UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10QSB
AMENDMENT
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended.............. June 30, 1995
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ..... to ....
COMMISSION FILE NUMBER 2-91-000FW
MIDSOUTH BANCORP, INC.
Louisiana 72 -1020809
102 Versailles Boulevard, Lafayette, Louisiana
70501
(318) 237-8343
Check whether the issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the past
12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. YES X NO
State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date.
Outstanding as of July 31, 1995
Common stock, $.10 par value 719,650
Transitional Small Business Disclosure Format:
Yes No X
Page 1
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Page 2
PART 1 - FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)Page
Statements of Condition - June 30, 1995 and 3
December 31, 1994
Statements of Income - Three and Six Months Ended
June 30, 1995 and 1994 4
Statement of Stockholders' Equity - Six Months Ended
June 30, 1995 5
Statements of Cash Flows - Six Months Ended June 30,
1995 and 1994 6
Notes to Financial Statements 7
Item 2. Management's Discussion and Analysis or
Plan of Operation 8
PART II - OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security
Holders 15
Item 6. Exhibits and Reports on Form 8-K 16
Signatures 17
<PAGE>
MIDSOUTH BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------
June 30, December 31,
ASSETS 1995 1994
-------------- --------------
<S> <C> <C>
Cash and due from banks $6,010,821 $6,941,989
Federal funds sold 5,550,000 1,700,000
-------------- --------------
Total cash and cash equivalents 11,560,821 8,641,989
Interest bearing deposits in banks 70,427 48,422
Securities available-for-sale, at fair value
(cost of $28,318,892 in June 1995 and
$32,909,276 in December 1994) $28,027,042 31,369,476
Securities held-to-maturity (estimated market
value of $3,255,322 in June 1995 and
$372,274 in December 1994) 3,194,728 370,946
Loans, net of allowance for loan and lease
losses of $920,116 in June 1995 and $873,934
in December 1994 65,950,076 59,558,341
Bank premises and equipment, net 2,797,534 2,117,512
Other real estate owned, net 180,270 198,350
Accrued interest receivable 608,281 695,604
Goodwill, net 179,324 191,691
Other assets 703,563 773,629
-------------- --------------
Total assets $113,272,066 $103,965,960
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing $30,207,714 $31,035,865
Interest bearing 74,416,093 65,454,490
-------------- --------------
Total deposits 104,623,807 96,490,355
Securities sold under
repurchase agreements 319,369 301,730
Accrued interest payable 279,192 191,366
Notes payable 1,114,107 1,195,917
Other liabilities 63,256 413,246
-------------- --------------
Total liabilities 106,399,731 98,592,614
-------------- --------------
Commitments and contingencies - -
Stockholders' Equity:
Preferred Stock, no par value- 5,000,000
authorized, none issued and outstanding - -
Common stock, $.10 par value-
5,000,000 shares authorized, 718,695 and
713,988 issued and outstanding on
June 30, 1995 and December 31, 1994,
respectively 71,869 71,399
Surplus 6,197,796 6,144,070
Unearned ESOP shares (64,611) (73,021)
Unrealized gains/losses on securities
available-for-sale, net of deferred taxes
of $133,000 in June 1995 and $477,000 in
December 1994 (223,850) (1,062,800)
Retained earnings 891,131 293,698
-------------- --------------
Total stockholders' equity 6,872,335 5,373,346
-------------- --------------
Total liabilities and stockholders' equity $113,272,066 $103,965,960
============== ==============
See notes to consolidated financial statements.
- -----------------------------------------------------------------------------------------
</TABLE>
3
<PAGE>
MIDSOUTH BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, June 30,
1995 1994 1995 1994
----------------------------- -----------------------------
<S> <C> <C> <C> <C>
INTEREST INCOME:
Loans, including fees $1,702,958 $1,350,438 $3,249,413 $2,566,614
Securities and interest-bearing 451,261 436,872 893,133 882,016
Federal funds sold 58,589 50,341 100,399 85,997
------------ ------------ ------------ ------------
TOTAL 2,212,808 1,837,651 4,242,945 3,534,627
------------ ------------ ------------ ------------
INTEREST EXPENSE:
Interest on deposits 679,544 469,060 1,248,417 920,529
Interest on notes payable 28,250 14,047 57,389 27,442
------------ ------------ ------------ ------------
TOTAL 707,794 483,107 1,305,806 947,971
------------ ------------ ------------ ------------
NET INTEREST INCOME 1,505,014 1,354,544 2,937,139 2,586,656
PROVISION FOR LOAN LOSSES 35,000 60,000 90,000 140,000
------------ ------------ ------------ ------------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 1,470,014 1,294,544 2,847,139 2,446,656
------------ ------------ ------------ ------------
OTHER OPERATING INCOME:
Service charges on deposits 256,792 260,548 506,003 493,683
Gains (losses) on securities,
net - - - -
Other charges and fees 132,191 106,311 240,760 232,559
------------ ------------ ------------ ------------
TOTAL OTHER INCOME 388,983 366,859 746,763 726,242
------------ ------------ ------------ ------------
OTHER EXPENSES:
Salaries and employee benefits 643,328 557,049 1,231,130 1,100,578
Occupancy expense 244,329 229,582 463,264 427,112
Professional fees 69,527 58,323 112,489 103,970
FDIC assessments 51,940 52,731 103,879 105,461
Marketing expenses 69,518 48,447 122,336 91,984
General and bond insurance 27,010 27,107 54,337 55,193
Data processing expenses 23,687 30,275 48,614 61,295
Postage 28,822 23,801 57,000 50,593
Director fees 25,698 25,984 48,107 49,755
Education and travel 26,223 25,211 48,375 42,924
Printing and supplies 42,808 27,276 73,943 47,029
Telephone 33,470 23,990 56,228 46,309
Expenses on other real estate
owned, net 11,976 942 27,982 11,994
Other 119,727 88,620 245,942 198,425
------------ ------------ ------------ ------------
TOTAL OTHER EXPENSES 1,418,063 1,219,338 2,693,626 2,392,622
------------ ------------ ------------ ------------
NET INCOME BEFORE INCOME TAXES 440,934 442,065 900,276 780,276
PROVISION FOR INCOME TAXES 141,586 150,415 302,843 265,232
------------ ------------ ------------ ------------
NET INCOME $299,348 $291,650 $597,433 $515,044
============ ============ ============ ============
Net income per common share $0.42 $0.41 $0.83 $0.73
============ ============ ============ ============
Average number of
shares outstanding 717,290 708,568 716,190 707,086
============ ============ ============ ============
See notes to consolidated financial statements.
</TABLE>
4
<PAGE>
MIDSOUTH BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
FOR THE SIX MONTHS ENDED JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
UNREALIZED
COMMON STOCK ESOP (GAINS) LOSSES ON RETAINED
SHARES AMOUNT SURPLUS OBLIGATION SECURITIES AFS EARNINGS TOTAL
---------------------- ----------- ------------ --------------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C> <C>
BALANCE,
DECEMBER 31, 1994 713,988 $71,399 $6,144,070 ($73,021) ($1,062,800) $293,698 $5,373,346
Issuance of common
stock 1,975 197 23,033 23,230
Net income 298,085 298,085
ESOP obligation
repayments 5,095 5,095
Net change in
unrealized gain/loss
on securities
available-for-sale,
net of tax 470,300 470,300
--------- ---------- ----------- ------------ ---------- ------------ -----------
BALANCE,
MARCH 31, 1995 715,963 $71,596 $6,167,103 ($67,926) ($592,500) $591,783 $6,170,056
Issuance of common
stock 2,732 273 30,693 30,966
Net income 299,348 299,348
ESOP obligation
repayments 3,315 3,315
Net change in
unrealized gain/loss
on securities
available-for-sale,
net of tax 368,650 368,650
--------- ---------- ----------- ------------ ---------- ------------ -----------
BALANCE,
JUNE 30, 1995 718,695 $71,869 $6,197,796 ($64,611) ($223,850) $891,131 $6,872,335
========= ========== =========== ============ ========== ============ ===========
See notes to consolidated financial statements.
</TABLE>
5
<PAGE>
MIDSOUTH BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1995 AND 1994
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
June 30,
1995 1994
------------ -------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $597,433 $515,044
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation and amortization 148,688 138,025
Provision for loan losses 90,000 140,000
Provision for deferred taxes - 270,682
Premium amortization, net 71,002 106,315
Net loss (gain) on sale of other real estate owned 2,135 (2,691)
Write-down of other real estate owned 12,400 9,548
Change in accrued interest receivable 87,323 (1,611)
Change in accrued interest payable 87,826 15,235
Change in other liabilities (365,116) (58,636)
Change in other assets (323,808) (138,238)
------------ -------------
NET CASH PROVIDED BY OPERATING ACTIVITIES 407,883 993,673
------------ -------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Net increase in interest-bearing deposits (22,005) (790)
Proceeds from sales of securities available-for-sale - 220,838
Proceeds from maturities and calls of securities
available-for-sale 4,692,408 1,319,479
Purchases of securities held-to-maturity (3,002,563) -
Purchases of securities available-for-sale - (2,099,202)
Loan originations, net of repayments (6,493,980) (5,964,040)
Purchases of premises and equipment (816,343) (99,844)
Proceeds from sales of other real estate owned 21,545 79,491
------------ -------------
NET CASH USED IN INVESTING ACTIVITIES (5,620,938) (6,544,068)
------------ -------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in deposits 8,133,452 6,577,108
Net increase (decrease) in repurchase agreements 17,639 (20,967)
Issuance of notes payable 1,000,000 563,000
Repayments of notes payable (1,073,400) (60,045)
Proceeds from issuance of common stock 54,196 52,684
Payment of fractional shares resulting from stock
dividend - (641)
------------ -------------
NET CASH PROVIDED BY FINANCING ACTIVITIES 8,131,887 7,111,139
------------ -------------
NET INCREASE IN CASH & CASH EQUIVALENTS 2,918,832 1,560,744
CASH & CASH EQUIVALENTS, BEGINNING OF YEAR 8,641,989 10,464,078
------------ -------------
CASH & CASH EQUIVALENTS, END OF QUARTER $11,560,821 $12,024,822
============ =============
See notes to consolidated financial statements.
</TABLE>
6
<PAGE>
MIDSOUTH BANCORP, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
- -----------------------------------------------------------------------------
1. STATEMENT BY MANAGEMENT CONCERNING THE REVIEW OF UNAUDITED
FINANCIAL INFORMATION
The accompanying unaudited consolidated financial statements and notes
thereto contain all adjustments, consisting only of normal recurring
adjustments, necessary to present fairly the financial position of
MidSouth and its subsidiary as of June 30, 1995 and the results of
their operations and their cash flows for the periods presented. The
consolidated financial statements should be read in conjunction with
the annual consolidated financial statements and the notes thereto
included in MidSouth's 1994 annual report and Form 10-KSB.
2. ALLOWANCE FOR LOAN AND LEASE LOSSES
An analysis of the activity in the allowance for loan and lease losses
is as follows:
Six Months Ended
June 30,
1995 1994
---------- -----------
Balance at beginning of year $874 $824
Provision for loan losses 90 140
Recoveries 43 74
Loans charged off (87) (216)
---------- -----------
Balance at end of quarter $920 $822
========== ===========
3. LOAN IMPAIRMENT
Effective January 1, 1995, MidSouth adopted Statement of Financial
Accounting Standards ("SFAS") No. 114, "Accounting by Creditors for
Impairment of a Loan," which was subsequently amended by SFAS No. 118,
"Accounting by Creditors for Impairment of a Loan - Income Recognition
and Disclosures." SFAS No. 114 requires the measurement of impaired
loans be based on the present value of expected future cash flows
discounted at the loan's effective interest rate, or at the loan's
observable market price or the fair market value of its collateral.
SFAS No. 114 does not apply to large groups of smaller balance
homogeneous loans that are collectively evaluated for impairment.
Therefore, MidSouth's smaller balance substandard loans were grouped
as homogeneous loans, consisting of residential mortgage loans, consumer
loans, and performing commercial and real estate loans under a certain
dollar amount. The adoption of SFAS No. 114 did not result in additional
provisions for loan losses for the first six months of 1995 due to
MidSouth's existing policy of measuring loan impairment, which
meets the requirements set forth in SFAS No. 114.
SFAS No. 118 allows a creditor to use existing methods for recognizing
interest income on impaired loans. The adoption of SFAS No. 118 did
not affect the amount of interest income reported for the three months
ending June 30, 1995.
At June 30, 1995, the recorded investment in loans that are considered
to be impaired under Statement 114 was $605,431. Included in this amount
is $287,621 of impaired loans for which the related allowance for credit
losses is $60,000 and $317,810 of impaired loans that do not have an
allowance for credit losses. Two credits were added to total loans
considered impaired during the second quarter of 1995 due to management's
doubts as to ability of the borrowers to meet principal and interest
obligations in full.
7
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OR PLAN OF OPERATION
Overview
This review should be read in conjunction with MidSouth Bancorp
Inc.'s ("MidSouth") consolidated financial statements and
accompanying notes contained herein, as well as with MidSouth's
1994 financial statements, the notes thereto and the related
Management's Discussion and Analysis. On July 31, 1995,
Sugarland Bancshares, Inc. and its wholly-owned subsidiary,
Sugarland State Bank, merged into registrant MidSouth and
MidSouth National Bank, respectively, and MidSouth issued 187,286
shares of its cumulative convertible preferred stock to former
shareholders of Sugarland Bancshares, Inc. The financial
information in this report does not include the results of such
transaction, which will be accounted for as a purchase.
MidSouth reported earnings for the second quarter of 1995 of
$299,348 as compared to the second quarter of 1994 of $291,650.
Earnings per share for the second quarter of 1995 were $.42 based
on 717,290 average shares outstanding as compared to $.41 on
708,568 average shares outstanding for the second quarter of
1994.
Earnings for the six months ending June 30, 1995 totaled $597,433
($.83 per share) as compared to $515,044 ($.73 per share) for the
six months ending June 30, 1994. The improvement in earnings
resulted from increased net interest income due primarily to
increases in volume and yield on loans. Additionally, a $50,000
decrease in provisions to the Allowance for Loan and Lease Losses
("ALLL") in year-to-date comparison also contributed to the
increase in income.
Net interest income increased $150,470 and non-interest income
increased $22,124 in quarterly comparisons; however, increased
expenses resulting from a new branch in Opleousas partially
offset the increased income.
At June 30, 1995, MidSouth's total assets were $113,272,066, an
increase of 8.95% over the $103,965,960 reported at year-end 1994
and an increase of 8.37% over the $104,527,294 at the end of the
second quarter of 1994. Total deposits grew from $96,427,304 at
June 30, 1994 to $96,490,355 at December 31, 1994 and to
$104,623,807 at June 30, 1995.
Loans, net of the ALLL, at the current quarter-end were
$65,950,076 compared to $59,558,341 at December 31, 1994 and
$54,785,834 at June 30, 1994. Provisions to the ALLL in the
current quarter totaled $35,000 as compared to $60,000 for
quarter ending June 30, 1994. The provisions increased
MidSouth's total reserves to $920,116 at the end of the second
quarter of 1995. Non-performing loans increased $159,575 from
December 31, 1994 to a total of $409,268 or .61% of total loans.
The increase results from the addition of two loans about which
management has doubts as to the full collectibility of principal
and interest. However, management does not anticipate a full
loss on either loan. There was no material change in other non-
performing assets during the first six months of 1995.
8
<PAGE>
MidSouth's annualized return on average equity was 19.69% and
annualized return on average assets was 1.11% for the three month
period ending June 30, 1995. The leverage capital ratio was
6.74% at the current quarter-end.
Earnings Analysis
Net Interest Income
Average earning assets increased $3.4 million from $92.4 million
for the six months ending June 30, 1994 to $95.8 million for the
six months ending June 30, 1995. The $3.4 million increase is
the net result of a $9.6 million increase in the loan portfolio
and a $6.2 million decrease in the volume of securities and
federal funds sold. Of the cash flows derived from federal funds
sold, maturing securities and principal payments on mortgage-
backed securities, $2.8 million was reinvested in non-taxable
municipal securities. In addition, a $3.4 million increase in
the average volume of deposits provided additional funding for
loan growth. Of the $3.4 million increase in the average volume
of deposits, $2.5 million represents growth in interest-bearing
deposits.
Increases in the average loan volume and the average yield on
loans more than offset increases in the average volume of
interest-bearing liabilities and the average rate paid on
interest-bearing liabilities to result in increased net interest
income of $350,483 in year-to-date comparison. Average loan
volume increased from $52.9 million at June 30, 1994 to $62.5
million at June 30, 1995. This volume increase, combined with a
70 basis point increase in the average yield on loans (from 9.78%
to 10.48%) for the same period, contributed $682,799 to the
increase in interest income from earning assets. Volume
decreases in the securities portfolio and federal funds sold were
offset by increases in the average yields on these investments to
net a minimal contribution to the increase in income from these
earning assets of $25,519.
With the rise in interest rates and a subsequent increase in the
volume of interest-bearing deposits, interest expense increased
$357,835 for the first six months of 1995 as compared to the
first six months of 1994. The average rate paid on all
interest-bearing liabilities increased 92 basis points (from
2.81% to 3.73%). The average volume of interest-bearing
liabilities increased $2.7 million, from $67.9 million to $70.6
million. The increase in volume results primarily from the $2.5
million increase in interest-bearing deposits. Additionally, a
$1 million borrowing from the Federal Home Loan Bank ("FHLB")
during the first quarter of 1995 contributed to a higher average
volume of interest-bearing liabilities for the six months ended
June 30, 1995. The $1 million FHLB borrowing was paid in full in
April 1995.
As a result of these changes in average volumes and average
yields on earning assets and interest-bearing liabilities, the
net yield on average earning assets increased 54 basis points,
from 5.64% as of June 30, 1994 to 6.18% as of June 30, 1995.
9
<PAGE>
Non-interest Income
MidSouth's primary source of non-interest income, service charges
and insufficient funds fees on deposit accounts, increased
$12,320 for the six months ended June 30, 1995 as compared to the
same period of 1994, primarily due to an increase in the volume
of transaction accounts. MidSouth's transaction accounts totaled
8,343 as of June 30, 1995 compared to 7,195 accounts as of June
30, 1994. In quarterly comparisons, income from deposit account
charges decreased $3,756 due to a decrease in insufficient funds
fees.
Other non-interest income increased $25,880 and $8,201 in
quarterly and year-to-date comparisons, respectively, primarily
due to increases in fees earned through check order income, ATM
fees and early withdrawal penalties on certificates of deposit.
Fees from early withdrawals of certificates of deposits increased
during the first six months of 1995 as customers took advantage
of rising short term rates.
Non-interest Expense
Non-interest expense increased 16.30% and 12.58%for the three and
six months ended June 30, 1995, respectively, as compared to the
three and six months ended June 30, 1994. The increases result
primarily from increases in salaries and employee benefits,
occupancy expenses, printing and supplies, and marketing
expenses. Additionally, quarterly and year-to-date increases
were recorded in the "Other" expenses category, but no
significant change was reported for any individual component of
that category.
Salaries and employee benefits increased $86,279 in quarterly
comparisons due primarily to the addition of the Opelousas branch
staff in April of 1995. The number of full time equivalent
employees increased during the second quarter of 1995 to 89 from
80 as of March 31, 1995 and as compared to 78 as of June 30,
1994.
Occupancy expense increased in the three and six month period
ending June 30, 1995 as compared to the same period of 1994 due
to increases in building lease expense, utilities, and advalorem
taxes. Building lease expense and utilities increased primarily
due to the lease expense on the Opelousas branch, an increase
provided for in the lease agreement on the corporate office
location and the leasing of additional space in November of 1994.
The additional leased space provided MidSouth with a training
facility and additional offices. Advalorem taxes increased due
to increases in real property and capital stock values reported.
Marketing and promotional expenses increased due to expenses
related to community service programs, public relations programs
and dues to civic organizations. Printing and office supplies
expenses increased due to costs associated with the addition of
the Opelousas Branch opened on April 10, 1995.
10
<PAGE>
FDIC assessment fees were slightly lower for the three and six
months ended June 30, 1995 as compared to the three and six
months ended June 30, 1994 due to a lower premium rate and an
improvement in risk classification in December 1994. Through
review of FDIC correspondence and discussions with its
representatives, management anticipates possible significant
reductions in FDIC premiums beginning in the fourth quarter of
1995.
Balance Sheet Analysis
MidSouth ended the second quarter of 1995 with consolidated
assets of $113,272,066, an increase of $9.3 million from December
31, 1994 consolidated assets of $103,965,960. The increase in
consolidated assets was funded primarily from an increase in
interest-bearing deposits which includes $2.3 million in a public
funds contract obtained on January 1, 1995.
As of June 30, 1995, total deposits increased $8.1 million to
$104,623,807 as compared to $96,490,355 at December 31, 1994,
primarily due to $5.8 million growth in certificates of deposit
and the $2.3 million in public funds. Of the $5.8 million growth
in certificates of deposit, approximately $1.8 million represents
time deposits from one commercial customer. The remaining $4
million in growth reflects an increase in consumer deposits in
the two, three and five year maturity categories. During the
first six months of 1995, MidSouth offered competitive rates in
the two, three and five year certificates in an effort to retain
deposits and to compete with high short term rates being offered
by competitors.
Total loans increased $6,437,917 during the first six months of
1995 from $60,432,275 reported at December 31, 1994. The
majority of the loan growth has been in the consumer loan
portfolio which has grown by $4.8 million since year-end. Two
million dollars of this growth occurred in the first quarter of
1995 as a result of a loan promotion. The commercial loan
portfolio has remained constant as growth in commercial loans
secured by real estate has been offset by unexpected payouts of a
few larger commercial credits. Competition for quality
commercial loans has intensified in the Lafayette area in the
past several months, and as a result the magnitude of loan growth
in future periods could slow. Activity has increased, however,
in other commercial credit programs, including MidSouth's
Business Manager accounts receivable program and commercial
lease financing.
Securities available-for-sale decreased $3.3 million, from $31.3
million at December 31, 1994 to $28.0 million at June 30, 1995.
The decrease represents a net result of maturities of securities
available-for-sale partially offset by an improvement of
$1,247,950 in the market value of the securities available-for-
sale. Unrealized losses in the securities available-for-sale
portfolio, net of unrealized gains and tax effect, were $223,850
at June 30, 1995, compared to $1,062,800 at December 31, 1994 .
These amounts result from interest rate fluctuations and do not
represent permanent impairment of value. Moreover,
classification of securities as available-for-sale does not
necessarily indicate that the securities will be sold prior to
maturity.
11
<PAGE>
Approximately $4.7 million in cash flows resulted from maturities
of securities available-for-sale and payments received on
mortgage-backed securities during the first six months of 1995.
Of the $4.7 million, $3.0 was used to purchase tax-exempt
municipal securities and $1.7 million was used to fund loans.
Management anticipates additional purchases of tax-exempt
municipal securities throughout 1995 as quality offerings become
available.
Capital Ratios
As of June 30, 1995, MidSouth's leverage ratio was 6.74% as
compared to 6.45% at December 31, 1994. Tier 1 capital to risk-
weighted assets was 10.61% and total capital to risk-weighted
assets was 11.87% at the end of the second quarter of 1995. At
year-end 1994, Tier 1 capital to risk-weighted assets was 10.95%
and total capital to risk-weighted assets was 12.20%. The Tier 1
capital to risk-weighted assets and total capital to risk-weighted
assets ratios have decreased due primarily to loan growth in the
100% risk-weight category. Effective December 31, 1994,
regulatory agencies announced that the net unrealized gains or
losses on securities available-for-sale would not be included in
calculations of regulatory capital ratios. Therefore, the value
of available-for-sale securities is based on historical cost
rather than on market value for purposes of calculating risk-
based and leverage capital ratios.
Common Stock Information
Table 1 below lists the high, low and period-end closing sales
prices of MidSouth's common stock on the American Stock Exchange
Emerging Company Marketplace (the "ECM") for the past five
quarters. Effective August 1, 1995, MidSouth's common stock is
listed for trading on the regular American Stock Exchange
("AMEX"). Additional information on the price and volume of
transactions currently appears in the Wall Street Journal under
the heading "American Stock Exchange Composite Transactions."
TABLE 1 - COMMON STOCK INFORMATION
1995 1994
____ ____
2ND 1ST 4TH 3RD 2ND
QTR QTR QTR QTR QTR
___ ___ ___ ___ ___
High Price $12.13 $12.38 $12.50 $11.88 $11.25
Low Price $11.00 $10.88 $11.25 $10.00 $ 8.75
Closing Price $11.75 $10.88 $11.50 $11.13 $10.25
12
<PAGE>
Nonperforming Assets and Past Due Loans
Table 2 on page 14 summarizes MidSouth's nonaccrual, past due and
restructured loans and nonperforming assets.
Nonperforming assets were $592,988 as of June 30, 1995, an
increase of $144,945 from the $448,043 reported for December 31,
1994 and a increase of $132,460 from the $460,528 reported for
June 30, 1994. The increase in the first six months of 1995
results from the addition of two loans placed on nonaccrual.
Although management has doubts as to collection of the full
amount of principal and interest on the two loans added, a full
loss on either loan is not expected. The decrease in Other Real
Estate Owned ("OREO") for the twelve months ended June 30, 1995
resulted from the sale of three parcels of OREO in 1994 and two
in 1995. During the second quarter of 1995, one parcel valued at
$18,000 was added to OREO and the book value of another parcel
was decreased by $7,400 due to market valuation.
Loans past due 90 days or more increased from $131,416 in June
1994 to $104,060 in December 1994 and to $182,350 as of June 30,
1995. The increase in the first six months of 1995 results
primarily from the addition of two commercial loans totaling
$65,000 and a $20,000 consumer loan. Management has no serious
doubts as to the borrowers' abilities to comply with the loan
repayment terms.
Specific reserves have been established in the ALLL to cover
potential losses on nonperforming assets. The ALLL is analyzed
quarterly and additional reserves, if needed, are allocated at
that time. Management believes the $920,116 in the reserve as of
June 30, 1995 is sufficient to cover potential losses in
nonperforming assets and in the loan portfolio. Loans classified
for regulatory purposes but not included in Table 2 do not
represent material credits about which management has serious
doubts as to the ability of the borrower to comply with loan
repayment terms.
13
<PAGE>
Page 14
TABLE 2
Nonperforming Assets and
Loans Past Due 90 Days
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------
June 30 December 31, June 30
1995 1994 1994
- --------------------------------------------------------------------------
<S> <C> <C> <C>
Nonperforming loans
Nonaccrual loans $404,675 $244,800 $243,736
Restructured loans 4,593 4,893 5,519
------------ ------------ ------------
Total nonperforming loans 409,268 249,693 249,255
Other real estate owned, net 180,270 198,350 210,723
Other assets repossessed 3,450 - 550
------------ ------------ ------------
Total nonperforming assets $592,988 $448,043 $460,528
============ ============ ============
Loans past due 90 days
or more and still accruing 182,350 104,060 131,416
Nonperforming loans as a
% of total loans 0.61% 0.41% 0.45%
Nonperforming assets as a
% of total loans, other real
estate owned and other assets
repossessed 0.88% 0.74% 0.83%
ALLL as a % of nonperforming
loans 224.82% 350.00% 329.61%
- --------------------------------------------------------------------------
</TABLE>
<PAGE>
Page 15
PART II. OTHER INFORMATION
Item 4. Submission of Matters to Vote of Security Holders
At the annual meeting of shareholders of MidSouth Bancorp, Inc.
held July 19, 1995 at 2:00 p.m., the following directors were
elected:
Will G. Charbonnet, Sr.
Votes cast For 563,304 Withheld 2,248
Clayton Paul Hilliard
Votes cast For 560,931 Withheld 4,621
Other directors whose term of office continued after the meeting
are as follows:
James R. Davis, Jr.; Karen L. Hail; Milton B. Kidd, Jr.; C.R.
Cloutier; J. B. Hargroder, M.D. and William M. Simmons
Shareholders also approved the issuance of up to 187,286 shares
of MidSouth Series A Cumulative, Convertible Preferred Stock in
connection with an Agreement and Plan of Merger (collectively,
the "Plan") and related merger agreement pursuant to which, on
July 31, 1995, among other things: (a) Sugarland State Bank,
subsidiary of Sugarland Bancshares, Inc., was merged into
MidSouth National Bank, the wholly-owned subsidiary of MidSouth,
(b) Sugarland Bancshares, Inc. was merged into MidSouth Bancorp,
Inc. and (c) on the effective date of the merger, each
outstanding share of common stock of Sugarland Bancshares, Inc.
was converted into one share of Preferred Stock.
Votes Cast For 467,754 Against 1,995
Abstentions 735 Broker Nonvotes 95,068
No other matters were brought before the meeting on July 19, 1995.
<PAGE>
Item 6. Exhibits and Reports on Form 8-K Page 16
(a) Exhibits
Exihibit Number Document Description
_______________ ____________________
3.1 Amended and Restated Articles of Incorporation of
MidSouth Bancorp, Inc. is included as Exhibit 3.1
to the Report on Form 10-K for the year ended
December 31, 1993, and is incorporated herein by
reference.
3.2 Amended and Restated By-Laws of MidSouth Bancorp,
Inc. is included as Exhibit 3.2 to the Report of
Form 10-K for the year ended December 31, 1993,
and is incorporated herein by reference.
10.1 MidSouth National Bank Lease Agreement with
Southwest Bank Building Limited Partnership is
included as Exhibit 10.7 to the Company's annual
report on Form 10-K for the Year Ended December
31, 1992, and is incorporated herein by reference.
10.2 First Amendment to Lease between MBL Life
Assurance Corporation, successor in interest to
Southwest Bank Building Limited Partnership in
Commendam, and MidSouth National Bank is included
as Exhibit 10.1 to Report on the Company's annual
report on Form 10-KSB for the yearended December
31, 1994, and is incorporated herein by reference.
10.3 Amended and Restated Deferred Compensation Plan
and Trust is included as Exhibit 10.3 to the
Company's annual report on Form 10-K for the year
ended December 31, 1992 and is incorporated herein
by reference.
10.4 Employment Agreements with C. R. Cloutier and
Karen L. Hail are included as Exhibit 5(c) to
MidSouth's Form 1-A and are incorporated herein by
reference.
10.5 Description of the Incentive Compensation Plan for
Officers of MidSouth National Bank is included as
Exhibit 10.5 to the Company's annual report on Form
10-K for the year ended December 31, 1993, and is
incorporated herein by reference.
10.6 Agreement and Plan of Merger between MidSouth
Bancorp, Inc. and MidSouth National Bank and
Sugarland Bancshares, Inc. and Sugarland
State Bank is included as Exhibit 10.5 to the
Company's annual report on Form 10-KSB for the
year ended December 31, 1994, and is incorporated
herein by reference.
<PAGE>
Page 17
(b) Reports Filed on Form 8-K
None
Signatures
In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
MidSouth Bancorp, Inc.
(Registrant)
Date: August 11, 1995
_______________
/s/ C. R. Cloutier
_______________________________
C. R. Cloutier, President & CEO
/s/ Karen L. Hail
_______________________________
Karen L. Hail, Executive Vice
President & CFO
/s/ Teri s. Stelly
_______________________________
Teri S. Stelly, Vice President &
Controller
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> JUN-30-1995
<CASH> 6,010,821
<INT-BEARING-DEPOSITS> 70,427
<FED-FUNDS-SOLD> 5,550,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 28,027,042
<INVESTMENTS-CARRYING> 3,194,728
<INVESTMENTS-MARKET> 3,255,322
<LOANS> 66,870,192
<ALLOWANCE> 920,116
<TOTAL-ASSETS> 113,272,066
<DEPOSITS> 104,623,807
<SHORT-TERM> 319,369
<LIABILITIES-OTHER> 342,448
<LONG-TERM> 1,114,107
<COMMON> 71,869
0
0
<OTHER-SE> 6,800,466
<TOTAL-LIABILITIES-AND-EQUITY> 6,872,335
<INTEREST-LOAN> 1,702,958
<INTEREST-INVEST> 451,261
<INTEREST-OTHER> 58,589
<INTEREST-TOTAL> 2,212,808
<INTEREST-DEPOSIT> 679,544
<INTEREST-EXPENSE> 707,794
<INTEREST-INCOME-NET> 1,505,014
<LOAN-LOSSES> 35,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,418,063
<INCOME-PRETAX> 440,934
<INCOME-PRE-EXTRAORDINARY> 299,348
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 299,348
<EPS-PRIMARY> .42
<EPS-DILUTED> .42
<YIELD-ACTUAL> 5.71
<LOANS-NON> 404,675
<LOANS-PAST> 182,350
<LOANS-TROUBLED> 4,593
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 873,934
<CHARGE-OFFS> 87,168
<RECOVERIES> 43,350
<ALLOWANCE-CLOSE> 920,116
<ALLOWANCE-DOMESTIC> 266,222
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 653,894
</TABLE>
