MidSouth Bancorp, Inc. (NYSE:MSL) Files An 8-K Costs Associated with Exit or Disposal ActivitiesItem 2.05. COSTS ASSOCIATED WITH EXIT OR DISPOSAL ACTIVITIES
On December 29, 2017, MidSouth Bank, N.A. (“MidSouth Bank”), the banking subsidiary of MidSouth Bancorp, Inc. (the “Company”),notifiedtheOfficeoftheComptrolleroftheCurrency andthe impacted customers and employees ofitsintention to close six branch offices. The branches being closed are at the following locations: Natchitoches North, Robeline, and Super 1 (Lafayette) in Louisiana; Magnolia (Houston), Texarkana and Vidor (Beaumont) in Texas.
The branch closures are expected to occur in March 2018, subjecttoapplicableregulatoryrequirements. The affected branches are low traffic facilities and MidSouth Bank expects to fully serve the affected customers through its remaining network of 42 branches and electronic services.
As a result of the branch closures, the Company expects to record a total pre-tax charge for costs associated with impacted employees and market value adjustments on five owned branch facilities, net of selling expenses of approximately $1.2 million, which will occur during the fourth quarter of 2017. Additionalcharges of approximately $220,000 associated with impairments of leasehold improvements, furniture and equipment and other net costs are expected to occur in the first quarter of 2018.
The branch closures are in the interest of operational efficiency and are part of the Company’s previously disclosed strategic initiatives to improve the performance and overall condition of the Company.
Item 5.02. DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS.
On December 26, 2017, Joseph V. Tortorice Jr. resigned from the Board of Directors of the Company, effective immediately. Mr. Tortorice indicated that his resignation stemmed from health reasons and was not due to any disagreement with the Company on any matter relating to the Company’s operations, policies or practices.
Item 8.01. OTHER EVENTS.
On December 27, 2017, the Company was informed in writing by the Federal Reserve Bank of Atlanta (the “Federal Reserve”) that the Federal Reserve has determined that the Company is in “troubled condition” for purposes of Section 225.71 of Regulation Y. The determination is consistent with the Company’s expectations as previously disclosed. Based on the troubled condition determination, the Company (1)must notify the Federal Reserve prior to adding or replacing a member of its board of directors or employing, or changing the responsibilities of any senior executive officer, and (2) may not, except under certain circumstances, enter into any agreements to make severance or indemnification payments or make any such payments to “institution-affiliated parties” as defined in the regulations.
About MidSouth Bancorp, Inc. (NYSE:MSL)
MidSouth Bancorp, Inc. is a financial holding company. The Company operates primarily through its wholly owned bank subsidiary, MidSouth Bank, N.A. The Company is operating principally in the community banking business by providing banking services to commercial and retail customers through the Bank. The Bank is community oriented and focuses primarily on offering commercial and consumer loan and deposit services to individuals and small to middle market businesses in Louisiana, and central and east Texas. Deposit products and services offered by the Bank include interest-bearing and noninterest-bearing checking accounts, investment accounts, cash management services and electronic banking services, including remote deposit capturing services, Internet banking, and debit and credit cards. Loans offered by the Bank include commercial and industrial loans, commercial real estate loans (both owner-occupied and non-owner occupied), other loans secured by real estate and consumer loans.