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, 2002
_____ 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
(337) 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 May 8, 2002
Common stock, $.10 par value 2,901,142
Transitional Small Business Disclosure Format:
Yes _______ No ____ X ____
Page 1
Page 2
PART 1 - FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited) Page
Financial Highlights 3
Statements of Condition - March 31, 2002 and
December 31, 2001 4
Statements of Income - Three Months Ended
March 31, 2002 and 2001 and Year Ended
December 31, 2001 5
Statement of Stockholders' Equity - Three Months
Ended March 31, 2002 6
Statements of Cash Flows - Three Months Ended
March 31, 2002 and 2001 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 15
Signatures 17
Item 1. Financial Statements (unaudited)
MIDSOUTH BANCORP, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS (UNAUDITED)
Three Months Ended Year-ended
March 31, December 31,
EARNINGS DATA 2002 2001 2001 (FN1)
_______________________________________________
Net interest income $4,004,487 $3,883,183 $16,015,101
Provision for loan losses 358,000 323,100 2,176,224
Non-interest income 1,502,609 1,183,216 5,432,859
Non-interest expense 4,078,000 3,703,868 15,462,472
Provision for income tax 252,965 244,254 866,105
Net income 818,131 795,177 2,943,159
Preferred dividend requirement - 30,293 52,751
Income available to common
shareholders $818,131 $764,884 $2,890,408
====================================================================================
PER COMMON SHARE DATA
Basic earnings per share $0.28 $0.31 $1.08
Diluted earnings per share $0.28 $0.27 $1.00
Book value at end of period $7.94 $7.60 $7.80
Market price at end of period $11.90 $9.99 $11.60
Weighted average shares outstanding
Basic 2,883,142 2,492,196 2,679,348
Diluted 2,939,555 2,924,741 2,949,544
====================================================================================
AVERAGE BALANCE SHEET DATA
Total assets $355,743,048 $333,639,134 $347,813,732
Earning assets 325,985,186 305,205,906 318,599,327
Loans and leases 213,187,233 203,571,189 208,797,977
Interest-bearing deposits 242,063,616 234,087,871 239,724,527
Total deposits 321,858,228 304,311,712 314,457,094
Total stockholders' equity 23,256,480 20,177,233 21,666,651
====================================================================================
SELECTED RATIOS
Return on average assets
(annualized) 0.93% 0.97% 0.85%
Return on average total equity
(annualized) 14.27% 15.98% 13.58%
Leverage capital ratio 8.29% 8.09% 8.02%
Tier 1 risk-based capital ratio 12.26% 12.05% 12.06%
Total risk-based capital ratio 13.39% 13.12% 13.21%
Allowance for loan losses as a %
of total loans 1.24% 1.19% 1.28%
=============================================================================================
PERIOD ENDING BALANCE SHEET DATA 3/31/02 3/31/01 Net Change % Change
Total assets $360,607,994 $341,808,240 $18,799,754 5.50%
Earning assets 331,472,869 314,111,598 $17,361,271 5.53%
Loans and leases, net 214,558,603 200,072,933 $14,485,670 7.24%
Interest-bearing deposits 242,446,422 237,751,855 $4,694,567 1.97%
Total deposits 324,896,158 309,327,128 $15,569,030 5.03%
Total stockholders' equity 23,040,539 21,023,344 $2,017,195 9.60%
=============================================================================================
(FN1) Financial highlights for December 31, 2001 are taken from the audited
financials on that date.
MIDSOUTH BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED)
March 31, December 31,
2002 2001 *
ASSETS
___________ ___________
Cash and due from banks $14,872,523 $18,547,278
Federal funds sold 11,200,000 17,300,000
___________ ___________
Total cash and cash equivalents 26,072,523 35,847,278
Interest bearing deposits in banks 280,452 109,206
Securities available-for-sale, at fair value
(cost of $78,826,155 in March 2002 and
$75,052,952 in December 2001) 79,144,306 75,780,414
Securities held-to-maturity (estimated market
value of $24,467,804 in March 2002 and
$24,735,122 in December 2001) 23,584,213 23,584,850
Loans, net of allowance for loan losses of
$2,705,295 in March 2002 and $2,705,058
in December 2001 214,558,603 211,685,063
Bank premises and equipment, net 12,220,022 11,950,701
Other real estate owned, net 108,752 359,336
Accrued interest receivable 2,189,178 2,197,794
Goodwill, net 431,987 431,987
Other assets 2,017,958 1,833,234
___________ ___________
Total assets $360,607,994 $363,779,863
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing $82,449,736 $91,145,842
Interest bearing 242,446,422 239,431,616
___________ ___________
Total deposits 324,896,158 330,577,458
Securities sold under
repurchase agreements 3,123,512 663,079
Accrued interest payable 810,025 1,057,065
Notes payable 1,099,000 1,431,000
Junior subordinated debenture 7,000,000 7,000,000
Other liabilities 638,760 423,700
___________ ___________
Total liabilities 337,567,455 341,152,302
___________ ___________
Commitments and contingencies - -
Stockholders' Equity:
Common stock, $.10 par value- 5,000,000
shares authorized, 2,901,142 issued
and outstanding on March 31, 2002
and December 31, 2001, respectively 290,114 290,114
Surplus 12,972,762 12,972,762
Unearned ESOP shares (139,921) (149,638)
Unrealized gains on securities available-
for-sale, net of deferred taxes
of $118,001 in March 2002 and $257,500
in December 2001 200,150 469,962
Retained earnings 9,717,434 9,044,361
___________ ___________
Total stockholders' equity 23,040,539 22,627,561
___________ ___________
Total liabilities and stockholders' equity $360,607,994 $363,779,863
============ ============
* The consolidated statement of condition at
December 31, 2001 is taken from the audited
balance sheet on that date.
See notes to unaudited consolidated financial statements.
MIDSOUTH BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
March 31, Year Ended
2002 2001 December 31,
(unaudited) (unaudited) 2001 *
_____________________________ ____________
INTEREST INCOME:
Loans, including fees $4,580,130 $5,277,167 $20,539,148
Securities
Taxable 755,595 868,840 3,807,820
Nontaxable 422,468 356,400 1,512,050
Federal funds sold and other
interest income 51,742 265,773 565,009
__________ __________ ___________
TOTAL 5,809,935 6,768,180 26,424,027
__________ __________ ___________
INTEREST EXPENSE:
Deposits 1,612,041 2,716,647 9,530,743
Securities sold under
repurchase agreements,
federal funds purchased
and advances 3,260 10,768 73,703
Long term debt 190,147 157,582 804,480
__________ __________ ___________
TOTAL 1,805,448 2,884,997 10,408,926
__________ __________ ___________
NET INTEREST INCOME 4,004,487 3,883,183 16,015,101
PROVISION FOR LOAN LOSSES 358,000 323,100 2,176,224
__________ __________ ___________
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 3,646,487 3,560,083 13,838,877
__________ __________ ___________
OTHER OPERATING INCOME:
Service charges on deposits 1,075,313 792,962 3,534,113
Gains on securities, net - - 188,883
Credit life insurance 53,825 66,618 246,046
Other charges and fees 373,471 323,636 1,463,817
__________ __________ ___________
TOTAL OTHER INCOME 1,502,609 1,183,216 5,432,859
__________ __________ ___________
OTHER EXPENSES:
Salaries and employee benefits 1,935,465 1,761,476 7,300,250
Occupancy expense 846,340 829,758 3,423,585
Other 1,296,195 1,112,634 4,738,637
__________ __________ ___________
TOTAL OTHER EXPENSES 4,078,000 3,703,868 15,462,472
__________ __________ ___________
INCOME BEFORE INCOME TAXES 1,071,096 1,039,431 3,809,264
PROVISION FOR INCOME TAXES 252,965 244,254 866,105
__________ __________ ___________
NET INCOME 818,131 795,177 2,943,159
PREFERRED DIVIDEND REQUIREMENT - 30,293 52,751
__________ __________ ___________
INCOME AVAILABLE TO COMMON
SHAREHOLDERS $818,131 $764,884 $2,890,408
========== ========== ===========
BASIC EARNINGS PER COMMON SHARE $0.28 $0.31 $1.08
========== ========== ===========
DILUTED EARNINGS PER COMMON SHARE $0.28 $0.27 $1.00
========== ========== ===========
* The consolidated statement of income at December 31, 2001 is taken from the audited income statement of that date.
See notes to unaudited consolidated financial statements.
MIDSOUTH BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
FOR QUARTER ENDED MARCH 31, 2002 (UNAUDITED)
____________________________________________________________________________________________
UNREALIZED
GAINS (LOSSES)
COMMON STOCK ESOP ON SECURITIES RETAINED
SHARES AMOUNT SURPLUS OBLIGATION AFS, NET EARNINGS TOTAL
_____________________ ___________ ____________________________________________________
BALANCE,
JANUARY 1, 2002
2,901,142 $290,114 $12,972,762 ($149,638) $469,962 $9,044,361 $22,627,561
Dividends on
common stock (145,058) (145,058)
Net income 818,131 818,131
Increase in ESOP
obligation,
net of repayments 9,717 9,717
Net change in
unrealized
gain/loss on
securities
available-for-sale,
net of income taxes (269,812) (269,812)
_________ ________ ___________ _______________________ __________ ___________
BALANCE,
MARCH 31, 2002
2,901,142 $290,114 $12,972,762 ($139,921) $200,150 $9,717,434 $23,040,539
========= ======== =========== ======================= ========== ===========
See notes to consolidated financial statements.
MIDSOUTH BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE QUARTERS ENDED MARCH 31, 2002 AND 2001
March 31, 2002 March 31,2001
_____________ _____________
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $818,131 $795,177
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation and amortization 305,329 341,664
Provision for loan losses 358,000 323,100
Deferred income taxes (credit) (16,418) 10,778
Discount accretion, net 112,602 16,777
(Gain)/loss on sale of premises and equipment 40,625 (2,700)
Loss on sale of other real estate owned 25,571 10,011
Write-down of other real estate owned - 22,417
Change in accrued interest receivable 8,616 (23,135)
Change in accrued interest payable (247,040) 89,031
Other, net 257,236 26,685
___________ ___________
NET CASH PROVIDED BY OPERATING ACTIVITIES 1,662,652 1,609,805
___________ ___________
CASH FLOWS FROM INVESTING ACTIVITIES:
Net (increase) decrease in interest-bearing
deposits in banks (171,246) (332,180)
Proceeds from maturities and calls of securities
available-for-sale 12,056,708 4,959,417
Purchases of securities available-for-sale (15,941,876) (22,404,184)
Loan originations, net of repayments (3,292,806) 1,853,875
Purchases of premises and equipment (615,625) (82,191)
Proceeds from sales of premises and equipment 350 2,700
Proceeds from sales of other real estate owned 225,013 69,889
___________ ___________
NET CASH USED IN INVESTING ACTIVITIES (7,739,482) (15,932,674)
___________ ___________
CASH FLOWS FROM FINANCING ACTIVITIES:
Net (decrease) increase in deposits (5,681,300) (10,220,077)
Net (decrease) increase in securities sold under
repurchase agreements and Federal Home Loan Bank
advances 2,460,433 (452,723)
Issuance of notes payable - 20,000
Repayments of notes payable (332,000) (2,512,571)
Proceeds from issuance of common stock - 33,763
Payment of dividends (145,058) (156,292)
Issuance of junior subordinated debentures - 7,000,000
___________ ___________
NET CASH USED IN FIANCING ACTIVITIES (3,697,925) (6,287,900)
___________ ___________
NET DECREASE IN CASH & CASH EQUIVALENTS (9,774,755) (20,610,769)
CASH & CASH EQUIVALENTS AT BEGINNING OF PERIOD 35,847,278 49,798,538
___________ ___________
CASH & CASH EQUIVALENTS AT END OF PERIOD $26,072,523 $29,187,769
=========== ===========
See notes to unaudited consolidated financial statements.
MIDSOUTH BANCORP, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED 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, 2002 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 2001 annual consolidated
report and Form 10-KSB.
The results of operations for the three month period ended
March 31, 2002 are not necessarily indicative of the results to
be expected for the entire year.
2. ALLOWANCE FOR LOAN AND LOSSES
An analysis of the activity in the allowance for loan losses is
as follows:
Three Months Ended
March 31,
2002 2001
__________ __________
Balance at beginning of period $2,705,058 $2,276,187
Provision for loan losses 358,000 323,100
Recoveries 33,745 17,008
Loans charged off (391,508) (212,140)
__________ __________
Balance at end of period $2,705,295 $2,404,155
========== ==========
3. COMPREHENSIVE INCOME
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, 2002 and 2001.
Three Months Ended
March 31,
2002 2001
__________ ________
Net income $818,131 $795,177
Other comprehensive income
Unrealized gain (losses) on
securities available-for-sale,
net:
Unrealized holding gains
(losses) arising during the
period (269,812) 479,805
__________ ________
Total other comprehensive income (269,812) 479,805
__________ ________
Total comprehensive income $548,319 $1,274,982
========== ==========
Item 2.
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 2001 annual consolidated financial
statements, the notes thereto and the related Management's
Discussion and Analysis.
MidSouth's net income totaled $818,131 for the first
quarter of 2002 compared to $795,177 for the first quarter
of 2001. Basic earnings per share were $.28 for the quarter
ending March 31, 2002 compared to $.31 for the quarter
ending March 31, 2001. Diluted earnings per share were
$.28 for the first quarter of 2002 and $.27 for the first
quarter of 2001.
Earnings were comparable for the two quarters ending
March 31, 2002 and 2001 primarily due to falling interest
rates that held net interest income to a 3% increase of
$121,304, while non-interest income increased 27% or
$319,393 and expenses increased 10% or $374,132.
MidSouth maintained its net interest margin despite the
dramatic decline in interest rates over the past twelve
months. Non-interest income increased primarily due to
increased service charges on demand deposit accounts.
Non-interest expense increases were recorded primarily in
salaries and employee benefits, printing and office supplies,
and professional fees. The increase in professional fees
includes consulting fees associated with a process and
workflow review of MidSouth's retail, lending and
technology areas.
Total consolidated assets increased $18.8 million or 6%,
from $341.8 million at March 31, 2001 to $360.6 million at
March 31, 2002. Deposits grew $15.6 million or 5%, from
$309.3 million at March 31, 2001 to $324.9 million at
March 31, 2002.
Loans, net of Allowance for Loan Losses ("ALL"),
increased $14.5 million or 7%, from $200.1 million in the
first quarter of 2001 to $214.6 million in the first quarter of
2002. Provisions for loan and lease losses increased slightly
to $358,000 in March 2002 compared to $323,100 in March
2001.
Nonperforming loans as a percentage of total loans
increased from .18% in March of 2001 to .45% in March of
2002. The increase resulted primarily from the placement
of two large commercial credits on nonaccrual during the
first quarter of 2002. Specific allocations have been made
in the ALL for possible losses on these loans. The ALL
represented 247% of nonperforming assets as of March 31,
2002 compared to 272% as of March 31, 2001. Loans past
due ninety days and over decreased in quarterly
comparison, from $865,667 at March 31, 2001 to $760,518
at March 31, 2002.
MidSouth's leverage ratio was 8.29% at March 31, 2002
compared to 8.09% at March 31, 2001. Return on average
equity for the first quarter of 2002 was 14.27% compared to
15.98% for the first quarter of 2001.
1
Earnings Analysis
Net Interest Income
Average earning assets increased 7%, or $20.8 million from
$305.2 million for the three months ended March 31, 2001
to $326.0 million for the three months ended March 31,
2002. The mix of average earning assets shifted slightly, as
loans represented 67% of average earning assets in the first
quarter of 2001 compared to 65% in the first quarter of
2002. Average loans increased $9.6 million, from $203.6
million in the first quarter of 2001 to $213.2 million in the
first quarter of 2001. The average yield on loans decreased
181 basis points in quarterly comparison, from 10.52% to
8.71% at March 31, 2002. The decrease in loan yields
resulted primarily from decreases in the prime lending
("prime") rate during 2001. New York prime fell 475 basis
points during 2001. The impact of declining rates far
exceeded the impact of volume increases in the loan
portfolio, resulting in a $697,037 decrease in interest
income on loans.
Average investments increased $17.3 million, from $82.6
million at March 31, 2001 to $99.9 million at March 31,
2002. The average taxable-equivalent yield on investments
decreased 125 basis points, from 6.78% in the first quarter
of 2001 to 5.53% in the first quarter of 2002, again due to
falling interest rates. Additionally, federal funds sold
volume decreased $6.0 million and yields decreased 410
basis points, from 5.68% to 1.58%. Declining yields
partially offset by a volume increase in investments
resulted in decreased interest income on securities and
federal funds sold of $261,208 in quarterly comparison.
A 201 basis point decrease in the average rate paid on
interest-bearing deposits, partially offset by an average
volume increase of $8.0 million, contributed to a $1,079,549
decrease in interest expense for the quarter ended March
31, 2002 compared to the quarter ended March 31, 2001.
The average rate paid on interest-bearing deposits
decreased from 4.71% at March 31, 2001 to 2.70% at
March 31, 2002. The percentage of average
noninterest-bearing deposits to average total deposits
increased slightly from 23% to 25% in quarterly
comparison. The impact of these changes in the yields and
volume of interest-bearing liabilities lowered interest
expense to a greater degree than the decrease in interest
income, resulting in increased net interest income of $121,304
in quarterly comparison. The net taxable-equivalent yield
on average earning assets decreased 16 basis points, from
5.37% for the quarter ended March 31, 2001 to 5.21% for
the quarter ended March 31, 2002.
Non-interest Income
MidSouth's primary source of non-interest income, service
charges on deposit accounts, increased $282,351or 36% for
the three months ended March 31, 2002 as compared to the
same period in 2001. The increase resulted primarily from
an increase in insufficient funds fees. Other non-interest
income increased $49,835 in quarterly comparison,
primarily due to increased third-party mortgage processing
fees and lease income from an investment advisory firm.
2
Non-interest Expense
Non-interest expense increased $374,132 or 10% for the
three months ended March 31, 2002 compared to the three
months ended March 31, 2001. Increases were recorded
primarily in the categories of salaries and employee
benefits, printing and office supplies and professional fees.
Salaries and employee benefits increased primarily due to
the addition of risk management and loan support
personnel, including a compliance officer, two internal
audit officers and a collateral documentation officer. The
number of full-time equivalent ("FTE") employees
increased by 12 from 198 in March 2001 to 210 in March
2002. In addition, group health insurance and other
benefits costs increased $44,413 in quarterly comparison.
Printing and office supplies increased $44,836 in the three-
month period ended March 31, 2002 compared to the same
period in 2001. The increase included additional check
printing expenses that resulted from a change in vendor
billing practices and from Bank-paid check orders
associated with MidSouth's Business Value Checking program.
Professional fees increased $44,847 primarily due to
consulting fees associated with a process and workflow
review of MidSouth's retail, lending and technology areas.
Balance Sheet Analysis
MidSouth ended the first quarter of 2002 with consolidated
assets of $360.6 million, a decrease of $3.2 million from
the $363.8 million reported for December 31, 2001.
Deposits decreased over the three months ended March 31,
2002 by $5.7 million, from $330.6 million at December 31,
2001 to $324.9 million. The decline in deposits resulted
primarily from fluctuations in commercial deposit account
balances.
Net loans increased $2.9 million from $211.7 million at
December 31, 2001 to $214.6 at March 31, 2002. Loan
demand in MidSouth's market remained slow for the first
quarter of 2002. Consequently, excess cash flows were
used to purchase additional securities. Purchases of $15.9
million in agency and municipal securities were added to
the investment portfolio in the first quarter of 2002.
Unrealized gains in the securities available-for-sale
portfolio, net of unrealized losses and tax effect, were
$200,150 at March 31, 2002, compared to a net unrealized
gain of $469,962 at December 31, 2001. 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.
3
Capital
MidSouth's leverage ratio was 8.29% at March 31, 2002
compared to 8.02% at December 31, 2001. Tier 1 capital to
risk-weighted assets was 12.26% and total capital to risk-
weighted assets was 13.39% at the end of the first quarter
of 2002. At year-end 2001, Tier 1 capital to risk-weighted
assets was 12.06% and total capital to risk-weighted assets
was 13.21%.
4
Nonperforming Assets and Past Due Loans
Table 1 summarizes MidSouth's nonaccrual, past due and
restructured loans and nonperforming assets.
TABLE 1
Nonperforming Assets and
Loans Past Due 90 Days
===========================================================================
March December March
31, 31, 31,
2002 2001 2001
===========================================================================
Nonperforming loans $984,680 $768,753 $309,253
Other real estate owned, net 108,752 359,336 411,007
__________________________________________
Total nonperforming assets $1,093,432 $1,128,089 $720,260
==========================================
Loans past due 90 days
or more and still accruing $760,518 $999,538 $865,667
Nonperforming loans as a
% of total loans 0.45% 0.38% 0.18%
Nonperforming assets as a
% of total loans, other real
estate owned and other assets
Repossessed 0.50% 0.55% 0.41%
ALL as a % of nonperforming
assets 247.41% 201.77% 272.46%
__________________________________________
5
Nonperforming assets were $1,093,432 as of March 31,
2002, a decrease of $34,657 from the $1,128,089 reported
for December 31, 2001 and an increase of $373,172 from
the $720,260 reported for March 31, 2001. The decrease
from year-end 2001 resulted primarily from the sale of
other real estate owned. The increase from March 2001
resulted primarily from the placement of two large
commercial credits on nonaccrual. Specific allocations
have been made in the ALL for possible losses on these
loans. Loans past due 90 days or more increased from
$865,667 in March 2001 to $999,538 in December 2001
and decreased to $760,518 as of March 31, 2002. Of the
$760,518 in loans past due 90 days or more at March 31,
2002, $175,136 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
$2,705,295 in the allowance as of March 31, 2002 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.
6
Item 6. Exhibits and Reports on Form 8-K Page 15
(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 16
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.
10.9 Modification Agreement to the Loan Agreement
and Master Note for the Line of Credit
established for MidSouth Bancorp, Inc. is
included as Exhibit 10.9 of MidSouth's
Form 10-QSB filed on August 13, 1999 and is
incorporated herein by reference.
10.10 Junior Subordinated Debentures Interest
Debenture issued on February 22, 2001 by
MidSouth Bancorp, Inc. is included as
Exhibit 99 to MidSouth Bancorp, Inc.'s
Form 10-QSB filed on May 15, 2001, and is
incorporated herein by reference.
11 Computation of earnings per share
(b) Reports Filed on Form 8-K
(none)
Page 17
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, 2002
___________________________
C. R. Cloutier, President & CEO
__________________________________
Karen L. Hail, Sr. Executive
Vice President & COO
__________________________________
Teri S. Stelly, Sr. Vice President
& CFO