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, 1997
_____TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ..... to .....
COMMISSION FILE NUMBER 2-91-000FW
MIDSOUTH BANCORP, INC.
Louisiana 72 -1020809
102 Versailles Boulevard, Lafayette, Louisiana
70501
(318) 237-8343
Check whether the issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the past
12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. YES __X__NO _____
State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date.
Outstanding as of March 31, 1997
Common stock, $.10 par value 1,379,589
Preferred stock, no par value, $14.25 stated value 171,656
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
Financial Highlights 3
Statements of Condition - March 31, 1997 and 4
December 31, 1996
Statements of Income - Three Months
Ended March 31, 1997 and 1996
and Year Ended December 31, 1996 5
Statement of Stockholders' Equity - Three
Months Ended March 31, 1997 6
Statements of Cash Flows - Three Months
Ended March 31, 1997 and 1996 7
Notes to Financial Statements 8
Item 2. Management's Discussion and Analysis or
Plan of Operation 9
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 14
Signatures 15
<PAGE>
<TABLE>
<CAPTION>
MIDSOUTH BANCORP, INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
=================================================================================
Three Months Ended Year Ended
March 31, December 31,
EARNINGS DATA 1997 1996 1996
_______________________________________
<S> <C> <C> <C>
Net interest income $2,237,962 $1,881,064 $8,030,690
Provision for loan losses 153,268 120,000 674,500
Other income 596,489 441,565 2,138,285
Other expense 2,183,167 1,780,391 7,840,691
Income tax expense 116,594 133,991 417,286
Net income 381,422 288,247 1,236,498
Preferred dividend requirement 39,807 39,720 155,421
Net income available to common
shareholders $341,615 $248,527 $1,081,077
=================================================================================
PER COMMON SHARE DATA
Primary earnings per share $0.25 $0.19 $0.82
Fully diluted earnings per share $0.23 $0.18 $0.76
Book value at end of period $6.43 $5.99 $6.53
Market price at end of period $11.13 $11.44 $11.00
Weighted average shares outstanding
Primary 1,369,235 1,319,177 1,325,556
Fully diluted 1,674,096 1,641,976 1,630,950
=================================================================================
AVERAGE BALANCE SHEET DATA
Total assets $192,430,945 $154,884,821 $166,753,809
Earning assets 173,353,447 139,500,730 150,848,685
Loans and leases 96,580,282 79,412,878 85,517,231
Interest-bearing deposits 132,328,642 104,101,744 113,305,785
Total Deposits 177,893,056 142,536,655 153,938,649
Common Stockholders' Equity 9,058,302 7,721,137 8,258,928
Total Stockholders' Equity 11,507,606 10,392,473 10,834,623
=================================================================================
SELECTED RATIOS
Return on average assets (annualized) 0.79% 0.74% 0.74%
Return on average common equity
(annualized) 15.09% 12.88% 13.09%
Return on average total equity (annualized) 13.26% 11.09% 11.41%
Leverage capital ratio 5.95% 6.60% 6.30%
Tier 1 risk-based capital ratio 10.42% 11.81% 10.82%
Total risk-based capital ratio 11.45% 13.02% 11.87%
Allowance for loan losses as a %
of total loans 1.12% 1.30% 1.15%
=================================================================================
</TABLE>
4
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<TABLE>
<CAPTION>
MIDSOUTH BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED)
_____________________________________________________________________________________________
March 31, December 31,
ASSETS 1997 1996
___________ ___________
<S> <C> <C>
Cash and due from banks $13,700,519 $11,314,562
Federal funds sold 16,200,000 14,100,000
___________ ___________
Total cash and cash equivalents 29,900,519 25,414,562
Interest bearing deposits in banks 6,742 406,798
Securities available-for-sale, at fair value (cost of
$52,663,690 in March 1997 and $47,387,766 in
December 1996) 52,200,635 47,249,059
Securities held-to-maturity (estimated market value of
$13,399,471 in March 1997 and $9,700,307 in
December 1996) 13,517,856 9,547,853
Loans, net of allowance for loan and lease losses of
$1,126,358 in March 1997 and $1,087,790 in
December 1996 99,326,599 93,740,719
Bank premises and equipment, net 6,116,972 5,808,952
Other real estate owned, net 146,552 180,270
Accrued interest receivable 1,449,423 1,386,596
Goodwill, net 267,868 276,523
Other assets 1,197,549 1,216,920
___________ ___________
Total assets $204,130,715 $185,228,252
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing $47,891,565 $49,943,207
Interest bearing 142,055,176 121,673,301
___________ ___________
Total deposits 189,946,741 171,616,508
Securities sold under
repurchase agreements 350,589 104,414
Accrued interest payable 440,113 397,259
Notes payable 1,723,026 1,521,435
Other liabilities 226,603 228,465
___________ ___________
Total liabilities 192,687,072 173,868,081
___________ ___________
Commitments and contingencies - -
Stockholders' Equity:
Preferred Stock, no par value, $14.25 stated value -
5,000,000 shares authorized, 171,656 and 171,956
issued and outstanding on March 31, 1997 and
December 31, 1996, respectively 2,446,098 2,450,373
Common stock, $.10 par value-
5,000,000 shares authorized, 1,379,589 and 1,364,903
issued and outstanding on March 31, 1997 and
December 31, 1996, respectively 137,959 136,491
Surplus 6,900,150 6,738,943
Unearned ESOP shares (150,000) (30,836)
Unrealized gains/losses on securities available-for
-sale, net of deferred taxes of $133,300 in March
1997 and $24,177 in December 1996 (329,755) (114,530)
Retained earnings 2,439,191 2,179,730
___________ ___________
Total stockholders' equity 11,443,643 11,360,171
___________ ___________
Total liabilities and stockholders' equity $204,130,715 $185,228,252
=========== ===========
</TABLE>
4
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<TABLE>
<CAPTION>
MIDSOUTH BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
===============================================================================
Three Months Ended Year Ended
March 31, December 31,
1997 1996 1996
___________________________ ____________
<S> <C> <C> <C>
INTEREST INCOME:
Loans, including fees $2,459,748 $2,037,428 $8,803,467
Securities 891,021 676,228 3,140,270
Federal funds sold 202,915 197,043 628,680
_________ _________ __________
TOTAL 3,553,684 2,910,699 12,572,417
_________ _________ __________
INTEREST EXPENSE:
Interest on deposits 1,284,195 1,010,515 4,457,556
Interest on note payable 31,527 19,120 84,171
_________ _________ __________
TOTAL 1,315,722 1,029,635 4,541,727
_________ _________ __________
NET INTEREST INCOME 2,237,962 1,881,064 8,030,690
PROVISION FOR LOAN LOSSES 153,268 120,000 674,500
_________ _________ __________
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 2,084,694 1,761,064 7,356,190
_________ _________ __________
OTHER OPERATING INCOME:
Service charges on deposits 438,214 323,196 1,489,211
Gains (losses) on securities, net - - 1,176
Other charges and fees 158,275 118,369 647,898
_________ _________ __________
TOTAL OTHER INCOME 596,489 441,565 2,138,285
_________ _________ __________
OTHER EXPENSES:
Salaries and employee benefits 1,027,972 862,471 3,668,824
Occupancy expense 505,524 393,436 1,524,396
Professional fees 59,075 64,444 348,543
FDIC assessments 4,412 500 2,000
Marketing expenses 108,241 80,617 411,206
General and bond insurance 32,146 33,072 112,984
Data processing expenses 40,102 29,650 375,299
Postage 48,888 34,337 154,802
Director fees 24,975 26,273 102,294
Education and travel 25,393 33,362 159,500
Printing and supplies 69,516 51,731 236,681
Telephone 48,778 40,090 177,563
Expenses on other real estate
owned, net 36,872 173 10,969
Other 151,273 130,235 555,630
_________ _________ __________
TOTAL OTHER EXPENSES 2,183,167 1,780,391 7,840,691
_________ _________ __________
INCOME BEFORE INCOME TAXES 498,016 422,238 1,653,784
PROVISION FOR INCOME TAXES 116,594 133,991 417,286
_________ _________ __________
NET INCOME $381,422 $288,247 $1,236,498
PREFERRED DIVIDEND REQUIREMENT 39,807 39,720 155,421
_________ _________ __________
INCOME AVAILABLE TO COMMON
SHAREHOLDERS $341,615 $248,527 $1,081,077
========= ========= ==========
Primary earnings per common share $0.25 $0.19 $0.82
========= ========= ==========
Fully diluted earnings per
common share $0.23 $0.18 $0.76
========= ========= ==========
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
MIDSOUTH BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
FOR THE QUARTER ENDED MARCH 31, 1997 (UNAUDITED)
UNREALIZED
(GAINS) LOSSES
ON SECURITIES
PREFERRED STOCK COMMON STOCK ESOP AVAILABLE RETAINED
SHARES AMOUNT SHARES AMOUNT SURPLUS OBLIGATION FOR SALE EARNINGS TOTAL
____________________ ___________________ __________ __________ ____________ _________ __________
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
BALANCE,
DECEMBER 31, 1996 171,956 $2,450,373 1,364,903 $136,491 $6,738,943 ($30,836) ($114,530) $2,179,730 $11,360,171
Issuance of common stock 14,155 1,415 156,985 158,400
Dividends paid on common
stock (82,107) (82,107)
Dividends paid on
preferred stock (39,807) (39,807)
Preferred stock conversion (300) (4,275) 531 53 4,222 (47) (47)
Net income 381,422 381,422
ESOP obligation, net of
repayments (119,164) (119,164)
Net change in unrealized
gain/loss on securities
available-for-sale,
net of tax (215,225) (215,225)
_______ _________ _________ ________ _________ ________ ________ _________ __________
BALANCE,
MARCH 31, 1997 171,656 $2,446,098 1,379,589 $137,959 $6,900,150 ($150,000) ($329,755) $2,439,191 $11,443,643
_______ _________ _________ ________ _________ ________ ________ _________ __________
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
MIDSOUTH BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 1997 and 1996
March 31, March 31,
1997 1996
________ ________
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $381,422 $288,247
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation and amortization 197,155 147,054
Provision for loan losses 153,268 120,000
Provision for deferred taxes 40,116 (63,623)
Premium amortization, net 13,795 40,343
Write-down of other real estate owned 33,718 -
Change in accrued interest receivable (62,827) (187,436)
Change in accrued interest payable 42,854 21,129
Change in other liabilities 56,024 182,207
Change in other assets 30,493 (507,479)
__________ __________
NET CASH PROVIDED BY OPERATING ACTIVITIES 886,018 40,442
__________ __________
CASH FLOWS FROM INVESTING ACTIVITIES:
Net decrease (increase) in interest-bearing
deposits in banks 400,056 (81,891)
Proceeds from maturities and calls of securities
available-for-sale 682,993 658,812
Purchases of securities held-to-maturity (3,971,005) (1,678,819)
Purchases of securities available-for-sale (5,971,710) (11,332,346)
Loan originations, net of repayments (5,858,312) (1,632,806)
Purchases of premises and equipment (496,520) (167,984)
Proceeds from sales of fixed assets - 9,000
__________ __________
NET CASH USED IN INVESTING ACTIVITIES (15,214,498) (14,226,034)
__________ __________
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in deposits 18,330,233 7,897,978
Net increase (decrease) in repurchase agreements 246,175 (109,259)
Issuance of notes payable 235,000 -
Repayments of notes payable (33,410) (40,320)
Proceeds from issuance of common stock 158,400 40,488
Payment of dividends (121,914) (58,074)
Payment of fractional shares resulting from conversion
preferred stock (47) -
Proceeds from exercise of stock options - 29,565
__________ __________
NET CASH PROVIDED BY FINANCING ACTIVITIES 18,814,437 7,760,378
__________ __________
NET (INCREASE) DECREASE IN CASH & CASH EQUIVALENTS 4,485,957 (6,425,214)
CASH & CASH EQUIVALENTS AT BEGINNING OF YEAR 25,414,562 26,098,209
__________ __________
CASH & CASH EQUIVALENTS AT END OF QUARTER $29,900,519 $19,672,995
========== ==========
</TABLE>
7
<PAGE>
MIDSOUTH BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. STATEMENT BY MANAGEMENT CONCERNING THE REVIEW OF UNAUDITED
FINANCIAL INFORMATION
The accompanying unaudited consolidated financial statements and
notes thereto contain all adjustments, consisting only of normal
recurring adjustments, necessary to present fairly the financial
position of MidSouth Bancorp, Inc. ("MidSouth") and its subsidiaries
as of March 31, 1997 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
1996 annual report and Form 10-KSB.
The results of operations for the three month period ended March 31,
1997 are not necessarily indicative of the results to be expected
for the entire year.
2. ALLOWANCE FOR LOAN AND LEASE LOSSES
An analysis of the activity in the allowance for loan and lease
losses is as follows:
Three Months Ended
March 31,
(in thousands) 1997 1996
______ ______
Balance at beginning of year $1,087 $1,052
Provision for loan losses 153 120
Recoveries 62 43
Loans charged off (176) (168)
______ ______
Balance at end of quarter $1,126 $1,047
====== ======
3. In March 1997, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards (SFAS) No. 128, "Earnings per Share."
This new standard requires dual presentation of basic and diluted
earnings per share (EPS) on the face of the earnings statement and
requires a reconciliation of the numerators and denominators of the
basic and diluted EPS calculations. This statement will be effective
for MidSouth's 1997 fiscal year. Management is currently analyzing the
impact of SFAS No. 128 on its earnings per share calculations.
8
<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
1996 annual consolidated financial statements, the notes thereto
and the related Management's Discussion and Analysis.
MidSouth reported net income of $381,422 for the first quarter of
1997, an increase of 32% over net income of $288,247 reported for
the first quarter of 1996. Income available to common
shareholders totaled $341,615 for the first quarter of 1997,
compared to $248,527 for the first quarter of 1996. Primary
earnings per share were $.25 and $.19 for the quarters ending
March 31, 1997 and 1996, respectively. Fully diluted earnings
per share were $.23 for the first quarter of 1997, compared to
$.18 for the first quarter of 1996.
Quarterly balance sheet comparison reflects strong loan and
deposit growth as MidSouth continues to develop each branch
market and focus on internal growth. Loans, net of Allowance for
Loan and Lease Losses ("ALLL"), increased 25%, from $79.3 million
in the first quarter of 1996 to $99.3 million in the first
quarter of 1997. Deposits grew $43.0 million, or 29%, from
$146.9 million at March 31, 1996 to $189.9 million at March 31,
1997. Of the $43.0 million increase, $7.3 million represented
non-interest bearing deposits. As a result of loan and deposit
growth, net interest income increased 19% from the first quarter
of 1996 to the first quarter of 1997. Non-interest income
increased $154,924 during the same period, primarily due to an
increase in insufficient funds fees and service charges on
deposit accounts. Additional increases were recorded in ATM
fees, Visa debit card fees, and lease income from a third-party
agreement with an investment advisory firm.
The improvement in net interest income and non-interest income
was partially offset by a 23% increase in non-interest expense
resulting primarily from start-up and operational costs
associated with a new Super 1 Foods in-store branch in Lafayette,
two loan production offices and the finance company, Financial
Services of the South, Inc. (the "Finance Company"). Offsetting
revenues for the loan production offices are expected to improve
as a significant volume of loans are expected to be funded for
both offices during the second quarter of 1997. It is expected
that the Finance Company operation will have little effect on
second quarter earnings and should contribute to earnings in the
third quarter of 1997.
Provisions for loan and lease losses increased $33,268 from
$120,000 in the first quarter 1996 to $153,268 in the first
quarter 1997, primarily due to loan growth. Nonperforming loans
as a percentage of total loans increased slightly from .46% in
March of 1996 to .62% in March of 1997. The ALLL represents
181.24% of nonperforming loans as of March 31, 1997.
9
<PAGE>
Return on average common equity for the first quarter of 1997 was
15.09% and return on average assets was .79%. The leverage
capital ratio was 5.95% at the current quarter-end.
Earnings Analysis
Net Interest Income
Net interest income totaled $2,237,962 for the first quarter of
1997, an increase of $356,898, or 19%, compared to the first
quarter of 1996. The increase results from a significant volume
increase in earning assets between the two quarters reviewed.
Average earning assets totaled $173,353,447 at March 31, 1997
compared to $139,500,730 at March 31, 1996. This volume increase
in earning assets offset a 5 basis point decline in the average
yield on earning assets in addition to a $28.2 million volume
increase and 6 basis point rate increase associated with
interest-bearing liabilities.
Despite increased net interest earnings, the net interest margin
decreased 17 basis points, from 5.41% for the quarter ended March
31, 1996 to 5.24% for the current quarter-end. The decrease in
the net interest margin resulted primarily from a slight shift in
the mix of earning assets combined with a change in the deposit
mix. For the first quarter of 1996, loans represented 57% of
average earning assets. As of March 31, 1997, the percentage of
loans to average earning assets fell to 56%. The average rate
earned on loans increased 4 basis points, from 10.29% in the
first quarter of 1996 to 10.33% in the first quarter of 1997.
For the same period, the average rate earned on securities,
including federal funds sold, decreased 5 basis points, from
5.83% to 5.78%.
The change in the deposit mix reflects a higher volume of
interest-bearing deposits to total deposits. Interest-bearing
deposits averaged 74.4% of total deposits at March 31, 1997
compared to 73% at March 31, 1996. A significant increase in the
average volume of NOW and Money Market deposits of $19.8 million
in the same period reflects the impact of public funds on the
deposit portfolio. The average rate paid on NOW and Money Market
deposits increased 31 basis points, from 2.65% in the first
quarter of 1996 to 2.96% in the first quarter of 1997. Decreases
in the average rate paid on certificates of deposit, repurchase
agreements and notes payable for the same period resulted in a
net increase in the average rate paid on all interest-bearing
liabilities of 6 basis points, from 3.92% in 1996 to 3.98% in
1997.
Non-interest Income
MidSouth's primary source of non-interest income, service charges
on deposit accounts, increased $115,018 for the first quarter of
1997 as compared to the first quarter of 1996. The increase
resulted primarily from increases of $77,010 in insufficient
funds fees and $37,600 in service charges and ATM fees earned on
deposit accounts. Other non-interest income increased
10
<PAGE>
$39,906 in quarterly comparison primarily due to $21,300 in fees
earned through the Finance Company, combined with increases of
$4,818 in Visa debit card fees and $8,613 in lease income from a
third-party agreement with an investment advisory firm.
Non-interest Expense
Non-interest expense increased 22.6% for the three months ended
March 31, 1997 as compared to the three months ended March 31,
1996. The increase resulted primarily from start up and
operational costs associated with the Super 1 Foods - Lafayette
branch, two loan production offices and the Finance Company.
Significant increases are reflected in salaries and employee
benefits, occupancy, printing and supplies, and marketing
expenses. Additionally, an increase of $36,699 was recorded in
Expenses on Other Real Estate Owned ("OREO") which included
$25,218 in losses on valuation of OREO and $8,500 in provisions
for OREO losses.
Salaries and employee benefits increased $165,501 in quarterly
comparison due to an increase in the number of full time
equivalent ("FTE") employees from 116 to 132. Additional
employees were hired during 1996 to staff the Super 1 Foods -
Lafayette branch, the loan production offices and the Finance
Company.
Occupancy expenses increased $112,088 in the three month period
ending March 31, 1997 as compared to the same period of 1996.
MidSouth's additional banking locations contributed $105,200 to
the increase and the Finance Company's two locations contributed
$16,888.
Marketing and promotional expenses increased in quarterly
comparisons due to expenses related to production costs
associated with a market awareness promotion and other loan and
deposit promotions.
MidSouth recorded $4,412 in FDIC assessment fees for the three
months ended March 31, 1997 due to assessments required by the
Deposit Act of 1996. In September of 1996 the Deposit Act of
1996 was enacted to assure payment of the Financing Corporation's
("FICO") bond obligations. In 1996, prior to the FICO
requirement, MidSouth was required to remit minimal fees of
$500.00 per quarter based on its risk classification of "well
capitalized".
Balance Sheet Analysis
MidSouth ended the first quarter of 1997 with consolidated assets
of $204,130,715, an increase of 10.2% over the $185,228,252
reported for December 31, 1996. Deposits increased during the
first quarter of 1997 by $18.3 million, funding a $5.6 million
growth in the loan portfolio and a $8.9 million growth in the
securities portfolio. Of the $18.3 million increase in deposits,
approximately $8.5 million is associated with a public funds
contract expiring July 31, 1997. The remaining $9.8 million
increase in deposits represents additional commercial demand and
money market deposits and certificates of deposit.
11
<PAGE>
MidSouth's two loan production offices opened in 1996 contributed
greatly to loan growth in the first quarter of 1997. Loan
fundings in the first quarter of 1997 for the Morgan City and
Lake Charles loan production offices totaled $1.2 million and
$2.2 million, respectively. These fundings contributed to an
increase in the commercial and real estate loan portfolios, while
the consumer portfolio reflected little change. In addition, the
direct leasing program introduced in 1996 recorded increases of
$487,114 for the quarter ending March 31, 1997.
Securities available-for-sale increased $5.0 million, from $47.2
million at December 31, 1996 to $52.2 million at March 31, 1997.
The increase reflects purchases of $6.0 million in U. S. Treasury
securities partially offset by a decrease of $324,348 in the
market value of the securities available-for-sale. Additionally,
$682,993 in principal paydowns were received on mortgage-backed
securities during the first quarter of 1997. Unrealized losses
in the securities available-for-sale portfolio, net of unrealized
gains and tax effect, were $329,755 at March 31, 1997, compared
to a net unrealized gain of $114,530 at December 31, 1996. 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. Tax-free municipal securities totaling $4.0 million
were purchased for the held-to-maturity portfolio during the
first quarter of 1997.
Capital Ratios
As of March 31, 1997, MidSouth's leverage ratio was 5.95% as
compared to 6.30% at December 31, 1996. Tier 1 capital to risk-
weighted assets was 10.42% and total capital to risk-weighted
assets was 11.45% at the end of the first quarter of 1997. At
year-end 1996, Tier 1 capital to risk-weighted assets was 10.82%
and total capital to risk-weighted assets was 11.87%.
Nonperforming Assets and Past Due Loans
Table 1 summarizes MidSouth's nonaccrual, past due and
restructured loans and nonperforming assets.
Nonperforming assets were $768,023 as of March 31, 1997, an
increase of $53,883 from the $714,140 reported for December 31,
1996 and an increase of $208,919 from the $559,104 reported for
March 31, 1996. No significant changes occurred in the first
quarter of 1997. The increase of $208, 919 in comparison to the
first quarter of 1996 resulted from the addition of one
commercial credit in September of 1996. The credit represents a
pool of automobile loans for which the initial servicer
discontinued processing payments on the pool. Subsequently, a
new service provider continued payments on the pool and MidSouth
has experienced no loss in payments to date.
Loans past due 90 days or more decreased from $366,246 in March
1996 to $338,294 in December 1996 and to $239,767 as of March 31,
1997.
12
<PAGE>
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 $1,126,358 in the reserve as
of March 31, 1997 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.
13
<PAGE>
<TABLE>
<CAPTION>
TABLE 1
Nonperforming Assets and
Loans Past Due 90 Days
March 31, December 31, March 31,
1997 1996 1996
<S> <C> <C> <C>
Nonperforming loans
Nonaccrual loans $620,618 $523,020 $367,636
Restructured loans 853 835 943
_______ _______ _______
Total nonperforming loans 621,471 523,855 368,579
Other real estate owned, net 146,552 180,270 183,608
Other assets repossessed - 10,015 6,917
_______ _______ _______
Total nonperforming assets $768,023 $714,140 $559,104
======= ======= =======
Loans past due 90 days
or more and still accruing $239,767 $338,294 $366,246
Nonperforming loans as a
% of total loans 0.62% 0.55% 0.46%
Nonperforming assets as a
% of total loans, other real
estate owned and other assets
repossessed 0.76% 0.75% 0.69%
ALLL as a % of nonperforming
loans 181.24% 207.65% 283.98%
====================================================================
</TABLE>
<PAGE>
<PAGE>
Item 6. Exhibits and Reports on Form 8-K Page 14
(a) Exhibits
Exihibit NumberDocument 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 Articles of Amendment to Amended and Restated
Articles of Incorporation dated July 19, 1995
are included as Exhibit 4.2 to MidSouth's
Registration Statement on Form S-8 filed
September 20, 1995 and is incorporated herein
by reference.
3.3 Amended and Restated By-laws adopted by the Board
of Directors on April 12, 1995 are included as
Exhibit 3.2 to Amendment No. 1 to MidSouth's
Registration Statement on Form S-4
(Reg. No. 33-58499) filed on June 1, 1995.
10.1 MidSouth National Bank Lease Agreement with
Southwest Bank Building Limited Partnership is
included as Exhibit 10.7 to the Company's annual
report on Form 10-K for the Year Ended December
31, 1992, and is incorporated herein by reference.
10.2 First Amendment to Lease between MBL Life
Assurance Corporation, successor in interest to
Southwest Bank Building Limited Partnership in
Commendam, and MidSouth National Bank is included
as Exhibit 10.1 to Report on the Company's annual
report on Form 10-KSB for the 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.
<PAGE>
Page 15
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
10.7 Loan Agreements and Master Notes for lines of
credit established for MidSouth Bancorp, Inc.
and Financial Services of the South, Inc. by
Whitney National Bank are included as Exhibit 10.7
to the Company's annual report on Form 10-KSB for
the year ended December 31, 1996, and is
incorporated herein by reference.
11 Computation of earnings per share
(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 14, 1997
___________________________
C. R. Cloutier, President & CEO
______________________________
Karen L. Hail, Executive Vice
President & CFO
__________________________________
Teri S. Stelly, Vice President &
Controller
<PAGE>
<TABLE>
<CAPTION>
MIDSOUTH BANCORP, INC. AND SUBSIDIARY EXHIBIT 11
COMPUTATION OF EARNINGS PER SHARE (Unaudited)
FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996 AND
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1996
First Quarter First Quarter Year-to-Date
March 31, March 31, December 31,
PRIMARY 1997 1996 1996
_____________ _____________ ____________
<S> <C> <C> <C>
Earnings:
Income applicable to common
stock $341,615 $248,527 $1,081,077
Shares:
Weighted average number of
common shares outstanding 1,369,235 1,304,115 1,325,556
Earnings per common share:
Income applicable to common
stock $0.25 $0.19 $0.82
Weighted average number of
common shares outstanding 1,369,235 1,304,115 1,325,556
Assuming exercise of options,
reduced by the number of
shares which could have
been purchased with the
proceeds from exercise of
such options at the average
issue price - 15,062 -
Weighted average number of
common shares outstanding,
as adjusted 1,369,235 1,319,177 1,325,556
Primary earnings per common share $0.25 $0.19 $0.82
FULLY DILUTED
Earnings:
Net income $381,422 $288,247 $1,236,498
Weighted average number of
common shares outstanding 1,369,235 1,304,115 1,325,556
Assuming exercise of options,
reduced by the number of
shares which could have
been purchased with the
proceeds from exercise of
such options at the
average issue price - 15,062 -
Assuming conversion of
preferred stock at a
conversion rate of 1 to
1.776 shares 304,861 322,799 305,393
Weighted average number of
common shares outstanding,
as adjusted 1,674,096 1,641,976 1,630,949
Fully diluted earnings per common
share $0.23 $0.18 $0.76
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1997
<CASH> 13,700,000
<INT-BEARING-DEPOSITS> 7,000
<FED-FUNDS-SOLD> 16,200,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 52,200,000
<INVESTMENTS-CARRYING> 13,518,000
<INVESTMENTS-MARKET> 13,399,000
<LOANS> 100,453,000
<ALLOWANCE> 1,126,000
<TOTAL-ASSETS> 204,131,000
<DEPOSITS> 189,947,000
<SHORT-TERM> 350,000
<LIABILITIES-OTHER> 667,000
<LONG-TERM> 1,723,000
<COMMON> 8,998,000
0
2,446,000
<OTHER-SE> 0
<TOTAL-LIABILITIES-AND-EQUITY> 204,131,000
<INTEREST-LOAN> 2,460,000
<INTEREST-INVEST> 891,000
<INTEREST-OTHER> 203,000
<INTEREST-TOTAL> 3,554,000
<INTEREST-DEPOSIT> 1,284,000
<INTEREST-EXPENSE> 1,316,000
<INTEREST-INCOME-NET> 2,238,000
<LOAN-LOSSES> 153,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 2,183,000
<INCOME-PRETAX> 498,000
<INCOME-PRE-EXTRAORDINARY> 498,000
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 381,000
<EPS-PRIMARY> .25
<EPS-DILUTED> .23
<YIELD-ACTUAL> 5.24
<LOANS-NON> 620,000
<LOANS-PAST> 240,000
<LOANS-TROUBLED> 1
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,087,000
<CHARGE-OFFS> 176,000
<RECOVERIES> 68,000
<ALLOWANCE-CLOSE> 1,126,000
<ALLOWANCE-DOMESTIC> 130,000
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 996,000
</TABLE>
