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 27, 2009
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

On October 27, 2009, MidSouth Bancorp, Inc. (the “Company”) issued a press release regarding the Company’s earnings for the quarter ended September 30, 2009.  The Company’s earnings release, including financial highlights, is attached as Exhibit 99.1.

The preceding information is being furnished pursuant to Item 2.02 of this Form 8-K.  This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

 Item 5.02.  DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS

Karen L. Hail, Senior Executive Vice President and Chief Operating Officer of the Company, has requested a leave of absence under the Family and Medical Leave Act from the Company and its subsidiary, MidSouth Bank, N.A., effective October 23, 2009. 

It is currently expected that Ms. Hail’s leave of absence will continue through December 31, 2009.  During her leave of absence, Ms. Hail’s responsibilities will be assumed by other members of the Company’s and the bank’s senior management team.

Item 9.01.  FINANCIAL STATEMENTS AND EXHIBITS

(d)           Exhibits

99.1  Press Release dated October 27, 2009.

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.

		MIDSOUTH BANCORP, INC.
		Registrant
By:	/s/ James R. McLemore
	James R. McLemore
	CFO
Date:	October 27, 2009

EX-99.1

CONTACT:	Rusty Cloutier or Jim McLemore
TELEPHONE:	(337) 237-8343
RELEASE DATE:	October 27, 2009

MidSouth Bancorp, Inc. Reports Third Quarter 2009 Earnings

Lafayette, La.

Lafayette, La. October 27, 2009  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 loans 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 loans 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 in the Baton Rouge market funded for 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 loans 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 Ended									For the Quarter 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 Ended							Nine Months 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  benefits		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		1126		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 deeposits 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	%