        
        
          442,487
        
        
        
        
        
        
        
        
          461,726
        
        
        
        
        
        
        
        
          459,394
        
        
        
      
      
        
          Money market/savings
        
        
        
        
        
        
        
        
        
        
          436,317
        
        
        
        
        
        
        
        
          488,181
        
        
        
        
        
        
        
        
          454,867
        
        
        
        
        
        
        
        
          466,711
        
        
        
        
        
        
        
        
          441,801
        
        
        
      
      
        
          Time deposits of less than $100,000
        
        
        
        
        
        
        
        
        
        
          121,460
        
        
        
        
        
        
        
        
          121,703
        
        
        
        
        
        
        
        
          125,363
        
        
        
        
        
        
        
        
          111,758
        
        
        
        
        
        
        
        
          113,665
        
        
        
      
      
        
          Time deposits of $100,000 or more
        
        
        
        
        
        
        
        
        
        
          58,745
        
        
           
        
        
        
        
        
        
          58,395
        
        
           
        
        
        
        
        
        
          60,716
        
        
           
        
        
        
        
        
        
          63,308
        
        
           
        
        
        
        
        
        
          61,573
        
        
           
        
      
      
        
          Total deposits
        
        
        
        
        
        
        
        
        
        
          $
        
        
          1,445,635
        
        
           
        
        
        
        
        
        
          $
        
        
          1,452,071
        
        
           
        
        
        
        
        
        
          $
        
        
          1,509,129
        
        
           
        
        
        
        
        
        
          $
        
        
          1,523,020
        
        
           
        
        
        
        
        
        
          $
        
        
          1,503,937
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
        
           
        
        
        
        
           
        
        
           
        
        
        
        
           
        
        
           
        
        
        
        
           
        
        
           
        
        
        
        
           
        
      
      
        
          

ASSET QUALITY DATA

March 31,

2019

December 31,

2018

September 30,

2018

June 30,

2018

March 31,

2018

        
      
      
        
          Nonaccrual loans
        
        
        
        
        
        
        
        
        
        
          $
        
        
          23,191
        
        
        
        
        
        
        
        
          $
        
        
          8,920
        
        
        
        
        
        
        
        
          $
        
        
          51,476
        
        
        
        
        
        
        
        
          $
        
        
          73,538
        
        
        
        
        
        
        
        
          $
        
        
          82,275
        
        
        
      
      
        
          Loans past due 90 days and over and accruing
        
        
        
        
        
        
        
        
        
        
          —
        
        
           
        
        
        
        
        
        
          —
        
        
           
        
        
        
        
        
        
          7
        
        
           
        
        
        
        
        
        
          3
        
        
           
        
        
        
        
        
        
          1
        
        
           
        
      
      
        
          Total nonperforming loans
        
        
        
        
        
        
        
        
        
        
          23,191
        
        
        
        
        
        
        
        
          8,920
        
        
        
        
        
        
        
        
          51,483
        
        
        
        
        
        
        
        
          73,541
        
        
        
        
        
        
        
        
          82,276
        
        
        
      
      
        
          Nonperforming loans held for sale
        
        
        
        
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          20,441
        
        
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          808
        
        
        
      
      
        
          Other real estate
        
        
        
        
        
        
        
        
        
        
          664
        
        
        
        
        
        
        
        
          1,067
        
        
        
        
        
        
        
        
          1,022
        
        
        
        
        
        
        
        
          1,365
        
        
        
        
        
        
        
        
          1,803
        
        
        
      
      
        
          Other repossessed assets
        
        
        
        
        
        
        
        
        
        
          66
        
        
           
        
        
        
        
        
        
          55
        
        
           
        
        
        
        
        
        
          —
        
        
           
        
        
        
        
        
        
          —
        
        
           
        
        
        
        
        
        
          194
        
        
           
        
      
      
        
          Total nonperforming assets
        
        
        
        
        
        
        
        
        
        
          $
        
        
          23,921
        
        
        
        
        
        
        
        
          $
        
        
          30,483
        
        
        
        
        
        
        
        
          $
        
        
          52,505
        
        
        
        
        
        
        
        
          $
        
        
          74,906
        
        
        
        
        
        
        
        
          $
        
        
          85,081
        
        
        
      
      
        
          Troubled debt restructurings, accruing
        
        
        
        
        
        
        
        
        
        
          $
        
        
          713
        
        
           
        
        
        
        
        
        
          $
        
        
          1,334
        
        
           
        
        
        
        
        
        
          $
        
        
          896
        
        
           
        
        
        
        
        
        
          $
        
        
          1,010
        
        
           
        
        
        
        
        
        
          $
        
        
          1,153
        
        
           
        
      
      
        
          Nonperforming assets to total assets
        
        
        
        
        
        
        
        
        
        
          1.37
        
        
          %
        
        
        
        
        
        
          1.75
        
        
          %
        
        
        
        
        
        
          2.88
        
        
          %
        
        
        
        
        
        
          4.03
        
        
          %
        
        
        
        
        
        
          4.58
        
        
          %
        
      
      
        
          Nonperforming assets to total loans
        
        
        
        
        
        
        
        
        
        
          2.68
        
        
          %
        
        
        
        
        
        
          3.39
        
        
          %
        
        
        
        
        
        
          5.45
        
        
          %
        
        
        
        
        
        
          7.07
        
        
          %
        
        
        
        
        
        
          7.47
        
        
          %
        
      
      
        
          ALLL to nonperforming loans
        
        
        
        
        
        
        
        
        
        
          106.85
        
        
          %
        
        
        
        
        
        
          195.4
        
        
          %
        
        
        
        
        
        
          47.49
        
        
          %
        
        
        
        
        
        
          31.97
        
        
          %
        
        
        
        
        
        
          30.84
        
        
          %
        
      
      
        
          ALLL to total loans
        
        
        
        
        
        
        
        
        
        
          2.77
        
        
          %
        
        
        
        
        
        
          1.94
        
        
          %
        
        
        
        
        
        
          2.54
        
        
          %
        
        
        
        
        
        
          2.22
        
        
          %
        
        
        
        
        
        
          2.23
        
        
          %
        
      
      
        
          Quarter-to-date charge-offs
        
        
        
        
        
        
        
        
        
        
          384
        
        
        
        
        
        
        
        
          19,277
        
        
        
        
        
        
        
        
          4,339
        
        
        
        
        
        
        
        
          2,801
        
        
        
        
        
        
        
        
          1,836
        
        
        
      
      
        
          Quarter-to-date recoveries
        
        
        
        
        
        
        
        
        
        
          133
        
        
           
        
        
        
        
        
        
          258
        
        
           
        
        
        
        
        
        
          974
        
        
           
        
        
        
        
        
        
          505
        
        
           
        
        
        
        
        
        
          319
        
        
           
        
      
      
        
          Quarter-to-date net charge-offs
        
        
        
        
        
        
        
        
        
        
          251
        
        
           
        
        
        
        
        
        
          19,019
        
        
           
        
        
        
        
        
        
          3,365
        
        
           
        
        
        
        
        
        
          2,296
        
        
           
        
        
        
        
        
        
          1,517
        
        
           
        
      
      
        
          Annualized QTD net charge-offs to total loans
        
        
        
        
        
        
        
        
        
        
          0.11
        
        
          %
        
        
        
        
        
        
          8.45
        
        
          %
        
        
        
        
        
        
          1.40
        
        
          %
        
        
        
        
        
        
          0.87
        
        
          %
        
        
        
        
        
        
          0.54
        
        
          %
        
      
    
    
      
        
           
        
      
      
        
           
        
      
      
        
           
        
      
      
        
           
        
      
      
        
           
        
      
      
        
           
        
      
      
        
          

MIDSOUTH BANCORP, INC. and SUBSIDIARIES

Tangible Common Equity to Tangible Assets and Regulatory Ratios (unaudited)

(in thousands)

COMPUTATION OF TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS

March 31,

2019

December 31,

2018

        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total equity
        
        
        
        
        
        
        
        
        
        
          $
        
        
          221,166
        
        
        
        
        
        
        
        
          $
        
        
          221,990
        
        
        
      
      
        
          Less preferred equity
        
        
        
        
        
        
        
        
        
        
          40,972
        
        
           
        
        
        
        
        
        
          40,972
        
        
           
        
      
      
        
          Total common equity
        
        
        
        
        
        
        
        
        
        
          180,194
        
        
        
        
        
        
        
        
          181,018
        
        
        
      
      
        
          Less goodwill
        
        
        
        
        
        
        
        
        
        
          42,171
        
        
        
        
        
        
        
        
          42,171
        
        
        
      
      
        
          Less intangibles
        
        
        
        
        
        
        
        
        
        
          2,132
        
        
           
        
        
        
        
        
        
          2,409
        
        
           
        
      
      
        
          Tangible common equity
        
        
        
        
        
        
        
        
        
        
          $
        
        
          135,891
        
        
           
        
        
        
        
        
        
          $
        
        
          136,438
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total assets
        
        
        
        
        
        
        
        
        
        
          $
        
        
          1,745,335
        
        
        
        
        
        
        
        
          $
        
        
          1,743,398
        
        
        
      
      
        
          Less goodwill
        
        
        
        
        
        
        
        
        
        
          42,171
        
        
        
        
        
        
        
        
          42,171
        
        
        
      
      
        
          Less intangibles
        
        
        
        
        
        
        
        
        
        
          2,132
        
        
           
        
        
        
        
        
        
          2,409
        
        
           
        
      
      
        
          Tangible assets
        
        
        
        
        
        
        
        
        
        
          $
        
        
          1,701,032
        
        
           
        
        
        
        
        
        
          $
        
        
          1,698,818
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Tangible common equity to tangible assets
        
        
        
        
        
        
        
        
        
        
          7.99
        
        
          %
        
        
        
        
        
        
          8.03
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          

REGULATORY CAPITAL

        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Common equity tier 1 capital
        
        
        
        
        
        
        
        
        
        
          $
        
        
          135,696
        
        
        
        
        
        
        
        
          $
        
        
          137,991
        
        
        
      
      
        
          Tier 1 capital
        
        
        
        
        
        
        
        
        
        
          198,167
        
        
        
        
        
        
        
        
          201,130
        
        
        
      
      
        
          Total capital
        
        
        
        
        
        
        
        
        
        
          211,905
        
        
        
        
        
        
        
        
          215,310
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          

Regulatory capital ratios:

        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Common equity tier 1 capital ratio
        
        
        
        
        
        
        
        
        
        
          12.48
        
        
          %
        
        
        
        
        
        
          12.20
        
        
          %
        
      
      
        
          Tier 1 risk-based capital ratio
        
        
        
        
        
        
        
        
        
        
          18.22
        
        
          %
        
        
        
        
        
        
          17.79
        
        
          %
        
      
      
        
          Total risk-based capital ratio
        
        
        
        
        
        
        
        
        
        
          19.49
        
        
          %
        
        
        
        
        
        
          19.04
        
        
          %
        
      
      
        
          Tier 1 leverage ratio
        
        
        
        
        
        
        
        
        
        
          11.60
        
        
          %
        
        
        
        
        
        
          11.45
        
        
          %
        
      
    
    
      
        
           
        
      
      
        
           
        
      
      
        
           
        
      
      
        
           
        
      
      
        
           
        
      
      
        
           
        
      
      
        
          

MIDSOUTH BANCORP, INC. and SUBSIDIARIES

Quarterly Yield Analysis (unaudited)

(in thousands)

YIELD ANALYSIS

Three Months Ended

Three Months Ended

Three Months Ended

Three Months Ended

Three Months Ended

March 31, 2019

December 31, 2018

September 30, 2018

June 30, 2018

March 31, 2018

Tax

Tax

Tax

Tax

Tax

Average

Equivalent

Yield/

Average

Equivalent

Yield/

Average

Equivalent

Yield/

Average

Equivalent

Yield/

Average

Equivalent

Yield/

Balance

Interest

Rate

Balance

Interest

Rate

Balance

Interest

Rate

Balance

Interest

Rate

Balance

Interest

Rate

        
      
      
        
          Taxable securities
        
        
        
        
        
        
        
        
        
        
          $
        
        
          436,549
        
        
        
        
        
        
          $
        
        
          3,071
        
        
        
        
        
        
          2.81
        
        
          %
        
        
        
        
        
        
          $
        
        
          375,467
        
        
        
        
        
        
          $
        
        
          2,950
        
        
        
        
        
        
          3.14
        
        
          %
        
        
        
        
        
        
          $
        
        
          347,205
        
        
        
        
        
        
          $
        
        
          2,156
        
        
        
        
        
        
          2.48
        
        
          %
        
        
        
        
        
        
          $
        
        
          340,080
        
        
        
        
        
        
          $
        
        
          2,093
        
        
        
        
        
        
          2.46
        
        
          %
        
        
        
        
        
        
          $
        
        
          334,419
        
        
        
        
        
        
          $
        
        
          2,047
        
        
        
        
        
        
          2.45
        
        
          %
        
      
      
        
          Tax-exempt securities (*)
        
        
        
        
        
        
        
        
        
        
          38,424
        
        
        
        
        
        
          323
        
        
        
        
        
        
          3.36
        
        
          %
        
        
        
        
        
        
          43,010
        
        
        
        
        
        
          355
        
        
        
        
        
        
          3.30
        
        
          %
        
        
        
        
        
        
          43,151
        
        
        
        
        
        
          345
        
        
        
        
        
        
          3.20
        
        
          %
        
        
        
        
        
        
          43,858
        
        
        
        
        
        
          351
        
        
        
        
        
        
          3.20
        
        
          %
        
        
        
        
        
        
          50,550
        
        
        
        
        
        
          400
        
        
        
        
        
        
          3.17
        
        
          %
        
      
      
        
          Total investment securities
        
        
        
        
        
        
        
        
        
        
          474,973
        
        
        
        
        
        
          3,394
        
        
        
        
        
        
          2.86
        
        
          %
        
        
        
        
        
        
          418,477
        
        
        
        
        
        
          3,305
        
        
        
        
        
        
          3.16
        
        
          %
        
        
        
        
        
        
          390,356
        
        
        
        
        
        
          2,501
        
        
        
        
        
        
          2.56
        
        
          %
        
        
        
        
        
        
          383,938
        
        
        
        
        
        
          2,444
        
        
        
        
        
        
          2.54
        
        
          %
        
        
        
        
        
        
          384,969
        
        
        
        
        
        
          2,447
        
        
        
        
        
        
          2.54
        
        
          %
        
      
      
        
          Federal funds sold
        
        
        
        
        
        
        
        
        
        
          5,493
        
        
        
        
        
        
          32
        
        
        
        
        
        
          2.33
        
        
          %
        
        
        
        
        
        
          5,878
        
        
        
        
        
        
          33
        
        
        
        
        
        
          2.25
        
        
          %
        
        
        
        
        
        
          7,250
        
        
        
        
        
        
          32
        
        
        
        
        
        
          1.77
        
        
          %
        
        
        
        
        
        
          5,008
        
        
        
        
        
        
          21
        
        
        
        
        
        
          1.63
        
        
          %
        
        
        
        
        
        
          4,978
        
        
        
        
        
        
          18
        
        
        
        
        
        
          1.45
        
        
          %
        
      
      
        
          Interest bearing deposits in other banks
        
        
        
        
        
        
        
        
        
        
          185,418
        
        
        
        
        
        
          1,004
        
        
        
        
        
        
          2.17
        
        
          %
        
        
        
        
        
        
          208,001
        
        
        
        
        
        
          1,364
        
        
        
        
        
        
          2.62
        
        
          %
        
        
        
        
        
        
          250,349
        
        
        
        
        
        
          1,279
        
        
        
        
        
        
          2.04
        
        
          %
        
        
        
        
        
        
          201,281
        
        
        
        
        
        
          912
        
        
        
        
        
        
          1.79
        
        
          %
        
        
        
        
        
        
          132,940
        
        
        
        
        
        
          514
        
        
        
        
        
        
          1.55
        
        
          %
        
      
      
        
          Other investments
        
        
        
        
        
        
        
        
        
        
          16,936
        
        
        
        
        
        
          95
        
        
        
        
        
        
          2.24
        
        
          %
        
        
        
        
        
        
          16,573
        
        
        
        
        
        
          177
        
        
        
        
        
        
          4.27
        
        
          %
        
        
        
        
        
        
          15,640
        
        
        
        
        
        
          106
        
        
        
        
        
        
          2.71
        
        
          %
        
        
        
        
        
        
          14,924
        
        
        
        
        
        
          91
        
        
        
        
        
        
          2.45
        
        
          %
        
        
        
        
        
        
          12,721
        
        
        
        
        
        
          87
        
        
        
        
        
        
          2.74
        
        
          %
        
      
      
        
          Loans
        
        
        
        
        
        
        
        
        
        
          904,293
        
        
        
        
        
        
          12,987
        
        
        
        
        
        
          5.74
        
        
          %
        
        
        
        
        
        
          944,546
        
        
        
        
        
        
          14,536
        
        
        
        
        
        
          6.16
        
        
          %
        
        
        
        
        
        
          1,020,834
        
        
        
        
        
        
          14,590
        
        
        
        
        
        
          5.72
        
        
          %
        
        
        
        
        
        
          1,109,371
        
        
        
        
        
        
          15,344
        
        
        
        
        
        
          5.55
        
        
          %
        
        
        
        
        
        
          1,159,671
        
        
        
        
        
        
          16,015
        
        
        
        
        
        
          5.60
        
        
          %
        
      
      
        
          Total interest earning assets
        
        
        
        
        
        
        
        
        
        
          1,587,113
        
        
        
        
        
        
          17,512
        
        
        
        
        
        
          4.41
        
        
          %
        
        
        
        
        
        
          1,593,475
        
        
        
        
        
        
          19,415
        
        
        
        
        
        
          4.87
        
        
          %
        
        
        
        
        
        
          1,684,429
        
        
        
        
        
        
          18,508
        
        
        
        
        
        
          4.40
        
        
          %
        
        
        
        
        
        
          1,714,522
        
        
        
        
        
        
          18,812
        
        
        
        
        
        
          4.39
        
        
          %
        
        
        
        
        
        
          1,695,279
        
        
        
        
        
        
          19,081
        
        
        
        
        
        
          4.56
        
        
          %
        
      
      
        
          Non-interest earning assets
        
        
        
        
        
        
        
        
        
        
          155,573
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          198,515
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          146,405
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          146,384
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          164,791
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Total assets
        
        
        
        
        
        
        
        
        
        
          $
        
        
          1,742,686
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          $
        
        
          1,791,990
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          $
        
        
          1,830,834
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          $
        
        
          1,860,906
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          $
        
        
          1,860,070
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Interest-bearing liabilities:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Deposits
        
        
        
        
        
        
        
        
        
        
          $
        
        
          1,042,918
        
        
        
        
        
        
          $
        
        
          1,680
        
        
        
        
        
        
          0.64
        
        
          %
        
        
        
        
        
        
          $
        
        
          1,066,322
        
        
        
        
        
        
          $
        
        
          1,670
        
        
        
        
        
        
          0.63
        
        
          %
        
        
        
        
        
        
          $
        
        
          1,083,404
        
        
        
        
        
        
          $
        
        
          1,602
        
        
        
        
        
        
          0.59
        
        
          %
        
        
        
        
        
        
          $
        
        
          1,087,746
        
        
        
        
        
        
          $
        
        
          1,409
        
        
        
        
        
        
          0.52
        
        
          %
        
        
        
        
        
        
          $
        
        
          1,056,417
        
        
        
        
        
        
          $
        
        
          1,238
        
        
        
        
        
        
          0.47
        
        
          %
        
      
      
        
          Repurchase agreements
        
        
        
        
        
        
        
        
        
        
          12,069
        
        
        
        
        
        
          14
        
        
        
        
        
        
          0.46
        
        
          %
        
        
        
        
        
        
          13,031
        
        
        
        
        
        
          17
        
        
        
        
        
        
          0.52
        
        
          %
        
        
        
        
        
        
          14,641
        
        
        
        
        
        
          16
        
        
        
        
        
        
          0.44
        
        
          %
        
        
        
        
        
        
          26,230
        
        
        
        
        
        
          25
        
        
        
        
        
        
          0.39
        
        
          %
        
        
        
        
        
        
          40,115
        
        
        
        
        
        
          40
        
        
        
        
        
        
          0.40
        
        
          %
        
      
      
        
          FHLB advances
        
        
        
        
        
        
        
        
        
        
          27,500
        
        
        
        
        
        
          81
        
        
        
        
        
        
          1.18
        
        
          %
        
        
        
        
        
        
          27,500
        
        
        
        
        
        
          135
        
        
        
        
        
        
          1.96
        
        
          %
        
        
        
        
        
        
          29,139
        
        
        
        
        
        
          81
        
        
        
        
        
        
          1.11
        
        
          %
        
        
        
        
        
        
          37,514
        
        
        
        
        
        
          120
        
        
        
        
        
        
          1.28
        
        
          %
        
        
        
        
        
        
          38,741
        
        
        
        
        
        
          129
        
        
        
        
        
        
          1.33
        
        
          %
        
      
      
        
          Junior subordinated debentures
        
        
        
        
        
        
        
        
        
        
          22,167
        
        
        
        
        
        
          287
        
        
        
        
        
        
          5.18
        
        
          %
        
        
        
        
        
        
          22,167
        
        
        
        
        
        
          275
        
        
        
        
        
        
          4.96
        
        
          %
        
        
        
        
        
        
          22,167
        
        
        
        
        
        
          271
        
        
        
        
        
        
          4.89
        
        
          %
        
        
        
        
        
        
          22,167
        
        
        
        
        
        
          260
        
        
        
        
        
        
          4.63
        
        
          %
        
        
        
        
        
        
          22,167
        
        
        
        
        
        
          220
        
        
        
        
        
        
          3.97
        
        
          %
        
      
      
        
          Total interest bearing liabilities
        
        
        
        
        
        
        
        
        
        
          1,104,654
        
        
        
        
        
        
          2,062
        
        
        
        
        
        
          0.75
        
        
          %
        
        
        
        
        
        
          1,129,020
        
        
        
        
        
        
          2,097
        
        
        
        
        
        
          0.74
        
        
          %
        
        
        
        
        
        
          1,149,351
        
        
        
        
        
        
          1,970
        
        
        
        
        
        
          0.69
        
        
          %
        
        
        
        
        
        
          1,173,657
        
        
        
        
        
        
          1,814
        
        
        
        
        
        
          0.62
        
        
          %
        
        
        
        
        
        
          1,157,440
        
        
        
        
        
        
          1,627
        
        
        
        
        
        
          0.57
        
        
          %
        
      
      
        
          Non-interest bearing liabilities
        
        
        
        
        
        
        
        
        
        
          414,829
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          419,202
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          431,486
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          435,971
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          447,460
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Shareholders' equity
        
        
        
        
        
        
        
        
        
        
          223,203
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          243,768
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          249,997
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          251,278
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          255,170
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Total liabilities and shareholders' equity
        
        
        
        
        
        
        
        
        
        
          1,742,686
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          1,791,990
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          1,830,834
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          1,860,906
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          1,860,070
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Net interest income (TE) and spread
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          $
        
        
          15,450
        
        
        
        
        
        
          3.66
        
        
          %
        
        
        
        
        
        
        
        
        
        
        
        
          $
        
        
          17,318
        
        
        
        
        
        
          4.13
        
        
          %
        
        
        
        
        
        
        
        
        
        
        
        
          $
        
        
          16,538
        
        
        
        
        
        
          3.71
        
        
          %
        
        
        
        
        
        
        
        
        
        
        
        
          $
        
        
          16,998
        
        
        
        
        
        
          3.77
        
        
          %
        
        
        
        
        
        
        
        
        
        
        
        
          $
        
        
          17,454
        
        
        
        
        
        
          3.99
        
        
          %
        
      
      
        
          Net interest margin
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          3.89
        
        
          %
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          4.35
        
        
          %
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          3.93
        
        
          %
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          3.97
        
        
          %
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          4.12
        
        
          %
        
      
      
        
          (*) Reflects taxable equivalent adjustments using the federal 
          statutory tax rate of 21% in adjusting interest on tax-exempt 
          securities to a fully taxable basis. The taxable equivalent 
          adjustments included above amount to $68,000 for 1Q19, $75,000 for 
          4Q18 $72,000 for 3Q18, $74,000 for 2Q18, and $84,000 for 1Q18.
        
      
    
    
      
        
           
        
      
      
        
           
        
      
      
        
           
        
      
      
        
           
        
      
      
        
           
        
      
      
        
           
        
      
      
        
          

MIDSOUTH BANCORP, INC. and SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures (unaudited)

(in thousands except per share data)

Three Months Ended

March 31,

2019

December 31,

2018

September 30,

2018

June 30,

2018

March 31,

2018

Tangible common equity and tangible book value per share

        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total shareholders' equity
        
        
        
        
        
        
        
        
        
        
          $
        
        
          221,166
        
        
        
        
        
        
          $
        
        
          221,990
        
        
        
        
        
        
          $
        
        
          241,451
        
        
        
        
        
        
          $
        
        
          248,672
        
        
        
        
        
        
          $
        
        
          250,837
        
      
      
        
          Less:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Preferred common shareholders' equity
        
        
        
        
        
        
        
        
        
        
          40,972
        
        
        
        
        
        
          40,972
        
        
        
        
        
        
          40,972
        
        
        
        
        
        
          40,987
        
        
        
        
        
        
          40,987
        
      
      
        
          Total common equity
        
        
        
        
        
        
        
        
        
        
          180,194
        
        
        
        
        
        
          181,018
        
        
        
        
        
        
          200,479
        
        
        
        
        
        
          207,685
        
        
        
        
        
        
          209,850
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Less:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Goodwill
        
        
        
        
        
        
        
        
        
        
          $
        
        
          42,171
        
        
        
        
        
        
          $
        
        
          42,171
        
        
        
        
        
        
          $
        
        
          42,171
        
        
        
        
        
        
          $
        
        
          42,171
        
        
        
        
        
        
          $
        
        
          42,171
        
      
      
        
          Other intangible assets
        
        
        
        
        
        
        
        
        
        
          $
        
        
          2,132
        
        
           
        
        
        
        
          $
        
        
          2,409
        
        
           
        
        
        
        
          $
        
        
          2,685
        
        
        
        
        
        
          $
        
        
          2,962
        
        
        
        
        
        
          $
        
        
          3,238
        
      
      
        
          Total tangible common equity
        
        
        
        
        
        
        
        
        
        
          $
        
        
          135,891
        
        
           
        
        
        
        
          $
        
        
          136,438
        
        
           
        
        
        
        
          $
        
        
          155,623
        
        
        
        
        
        
          $
        
        
          162,552
        
        
        
        
        
        
          $
        
        
          164,441
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Period end number of shares
        
        
        
        
        
        
        
        
        
        
          $
        
        
          16,715,671
        
        
        
        
        
        
          $
        
        
          16,641,017
        
        
        
        
        
        
          $
        
        
          16,641,105
        
        
        
        
        
        
          $
        
        
          16,619,894
        
        
        
        
        
        
          $
        
        
          16,621,811
        
      
      
        
          Book value per share (period end)
        
        
        
        
        
        
        
        
        
        
          $
        
        
          10.78
        
        
        
        
        
        
          $
        
        
          10.88
        
        
        
        
        
        
          $
        
        
          12.05
        
        
        
        
        
        
          $
        
        
          12.50
        
        
        
        
        
        
          $
        
        
          12.62
        
      
      
        
          Tangible book value per share (period end)
        
        
        
        
        
        
        
        
        
        
          $
        
        
          8.13
        
        
        
        
        
        
          $
        
        
          8.20
        
        
        
        
        
        
          $
        
        
          9.35
        
        
        
        
        
        
          $
        
        
          9.78
        
        
        
        
        
        
          $
        
        
          9.89
        
      
    
    
      
        
           
        
      
      
        
           
        
      
      
        
           
        
      
      
        
           
        
      
      
        
           
        
      
      
        
           
        
      
      
        
          

MIDSOUTH BANCORP, INC. and SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures (unaudited) (continued)

(in thousands except per share data)

Operating (loss) earnings per share

March 31,

2019

December 31,

2018

September 30,

2018

June 30,

2018

March 31,

2018

        
      
      
        
          Net loss available to common shareholders'
        
        
        
        
        
        
        
        
        
        
          $
        
        
          (6,640
        
        
          )
        
        
        
        
        
        
          $
        
        
          (23,118
        
        
          )
        
        
        
        
        
        
          $
        
        
          (5,708
        
        
          )
        
        
        
        
        
        
          $
        
        
          (1,479
        
        
          )
        
        
        
        
        
        
          $
        
        
          (450
        
        
          )
        
      
      
        
          Adjustment items:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Regulatory remediation costs
        
        
        
        
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          4,970
        
        
        
        
        
        
        
        
          5,502
        
        
        
        
        
        
        
        
          5,323
        
        
        
        
        
        
        
        
          3,926
        
        
        
      
      
        
          Loans held for sale expense
        
        
        
        
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          4
        
        
        
        
        
        
        
        
          20
        
        
        
        
        
        
        
        
          963
        
        
        
      
      
        
          Branch closure expenses
        
        
        
        
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          145
        
        
        
      
      
        
          Discount accretion acceleration
        
        
        
        
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          (726
        
        
          )
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          —
        
        
        
      
      
        
          Tax effect of adjustments
        
        
        
        
        
        
        
        
        
        
          —
        
        
           
        
        
           
        
        
           
        
        
          (891
        
        
          )
        
        
           
        
        
           
        
        
          (1,156
        
        
          )
        
        
           
        
        
           
        
        
          (1,122
        
        
          )
        
        
           
        
        
           
        
        
          (1,057
        
        
          )
        
      
      
        
          After tax adjustment items
        
        
        
        
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          3,353
        
        
        
        
        
        
        
        
          4,350
        
        
        
        
        
        
        
        
          4,221
        
        
        
        
        
        
        
        
          3,977
        
        
        
      
      
        
          Tax expense adjustment item:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Attributable to valuation allowance on deferred tax
        
        
        
        
        
        
        
        
        
        
          —
        
        
           
        
        
        
        
        
        
          7,685
        
        
           
        
        
        
        
        
        
          —
        
        
           
        
        
        
        
        
        
          —
        
        
           
        
        
        
        
        
        
          —
        
        
           
        
      
      
        
          Adjusted net (loss) income
        
        
        
        
        
        
        
        
        
        
          $
        
        
          (6,640
        
        
          )
        
        
           
        
        
           
        
        
          $
        
        
          (12,080
        
        
          )
        
        
           
        
        
           
        
        
          $
        
        
          (1,358
        
        
          )
        
        
           
        
        
           
        
        
          $
        
        
          2,742
        
        
           
        
        
           
        
        
           
        
        
          $
        
        
          3,527
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Weighted average number of shares - diluted
        
        
        
        
        
        
        
        
        
        
          16,673,818
        
        
        
        
        
        
        
        
          16,640,174
        
        
        
        
        
        
        
        
          16,557,664
        
        
        
        
        
        
        
        
          16,525,571
        
        
        
        
        
        
        
        
          16,495,438
        
        
        
      
      
        
          Net (loss) earnings per diluted share
        
        
        
        
        
        
        
        
        
        
          $
        
        
          (0.40
        
        
          )
        
        
        
        
        
        
          $
        
        
          (1.39
        
        
          )
        
        
        
        
        
        
          $
        
        
          (0.34
        
        
          )
        
        
        
        
        
        
          $
        
        
          (0.09
        
        
          )
        
        
        
        
        
        
          $
        
        
          (0.03
        
        
          )
        
      
      
        
          Operating net (loss) earnings per diluted share
        
        
        
        
        
        
        
        
        
        
          $
        
        
          (0.40
        
        
          )
        
        
        
        
        
        
          $
        
        
          (0.73
        
        
          )
        
        
        
        
        
        
          $
        
        
          (0.08
        
        
          )
        
        
        
        
        
        
          $
        
        
          0.17
        
        
        
        
        
        
        
        
          $
        
        
          0.21
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Operating ratios
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Return on average assets
        
        
        
        
        
        
        
        
        
        
          (1.52
        
        
          )%
        
        
        
        
        
        
          (5.16
        
        
          )%
        
        
        
        
        
        
          (1.25
        
        
          )%
        
        
        
        
        
        
          (0.32
        
        
          )%
        
        
        
        
        
        
          (0.10
        
        
          )%
        
      
      
        
          Effect of adjustment items
        
        
        
        
        
        
        
        
        
        
          —
        
        
          %
        
        
        
        
        
        
          2.46
        
        
          %
        
        
        
        
        
        
          0.95
        
        
          %
        
        
        
        
        
        
          0.91
        
        
          %
        
        
        
        
        
        
          0.86
        
        
          %
        
      
      
        
          Operating return on average assets
        
        
        
        
        
        
        
        
        
        
          (1.52
        
        
          )%
        
        
        
        
        
        
          (2.70
        
        
          )%
        
        
        
        
        
        
          (0.30
        
        
          )%
        
        
        
        
        
        
          0.59
        
        
          %
        
        
        
        
        
        
          0.76
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Return on average common equity
        
        
        
        
        
        
        
        
        
        
          (14.57
        
        
          )%
        
        
        
        
        
        
          (45.60
        
        
          )%
        
        
        
        
        
        
          (10.92
        
        
          )%
        
        
        
        
        
        
          (2.81
        
        
          )%
        
        
        
        
        
        
          (0.84
        
        
          )%
        
      
      
        
          Effect of adjustment items
        
        
        
        
        
        
        
        
        
        
          —
        
        
          %
        
        
        
        
        
        
          21.77
        
        
          %
        
        
        
        
        
        
          8.32
        
        
          %
        
        
        
        
        
        
          8.03
        
        
          %
        
        
        
        
        
        
          7.43
        
        
          %
        
      
      
        
          Operating return on average common equity
        
        
        
        
        
        
        
        
        
        
          (14.57
        
        
          )%
        
        
        
        
        
        
          (23.83
        
        
          )%
        
        
        
        
        
        
          (2.60
        
        
          )%
        
        
        
        
        
        
          5.22
        
        
          %
        
        
        
        
        
        
          6.59
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Return on average tangible common equity
        
        
        
        
        
        
        
        
        
        
          (19.28
        
        
          )%
        
        
        
        
        
        
          (58.50
        
        
          )%
        
        
        
        
        
        
          (13.92
        
        
          )%
        
        
        
        
        
        
          (3.58
        
        
          )%
        
        
        
        
        
        
          (1.07
        
        
          )%
        
      
      
        
          Effect of adjustment items
        
        
        
        
        
        
        
        
        
        
          —
        
        
          %
        
        
        
        
        
        
          27.93
        
        
          %
        
        
        
        
        
        
          10.61
        
        
          %
        
        
        
        
        
        
          10.23
        
        
          %
        
        
        
        
        
        
          9.44
        
        
          %
        
      
      
        
          Operating return on average tangible common equity
        
        
        
        
        
        
        
        
        
        
          (19.28
        
        
          )%
        
        
        
        
        
        
          (30.57
        
        
          )%
        
        
        
        
        
        
          (3.31
        
        
          )%
        
        
        
        
        
        
          6.65
        
        
          %
        
        
        
        
        
        
          8.37
        
        
          %
        
      
    
    
      
        
           
        
      
      
        
           
        
      
      
        
           
        
      
      
        
           
        
      
      
        
           
        
      
      
        
           
        
      
      
        
          

MIDSOUTH BANCORP, INC. and SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures (unaudited) (continued)

(in thousands except per share data)

Three Months Ended

OPERATING EFFICIENCY RATIO (TE)

March 31,

2019

December 31,

2018

September 30,

2018

June 30,

2018

March 31,

2018

Operating noninterest expense

        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Total Noninterest Expense
        
        
        
        
        
        
        
        
        
        
          $
        
        
          19,886
        
        
        
        
        
        
        
        
          $
        
        
          24,644
        
        
        
        
        
        
        
        
          $
        
        
          23,527
        
        
        
        
        
        
        
        
          $
        
        
          22,273
        
        
        
        
        
        
        
        
          $
        
        
          21,873
        
        
        
      
      
        
          Adjustment items:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Regulatory remediation costs
        
        
        
        
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          $
        
        
          (4,970
        
        
          )
        
        
        
        
        
        
          $
        
        
          (5,502
        
        
          )
        
        
        
        
        
        
          $
        
        
          (5,323
        
        
          )
        
        
        
        
        
        
          $
        
        
          (3,926
        
        
          )
        
      
      
        
          Loans held for sale expense
        
        
        
        
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          4
        
        
        
        
        
        
        
        
          (20
        
        
          )
        
        
        
        
        
        
          (963
        
        
          )
        
      
      
        
          Branch closure expenses
        
        
        
        
        
        
        
        
        
        
          —
        
        
           
        
        
        
        
        
        
          —
        
        
           
        
        
        
        
        
        
          —
        
        
           
        
        
        
        
        
        
          —
        
        
           
        
        
        
        
        
        
          (145
        
        
          )
        
      
      
        
          Operating noninterest expense
        
        
        
        
        
        
        
        
        
        
          $
        
        
          19,886
        
        
           
        
        
        
        
        
        
          $
        
        
          19,674
        
        
           
        
        
        
        
        
        
          $
        
        
          18,029
        
        
           
        
        
        
        
        
        
          $
        
        
          16,930
        
        
           
        
        
        
        
        
        
          $
        
        
          16,839
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          

Operating efficiency ratio

        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Net interest income (TE)
        
        
        
        
        
        
        
        
        
        
          15,436
        
        
        
        
        
        
        
        
          17,318
        
        
        
        
        
        
        
        
          16,538
        
        
        
        
        
        
        
        
          16,998
        
        
        
        
        
        
        
        
          17,454
        
        
        
      
      
        
          Noninterest income
        
        
        
        
        
        
        
        
        
        
          6,273
        
        
           
        
        
        
        
        
        
          4,702
        
        
           
        
        
        
        
        
        
          5,090
        
        
           
        
        
        
        
        
        
          4,882
        
        
           
        
        
        
        
        
        
          4,829
        
        
           
        
      
      
        
          Total Revenue (TE)
        
        
        
        
        
        
        
        
        
        
          21,709
        
        
           
        
        
        
        
        
        
          22,020
        
        
           
        
        
        
        
        
        
          21,628
        
        
           
        
        
        
        
        
        
          21,880
        
        
           
        
        
        
        
        
        
          22,283
        
        
           
        
      
      
        
          Adjustment items
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Gain on sale of securities
        
        
        
        
        
        
        
        
        
        
          373
        
        
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          —
        
        
        
      
      
        
          Gain on sale of loans
        
        
        
        
        
        
        
        
        
        
          1,274
        
        
           
        
        
        
        
        
        
          —
        
        
           
        
        
        
        
        
        
          —
        
        
           
        
        
        
        
        
        
          —
        
        
           
        
        
        
        
        
        
          —
        
        
           
        
      
      
        
          Adjusted total revenue (TE)
        
        
        
        
        
        
        
        
        
        
          20,062
        
        
           
        
        
        
        
        
        
          22,020
        
        
           
        
        
        
        
        
        
          21,628
        
        
           
        
        
        
        
        
        
          21,880
        
        
           
        
        
        
        
        
        
          22,283
        
        
           
        
      
      
        
          Efficiency ratio
        
        
        
        
        
        
        
        
        
        
          91.83
        
        
          %
        
        
        
        
        
        
          112.30
        
        
          %
        
        
        
        
        
        
          109.14
        
        
          %
        
        
        
        
        
        
          102.14
        
        
          %
        
        
        
        
        
        
          98.53
        
        
          %
        
      
      
        
          Operating efficiency ratio
        
        
        
        
        
        
        
        
        
        
          99.12
        
        
          %
        
        
        
        
        
        
          89.35
        
        
          %
        
        
        
        
        
        
          83.36
        
        
          %
        
        
        
        
        
        
          77.38
        
        
          %
        
        
        
        
        
        
          75.57
        
        
          %
        
      
      
        
           
        
      
      
        
           
        
      
      
        
           
        
      
      
        
           
        
      
    
    

View source version on businesswire.com: https://www.businesswire.com/news/home/20190430006214/en/

Jim McLemore, CFAPresident & CEO337.237.8343

Lorraine Miller, CFAEVP & CFO337.593.3143