Midsouth Bancorp (MSL) has reported 7.38 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $2.40 million, or $0.14 a share in the quarter, compared with $2.59 million, or $0.21 a share for the same period last year.
Revenue during the quarter went up marginally by 1.97 percent to $20.50 million from $20.11 million in the previous year period. Net interest income for the quarter dropped 3.15 percent over the prior year period to $18.54 million. Non-interest income for the quarter rose 2.06 percent over the last year period to $4.87 million.
Midsouth Bancorp has made provision of $2.90 million for loan losses during the quarter, down 23.68 percent from $3.80 million in the same period last year.
Net interest margin contracted 10 basis points to 4.24 percent in the quarter from 4.34 percent in the last year period. Efficiency ratio for the quarter deteriorated to 73.04 percent from 68.65 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
C. R. Cloutier, president and chief executive officer, commenting on third quarter earnings remarked, "We were pleased to see $10.4 million in loan growth for the quarter, despite a $6.5 million decrease in our energy loans. Although our criticized energy loans increased by $21.8 million during the quarter, we have not seen a high level of energy-related charge-offs to date. Our loss content since the beginning of this cycle in late 2014 has been modest with cycle-to-date charge-offs of 1.09% of energy loans. With uncertainty plaguing the oil and gas industry, we have increased our energy loan loss reserves to 4.6% of total energy loans over the past eight quarters and will continue to work closely with our energy-related customers through this cycle."
Assets, liabilities fallTotal assets stood at $1,953.92 million as on Sep. 30, 2016, down 1.03 percent compared with $1,974.31 million on Sep. 30, 2015. On the other hand, total liabilities stood at $1,735.79 million as on Sep. 30, 2016, down 1.39 percent from $1,760.34 million on Sep. 30, 2015.
Deposits outpace loan growthNet loans stood at $1,249.53 million as on Sep. 30, 2016, down 2.57 percent compared with $1,282.51 million on Sep. 30, 2015. Deposits stood at $1,585.21 million as on Sep. 30, 2016, up 2.71 percent compared with $1,543.42 million on Sep. 30, 2015. Noninterest-bearing deposit liabilities were $403.30 million or 25.44 percent of total deposits on Sep. 30, 2016, compared with $406.12 million or 26.31 percent of total deposits on Sep. 30, 2015.
Investments stood at $430.90 million as on Sep. 30, 2016, up 2.94 percent or $12.31 million from year-ago. Shareholders equity stood at $218.13 million as on Sep. 30, 2016, up 1.95 percent or $4.16 million from year-ago.
Return on average assets moved down 16 basis points to 0.33 percent in the quarter from 0.49 percent in the last year period. At the same time, return on average equity decreased 198 basis points to 3.55 percent in the quarter from 5.53 percent in the last year period.
Credit quality deterioratesMidsouth Bancorp witnessed a deterioration in credit quality during the quarter. Nonperforming assets moved up 13.72 percent or $7.73 million to $64.09 million on Sep. 30, 2016 from $56.36 million on Sep. 30, 2015. Nonperforming assets to total loans was 5.03 percent in the quarter, up from 4.32 percent in the last year period. Meanwhile, nonperforming assets to total assets was 3.28 percent in the quarter, up from 2.85 percent in the last year period. Tier-1 leverage ratio stood at 10.27 percent for the quarter, up from 9.98 percent for the previous year quarter. Book value per share was $15.58 for the quarter, up 2.43 percent or $0.37 compared to $15.21 for the same period last year.
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