MidSouth Bancorp, Inc. Reports Third Quarter 2009 Earnings

• Press Release
• Source: MidSouth Bancorp, Inc.
• On 6:21 pm EDT, Tuesday October 27, 2009

LAFAYETTE, La., Oct. 27 /PRNewswire-FirstCall/ -- MidSouth Bancorp, Inc. (NYSE Amex: MSL) today reported net income available to common shareholders of $1,132,000 for the third quarter ended September 30, 2009, an increase of 153.8% over net income available to common shareholders of $446,000 reported for the second quarter of 2009, and a decrease of 39.0% below net income available to common shareholders of $1,857,000 reported for the third quarter of 2008. Diluted earnings per common share for the third quarter of 2009 were $0.17 per share, an increase of 142.9% above the $0.07 per common share for the second quarter of 2009, and a decrease of 39.3% from the $0.28 per common share for the third quarter of 2008. Beginning the first quarter of 2009, the Company recorded dividends on its Fixed Rate Cumulative Perpetual Preferred Stock, Series A ("Series A Preferred Stock") issued to the U. S. Department of the Treasury on January 9, 2009 under the Capital Purchase Plan. Dividends recorded on the Series A Preferred Stock reduced net income available to common shareholders by $299,000 for the third and second quarters of 2009 and $277,000 for the first quarter of 2009.

For the nine months ended September 30, 2009, net income available to common shareholders totaled $2,534,000, a 43.3% decrease from net income available to common shareholders of $4,473,000 for the first nine months of 2008. Dividends recorded on the Series A Preferred Stock reduced net income available to common shareholders by $875,000 for the nine months ended September 30, 2009. Diluted earnings per common share were $0.38 for the first nine months of 2009, compared to $0.67 for the first nine months of 2008.

The Company's total assets ended the third quarter of 2009 at $947.8 million, a 3.4% increase over the $916.5 million in total assets recorded at September 30, 2008. Deposits remained relatively flat, totaling $772.1 million as of September 30, 2009, compared to $771.1 million on September 30, 2008. Total loans were $588.6 million, an increase of $9.1 million, or 1.6%, over the $579.5 million reported as of September 30, 2008. Loans grew $29.5 million in the fourth quarter of 2008, but decreased $20.4 million in the nine months ending September 30, 2009 as commercial customers used cash flows to pay down debt and continued economic concerns stemmed loan production in both commercial and retail credits.

C. R. "Rusty" Cloutier, President and Chief Executive Officer, commenting on third quarter 2009 results noted, "Many of our commercial customers went through hard times in the late '80's and the experience made them cautious. Many have communicated to us that they are in a "wait and see" mode, delaying expansion projects until they have a greater comfort level with economic conditions. This "wait and see" mode has equated to a decrease in our loan portfolio during 2009. We're ready to lend to our customers, but they're not ready to borrow."

In prior-year quarterly comparison, third quarter 2009 net earnings before dividends on Series A Preferred Stock totaled $1,431,000, a decrease of $426,000 below the $1,857,000 earned in the third quarter of 2008. Third quarter 2009 earnings were impacted by a $1.0 million provision for loan losses compared to $500,000 in the third quarter of 2008. Quarterly revenues for the Company, defined as net interest income and non-interest income, decreased $133,000 primarily due to margin compression as earning asset yields continued to decline. Non-interest expenses increased $91,000, as increased salaries and benefit costs and FDIC premiums were partially offset by decreases in other non-interest expense categories. Third quarter 2009 earnings were positively impacted by a $298,000 reduction in tax expense due to the effect of lower pre-tax profits combined with sustained tax exempt income levels and certain federal tax credits.

In linked-quarter comparison, net earnings before dividends on Series A Preferred Stock increased $686,000, primarily due to the $2.1 million provision for loan losses recorded in the second quarter of 2009 compared to the $1.0 million provision recorded for the third quarter of 2009. Net interest income increased $10,000 in linked-quarter comparison and non-interest income increased $114,000, primarily due to a higher volume of insufficient funds transactions on deposit accounts. Non-interest expense increased $194,000, primarily due to increases of $233,000 in salary and benefit costs, $119,000 in expenses on other real estate owned and other assets repossessed, and $87,000 in provisions for unfunded loan commitments. Additionally, data processing expenses increased $71,000 and marketing costs increased $62,000 in linked-quarter comparison. These increases were partially offset by a $424,000 decrease in FDIC insurance premiums, from $752,000 in the second quarter of 2009 to $328,000 in the third quarter of 2009. During the second quarter of 2009, the Company accrued for a special assessment as required by the FDIC.

In year-to-date comparison, net earnings before dividends on Series A Preferred Stock decreased $1,064,000 primarily due to a $1,545,000 increase in provisions for loan losses and a $1,101,000 increase in non-interest expense in 2009. The increases in provisions for loan losses and non-interest expense were partially offset by an $811,000 improvement in net interest income and a $784,000 reduction in income tax expense. Included in the $1,101,000 increase in non-interest expense, is a $1,017,000 increase in FDIC premiums, a $485,000 increase in salaries and benefits costs, and a $635,000 increase in occupancy expense. Significant decreases in other non-interest expense categories, including $737,000 in marketing costs and $223,000 in data processing expenses, reduced the impact of the increased FDIC premiums in year-to-date comparison. Income tax expense decreased $784,000 due to the effect of certain federal tax credits combined with lower pre-tax profits and sustained tax exempt income levels.

Asset Quality. Nonaccrual loans totaled $15.5 million as of September 30, 2009, compared to $8.1 million as of September 30, 2008 and $15.7 million at June 30, 2009. Of the $15.5 million at September 30, 2009, $12.6 million, or 81.3%, represented two large commercial real estate loan relationships in the Baton Rouge market. Loans totaling approximately $588,000 were placed on nonaccrual during the third quarter of 2009, many of which were smaller consumer credits. Loans past due 90 days or more totaled $1.6 million at September 30, 2009, an increase of $411,000 over the $1.2 million reported for September 30, 2008 and an increase of $809,000 from the $791,000 at June 30, 2009. Total nonperforming assets to total assets were 1.90% for the third quarter of 2009, compared to 1.13% for the third quarter of 2008 and 1.89% for the second quarter of 2009.

With respect to the $12.6 million in the two large commercial real estate loan relationships in Baton Rouge that are nonaccrual, $4.2 million is related to a national participation loan. In the third quarter of 2009, an additional $400,000 was charged off on the loan, bringing the total charged off in 2009 to $ 1.5 million. The loan will be a long term work-out based on actions taken by the lead bank. The second loan is an $8.4 million commercial real estate loan relationship in the Baton Rouge market which primarily funded construction of a condominium complex. As part of a work-out plan, the units are now being leased as apartments, with 67% of the units under lease agreements.

Allowance coverage for nonperforming loans was 46.82% at September 30, 2009, compared to 67.41% at September 30, 2008 and 48.85% at June 30, 2009. Excluding the effect of the two large commercial real estate loan relationships in the Baton Rouge market, allowance coverage for nonperforming loans was 213.23% at September 30, 2009, 277.22% at September 30, 2008, and 242.05% at June 30, 2009. Annualized year-to-date net charge-offs were 0.83% of total loans for the third quarter of 2009 compared to 0.61% for the third quarter of 2008 and 0.90% for the second quarter of 2009. The ALL/total loans ratio was 1.36% at September 30, 2009, 1.08% at September 30, 2008 and 1.35% at June 30, 2009.

Earnings Analysis

Net Interest Income. Net interest income totaled $9,932,000 for the third quarter of 2009, a decrease of 1.2%, or $124,000, from the $10,056,000 reported for the third quarter of 2008. The decrease in net interest income resulted primarily from a decrease of $1.1 million in interest income which exceeded a decrease of $1.0 million in interest expense. The impact to interest income of a $21.4 million increase in the average volume of loans, from $572.7 million at September 30, 2008 to $594.1 million at September 30, 2009, was offset by a 75 basis point reduction in the average yield on loans in quarterly comparison. The average yields on loans declined from 7.71% in the third quarter of 2008 to 6.96% in the third quarter of 2009 as New York Prime Rate ("Prime") fell 175 basis points, from 5.00% to 3.25% during the same period. A decrease in the volume of investment securities combined with decreases in yields on investment securities, federal funds sold and time deposits in other banks further reduced interest income in the third quarter of 2009 compared to 2008.

The decrease in interest expense in quarterly comparison resulted from a 63 basis point decrease in the average rate paid on interest-bearing liabilities, from 2.19% at September 30, 2008 to 1.56% at September 30, 2009. The average volume of interest-bearing deposits remained relatively flat, while the average volume of retail repurchase agreements, included in securities sold under agreements to repurchase, increased $11.6 million in quarterly comparison. The impact of decreased yields on average earning assets exceeded the decrease in yields on average interest-bearing liabilities and resulted in a 19 basis point decline in the taxable-equivalent net interest margin, from 5.01% for the third quarter of 2008 to 4.82% for the third quarter of 2009.

In linked-quarter comparison, net interest income remained consistent, with minimal changes in interest income and interest expense over the past quarter. Interest income increased $2,000 despite a reduction in the average yield on earning assets from 6.15% at June 30, 2009 to 6.01% at September 30, 2009. Lower yields on investment securities, federal funds sold and interest-bearing and time deposits in other banks reduced the average earnings assets yield. With average loan volume declining slightly, cash flows from both the loan and investment securities portfolio were invested in lower yielding overnight funds and short-term certificates of deposit. Interest expense decreased $8,000 in linked-quarter comparison due primarily to a 7 basis point decrease in the average rate paid on interest-bearing liabilities, from 1.63% to 1.56%. Balance sheet and yield changes in linked-quarter comparison resulted in a 10 basis point decrease in the taxable-equivalent net interest margin, from 4.92% at June 30, 2009 to 4.82% at September 30, 2009.

In year-to-date comparison, net interest income increased $811,000 as interest expense decreased $4,797,000, offsetting a $3,986,000 decline in interest income. Interest expense decreased primarily due to a 93 basis point reduction in the average rate paid on interest-bearing liabilities, from 2.56% at September 30, 2008 to 1.63% at September 30, 2009. Additionally, the average volume of interest-bearing liabilities decreased $18.1 million in year-to-date comparison. The decrease in interest income on average earning assets resulted primarily from a 109 basis point decline in the average yield earned on loans, from 8.06% at September 30, 2008 to 6.97% at September 30, 2009. An average volume increase of $28.4 million in loans partially offset the impact of lower yields. As a result, the taxable-equivalent net interest margin improved 7 basis points, from 4.89% for the nine months ended September 30, 2008 to 4.96% for the nine months ended September 30, 2009.

Non-interest income. Non-interest income for the third quarter of 2009 totaled $3,972,000, or 0.2% below the $3,981,000 earned in the third quarter of 2008 and 3.0% above the $3,858,000 earned in the second quarter of 2009. In prior-year quarterly comparison, a $43,000 increase in ATM and debit card fee income offset a $25,000 decrease in service charges on deposit accounts, including NSF fee income, and decreases in other non-interest income categories.

In linked-quarter comparison, a $158,000 increase in service charges on deposit accounts offset decreases in other non-interest income categories, including $64,000 in safe deposit box rental income assessed annually in June.

In year-to-date comparison, a $347,000 increase in ATM and debit card fee income was offset by decreases in other non-interest income categories, primarily income from a third-party investment advisory firm ($106,000), mortgage processing fees ($52,000), and a one-time payment received from VISA during the first quarter of 2008 ($131,000). The one-time payment was related to VISA's redemption of a portion of its Class B shares outstanding in connection with an initial public offering. Income from service charges on deposit accounts remained flat in year-to-date comparison.

Non-interest Expense. Non-interest expense increased $91,000 in prior-year quarterly comparison, primarily due to increases of $155,000 in FDIC premiums, $110,000 in salaries and benefits costs, $57,000 in provisions for unfunded loan commitments, and $56,000 in expenses on other real estate and other assets repossessed. Increased non-interest expenses were partially offset by a $378,000 decrease in marketing costs.

In linked-quarter comparison, non-interest expense increased $194,000, as increases of $233,000 in salaries and benefits costs, $119,000 in expenses on other real estate owned and other assets repossessed, $87,000 in provisions for unfunded loan commitments, $71,000 in data processing expenses, and $62,000 in marketing costs were mostly offset by a $424,000 decrease in FDIC insurance premiums primarily due to a special assessment accrual in the second quarter of 2009. The $233,000 increase in salaries and benefits costs resulted primarily from annual salary adjustments made in July 2009.

In year-to-date comparison, non-interest expense increased $1.1 million, as increases of $1,017,000 in FDIC premiums (including a special assessment), $635,000 in occupancy expense and $485,000 in salary and benefit costs exceeded expense reductions in other categories. Expense reductions were recorded primarily in marketing costs ($737,000), data processing expenses ($223,000) and in education, travel and corporate development expenses ($198,000). The decrease recorded in year-to-date comparison of data processing expenses resulted from conversion costs associated with the merger of our Texas bank charter into our Louisiana MidSouth Bank, N.A. charter in March of 2008.

About MidSouth Bancorp

MidSouth Bancorp, Inc. is a bank holding company headquartered in Lafayette, Louisiana, with 35 locations in Louisiana and Texas and more than 170 ATMs. Through its wholly owned subsidiary, MidSouth Bank, N.A., the Company offers complete banking services to commercial and retail customers in south Louisiana and southeast Texas. MidSouth Bank is community oriented and focuses primarily on offering commercial and consumer loan and deposit services to individuals and to small and middle market businesses.

Established in 1985, the Company has 28 offices extending along the Interstate 10 corridor in south Louisiana located in Lafayette (9), Baton Rouge (3), New Iberia (3), Lake Charles (2), Houma (2), Sulphur, Jeanerette, Jennings, Thibodaux, Larose, Opelousas, Breaux Bridge, Cecilia, and Morgan City. Additionally, the Company has seven full-service offices in the southeast region of Texas, including Beaumont (3), Conroe, Houston, Vidor, and College Station. It also has a mortgage loan center in Conroe.

MidSouth Bancorp's common stock is traded on the New York Stock Exchange AMEX (NYSE Amex) under the symbol MSL.

Forward Looking Statements

The Private Securities Litigation Act of 1995 provides a safe harbor for disclosure of information about a company's anticipated future financial performance. This act protects a company from unwarranted litigation if actual results differ from management expectations. This press release reflects management's current views and estimates of future economic circumstances, industry conditions, the Company's performance and financial results. A number of factors and uncertainties could cause actual results to differ materially from anticipated results and expectations. These factors include, but are not limited to, factors identified in the Company's Annual Report on Form 10-K for the year ended December 31, 2008 in the sections titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" under the captions "Forward Looking Statements" and "Risk Factors."

    MIDSOUTH BANCORP, INC. and SUBSIDIARIES
    Condensed Consolidated Financial Information (unaudited)
    (in thousands except per share data)

                                                    For the Quarter
                        For the Quarter Ended            Ended
                             September 30,       %      June 30,      %
    EARNINGS DATA           2009      2008     Change     2009      Change
                            ----      ----     ------     ----      ------
      Total interest
       income             $12,498   $13,635     -8.3%   $12,496      0.0%
      Total interest
       expense              2,566     3,579    -28.3%     2,574     -0.3%
                          -------   -------             -------
        Net interest
         income             9,932    10,056     -1.2%     9,922      0.1%
                          -------   -------             -------
      Provision for loan
       losses               1,000       500    100.0%     2,100    -52.4%
                          -------   -------             -------
      Non-interest income   3,972     3,981     -0.2%     3,858      3.0%
      Non-interest expense 11,326    11,235      0.8%    11,132      1.7%
      Provision for income
       tax                    147       445    -67.0%     (197)   -174.6%
                          -------   -------             -------
        Net income          1,431     1,857    -22.9%       745     92.1%
      Dividends on
       preferred stock        299         -    100.0%       299      0.0%
                          -------   -------             -------
        Net income available
         to common
         shareholders      $1,132    $1,857    -39.0%      $446    153.8%
                          =======   =======             =======

    PER COMMON SHARE DATA
      Basic earnings per
       share                $0.17     $0.28    -39.3%     $0.07    142.9%
      Diluted earnings per
       share                $0.17     $0.28    -39.3%     $0.07    142.9%

      Book value at end of
       period              $11.83    $10.65     11.1%    $11.28      4.9%
      Market price at end
       of period           $13.20    $16.40    -19.5%    $16.80    -21.4%
      Weighted avg shares
     outstanding
        Basic           6,592,110 6,614,054     -0.3% 6,589,264      0.0%
        Diluted         6,612,428 6,635,969     -0.4% 6,607,366      0.1%

    AVERAGE BALANCE
     SHEET DATA
      Total assets       $934,519  $916,628      2.0%  $926,878      0.8%
      Earning assets      854,505   833,810      2.5%   845,272      1.1%
      Loans and leases    594,050   572,675      3.7%   595,955     -0.3%
      Interest-bearing
       deposits           584,933   587,053     -0.4%   575,103      1.7%
      Total deposits      765,776   776,957     -1.4%   765,200      0.1%
      Total common
       shareholders'
       equity              76,659    71,767      6.8%    76,200      0.6%
      Total shareholders'
       equity (1)          96,738    71,767     34.8%    96,229      0.5%

    SELECTED RATIOS     9/30/2009 9/30/2008           6/30/2009
                        --------- ---------           ---------
      Return on average
       assets                0.48%     0.81%   -40.7%      0.19%   152.6%
      Return on average
       common equity         5.86%    10.29%   -43.1%      2.35%   149.4%
      Average equity to
       average assets       10.35%     7.83%    32.2%     10.38%    -0.3%
      Leverage capital
       ratio                10.62%     8.42%    26.1%     10.63%    -0.1%
      Taxable-equivalent
       net interest margin   4.82%     5.01%    -3.8%      4.92%    -2.0%

    CREDIT QUALITY
      Allowance for loan
       losses as a % of
       total loans           1.36%     1.08%    25.9%      1.35%     0.7%
      Nonperforming assets
       to total assets       1.90%     1.13%    68.1%      1.89%     0.5%
      Annualized net YTD
       charge-offs to total
       loans                 0.83%     0.61%    36.7%      0.90%    -7.3%

    (1) On January 9, 2009, the Company participated in the Capital Purchase
        Plan of the U. S. Department of the Treasury, which added $20 million
        in capital for the purpose of funding loans.




    -----------
    MIDSOUTH BANCORP, INC. and SUBSIDIARIES
    Condensed Consolidated Financial Information (unaudited)
    (in thousands)

    BALANCE SHEET      September 30,  September 30,  %     June 30, March 31,
                           2009          2008      Change    2009      2009
                           ----          ----      ------    ----      ----
    Assets
    Cash and cash
     equivalents          $62,585      $28,853     116.9%  $39,653    $36,981
                          -------      -------             -------    -------
    Securities
     available-
     for-sale             218,795      222,478      -1.7%  204,918    212,515
    Securities
     held-to-
     maturity               3,218        7,534     -57.3%    3,668      4,677
                            -----        -----               -----      -----
         Total investment
          securities      222,013      230,012      -3.5%  208,586    217,192
                          -------      -------             -------    -------
    Total loans           588,589      579,454       1.6%  596,114    597,209
    Allowance for loan
     losses                (8,015)      (6,270)     27.8%   (8,039)    (7,802)
                           ------       ------              ------     ------
         Loans, net       580,574      573,184       1.3%  588,075    589,407
                          -------      -------             -------    -------
    Premises and
     equipment             39,049       40,349      -3.2%   39,580     40,219
    Time deposits held
     in banks              16,023       15,000       6.8%   21,023      9,023
    Goodwill and other
     intangibles            9,508        9,637      -1.3%    9,540      9,572
    Other assets           18,078       19,467      -7.1%   17,737     20,697
                           ------       ------              ------     ------
         Total assets    $947,830     $916,502       3.4% $924,194   $923,091
                         ========     ========            ========   ========


    Liabilities and Stockholders' Equity
    Non-interest
     bearing deposits    $181,115     $190,770      -5.1% $185,332   $198,803
    Interest-bearing
     deposits             590,976      580,341       1.8%  577,320    570,625
                          -------      -------             -------    -------
       Total deposits     772,091      771,111       0.1%  762,652    769,428
    Securities sold
     under agreements to
     repurchase and
     other short term
     borrowings            55,366       54,041       2.5%   45,809     37,612
    Junior subordinated
     debentures            15,465       15,465         -    15,465     15,465
    Other liabilities       7,466        5,381      38.7%    6,470      6,875
                            -----        -----               -----      -----
         Total
          liabilities     850,388      845,998       0.5%  830,396    829,380
                          -------      -------             -------    -------
    Total shareholders'
     equity (1)            97,442       70,504      38.2%   93,798     93,711
                           ------       ------              ------     ------
          Total liabilities
           and shareholders'
           equity        $947,830     $916,502       3.4% $924,194   $923,091
                         ========     ========            ========   ========

    (1) On January 9, 2009, the Company participated in the Capital Purchase
        Plan of the U. S. Department of the Treasury, which added $20 million
        in capital for the purpose of funding loans.




    --------------
    MIDSOUTH BANCORP, INC. and SUBSIDIARIES
    Condensed Consolidated Financial Information (unaudited)
    (in thousands except per share data)
    ----------------------------------------------------

                                Three Months              Nine Months
                                    Ended                   Ended
    INCOME STATEMENT            September 30,    %        September 30,   %
                                2009    2008   Change     2009    2008  Change
                                ----    ----   ------     ----    ----  ------
    Interest income           $12,498 $13,635   -8.3% $37,788 $41,774   -9.5%
    Interest expense            2,566   3,579  -28.3%   7,808  12,605  -38.1%
                                -----   -----           -----  ------
         Net interest income    9,932  10,056   -1.2%  29,980  29,169    2.8%
                                -----  ------          ------  ------
    Provision for loan losses   1,000     500  100.0%   4,100   2,555   60.5%
                                -----     ---           -----   -----
    Service charges on deposit
     accounts                   2,736   2,761   -0.9%   7,700   7,693    0.1%
    Other charges and fees      1,236   1,220    1.3%   3,660   3,680   -0.5%
                                -----   -----           -----   -----
         Total non-interest
          income                3,972   3,981   -0.2%  11,360  11,373   -0.1%
                                -----   -----          ------  ------
    Salaries and employee
     benefit                    5,505   5,395    2.0%  16,257  15,772    3.1%
    Occupancy expense           2,287   2,283    0.2%   6,916   6,281   10.1%
    FDIC premiums                 328     173   89.6%   1,380     363  280.2%
    Other non-interest expense  3,206   3,384   -5.3%   9,171  10,207  -10.1%
                                -----   -----           -----  ------
         Total non-interest
          expense              11,326  11,235    0.8%  33,724  32,623    3.4%
                               ------  ------          ------  ------
    Income before income taxes  1,578   2,302  -31.5%   3,516   5,364  -34.5%
    Provision for income taxes    147     445  -67.0%     107     891  -88.0%
                                  ---     ---             ---     ---
    Net income                  1,431   1,857  -22.9%   3,409   4,473  -23.8%
    Dividends on preferred
     stock                        299       -  100.0%     875       -  100.0%
                                  ---     ---             ---     ---
    Net income available to
     common shareholders       $1,132  $1,857  -39.0%  $2,534  $4,473  -43.3%
                               ======  ======          ======  ======


    Earnings per common share,
     diluted                    $0.17   $0.28  -39.3%   $0.38   $0.67
                                =====   =====           =====   =====



    MIDSOUTH BANCORP, INC. and SUBSIDIARIES
    Condensed Consolidated Financial Information (unaudited)
    (in thousands except per share data)

    INCOME STATEMENT               Third   Second    First   Fourth    Third
    QUARTERLY TRENDS              Quarter  Quarter  Quarter  Quarter  Quarter
                                    2009     2009     2009     2008     2008
                                    ----     ----     ----     ----     ----
    Interest income               $12,498  $12,496  $12,794  $13,699  $13,635
    Interest expense                2,566    2,574    2,668    3,480    3,579
                                    -----    -----    -----    -----    -----
         Net interest income        9,932    9,922   10,126   10,219   10,056
    Provision for loan losses       1,000    2,100    1,000    2,000      500
                                    -----    -----    -----    -----      ---
    Net interest income after
     provision for loan loss        8,932    7,822    9,126    8,219    9,556
    Total non-interest income       3,972    3,858    3,530    3,755    3,981
    Total non-interest expense     11,326   11,132   11,266   11,352   11,235
                                   ------   ------   ------   ------   ------
         Income before income
          taxes                     1,578      548    1,390      622    2,302
    Income taxes                      147     (197)     157     (442)     445
                                      ---     ----      ---     ----      ---
         Net income                 1,431      745    1,233    1,064    1,857
    Dividends on preferred stock      299      299      277        -        -
                                      ---      ---      ---      ---      ---
         Net income available to
          common shareholders      $1,132     $446     $956   $1,064   $1,857
                                   ======     ====     ====   ======   ======

    Earnings per share, basic       $0.17    $0.07    $0.14    $0.16    $0.28
    Earnings per share, diluted     $0.17    $0.07    $0.14    $0.16    $0.28
    Book value per share           $11.83   $11.28   $11.28   $11.04   $10.65
    Return on average common equity  5.86%    2.35%    5.13%    6.02%   10.29%



    MIDSOUTH BANCORP, INC. and SUBSIDIARIES
    Condensed Consolidated Financial Information (unaudited)
    (in thousands)

    COMPOSITION OF LOANS
                     September 30, September 30,  %     June 30, March 31,
                          2009          2008    Change   2009      2009
                          ----          ----    ------   ----      ----
    Commercial,
     financial, and
     agricultural       $196,436      $185,842    5.7% $200,192  $202,315
    Lease financing
     receivable            7,112         5,239   35.8%    7,538     7,377
    Real estate -
     mortgage            264,242       226,321   16.8%  242,595   236,594
    Real estate -
     construction         37,403        69,570  -46.2%   60,062    64,389
    Installment loans
     to individuals       82,138        91,356  -10.1%   84,602    85,604
    Other                  1,258         1,126   11.7%    1,125       930
                           -----          ----            -----       ---

    Total loans         $588,589      $579,454    1.6% $596,114  $597,209
                        ========      ========         ========  ========



    MIDSOUTH BANCORP, INC. and SUBSIDIARIES
    Condensed Consolidated Financial Information (unaudited)
    (in thousands)

    ASSET QUALITY DATA
                        September 30,  September 30, %     June 30,  March 31,
                            2009           2008    Change    2009      2009
                            ----           ----    ------    ----      ----

    Nonaccrual loans      $15,520         $8,112    91.3%  $15,664    $15,713
    Loans past due
     90  days and over      1,600          1,189    34.6%      791      1,250
                            -----          -----               ---      -----
    Total nonperforming
     loans                 17,120          9,301    84.1%   16,455     16,963
    Other real estate
     owned                    758            643    17.9%      829        843
    Other foreclosed
     assets                    89            453   -80.4%      203        255
                               --            ---               ---        ---
    Total nonperforming
     assets               $17,967        $10,397    72.8%  $17,487    $18,061
                          =======        =======           =======    =======

    Nonperforming
     assets to
     total assets            1.90%          1.13%   68.1%     1.89%      1.96%
    Nonperforming assets to
     total loans + OREO
     + other foreclosed
     assets                  3.05%          1.79%   70.4%     2.93%      3.02%
    ALLL to nonperforming
     loans                  46.82%         67.41%  -30.5%    48.85%     45.99%
    ALLL to total
     loans                   1.36%          1.08%   25.9%     1.35%      1.31%

    Year-to-date
     charge-offs           $3,872         $1,872   106.8%   $2,779       $856
    Year-to-date
     recoveries               201            125    60.8%      132         71
                              ---            ---               ---         --
    Year-to-date
     net charge-offs       $3,671         $1,747   110.1%   $2,647       $785
                           ======         ======            ======       ====
    Annualized net
     YTD charge-offs
     to total loans          0.83%          0.61%   36.7%     0.90%      0.53%



    MIDSOUTH BANCORP, INC. AND SUBSIDIARIES
    Condensed Consolidated Financial Information (unaudited)
    (in thousands)

    YIELD ANALYSIS           Three Months Ended         Three Months Ended
                             September 30, 2009          September 30, 2008
                             ------------------          ------------------
                                     Tax                         Tax
                        Average   Equivalent Yield/ Average  Equivalent Yield/
                        Balance    Interest  Rate   Balance   Interest  Rate
                        -------    --------  ----   -------   --------  ----

    Taxable securities  $99,178       $898   3.62% $108,346     $1,182   4.36%
    Tax-exempt
     securities         112,670      1,511   5.36%  115,660      1,551   5.36%
    Other investments and
     interest bearing
     deposits             7,562         40   2.12%    5,607         45   3.21%
    Federal funds sold   24,587         10   0.16%    9,882         49   1.94%
    Time deposits in other
     banks               16,458         56   1.35%   21,640        162   2.98%
    Loans               594,050     10,426   6.96%  572,675     11,101   7.71%
                        -------     ------          -------     ------
         Total interest
          earning
          assets        854,505     12,941   6.01%  833,810     14,090   6.72%
    Noninterest earning
     assets              80,014                      82,818
                         ------                      ------
          Total
           assets      $934,519                    $916,628
                       ========                    ========

    Interest bearing
     liabilities:
         Deposits      $584,933     $2,014   1.37% $587,053      3,016   2.04%
         Repurchase
          agreements     50,359        303   2.39%   38,712        210   2.15%
         Federal funds
          purchased           -          -      -     5,738         40   2.73%
         Other borrowings     -          -      -     2,758         16   2.31%
         Junior subordinated
          debentures     15,465        249   6.30%   15,465        297   7.51%
                         ------        ---           ------        ---
          Total interest
           bearing
           liabilities  650,757      2,566   1.56%  649,726      3,579   2.19%
                                            -----                       -----
    Noninterest bearing
     liabilities        187,024                     195,135
    Shareholders'
     equity              96,738                      71,767
                         ------                      ------
          Total
           liabilities
           and
           shareholders'
           equity      $934,519                    $916,628
                       ========                    ========

         Net interest
          income (TE) and
          margin                   $10,375   4.82%             $10,511   5.01%
                                   =======                     =======

         Net interest spread                 4.45%                       4.53%



    MIDSOUTH BANCORP, INC. AND SUBSIDIARIES
    Condensed Consolidated Financial Information (unaudited)
    (in thousands)

    YIELD ANALYSIS           Nine Months Ended           Nine Months Ended
                             September 30, 2009          September 30, 2008
                             ------------------          ------------------
                                     Tax                         Tax
                        Average   Equivalent Yield/ Average  Equivalent Yield/
                        Balance    Interest  Rate   Balance   Interest  Rate
                        -------    --------  ----   -------   --------  ----
    Taxable securities  $97,979     $3,046   4.15%  $94,162     $3,182   4.51%
    Tax-exempt
     securities         116,116      4,678   5.37%  110,480      4,482   5.41%
    Other investments
     and interest
     bearing
     deposits             5,539        102   2.46%    6,320        138   2.91%
    Federal funds sold   17,418         29   0.22%   37,709        657   2.29%
    Time deposits
     in other
     banks               11,895        187   2.10%   15,297        322   2.81%
    Loans               596,903     31,119   6.97%  568,510     34,310   8.06%
                        -------     ------          -------     ------
         Total interest
          earning
          assets        845,850     39,161   6.19%  832,478     43,091   6.91%
    Noninterest earning
     assets              81,972                      83,882
                         ------                      ------
          Total
           assets      $927,822                    $916,360
                       ========                    ========

    Interest bearing
     liabilities:
         Deposits      $575,418     $6,228   1.45% $605,152    $11,024   2.43%
         Repurchase
          agreements     41,085        775   2.52%   32,896        587   2.38%
         Federal funds
          purchased         770          5   0.86%    1,941         41   2.78%
         Other borrowings 6,183         23   0.50%    1,528         34   2.97%
         Junior subordinated
          debentures     15,465        777   6.63%   15,465        919   7.81%
                         ------        ---           ------        ---
          Total interest
           bearing
           liabilities  638,921      7,808   1.63%  656,982     12,605   2.56%
                                             ----                        ----
    Noninterest
     bearing
     liabilities        193,284                     187,850
    Shareholders'
     equity              95,617                      71,528
                         ------                      ------
          Total
           liabilities and
           shareholders'
           equity      $927,822                    $916,360
                       ========                    ========

         Net interest
          income (TE) and
          margin                   $31,353   4.96%             $30,486   4.89%
                                   =======                     =======

         Net interest spread                 4.56%                       4.35%

Buzz up!