MidSouth Bancorp, Inc. (MSL) has reported a 19.64 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $2.20 million, or $0.12 a share in the quarter, compared with $1.84 million, or $0.15 a share for the same period last year. On an adjusted basis, earnings per share were at $0.12 for the quarter compared with $0.15 in the same period last year.
Revenue during the quarter went up marginally by 2.95 percent to $20.71 million from $20.11 million in the previous year period. Net interest income for the quarter was almost flat at $18.52 million, when compared with the prior year period. Non-interest income for the quarter rose 4.52 percent over the last year period to $4.78 million.
MidSouth Bancorp, Inc. has made provision of $2.60 million for loan losses during the quarter, down 13.33 percent from $3 million in the same period last year.
Net interest margin contracted 7 basis points to 4.15 percent in the quarter from 4.22 percent in the last year period. Efficiency ratio for the quarter improved to 75.67 percent from 75.69 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
Troy Cloutier, MidSouth Bank president and chief executive officer, commenting on fourth quarter earnings remarked, "We continue to work diligently to support our energy-related customers through this cycle and at the same time look to minimize risk to our balance sheet. Our loss content during the past two years has been modest with cycle-to-date charge-offs of 1.23% of energy loans. More importantly, we are focused on improving performance in non-energy related lending and are very excited with new hires we have made in the latter part of 2016, especially in our Texas markets."
Liabilities outpace assets growth
Total assets stood at $1,943.34 million as on Dec. 31, 2016, up 0.81 percent compared with $ 1,927.73 million on Dec. 31, 2015. On the other hand, total liabilities stood at $1,728.96 million as on Dec. 31, 2016, up 0.84 percent from $ 1,714.60 million on Dec. 31, 2015.
Loans outpace deposit growth
Net loans stood at $1,259.71 million as on Dec. 31, 2016, up 1.21 percent compared with $1,244.63 million on Dec. 31, 2015. Deposits stood at $1,579.43 million as on Dec. 31, 2016, up 1.84 percent compared with $1,550.85 million on Dec. 31, 2015. Loans to deposits ratio was 80.26 percent for the quarter, down from 81.62 percent for the previous year quarter.
Noninterest-bearing deposit liabilities were $414.92 million or 26.27 percent of total deposits on Dec. 31, 2016, compared with $374.26 million or 24.13 percent of total deposits on Dec. 31, 2015.
Investments stood at $451.44 million as on Dec. 31, 2016, up 1.19 percent or $5.30 million from year-ago. Shareholders equity stood at $214.38 million as on Dec. 31, 2016, up 0.58 percent or $1.24 million from year-ago.
Return on average assets moved down 6 basis points to 0.28 percent in the quarter from 0.34 percent in the last year period. At the same time, return on average equity decreased 68 basis points to 3.12 percent in the quarter from 3.80 percent in the last year period.
Credit quality deteriorates
MidSouth Bancorp, Inc. witnessed a deterioration in credit quality during the quarter. Nonperforming assets moved up 19.51 percent or $10.62 million to $65.04 million on Dec. 31, 2016 from $54.42 million on Dec. 31, 2015. Nonperforming assets to total loans was 5.06 percent in the quarter, up from 4.29 percent in the last year period. Meanwhile, nonperforming assets to total assets was 3.35 percent in the quarter, up from 2.82 percent in the last year period. Tier-1 leverage ratio stood at 10.11 percent for the quarter, up from 10.10 percent for the previous year quarter. Book value per share was $15.25 for the quarter, up 0.73 percent or $0.11 compared to $15.14 for the same period last year.
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