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