8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)			October 25, 2007
MidSouth Bancorp, Inc.
(Exact name of registrant as specified in its charter)
Louisiana		1-11826	72-1020809
(State or other jurisdiction of incorporation)		(Commission File Number)	(I.R.S. Employer Identification No.)
102 Versailles Boulevard, Lafayette, Louisiana			70501
(Address of principal executive offices)			(Zip Code)
Registrant’s telephone number, including area code 337-237-8343
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION

Item 8.01.  OTHER EVENTS AND REGULATION FD DISCLOSURE

On October 25, 2007, MidSouth Bancorp, Inc. (the “Company”) issued a press release regarding the Company’s earnings for the quarter ending September 30, 2007.  The Company’s earnings release, including financial highlights, is attached as Exhibit 99.1.

Item 9.01. FINANCIAL STATEMENTS AND EXHIBITS

(d)           Exhibits

99.1  Press Release dated October 25, 2007.

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date   October 25, 2007

/s/   C. R. Cloutier

President & CEO

EX-99.1

CONTACT:	C.R. Cloutier or J.E. Corrigan, Jr.
TELEPHONE:	(337) 237-8343
RELEASE DATE:	October 25, 2007

MidSouth Bancorp, Inc. Reports Third Quarter 2007 Earnings

Lafayette, La.

Lafayette, La. October 25 2007  MidSouth Bancorp, Inc. (AMEX: MSL) today reported net income of $2,441,000 for the third quarter ended September 30, 2007, an increase of 1.0% over net income of $2,417,000 reported for the third quarter of 2006 and a decrease of 2.2% over net income of $2,495,000 reported for the second quarter of 2007.  Diluted earnings per share for the third quarter of 2007 was $0.37, an increase of 2.8% over the $0.36 per share for the third quarter of 2006 and a decrease of 2.6% below the $0.38 per share for the second quarter of 2007.  These amounts reflect a five percent (5%) stock dividend to holders of record as of September 21, 2007 paid on October 23, 2007.  

The third quarter 2007 earnings were favorably impacted by approximately $0.03 per share as the result of a lower effective tax rate.  The effective tax rate during the third quarter was approximately 17.2%, as compared to 27.1% for the same period of 2006.  The provision for income taxes reflects an effective tax rate of 21.8% for the first nine months of fiscal year 2007 as compared to 25.9% in the same period of 2006.  The lower rate for the third quarter and nine-month period resulted from the Company’s recognition of the Work Opportunity Tax Credit under the Katrina Emergency Tax Relief Act of 2005.  As a result, income tax expense for the quarter was reduced by approximately $193,000.  For the fourth quarter of 2007, the effective tax rate is expected to be in the range of 20% to 22%.

Offsetting the favorable impact of the tax reduction was a $250,000 increase in the provision for loan losses in quarterly comparison.  Due to an increase in loan volume, provisions totaling $300,000 were recorded in the third quarter of 2007, compared to $50,000 recorded in provisions for the third quarter of 2006.

For the nine months ended September 30, 2007, net income totaled $6,882,000, a 6.4% increase compared to $6,471,000 for the first nine months of 2006.  Diluted earnings per share were $1.04 for the first nine months of 2007, compared to $0.97 for the first nine months of 2006.

Quarterly revenues for the Company, defined as net interest income and non-interest income, increased $1,135,000, or 9.6%, for the third quarter of 2007 compared to the third quarter of 2006.   The improvement in revenues resulted primarily from an increase of $991,000 in net interest income, driven by a 12.7% increase in average loan volume in quarterly comparison.  Non-interest income increased $144,000, primarily due to an increase in ATM and debit card income that resulted from a higher volume of transactions processed.  A $1,253,000 increase in non-interest expense was attributable to the continued investment in franchise expansion and offset the improvement in revenues.

The Company’s total assets for the third quarter ended September 30, 2007 were $836.9 million, an 8.3% increase over the $773.1 million in total assets recorded at September 30, 2006.  Deposits were $714.4 million as of September 30, 2007, compared to $691.3 million as of September 30, 2006, an increase of $23.1 million, or 3.3%.  Total loans were $553.0 million, an increase of $57.6 million, or 11.6%, from $495.4 million as of September 30, 2006.  Credit quality remained strong, as nonperforming assets to total assets were 0.22% as of September 30, 2007, compared to 0.31% for the third quarter of 2006 and 0.21% in linked-quarter comparison.

“The third quarter for our Company was very challenging as the market conditions compelled us to enhance our focus on managing credit risk and maximizing the quality of our balance sheet,” Rusty Cloutier, President and Chief Executive Officer of MidSouth Bancorp, Inc., commented.  “We expect the conditions for stable core deposit growth to continue to be very competitive in all of our markets as the trend towards high cost deposits continues.  In response, we will strategically step up our focus on deposit relationships and leveraging our commercial lending base.”

Earnings Analysis

Net Interest Income.  Net interest income totaled $9,417,000 for the third quarter of 2007, an increase of 11.8%, or $991,000, from the $8,426,000 reported for the third quarter of 2006.  The improvement in net interest income resulted primarily from an increase of $52.9 million in average earning assets.  Total interest income from earning assets increased $1.6 million for the third quarter of 2007 compared to 2006.  The volume increase in earning assets was supported by a 16 basis point increase in the yield on loans, from 8.81% to 8.97%, and a 22 basis point increase in the taxable-equivalent yield on investment securities, from 4.76% to 4.98% in quarterly comparison.  

The impact of increased interest income on earnings was partially offset by the increased volume and cost of interest-bearing liabilities realized in quarterly comparison.   A $51.2 million increase in average volume and a 7 basis point increase in the average rate paid on interest-bearing liabilities resulted in a $556,000 increase in interest expense for the third quarter of 2007 compared to the third quarter 2006.  

Net interest income increased $2,894,000, or 12.0%, for the nine months ended September 30, 2007, compared to the nine months ended September 30, 2006.  The Company’s taxable-equivalent net interest margin improved 15 basis points, from 4.93% at September 30, 2006, to 5.08% at September 30, 2007.

In linked-quarter comparison, average earning assets increased $12.5 million as a $24.5 million increase in average loan volume was partially offset by a decrease in the average volume of federal funds sold.  The improvement in loan volume was partially offset by a 15 basis point decrease in the average yield on loans.  Volume and rate increases on borrowed funds offset decreases in volume and the average rate paid on interest-bearing deposits.  As a result, the taxable equivalent net yield on earning assets decreased 5 basis points, from 5.21% for the second quarter of 2007 to 5.16% for the third quarter of 2007.

Non-interest income.  Non-interest income for the third quarter of 2007 totaled $3.6 million, or 5.9% above the $3.4 million earned in the third quarter of 2006 and 2.7% below the $3.7 million earned in the second quarter of 2007.  Prior year quarter and linked-quarter comparisons of non-interest income were impacted by a decrease in service charge income on deposit accounts due to the elimination of a $1.00 monthly charge on all accounts with an ATM or debit card.  Elimination of the monthly charge reduced service charge income by approximately $14,000 per month, or $42,000 per quarter.  In the past, the Company had charged ATM and debit card customers a $1.00 monthly fee in lieu of charging customers a fee for using competitors’ ATM machines.

For the nine months ended September 30, 2007, non-interest income increased $1.2 million, or 12.4% above non-interest income earned for the nine months ended September 30, 2006.  A higher volume of insufficient funds (“NSF”) transactions increased NSF fee income $683,000 in nine-month comparison.  The total number of demand deposit accounts increased approximately 1,490, or 3.2%, from 46,089 accounts at September 30, 2006 to 47,579 at September 30, 2007, with the majority of the increase in consumer checking accounts.  Additional increases to non-interest income were recorded in ATM and debit card fees ($288,000), mortgage processing fees ($105,000), and lease income from third party investment advisory services ($84,000).  

Operating Expenses.  Non-interest expense increased $1.3 million in prior year quarterly comparison and $4.0 million in year-to-date comparison, primarily due to increased salaries and benefits costs.  The number of full-time equivalent employees increased from 364 at September 30, 2006, to 418 at September 30, 2007, as a result of franchise expansion and recruitment of talented leaders to support corporate growth initiatives.  Additional increases were recorded in occupancy and data processing expenses, professional fees, education and travel costs and other growth-related expenses.  In linked-quarter comparison, non-interest expenses increased $497,000 primarily due to increased salary expense associated with annual salary increases awarded in July 2007 and increased group health insurance costs.

Regarding increased operating expenses, Cloutier commented, “In addition to the retail store openings during the past year, we have added revenue producing talent across the board with a focus on our Texas markets.  We are pleased with the recruiting efforts of our team and look forward to the growth of core commercial and retail relationships as a result of these additions.”

Beginning in the fourth quarter of 2007, the Company expects to record approximately $86,000 in FDIC assessments, in addition to the $21,000 in FICO assessments.  FDIC and FICO assessments for 2008, based on current deposit growth projections, will average approximately $127,000 per quarter, or $508,000 for the year.   For several years, as a well-capitalized financial institution, the Company has not paid FDIC insurance premiums, but has been required to pay FICO (the Financing Corporation) assessments that currently total approximately $21,000 a quarter, or $84,000 annually.  FICO has assessment authority to collect funds from FDIC-insured institutions sufficient to pay interest on non-callable thrift bonds issued between 1987 and 1989, which expire with the bonds in 2019.  Beginning January 2007, the FDIC resumed deposit insurance assessments and also issued one-time credits against the assessments to qualifying institutions.  The Company qualified for a one-time credit totaling approximately $240,000, which offsets the new FDIC assessment through the third quarter of 2007.  

Asset Quality.  At September 30, 2007, nonperforming assets, including loans past due 90 days and over, totaled $1,871,000 or 0.22% of total assets, as compared to the $2,372,000, or 0.31%  of total assets recorded at September 30, 2006.  The decrease in non-performing assets in prior year comparison resulted primarily from a $1,279,000 reduction in loans past due 90 days and over.  The improvement in past due loans was partially offset by an increase of $583,000 in nonaccrual loans, from $501,000 at September 30, 2006 to $1,084,000 at September 30, 2007.  Nonaccrual loans increased in prior year comparison due to the addition of two large fully secured credit relationships totaling $1,136,000 during the fourth quarter of 2006.  Over the nine months ended September 30, 2007, payments received on the two credit relationships reduced nonaccrual loans by $915,000, leaving balances remaining of $221,000.  Additionally, two fully secured real estate credits totaling $305,000 were added to nonaccrual loans during the third quarter of 2007.

Allowance coverage for nonperforming assets was 283.11% at September 30, 2007, compared to 207.00% at September 30, 2006.  Net year-to-date charge-offs were 0.06% of total loans for the third quarter 2007 compared to 0.02% at September 30, 2006.  The increase resulted primarily from two commercial loans charged-off during the third quarter 2007 totaling $100,000 and a decrease of $188,000 in recoveries of charged-off loans in 2007.

Continued strong credit quality ratios, supported by management’s most recent analysis of the Allowance for Loan and Lease Losses (“ALLL”), indicated that the ALLL/total loans ratio of 0.96% was appropriate at September 30, 2007.  Due to the increase in loans, provision expense for loan losses of $300,000 was recorded in the third quarter 2007, compared to $50,000 in provision expense recorded in the third quarter of 2006.  

About MidSouth Bancorp, Inc.

One of the fastest-growing bank holding companies in the South, MidSouth Bancorp, Inc. has 32 locations in Louisiana and Texas and more than 120 ATMs.  Through its wholly owned subsidiaries — MidSouth Bank, N.A. and MidSouth Bank, Texas — the Company offers complete banking services to commercial and retail customers in south Louisiana and southeast Texas. The group is community oriented and focuses primarily on offering commercial and consumer loan and deposit services to individuals, small, and middle market businesses.

Established in 1985, MidSouth Bank, N.A. has 25 offices extending along the Interstate 10 corridor in south Louisiana located in Lafayette (9), Baton Rouge (2), New Iberia (3), Lake Charles, Sulphur, Jeanerette, Jennings, Thibodaux, Cutoff, Opelousas, Breaux Bridge, Cecilia, Morgan City, and Houma. In addition, a new banking facility is under way in the Baton Rouge market and is scheduled to open in the first quarter of  2008. Also, a new retail location in Lake Charles is tentatively set to open in December.

Established in 1959, MidSouth Bank, Texas currently has six full-service offices in the southeast region of Texas, including Beaumont (3), Vidor, College Station and Conroe.  It also has a commercial loan production office in the greater Houston market that will be replaced by a full-service banking facility in early 2008.  MidSouth Bank, Texas has three retail offices in Jefferson County, one in Orange County, one in Brazos County, and one in Montgomery County.  New facilities in Conroe and College Station are scheduled to open in November 2007 and December 2007, respectively.

MidSouth Bancorp’s common stock is traded on the American Stock Exchange 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, MidSouth’s performance and financial results.  A number of factors and uncertainties could cause actual results to differ from anticipated results and expectations.  These factors include, but are not limited to, factors identified in Management’s Discussion and Analysis under the caption “Forward Looking Statements” contained in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission.

MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
	For the Quarter  Ended									For the Quarter Ended
	September 30,						%			June 30,			%
	2007			2006			Change			2007			Change
EARNINGS DATA
Total interest income	$	14,651		$	13,104			11.8	%	$	14,302			2.4	%
Total interest expense		5,234			4,678			11.9	%		5,065			3.3	%
Net interest income		9,417			8,426			11.8	%		9,237			1.9	%
Provision for loan losses		300			50			500.0	%		350			-14.3	%
Non-interest income		3,574			3,430			4.2	%		3,690			-3.1	%
Non-interest expense		9,742			8,489			14.8	%		9,245			5.4	%
Provision for income tax		508			900			-43.6	%		837			-39.3	%
Net income	$	2,441		$	2,417			1.0	%	$	2,495			-2.2	%
PER COMMON SHARE DATA
Basic earnings per share (2)	$	0.37		$	0.37			0.0	%	$	0.38			-2.6	%
Diluted earnings per share (2)	$	0.37		$	0.36			2.8	%	$	0.38			-2.6	%
Book value at end of period (2)	$	10.07		$	8.96			12.4	%	$	9.53			5.7	%
Market price at end of period (2)	$	22.90		$	25.50			-10.2	%	$	24.39			-6.1	%
Weighted avg shares outstanding
Basic (2)		6,572,740			6,547,794			0.4	%		6,570,697			0.0	%
Diluted (2)		6,637,362			6,663,584			-0.4	%		6,647,146			-0.1	%
AVERAGE BALANCE SHEET DATA
Total assets	$	831,378		$	771,891			7.7	%	$	816,542			1.8	%
Earning assets		757,037			704,115			7.5	%		744,537			1.7	%
Loans and leases		551,340			489,069			12.7	%		526,814			4.7	%
Interest-bearing deposits		534,610			515,358			3.7	%		545,084			-1.9	%
Total deposits		711,503			691,640			2.9	%		725,075			-1.9	%
Total stockholders' equity		63,763			56,485			12.9	%		62,438			2.1	%
SELECTED RATIOS	9/30/2007			9/30/2006						6/30/2007
Return on average assets		1.16	%		1.24	%		-6.1	%		1.23	%		-5.3	%
Return on average total equity		15.19	%		16.98	%		-10.6	%		16.03	%		-5.3	%
Return on average realized equity (1)		14.94	%		16.34	%		-8.6	%		15.76	%		-5.2	%
Average equity to average assets		7.67	%		7.32	%		4.8	%		7.65	%		0.3	%
Leverage capital ratio		8.72	%		8.50	%		2.6	%		8.63	%		1.0	%
Taxable-equivalent net interest margin		5.16	%		4.96	%		4.0	%		5.21	%		-1.0	%
CREDIT QUALITY
Allowance for loan loses as a % of total loans		0.96	%		0.99	%		-3.3	%		0.95	%		0.8	%
Nonperforming assets to total assets		0.22	%		0.31	%		-27.9	%		0.21	%		6.5	%
Net YTD charge-offs to total loans		0.06	%		0.02	%		198.3	%		0.03	%		98.9	%
(1) Excluding net unrealized gain (loss) on securities available for sale.
(2) On July 18, 2007, the Company announced a 5% stock dividend on its common stock to holders on record as of September 21, 2007 paid on October 23, 2007.
Per common share data has been adjusted accordingly.

MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands)
BALANCE SHEET	September 30,			September 30,			%			June 30,			December 31,
	2007			2006			Change			2007			2006
Assets
Cash and cash equivalents	$	30,974		$	26,203			18.2	%	$	25,241		$	57,404
Securities available-for-sale		181,719			184,536			-1.5	%		185,626			180,674
Securities held-to-maturity		11,515			16,400			-29.8	%		12,132			15,901
Total investment securities		193,234			200,936			-3.8	%		197,758			196,575
Total loans		553,048			495,385			11.6	%		545,447			499,046
Allowance for loan losses	(	5,297	)	(	4,910	)		7.9	%	(	5,182	)	(	4,977	)
Loans, net		547,751			490,475			11.7	%		540,265			494,069
Premises and equipment		36,450			29,113			25.2	%		33,477			30,609
Goodwill and other intangibles		9,800			10,010			-2.1	%		9,852			9,957
Other assets		18,678			16,356			14.2	%		17,433			16,408
Total assets	$	836,887		$	773,093			8.3	%	$	824,026		$	805,022
Liabilities and Stockholders' Equity
Non-interest bearing deposits	$	179,860		$	179,920			0.0	%	$	176,526		$	182,596
Interest bearing deposits		534,494			511,426			4.5	%		540,366			533,584
Total deposits		714,354			691,346			3.3	%		716,892			716,180
Securities sold under agreements to repurchase and FHLB borrowings		36,346			3,913			828.9	%		25,737			10,125
Junior subordinated debentures		15,465			15,465			0.0	%		15,465			15,465
Other liabilities		4,435			3,333			33.1	%		3,235			3,509
Total liabilities		770,600			714,057			7.9	%		761,329			745,279
Total shareholders' equity		66,287			59,036			12.3	%		62,697			59,743
Total liabilities and shareholders' equity	$	836,887		$	773,093			8.3	%	$	824,026		$	805,022

MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
	Three Months Ended								Nine Months Ended
INCOME STATEMENT	September 30,		September 30,			%			September 30,		September 30,			%
	2007		2006			Change			2007		2006			Change
Interest income	$	14,651	$	13,104			11.8	%	$	42,395	$	36,830			15.1	%
Interest expense		5,234		4,678			11.9	%		15,403		12,732			21.0	%
Net interest income		9,417		8,426			11.8	%		26,992		24,098			12.0	%
Provision for loan losses		300		50			500.0	%		650		670			-3.0	%
Service charges on deposit accounts		2,450		2,460			-0.4	%		7,245		6,560			10.4	%
Losses on sales of securities, net		0	(	8	)		-100.0	%		0	(	8	)		-100.0	%
Other charges and fees		1,124		978			14.9	%		3,282		2,813			16.7	%
Total non-interest income		3,574		3,430			4.2	%		10,527		9,365			12.4	%
Salaries and employee  benefits		5,215		4,250			22.7	%		14,717		11,972			22.9	%
Occupancy expense		1,761		1,598			10.2	%		4,948		4,458			11.0	%
Intangible amortization		52		66			-21.2	%		157		247			-36.4	%
Other non-interest expense		2,714		2,575			5.4	%		8,244		7,377			11.8	%
Total non-interest expense		9,742		8,489			14.8	%		28,066		24,054			16.7	%
Income before income taxes		2,949		3,317			-11.1	%		8,803		8,739			0.7	%
Provision for income taxes		508		900			-43.6	%		1,921		2,268			-15.3	%
Net income	$	2,441	$	2,417			1.0	%	$	6,882	$	6,471			6.4	%
Earnings per share, diluted (1)	$	0.37	$	0.36			2.8	%	$	1.04	$	0.97			7.2	%
(1) On July 18, 2007, the Company announced a 5% stock dividend on its common stock to holders on record as of
September 21, 2007 paid on October 23, 2007. Per common share data has been adjusted accordingly.

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
	2007			2007			2007			2006			2006
Interest income	$	14,651		$	14,302		$	13,442		$	13,405		$	13,104
Interest expense		5,234			5,065			5,104			4,960			4,678
Net interest income		9,417			9,237			8,338			8,445			8,426
Provision for loan losses		300			350			0			180			50
Net interest income after provision for loan loss		9,117			8,887			8,338			8,265			8,376
Total non-interest income		3,574			3,690			3,263			3,015			3,430
Total non-interest expense		9,742			9,245			9,079			9,070			8,489
Income before income taxes		2,949			3,332			2,522			2,210			3,317
Income taxes		508			837			576			461			900
Net income	$	2,441		$	2,495		$	1,946		$	1,749		$	2,417
Earnings per share, basic (1)	$	0.37		$	0.38		$	0.30		$	0.27		$	0.37
Earnings per share, diluted (1)	$	0.37		$	0.38		$	0.29		$	0.27		$	0.36
Book value per share (1)	$	10.07		$	9.53		$	9.36		$	9.12		$	8.96
Return on Average Equity		15.19	%		16.03	%		13.07	%		11.69	%		16.98	%
(1) On July 18, 2007, the Company announced a 5% stock dividend on its common stock to holders on record as of
September 21, 2007 paid on October 23, 2007. Per common share data has been adjusted accordingly.

MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands)
	September 30,		September 30,		%			June 30,		December 31,
	2007		2006		Change			2007		2006
Composition of Loans
Commercial, financial, and agricultural	$	175,150	$	170,531		2.7	%	$	176,093	$	155,098
Lease financing receivable		10,017		7,467		34.2	%		9,362		7,902
Real estate - mortgage		205,200		190,697		7.6	%		200,966		192,583
Real estate - construction		73,787		51,431		43.5	%		75,809		64,126
Installment loans to individuals		88,166		74,439		18.4	%		82,514		78,613
Other		728		820		-11.2	%		703		724
Total loans	$	553,048	$	495,385		11.6	%	$	545,447	$	499,046

MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands)
	September 30,			September 30,			%			June 30,			December 31,
	2007			2006			Change			2007			2006
Asset Quality Data
Nonaccrual loans	$	1,084		$	501			116.4	%	$	840		$	1,793
Loans past due 90  days and over		510			1,789			-71.5	%		596			98
Total nonperforming loans		1,594			2,290			-30.4	%		1,436			1,891
Other real estate owned		143			24			495.8	%		251			368
Other foreclosed assets		134			58			131.0	%		76			55
Total nonperforming assets	$	1,871		$	2,372			-21.1	%	$	1,763		$	2,314
Nonperforming assets to  total assets		0.22	%		0.31	%		-27.9	%		0.21	%		0.29	%
Nonperforming assets to total loans + OREO + other  foreclosed assets		0.34	%		0.48	%		-29.6	%		0.32	%		0.46	%
ALL to nonperforming assets		283.11	%		207.00	%		36.8	%		293.93	%		215.08	%
ALL to nonperforming loans		332.31	%		214.41	%		55.0	%		360.86	%		263.19	%
ALL to total loans		0.96	%		0.99	%		-3.3	%		0.95	%		1.00	%
Year-to-date charge-offs	$	408		$	381			7.1	%	$	187		$	542
Year-to-date recoveries		78			266			-70.7	%		42			314
Year-to-date net charge-offs	$	330		$	115			187.0	%	$	145		$	228
Net YTD charge-offs to total loans		0.06	%		0.02	%		198.3	%		0.03	%		0.05	%

MIDSOUTH BANCORP, INC. AND SUBSIDIARIES
Yield Analysis (unaudited)
(in thousands)
	Three Months Ended							Three Months Ended
	9/30/2007							9/30/2006
			Tax							Tax
	Average		Equivalent		Yield/			Average		Equivalent		Yield/
	Balance		Interest		Rate			Balance		Interest		Rate
Taxable securities	$	87,063	$	1,046		4.70	%	$	108,737	$	1,252		4.50	%
Tax-exempt securities		110,262		1,467		5.21	%		98,710		1,271		5.15	%
Equity securities		4,667		59		4.95	%		2,442		22		3.69	%
Federal funds sold		3,705		47		5.03	%		5,157		68		5.24	%
Loans		551,340		12,461		8.97	%		489,069		10,861		8.81	%
Total interest earning assets		757,037		15,080		7.90	%		704,115		13,474		7.59	%
Noninterest earning assets		74,341							67,776
Total assets	$	831,378						$	771,891
Interest bearing liabilities:
Deposits	$	534,610	$	4,431		3.29	%	$	515,358	$	4,269		3.29	%
Repurchase agreements and federal
funds purchased		17,041		198		4.61	%		4,686		58		4.94	%
Short term borrowings		19,583		255		5.17	%		-		-		-
Junior subordinated debentures		15,465		350		8.98	%		15,465		351		9.00	%
Total interest bearing liabilities		586,699		5,234		3.54	%		535,509		4,678		3.47	%
Noninterest bearing liabilities		180,916							179,897
Shareholders' equity		63,763							56,485
Total liabilities and  shareholders' equity	$	831,378						$	771,891
Net interest income (TE) and margin			$	9,846		5.16	%			$	8,796		4.96	%
Net interest spread						4.36	%						4.12	%

MIDSOUTH BANCORP, INC. AND SUBSIDIARIES
Yield Analysis (unaudited)
(in thousands)
	Nine Months Ended							Nine Months Ended
	9/30/2007							9/30/2006
			Tax							Tax
	Average		Equivalent		Yield/			Average		Equivalent		Yield/
	Balance		Interest		Rate			Balance		Interest		Rate
Taxable securities	$	86,980	$	3,083		4.73	%	$	100,869	$	3,389		4.66	%
Tax-exempt securities		110,577		4,379		5.28	%		91,047		3,480		4.48	%
Equity securities		3,249		103		4.23	%		2,271		62		5.10	%
Federal Funds Sold		17,338		672		5.18	%		22,045		768		4.66	%
Loans		526,329		35,439		9.00	%		466,378		30,143		8.64	%
Total interest earning assets		744,473		43,676		7.84	%		682,610		37,842		7.41	%
Noninterest earning assets		72,755							67,298
Total assets	$	817,228						$	749,908
Interest bearing liabilities:
Deposits	$	540,474	$	13,713		3.39	%	$	498,037	$	11,604		3.12	%
Repurchase agreements and federal
funds purchased		10,252		362		4.72	%		3,159		107		4.54	%
Short term borrowings		7,161		283		5.28	%		-		-		-
Junior subordinated debentures		15,465		1,044		9.03	%		15,465		984		8.51	%
Total interest bearing liabilities		573,352		15,402		3.59	%		516,661		12,695		3.29	%
Noninterest bearing liabilities		181,673							178,370
Shareholders' equity		62,203							54,877
Total liabilities and   shareholders' equity	$	817,228						$	749,908
Net interest income (TE) and margin			$	28,274		5.08	%			$	25,147		4.93	%
Net interest spread						4.25	%						4.12	%