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)			January 25, 2008
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 January 25, 2008, MidSouth Bancorp, Inc. (the “Company”) issued a press release regarding the Company’s earnings for the quarter ending December 31, 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 January 25, 2008.

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:   January 25, 2008

/s/   C. R. Cloutier

President & CEO

EX-99.1

CONTACT:	C.R. Cloutier or J.E. Corrigan, Jr.
TELEPHONE:	(337) 237-8343
RELEASE DATE:	January 25, 2008

MidSouth Bancorp, Inc. Reports Fourth Quarter 2007 Earnings

Lafayette, La.

Lafayette, La. January 25 2008  MidSouth Bancorp, Inc. (AMEX: MSL) today reported net income of $1,894,000 for the fourth quarter ended December 31, 2007, an increase of 8.3% over net income of $1,749,000 reported for the fourth quarter of 2006 and a decrease of 22.4% over net income of $2,441,000 reported for the third quarter of 2007.  Diluted earnings per share for the fourth quarter of 2007 were $0.28 per share, an increase of 3.7% over the $0.27 per share for the fourth quarter of 2006 and a decrease of 24.3% below the $0.37 per share for the third 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.  

For the year ended December 31, 2007, net income totaled $8,776,000, a 6.8% increase compared to $8,220,000 for the year ended December 31, 2006.  Diluted earnings per share were $1.32 per share for in 2007, compared to $1.24 for 2006.  Fourth quarter and annual earnings for 2006 were reduced by a $248,000 pre-tax impairment charge related to network and phone assets replaced or upgraded.  Excluding the $164,000 after-tax effect of the impairment charge, fourth quarter and annual earnings for 2006 were $1,913,000 and $8,384,000, respectively.

Fourth quarter 2007 earnings were negatively impacted by a $345,000 increase in the provision for loan losses in quarterly comparison.  Provisions totaling $525,000 were recorded in the fourth quarter of 2007, compared to $180,000 recorded in provisions for the fourth quarter of 2006.  Of the $525,000 in provision expense, $300,000 was necessary to cover probable losses identified in the Company’s indirect auto financing portfolio during the fourth quarter 2007 as a result of fraudulent activity by one auto dealership in Texas. The remaining provision expense was primarily related to the overall risk assessed in the Company’s residential real estate development credits based on current economic conditions.

A lower effective tax rate for the fourth quarter of 2007 reduced the impact of the increase in the provision for loan losses.  The effective tax rate during the fourth quarter of 2007 was approximately 15.86%, as compared to 20.82% for the same period of 2006.  The provision for income taxes reflects an effective tax rate of 20.62% for 2007 as compared to 24.92% in 2006.  The lower rate for the fourth quarter and twelve-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 and for the year was reduced by approximately $87,000 and $255,000, respectively.

Quarterly revenues for the Company, defined as net interest income and non-interest income, increased $1,886,000, or 16.5%, for the fourth quarter of 2007 compared to the fourth quarter of 2006.   The improvement in revenues resulted primarily from an increase of $1,169,000 in net interest income, which was driven by a 13.0% increase in average loan volume in quarterly comparison.  Non-interest income increased $717,000, primarily due to an increase in insufficient funds (“NSF”) fees and ATM and debit card income that resulted from a higher volume of transactions processed.  The improvement in quarterly revenues was offset by a $1,499,000 increase in non-interest expenses.  The increase in non-interest expenses was primarily attributable to higher salary and employee benefits costs and occupancy expenses associated with the addition of seven new facilities in 2007, three of which replaced existing facilities.

The Company’s total assets for the fourth quarter ended December 31, 2007 were $854.0 million, a 6.1% increase over the $805.0 million in total assets recorded at December 31, 2006.  Deposits were $733.5 million as of December 31, 2007, compared to $716.2 million as of December 31, 2006, an increase of $17.3 million, or 2.4%.  Total loans were $569.5 million, an increase of $70.5 million, or 14.1%, from $499.0 million as of December 31, 2006.  Nonperforming assets to total assets were 0.35% as of December 31, 2007, compared to 0.29% for the fourth quarter of 2006 and 0.22% in linked-quarter comparison.

Earnings Analysis

Net Interest Income.  Net interest income totaled $9,613,000 for the fourth quarter of 2007, an increase of 13.8%, or $1,169,000, from the $8,444,000 reported for the fourth quarter of 2006.  The improvement in net interest income resulted primarily from an increase of $45.6 million in average earning assets.  Total interest income from earning assets increased $1.3 million for the fourth quarter of 2007 compared to 2006.  The volume increase in earning assets was supported by a 7 basis point increase in the yield on loans, from 8.75% to 8.82%, and a 26 basis point increase in the taxable-equivalent yield on investment securities, from 4.88% to 5.14% in quarterly comparison.  

Interest expense for the fourth quarter of 2007 increased $170,000 in comparison to the fourth quarter of 2006.   A 15 basis point decrease in the average rate paid on interest-bearing liabilities lessened the impact of a $43.5 million increase in the average volume of interest-bearing liabilities in quarterly comparison.  The taxable-equivalent net interest margin improved 34 basis points, from 4.83% for the fourth quarter of 2006 to 5.17% for the fourth quarter of 2007.

Net interest income increased $4,062,000, or 12.5%, for the year ended December 31, 2007, compared to 2006.  The Company’s taxable-equivalent net interest margin improved 20 basis points, from 4.90% at December 31, 2006, to 5.10% at December 31, 2007.

In linked-quarter comparison, average earning assets increased $13.9 million, with $12.3 million of the increase occurring in the loan portfolio.  The improvement in loan volume was partially offset by a 15 basis point decrease in the average yield on loans, from 8.97% for the third quarter of 2007 to 8.82% for the fourth quarter of 2007. The taxable equivalent net yield on earning assets decreased 9 basis points, from 7.90% for the third quarter of 2007 to 7.81% for the fourth quarter of 2007.  A 12 basis point decrease in the average rate paid on interest-bearing liabilities offset the impact of an $8.6 million increase in average volume and resulted in a $103,000 decrease in interest expense.  The taxable-equivalent net interest margin remained relatively constant in linked-quarter comparison, with a 1 basis point improvement, from 5.16% to 5.17%.

Non-interest income.  Non-interest income for the fourth quarter of 2007 totaled $3.7 million, or 24.3% above the $3.0 million earned in the fourth quarter of 2006 and 2.8% above the $3.6 million earned in the third quarter of 2007.   For the year ended December 31, 2007, non-interest income increased $1.9 million, or 15.2% above non-interest income earned for 2006.  The increase resulted primarily from an increase in service charges on deposit accounts related to insufficient funds fees (“NSF”).  A higher volume of NSF transactions increased non-interest income by $502,000 in prior-year quarterly comparison, by $211,000 in linked-quarter comparison, and by $1,185,000 in twelve-month comparison. Additional increases to non-interest income were recorded in ATM and debit card fees and mortgage processing fees.

Operating Expenses.  Non-interest expense increased $1.5 million in prior year quarterly comparison and $5.5 million in year-to-date comparison, primarily due to increased salary and benefits costs and occupancy expenses.  The number of full-time equivalent employees increased from 375 at December 31, 2006, to 410 at December 31, 2007, as a result of franchise expansion and recruitment of talented leaders to support corporate growth initiatives.  Additional increases were recorded in data processing expenses, professional fees, education and travel costs, and other growth-related expenses.  In linked-quarter comparison, non-interest expenses increased $827,000 in the same growth-related categories, and also in marketing expenses and printing and supplies costs.

In the fourth quarter of 2007, the Company recorded FDIC assessments totaling $74,000, 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, the Company has only been required to pay FICO (the Financing Corporation) assessments that currently total approximately $21,000 a quarter, or $84,000 annually. 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 offset the new FDIC assessment through the third quarter of 2007.  

Asset Quality.  At December 31, 2007, nonperforming assets, including loans past due 90 days and over, totaled $3,005,000, or 0.35% of total assets, as compared to the $2,314,000, or 0.29% of total assets recorded at December 31, 2006.  The increase in nonperforming assets in prior year comparison resulted primarily from an increase of $882,000 in loans past due 90 days and over, primarily attributable to four commercial loans. Of the $980,000 in loans past due 90 days and over at December 31, 2007, two commercial loans totaling $355,000 were paid off in January 2008.  The increase in past due loans was partially offset by a decrease of $191,000 in nonaccrual loans, from $1,793,000 at December 31, 2006 to $1,602,000 at December 31, 2007.

Allowance coverage for nonperforming assets was 186.76% at December 31, 2007, compared to 215.08% at December 31, 2006.  Net year-to-date charge-offs were 0.09% of total loans for the fourth quarter 2007, compared to 0.05 % at December 31, 2006.  The increase resulted primarily from indirect auto financing loans charged-off during the fourth quarter of 2007 totaling $65,000 and a decrease of $228,000 in recoveries of charged-off loans in 2007.

Management’s most recent analysis of the Allowance for Loan and Lease Losses (“ALLL”) indicated that the ALLL/total loans ratio of 0.99% was appropriate at December 31, 2007.

About MidSouth Bancorp, Inc.

MidSouth Bancorp, Inc. is a bank holding company headquartered in Lafayette, Louisiana with 33 locations in Louisiana and Texas and more than 120 ATMs.  Through its wholly owned subsidiaries — MidSouth Bank, N.A. and MidSouth Bank N.A. , 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 26 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 second retail location in Lake Charles recently held a grand opening event and a new banking facility in the Baton Rouge market is scheduled to open in March 2008.

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 converted to a full-service banking facility in early 2008.  New facilities in Conroe and College Station opened in December 2007 and November 2007, respectively.  Grand opening events were recently held for both of these new facilities.

The Company plans to combine the two banks late in the first quarter of 2008.  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									For the
	Quarter Ended									Quarter Ended
	December 31,									September 30,
EARNINGS DATA	2007			2006			% Change			2007			% Change
Total interest income	$	14,744		$	13,405			10.0	%	$	14,651			0.6	%
Total interest expense		5,147			4,961			3.7	%		5,234			-1.7	%
Net interest income		9,597			8,444			13.7	%		9,417			1.9	%
Provision for loan losses		525			180			191.7	%		300			75.0	%
Non-interest income		3,748			3,015			24.3	%		3,574			4.9	%
Non-interest expense		10,569			9,070			16.5	%		9,742			8.5	%
Provision for income tax		357			460			-22.4	%		508			-29.7	%
Net income	$	1,894		$	1,749			8.3	%	$	2,441			-22.4	%
PER COMMON SHARE DATA
Basic earnings per share (2)	$	0.29		$	0.27			8.7	%	$	0.37			-21.6	%
Diluted earnings per share (2)	$	0.28		$	0.27			3.7	%	$	0.37			-24.3	%
Book value at end of period (2)	$	10.41		$	9.12			14.1	%	$	10.07			3.4	%
Market price at end of period (2)	$	23.30		$	29.68			-21.5	%	$	22.90			1.7	%
Weighted avg shares outstanding
Basic (2)		6,570,644			6,541,830			0.4	%		6,572,740			0.0	%
Diluted (2)		6,638,199			6,668,768			-0.5	%		6,637,362			0.0	%
AVERAGE BALANCE SHEET DATA
Total assets	$	850,172		$	796,305			6.8	%	$	831,378			2.3	%
Earning assets		770,948			725,384			6.3	%		757,037			1.8	%
Loans and leases		563,612			498,681			13.0	%		551,340			2.2	%
Interest-bearing deposits		543,436			529,741			2.6	%		534,610			1.7	%
Total deposits		726,221			709,703			2.3	%		711,503			2.1	%
Total stockholders' equity		67,219			59,369			13.2	%		63,763			5.4	%
SELECTED RATIOS	12/31/2007			12/31/2006						9/30/2007
Return on average assets		0.88	%		0.87	%		1.6	%		1.16	%		-24.1	%
Return on average total equity		11.18	%		11.69	%		-4.4	%		15.19	%		-26.4	%
Return on average realized equity (1)		11.01	%		11.49	%		-4.2	%		14.94	%		-26.3	%
Average equity to average assets		7.91	%		7.46	%		6.0	%		7.67	%		3.1	%
Leverage capital ratio		8.68	%		8.34	%		4.1	%		8.72	%		-0.5	%
Taxable-equivalent net interest margin		5.17	%		4.83	%		7.0	%		5.16	%		0.2	%
CREDIT QUALITY
Allowance for loan loses as a % of total loans		0.99	%		1.00	%		-1.5	%		0.96	%		2.6	%
Nonperforming assets to total assets		0.35	%		0.29	%		21.3	%		0.22	%		57.4	%
Net YTD charge-offs to total loans		0.09	%		0.02	%		374.1	%		0.06	%		58.9	%
(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	December 31,			December 31,						September 30,			June 30
	2007			2006			% Change			2007			2007
Assets
Cash and cash equivalents	$	30,873		$	57,404			-46.2	%	$	30,974		$	25,241
Securities available-for-sale		181,452			180,674			0.3	%		181,719			185,626
Securities held-to-maturity		10,746			15,901			-32.4	%		11,515			12,132
Total investment securities		192,198			196,575			-2.3	%		193,234			197,758
Total loans		569,506			499,046			14.1	%		553,048			545,447
Allowance for loan losses		(5,612	)		(4,977	)		12.8	%		(5,297	)		(5,182	)
Loans, net		563,894			494,069			14.1	%		547,751			540,265
Premises and equipment		39,229			30,609			28.2	%		36,450			33,477
Goodwill and other intangibles		9,759			9,957			-2.0	%		9,800			9,852
Other assets		18,103			16,408			11.6	%		18,678			17,433
Total assets	$	854,056		$	805,022			6.1	%	$	836,887		$	824,026
Liabilities and Stockholders' Equity
Non-interest bearing deposits	$	182,588		$	182,596			0.0	%	$	179,860		$	176,526
Interest bearing deposits		550,929			533,584			3.3	%		534,494			540,366
Total deposits		733,517			716,180			2.4	%		714,354			716,892
Securities sold under agreements to repurchase and FHLB borrowings		30,717			10,125			203.4	%		36,346			25,737
Junior subordinated debentures		15,465			15,465			0.0	%		15,465			15,465
Other liabilities		5,888			3,509			67.8	%		4,435			3,235
Total liabilities		785,587			745,279			5.4	%		770,600			761,329
Total shareholders' equity		68,469			59,743			14.6	%		66,287			62,697
Total liabilities and shareholders' equity	$	854,056		$	805,022			6.1	%	$	836,887		$	824,026

MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
	Three Months Ended							Twelve Months Ended
INCOME STATEMENT	December 31,							December 31,
	2007		2006		% Change			2007		2006			% Change
Interest income	$	14,744	$	13,405		10.0	%	$	57,139	$	50,235			13.7	%
Interest expense		5,147		4,961		3.7	%		20,534		17,692			16.1	%
Net interest income		9,597		8,444		13.7	%		36,605		32,543			12.5	%
Provision for loan losses		525		180		191.7	%		1,175		850			38.2	%
Service charges on deposit accounts		2,636		2,197		20.0	%		9,881		8,757			12.8	%
Losses on sales of securities, net		0		0		-			0		(7	)		-100.0	%
Other charges and fees		1,112		818		35.9	%		4,378		3,629			20.6	%
Total non-interest income		3,748		3,015		24.3	%		14,259		12,379			15.2	%
Salaries and employee  benefits		5,231		4,357		20.1	%		19,947		16,329			22.2	%
Occupancy expense		1,929		1,530		26.1	%		6,877		5,988			14.8	%
Intangible amortization		41		52		-21.2	%		198		299			-33.8	%
Other non-interest expense		3,368		3,131		7.6	%		11,612		10,508			10.5	%
Total non-interest expense		10,569		9,070		16.5	%		38,634		33,124			16.6	%
Income before income taxes		2,251		2,209		1.9	%		11,055		10,948			1.0	%
Provision for income taxes		357		460		-22.4	%		2,279		2,728			-16.5	%
Net income	$	1,894	$	1,749		8.3	%	$	8,776	$	8,220			6.8	%
Earnings per share, diluted (1)	$	0.28	$	0.27		5.0	%	$	1.32	$	1.24			6.6	%
(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	Fourth				Third			Second			First				Fourth
Quarterly Trends	Quarter				Quarter			Quarter			Quarter				Quarter
	2007				2007			2007				2007				2006
Interest income		$	14,744		$	14,651		$	14,302			$	13,442			$	13,405
Interest expense			5,147			5,234			5,065				5,104				4,961
Net interest income			9,597			9,417			9,237				8,338				8,444
Provision for loan losses			525			300			350				0				180
Net interest income after provision for loan loss			9,072			9,117			8,887				8,338				8,264
Total non-interest income			3,748			3,574			3,690				3,263				3,015
Total non-interest expense			10,569			9,742			9,245				9,079				9,070
Income before income taxes			2,251			2,949			3,332				2,522				2,209
Income taxes			357			508			837				576				460
Net income		$	1,894		$	2,441		$	2,495			$	1,946			$	1,749
Earnings per share, basic (1)		$	0.29		$	0.37		$	0.38			$	0.30			$	0.27
Earnings per share, diluted (1)		$	0.28		$	0.37		$	0.38			$	0.29			$	0.27
Book value per share (1)		$	10.41		$	10.07		$	9.53			$	9.36			$	9.12
Return on Average Equity			11.18	%		15.19	%		16.03	%			13.07	%			11.69	%
(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)
	December 31,		December 31,					September 30,		June 30,
	2007		2006		% Change			2007			2007
Composition of Loans
Commercial, financial, and agricultural	$	187,545	$	155,098		20.9	%	$	175,150		$	176,093
Lease financing receivable		8,089		7,902		2.4	%		10,017			9,362
Real estate - mortgage		204,291		192,583		6.1	%		205,200			200,966
Real estate - construction		80,864		64,126		26.1	%		73,787			75,809
Installment loans to individuals		87,775		78,613		11.7	%		88,166			82,514
Other		942		724		30.1	%		728			703
Total loans	$	569,506	$	499,046		14.1	%	$	553,048		$	545,447

MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands)
	December 31,			December 31,			%			September 30,			June 30,
	2007			2006			Change			2007			2007
Asset Quality Data
Nonaccrual loans	$	1,602		$	1,793			-10.7	%	$	1,084		$	840
Loans past due 90  days and over		980			98			900.0	%		510			596
Total nonperforming loans		2,582			1,891			36.5	%		1,594			1,436
Other real estate owned		143			368			-61.1	%		143			251
Other foreclosed assets		280			55			409.1	%		134			76
Total nonperforming assets	$	3,005		$	2,314			29.9	%	$	1,871		$	1,763
Nonperforming assets to  total assets		0.35	%		0.29	%		21.3	%		0.22	%		0.21	%
Nonperforming assets to total loans + OREO + other  foreclosed assets		0.53	%		0.46	%		14.6	%		0.34	%		0.32	%
ALL to nonperforming assets		186.76	%		215.08	%		-13.2	%		283.11	%		293.93	%
ALL to nonperforming loans		217.35	%		263.19	%		-17.4	%		332.31	%		360.86	%
ALL to total loans		0.99	%		1.00	%		-1.5	%		0.96	%		0.95	%
Year-to-date charge-offs	$	626		$	542			15.5	%	$	408		$	187
Year-to-date recoveries		86			314			-72.6	%		78			42
Year-to-date net charge-offs	$	540		$	228			136.8	%	$	330		$	145
Net YTD charge-offs to total loans		0.09	%		0.05	%		89.6	%		0.06	%		0.03	%

MIDSOUTH BANCORP, INC. AND SUBSIDIARIES
Yield Analysis (unaudited)
(in thousands)
	Three Months Ended							Three Months Ended
	12/31/2007							12/31/2006
			Tax							Tax
	Average		Equivalent		Yield/			Average		Equivalent		Yield/
	Balance		Interest		Rate			Balance		Interest		Rate
Taxable securities	$	83,393	$	1,013		4.86	%	$	93,643	$	1,081		4.62	%
Tax-exempt securities		109,306		1,467		5.37	%		102,439		1,323		5.17	%
Equity securities		4,377		52		4.75	%		2,690		19		2.83	%
Federal funds sold		10,260		116		4.42	%		27,930		365		5.11	%
Loans		563,612		12,525		8.82	%		498,682		11,002		8.75	%
Total interest earning assets		770,948		15,173		7.81	%		725,384		13,790		7.54	%
Noninterest earning assets		79,224							70,921
Total assets	$	850,172						$	796,305
Interest bearing liabilities:
Deposits	$	543,436	$	4,393		3.21	%	$	529,741	$	4,535		3.40	%
Repurchase agreements and federal
funds purchased		24,645		247		3.92	%		3,976		43		4.23	%
Short term borrowings		11,717		138		4.61	%		2,576		33		5.01	%
Junior subordinated debentures		15,465		353		8.93	%		15,465		350		8.86	%
Total interest bearing liabilities		595,263		5,131		3.42	%		551,758		4,961		3.57	%
Noninterest bearing liabilities		187,690							185,178
Shareholders' equity		67,219							59,369
Total liabilities and  shareholders' equity	$	850,172						$	796,305
Net interest income (TE) and margin			$	10,042		5.17	%			$	8,829		4.83	%
Net interest spread						4.39	%						3.98	%

MIDSOUTH BANCORP, INC. AND SUBSIDIARIES
Yield Analysis (unaudited)
(in thousands)
	Twelve Months Ended								Twelve Months Ended
	12/31/2007								12/31/2006
				Tax							Tax
	Average			Equivalent		Yield/			Average		Equivalent		Yield/
	Balance			Interest		Rate			Balance		Interest		Rate
Taxable securities		$	86,076	$	4,096		4.76	%	$	98,378	$	4,471		4.54	%
Tax-exempt securities			110,256		5,846		5.30	%		93,918		4,804		5.12	%
Equity securities			3,533		156		4.42	%		2,377		80		3.37	%
Federal Funds Sold			15,554		788		5.00	%		23,528		1,134		4.75	%
Loans			535,726		47,965		8.95	%		474,520		41,145		8.67	%
Total interest earning assets			751,145		58,851		7.83	%		692,721		51,634		7.45	%
Noninterest earning assets			74,289							68,882
Total assets		$	825,434						$	761,603
Interest bearing liabilities:
Deposits		$	541,221	$	18,106		3.35	%	$	506,029	$	16,137		3.19	%
Repurchase agreements and federal
funds purchased			13,880		610		4.33	%		3,365		151		4.43	%
Short term borrowings			8,309		421		5.00	%		649		33		5.02	%
Junior subordinated debentures			15,465		1,397		8.91	%		15,465		1,371		8.74	%
Total interest bearing liabilities			578,875		20,534		3.55	%		525,508		17,692		3.37	%
Noninterest bearing liabilities			183,091							180,086
Shareholders' equity			63,468							56,009
Total liabilities and   shareholders' equity		$	825,434						$	761,603
Net interest income (TE) and margin				$	38,317		5.10	%			$	33,942		4.90	%
Net interest spread							4.29	%						4.09	%