Lafayette-based MidSouth Bancorp Inc. reported third-quarter net income of $2.4 million, or 21 cents per share, down from $4.3 million, or 37 cents per share, a year ago.

Given the effect low oil prices are having on energy companies, MidSouth officials addressed the issue in comments.

The bank said no energy-related loan charge-offs occurred during the third quarter, and so far total $557,000 for the year.

It said energy loans increased $29.2 million during the quarter to $295.6 million, but have since decreased to $259.8 million.

C.R. Cloutier, president and CEO, noted, however, that energy industry woes contributed to the addition of $28.4 million energy-related credits to loans on nonaccrual status during the quarter as well as some rating downgrades.

“Despite the elevated level of nonperforming assets added during the quarter, we continue to produce strong pre-provision, pre-tax earnings that were almost double our loan loss provision and as a result build capital levels,” Cloutier said. “Moreover, our year-to-date loan loss provision is over three times our year-to-date net charge-offs.”

He said the bank is “prudently” managing its risk exposure to the industry, but also sees ”opportunities to lend to some very high quality energy borrowers.”

“We firmly believe the energy lending business is a great long-term business for our company, despite some of the current challenges it presents,” he said.