UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10QSB
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended.....................March 31,1995
OR
____ 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) has 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 April 30, 1995
Common stock, $.10 par value 716,889
Transitional Small Business Disclosure Format: Yes ______ No ___X___
<PAGE>
PART 1
Item 1. Financial Statements
The information called for by this item is included in
MidSouth Bancorp, Inc.'s 1995 First Quarter Report to
Shareholders on pages 3 through 7 and is incorporated herein.
Item 2. Management's Discussion and Analysis or Plan of Operation
The information called for by this item is included in
MidSouth Bancorp, Inc.'s 1995 First Quarter Report to
Shareholders on pages 8 through 14 and is incorporated herein.
<PAGE>
Item 6. Exhibits and Reports on Form 8-K
___________________
(a) Exhibits
Exhibit 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 year
ended December 31, 1994, and is incorporated herein by
reference.
10.3 Amended and Restated Deferred Compensation Plan and Trust
is included as Exhibit 10.3 to the Company's annual report
on Form 10-K for the year ended December 31, 1992 and is
incorporated herein by reference.
10.4 Employment Agreements with C. R. Cloutier and Karen L.
Hail are included as Exhibit 5(c) to MidSouth's Form 1-A
and are incorporated herein by reference.
10.5 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.
19 1995 First Quarter Report to Shareholders
<PAGE>
(b) Reports Filed on Form 8-K
None
Signatures
In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
MidSouth Bancorp, Inc.
(Registrant)
Date: May 12, 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
<PAGE>
Exhibit 19
MIDSOUTH BANCORP, INC. AND SUBSIDIARY
Corporate Information
______________________________________________________________________________
CORPORATE OFFICES
Versailles Centre
102 Versailles Boulevad
Lafayette, Louisiana 70501
(318) 237-8343
TRANSFER AGENT
Inquiries relating to stockholder records,
stock transfers, changes of ownership and
changes of address should be sent to the
transfer agent at the following address:
Mellon Securities
Transfer Services
85 Challenger Road
Overpeck Centre
Ridgefield Park, New Jersey 07660
1-800-526-0801
TDD 1-800-231-5469 (for hearing impaired)
STOCK TRADING INFORMATION
MidSouth's common stock is traded on the American Stock
Exchange, inc./Emerging Company Marketplace ("ECM")
under the symbol MSL.EC. Information on the price and
volume of transactions on the ECM appears in the Wall
Street Journal under the caption "Emerging Companies"
under the heading "American Stock Exchange Composite
Transactions."
Analysts, investors, and others seeking the current
market value of the stock and additional information
about MidSouth should contact Sally Gary, Investor
Relations, 102 Versailles Boulevard, Lafayette,
Louisiana 70501 (318) 237-8343 or 1-800-213-BANK.
______________________________________________________________________________
MidSouth is a Lafayette, Louisiana-based one-bank holding company with
total assets of $107.7 million as of March 31, 1995. The Company offers
complete banking services to commercial and retail customers through
its wholly-owned subsidiary, MidSouth National Bank (the "Bank").
Opened in 1985, the Bank has nine banking offices, five in Lafayette
Parish, two in St. Martin Parish, one in Jefferson Davis Parish and
one in St. Landry Parish.
<PAGE>
<TABLE>
<CAPTION>
MIDSOUTH BANCORP, INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
________________________________________________________________________________________________
Three Months Ended Year Ended
March 31, December 31,
EARNINGS DATA 1995 1994 1994 1993
________________________________________________________
<S> <C> <C> <C> <C>
Net interest income $1,432,125 $1,234,104 $5,412,377 $4,565,113
Provision for loan losses 55,000 80,000 210,000 306,500
Other income 357,780 357,391 1,422,894 1,371,124
Other expense 1,275,563 1,173,284 4,882,130 4,653,303
Income tax expense 161,257 114,817 601,500 331,500
Net income before cumulative effect
of accounting change 298,085 223,394 1,141,641 644,934
Cumulative effect of accounting change - - - 600,000
Net income $298,085 $223,394 $1,141,641 $1,244,934
________________________________________________________________________________________________
PER COMMON SHARE DATA
Income before cumulative effect
of accounting change $0.42 $0.32 $1.61 $1.00
Cumulative effect of accounting change - - - $0.93
Net income $0.42 $0.32 $1.61 $1.93
Book value at end of period $8.62 $7.37 $7.53 $8.15
Market price at end of period $10.88 $8.88 $11.50 $8.81
Average shares outstanding 715,078 705,587 709,552 646,413
________________________________________________________________________________________________
AVERAGE BALANCE SHEET DATA
Total assets $103,018,703 $98,458,933 $101,547,146 $86,482,082
Earning assets 94,759,974 89,739,101 93,047,145 78,751,062
Loans and leases 60,352,447 50,599,945 55,601,496 45,124,270
Interest-bearing deposits 66,229,411 64,862,255 66,163,847 58,350,452
Total Deposits 94,332,404 91,372,785 94,164,045 80,466,161
Total Stockholders' Equity 6,004,349 5,362,305 5,442,693 4,267,226
________________________________________________________________________________________________
SELECTED RATIOS
Return on average assets (annualized) 1.16% 0.92% 1.12% 1.13%
Return on average equity (annualized) 19.86% 16.85% 20.98% 22.88%
Leverage capital ratio 6.72% 5.78% 6.45% 5.94%
Tier 1 risk-based capital ratio 11.04% 10.40% 10.95% 10.56%
Total risk-based capital ratio 12.30% 11.65% 12.20% 11.81%
Allowance for loan losses as a %
of total loans 1.47% 1.60% 1.45% 1.66%
________________________________________________________________________________________________
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MIDSOUTH BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED)
______________________________________________________________________________________________________________________
March 31, December 31,
ASSETS 1995 1994
_____________ _____________
<S> <C> <C>
Cash and due from banks $6,261,908 $6,941,989
Federal funds sold 7,100,000 1,700,000
_____________ _____________
Total cash and cash equivalents 13,361,908 8,641,989
Interest bearing deposits in banks 98,385 48,422
Securities available-for-sale, at fair value (cost of $29,719,136
in March 1995 and $32,909,276 in December 1994) 28,875,336 31,369,476
Securities held-to-maturity (estimated market value of $945,955
in March 1995 and $372,274 in December 1994) 931,404 370,946
Loans, net of allowance for loan and lease losses of
$905,175 in March 1995 and $873,934 in December 1994 60,535,205 59,558,341
Bank premises and equipment, net 2,203,510 2,117,512
Other real estate owned, net 193,350 198,350
Accrued interest receivable 684,192 695,604
Goodwill, net 185,508 191,691
Other assets 625,104 773,629
_______________ ______________
Total assets $107,693,902 $103,965,960
=============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing $30,085,357 $31,035,865
Interest bearing 68,621,837 65,454,490
_______________ ______________
Total deposits 98,707,194 96,490,355
Securities sold under
repurchase agreements 315,479 301,730
Accrued interest payable 234,055 191,366
Notes payable 2,154,366 1,195,917
Other liabilities 112,752 413,246
_______________ _______________
Total liabilities 101,523,846 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, 715,963 and 713,988
issued and outstanding on March 31, 1995 and
December 31, 1994, respectively 71,596 71,399
Surplus 6,167,103 6,144,070
Unearned ESOP shares (67,926) (73,021)
Unrealized gains/losses on securities available-for-sale, net of deferred
taxes of $251,300 in March 1995 and $477,000 in December 1994 (592,500) (1,062,800)
Retained earnings 591,783 293,698
________________ _______________
Total stockholders' equity 6,170,056 5,373,346
________________ _______________
Total liabilities and stockholders' equity $107,693,902 $103,965,960
================ ===============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MIDSOUTH BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
__________________________________________________________________________________________________
Three Months Ended Year Ended
March 31, December 31,
1995 1994 1994
______________ ________________ _________________
<S> <C> <C> <C>
INTEREST INCOME:
Loans, including fees $1,546,455 $1,218,168 $5,463,501
Securities 439,900 445,144 1,782,504
Federal funds sold 43,782 35,656 142,473
______________ ________________ _________________
TOTAL 2,030,137 1,698,968 7,388,478
INTEREST EXPENSE:
Interest on deposits 568,873 450,781 1,924,906
Interest on note payable 29,139 14,083 51,195
______________ ________________ _________________
TOTAL 598,012 464,864 1,976,101
______________ ________________ _________________
NET INTEREST INCOME 1,432,125 1,234,104 5,412,377
PROVISION FOR LOAN LOSSES 55,000 80,000 210,000
_______________ ________________ _________________
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 1,377,125 1,154,104 5,202,377
_______________ ________________ _________________
OTHER OPERATING INCOME:
Service charges on deposits 249,211 233,135 1,015,529
Gains (losses) on securities, net - - 1,178
Other charges and fees 108,569 124,256 406,187
________________ ________________ _________________
TOTAL OTHER INCOME 357,780 357,391 1,422,894
________________ ________________ _________________
OTHER EXPENSES:
Salaries and employee benefits 587,802 543,529 2,242,892
Occupancy expense 218,935 197,530 822,615
Professional fees 42,962 45,647 218,287
FDIC assessments 51,939 52,730 209,508
Marketing expenses 52,818 43,537 207,295
General and bond insurance 27,327 28,086 109,674
Data processing expenses 24,927 31,020 108,572
Postage 28,178 26,792 104,365
Director fees 22,409 23,771 95,509
Education and travel 22,152 20,015 91,896
Printing and supplies 31,135 19,753 113,526
Telephone 22,758 22,319 94,985
Expenses on other real estate
owned, net 16,006 11,052 22,500
Other 126,215 107,503 440,506
________________ _______________ ________________
TOTAL OTHER EXPENSES 1,275,563 1,173,284 4,882,130
________________ _______________ ________________
NET INCOME BEFORE INCOME TAXES 459,342 338,211 1,743,141
PROVISION FOR INCOME TAXES 161,257 114,817 601,500
________________ _______________ ________________
NET INCOME $298,085 $223,394 $1,141,641
================ =============== ================
Net income per common share $0.42 $0.32 $1.61
================ =============== ================
Average number of
shares outstanding 715,078 705,587 709,552
================ ============== ================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MIDSOUTH BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
FOR THE THREE MONTHS ENDED MARCH 31, 1995 (UNAUDITED)
____________________________________________________________________________________________________________________________
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
============ =========== ============== ============ ================== ============== ==============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MIDSOUTH BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 1995 AND 1994
____________________________________________________________________________________________
March 31,
1995 1994
_______________ ________________
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $298,085 $223,394
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation and amortization 71,562 68,906
Provision for loan losses 55,000 80,000
Provision for deferred taxes - 114,817
Premium amortization, net 37,301 49,979
Write-down of other real estate owned 5,000 5,548
Change in accrued interest receivable 11,412 (71,750)
Change in accrued interest payable 42,689 3,326
Change in other liabilities (300,494) (119,192)
Change in other assets (77,175) (242,240)
________________ _______________
NET CASH PROVIDED BY OPERATING ACTIVITIES 143,380 112,788
________________ _______________
CASH FLOWS FROM INVESTING ACTIVITIES:
Net increase (decrease) in interest-bearing deposits (49,963) 622
Proceeds from sales of securities available-for-sale - 601,236
Proceeds from maturities and calls of securities
available-for-sale 3,315,366 220,838
Purchases of securities held-to-maturity (728,864) -
Purchases of securities available-for-sale - (2,098,035)
Loan originations, net of repayments (1,025,985) (3,033,503)
Purchases of premises and equipment (151,377) (43,880)
________________ _______________
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 1,359,177 (4,352,722)
________________ _______________
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in deposits 2,216,839 4,357,303
Net increase (decrease) in repurchase agreements 13,749 (766)
Issuance of notes payable 1,000,000 165,000
Repayments of notes payable (36,456) (31,826)
Proceeds from issuance of common stock 23,230 26,802
Payment of fractional shares resulting from
stock dividend - (643)
_________________ _______________
NET CASH PROVIDED BY FINANCING ACTIVITIES 3,217,362 4,515,870
_________________ _______________
NET INCREASE IN CASH & CASH EQUIVALENTS 4,719,919 275,936
CASH & CASH EQUIVALENTS, BEGINNING OF YEAR 8,641,989 10,464,078
_________________ _______________
CASH & CASH EQUIVALENTS, END OF QUARTER $13,361,908 $10,740,014
================= ===============
</TABLE>
<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 March 31, 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:
Three months Ended
March 31,
1995 1994
____________ _____________
Balance at beginning of year $874 $824
Provision for loan losses 55 80
Recoveries 25 48
Loans charged off (50) (113)
____________ _____________
Balance at end of quarter $905 $839
============ =============
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. SFAAS 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 quarter 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 interet income reported for the three months
ending March 31, 1995.
At March 31, 1995, the recorded investment in loans that are considered
to be impaired under Statement 114 was $483,230. Included in this
amount is $345,537 of impaired loans for which the related allowance
for credit losses in $70,000 and $137,693 of impaired loans that do not
have an allowance for credit losses. There was no significant change
in these amounts during the three months ended March 31, 1995, and no
interest income was recognized on a cash basis on impaired loans during
the same period.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
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.
MidSouth reported earnings for the first quarter of 1995 of
$298,085, representing a 33.4% increase over net income for the
first quarter of 1994 of $223,394. Earnings per share for the
first quarter of 1995 were $.42 based on 715,078 average shares
outstanding as compared to $.32 on 705,587 average shares
outstanding for the first quarter of 1994.
The reported increase in earnings for the first quarter of 1995
was attributable primarily to an increase of $198,021 in net
interest income due to growth in the loan portfolio and to a
decrease of $25,000 in the provision for loan and lease losses.
The increase in earnings was partially offset by an increase in
expenses attributable to salaries and employee benefits,
occupancy, marketing, printing and supplies, and other
miscellaneous expenses.
At March 31, 1995, MidSouth's total assets were $107,693,902, an
increase of 3.6% over the $103,965,960 reported at year-end 1994
and an increase of 5.8% over the $101,808,710 at the end of the
first quarter of 1994. Total deposits grew from $94,932,110 at
March 31, 1994 to $96,490,355 at December 31, 1994 and to
$98,707,194 at March 31, 1995.
Loans, net of the Allowance for Loan and Lease Losses ("ALLL"),
at the current quarter-end were $60,535,205 compared to
$59,558,341 at December 31, 1994 and $51,915,297 at March 31,
1994. Provisions to the ALLL totaled $55,000 as compared to
$80,000 for the three month period ending March 31, 1994.
The provisions increased MidSouth's total reserves to $905,175
at the end of the first quarter of 1995.
Non-performing loans increased $56,724 from December 31, 1994 to
a total of $306,417 or .50% of total loans. There was no
material change in other non-performing assets during the first
quarter of 1995, but loans past due 90 days or more increased
by $163,316 from March 31, 1994 to a total of $230,861 as of
March 31, 1995.
As of March 31, 1995, MidSouth's annualized return on average
equity was 19.86% and annualized return on average assets was
1.16%. The leverage capital ratio was 6.72% at the current
quarter-end.
<PAGE>
Earnings Analysis
Net Interest Income
Average earning assets increased $5.0 million from $89.7 million
for the three months ending March 31, 1994 to $94.7 million for
the three months ending March 31, 1995. The $5.0 million
increase is the net result of a $9.7 million increase in the loan
portfolio and a $4.7 million decrease in the volume of securities
and federal funds sold. Cash flows from federal funds sold,
maturing securities and principal payments on mortgage-backed
securities were reinvested in the loan portfolio. In addition, a
$3.0 million increase in the average volume of deposits and a
short-term borrowing of $1.0 million from the Federal Home Loan
Bank provided additional funding for the loan growth. Of the
$3.0 million increase in the average volume of deposits, $1.6
million represents growth in non-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
$198,021 in quarterly comparison. Average loan volume increased
from $50.6 million at March 31, 1994 to $60.3 million at March
31, 1995. This volume increase, combined with a 64 basis point
increase in the average yield on loans (from 9.75% to 10.39%) for
the same period, contributed $328,287 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 $2,882.
With the rise in interest rates, interest expense increased
$133,148 for the first quarter of 1995 as compared to the first
quarter of 1994 due to a 71 basis point increase in the average
rate paid on interest-bearing liabilities (from 2.84% to 3.55%).
In addition, the average volume of interest-bearing liabilities
increased $2.0 million, from $66.3 million to $68.3 million.
The increase in volume is due to additional borrowing from the
Federal Home Loan Bank and from an increase in interest-bearing
public funds deposits.
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 56 basis points,
from 5.57% as of March 31, 1994 to 6.13% as of March 31, 1995.
Non-interest Income
MidSouth's primary source of non-interest income, service charges
on deposit accounts, increased $16,076 for the first quarter of
1995 as compared to the first quarter of 1994, primarily due to
an increase in insufficient funds fees. Other non-interest
income decreased $15,687 in quarterly comparisons primarily due
to a decrease of $26,880 in fees earned through a real estate
mortgage program that was partially offset by increases in check
order income, ATM fees and fee income earned from early
withdrawal of certificates of deposit. Rising interest rates
slowed activity in the real estate mortgage program after the
first quarter of 1994, which resulted in the decrease in fees
earned from the program. Fees from early withdrawals of
certificates of deposits increased during the first quarter of
1995 as customers took advantage of rising short term rates.
Non-interest Expense
Non-interest expense increased 8.7% for the three months ended
March 31, 1995 as compared to the three months ended March 31,
1994. The increase resulted primarily from increases in salaries
and employee benefits, occupancy expenses, printing and supplies,
and marketing expenses. Additionally, an increase of $18,712 was
recorded in the "Other" expenses category, but, no
significant change was reported for any individual component of
that category.
Salaries and employee benefits increased $44,273 in quarterly
comparisons due to an increase in the number of full time
equivalent employees from 72 to 80. Throughout 1994, additional
staff was added at branch locations to handle peak transaction
periods and insure quality customer service. In addition, two
employees were added to a staff that provides replacement
personnel as needed during absences and vacation periods, and a
consumer lender was added at the Ambassador Caffery Branch during
the first quarter of 1995.
Occupancy expense increased in the three month period ending
March 31, 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 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.
FDIC assessment fees were slightly lower for the three months
ended March 31, 1995 as compared to the three months ended March
31, 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.
<PAGE>
Balance Sheet Analysis
MidSouth ended the first quarter of 1995 with consolidated assets
of $107,693,902, an increase of $3.7 million from December 31,
1994 consolidated assets of $103,965,960. The increase in
consolidated assets was funded primarily from additional funds
deposited through a public funds contract obtained on January 1,
1995 and from a $1.0 million short term borrowing from the
Federal Home Loan Bank.
As of March 31, 1995, total deposits increased $2.2 million to
$98,707,194 as compared to $96,490,355 at December 31, 1994,
primarily due to the addition of $2.4 million in deposits from the
above mentioned public funds contract. Fluctuations in commercial
deposits resulted in a decrease of $1.6 million in total deposits
held in commercial accounts, including certificates of deposit.
The decrease resulted in part from the withdrawal of commerical
deposits associated with a few large commercial loans that were
paid out unexpectedly during the first quarter of 1995. Total
consumer (individual) deposits increased $1.4 million, primarily
due to deposits that accompanied loan relationships established
as a result of an installment loan promotion held during the
month of March 1995.
Total loans increased $1,008,105 during the first quarter of 1995
from $60,432,275 reported at December 31, 1994. The installment
loan promotion held in March 1995 resulted in an increase of $2.0
million in the consumer loan portfolio. A decrease of $1.0
million in the commercial loan portfolio resulted from the
unexpected payout of a few larger commercial loans. 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 $2.5 million, from $31.4
million at December 31, 1994 to $28.9 million at March 31, 1995.
The decrease represents a net result of maturities of securities
available-for-sale partially offset by an improvement of $696,000
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 $592,500 at March
31, 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.
Approximately $3.3 million in cash flows resulted from maturities
of securities available-for-sale and payments received on
mortgage-backed securities during the first quarter of 1995. Of
the $3.3 million, $728,864 was used to purchased tax-exempt
municipal securities and $1.0 million was used to fund loans.
Management anticipates additional purchases of tax-exempt
municipal securities throughout 1995 as quality offerings become
available.
<PAGE>
Capital Ratios
As of March 31, 1995, MidSouth's leverage ratio was 6.72% as
compared to 6.45% at December 31, 1994. Tier 1 capital to risk-
weighted assets was 11.04% and total capital to risk-weighted
assets was 12.30% at the end of the first 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%. Effective
December 31, 1994, regulatory agencies announced that the net
unrealized gains or losses on securities available-for-sale would
not be included in the 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. Additional information on the price and volume of
transactions on the ECM currently appears in the Wall Street
Journal under the caption "Emerging Companies" under the heading
"American Stock Exchange Composite Transactions."
TABLE 1 - COMMON STOCK INFORMATION
1995 1994
1ST 4TH 3RD 2ND 1ST
QTR QTR QTR QTR QTR
High Price $12.38 $12.50 $11.88 $11.25 $9.38
Low Price $10.88 $11.25 $10.00 $8.75 $8.88
Closing Price $10.88 $11.50 $11.13 $10.25 $8.88
<PAGE>
Nonperforming Assets and Past Due Loans
Table 2 on page 14 below summarizes MidSouth's nonaccrual,
past due and restructured loans and nonperforming assets.
Nonperforming assets were $499,767 as of March 31, 1995, an
increase of $51,724 from the $448,043 reported for December 31,
1994 and a decrease of $115,806 from the $615,573 reported for
March 31, 1994. The increase in the first quarter of 1995
results from the addition of one loan placed on nonaccrual. No
significant changes occurred in other nonperforming assets
during the first quarter of 1995. The decrease in Other Real
Estate Owned ("OREO") for the twelve months ended March 31, 1995
resulted from the sale of three parcels of OREO in 1994.
Loans past due 90 days or more increased from $67,545 in March
1994 to $104,060 in December 1994 and to $230,861 as of March 31,
1995. The increase results primarily from two commercial loans
totaling $135,000, one of which is an Small Business
Administration ("SBA") guaranteed loan in the process of
settlement with the SBA, and the other of which in management's
opinion will be brought current without the need for restructing.
Management has no serious doubts as to the borrowers' abilities
to comply with 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 $905,175 in the reserve as of
March 31, 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 1 do not
represent material credits about which management has serious
doubts as to the ability of the borrower to comply with loan
repayment terms.
<PAGE>
<TABLE>
<CAPTION>
TABLE 2
Nonpreforming Assets and
Loans Past Due 90 Days
______________________________________________________________________________________________
March 31, December 31, March 31,
1995 1994 1994
______________________________________________________________________________________________
<S> <C> <C> <C>
Nonperforming loans
Nonaccrual loans $301,749 $244,800 $317,149
Restructured loans 4,668 4,893 5,901
________________ _______________ _______________
Total nonperforming loans 306,417 249,693 323,050
Other real estate owned, net 193,350 198,350 291,523
Other assets repossessed - - 1,000
_________________ _______________ ______________
Total nonperforming assets $499,767 $448,043 $615,573
================= =============== ==============
Loans past due 90 days
or more and still accruing 230,861 104,060 67,545
Nonperforming loans as a %
of total loans 0.50% 0.41% 0.61%
Nonperforming assets as a %
of total loans, other real
estate owned and other
assets repossessed 0.81% 0.74% 1.16%
ALLL as a % of nonperforming loans 295.41% 350.00% 259.74%
_______________________________________________________________________________________________
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANICAL INFORMATION EXTRACTED FROM CONSOLIDATED
FINANCIAL STATEMENTS FOR THE PERIOD ENDING MARCH 31, 1995 AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> MAR-31-1995
<CASH> 6,261,908
<INT-BEARING-DEPOSITS> 98,385
<FED-FUNDS-SOLD> 7,100,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 28,875,336
<INVESTMENTS-CARRYING> 931,404
<INVESTMENTS-MARKET> 0
<LOANS> 61,440,380
<ALLOWANCE> 905,175
<TOTAL-ASSETS> 107,693,902
<DEPOSITS> 98,707,194
<SHORT-TERM> 1,536,274
<LIABILITIES-OTHER> 112,752
<LONG-TERM> 618,092
<COMMON> 71,596
0
0
<OTHER-SE> 6,098,460
<TOTAL-LIABILITIES-AND-EQUITY> 6,170,056
<INTEREST-LOAN> 1,546,455
<INTEREST-INVEST> 439,900
<INTEREST-OTHER> 43,782
<INTEREST-TOTAL> 2,030,137
<INTEREST-DEPOSIT> 568,873
<INTEREST-EXPENSE> 598,012
<INTEREST-INCOME-NET> 1,432,125
<LOAN-LOSSES> 55,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,275,563
<INCOME-PRETAX> 459,342
<INCOME-PRE-EXTRAORDINARY> 298,085
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 298,085
<EPS-PRIMARY> .42
<EPS-DILUTED> 0
<YIELD-ACTUAL> 6.13
<LOANS-NON> 301,749
<LOANS-PAST> 230,861
<LOANS-TROUBLED> 4,668
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 873,934
<CHARGE-OFFS> 49,588
<RECOVERIES> 25,829
<ALLOWANCE-CLOSE> 905,175
<ALLOWANCE-DOMESTIC> 179,613
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 725,562
</TABLE>
