Exhibit



Investor Contacts: Jim McLemore, CFA President & CEO 337.237.8343 Lorraine Miller, CFA EVP & CFO 337.593.3143

MidSouth Bancorp, Inc. Reports First Quarter 2019 Results

Quarterly Highlights


•	Reported EPS for the first quarter of 2019 was a loss of $0.40 versus a loss of $0.03 for the first quarter of 2018 primarily due to the impact of a $6.6 million impairment charge for a shared national healthcare credit.


•	Bank level classified assets to capital declined from 29% for the fourth quarter 2018 to 25% for the first quarter of 2019 due to the successful execution of a $16.9 million loan sale partially offset by the $6.6 million impairment mentioned above.


•	FTE net interest margin of 3.89% decreased 46 basis points from fourth quarter 2018 which included 18 basis points of accelerated loan accretion, and 13 basis points impact due to the reversal of accrued interest in the first quarter of 2019 for a shared national healthcare credit.


•	Funding costs of 55 basis points remain below market averages with core deposits comprising a strong 88% of Total Deposits.


•	Tangible common equity to tangible assets at March 31, 2019 was 8.0%.

LAFAYETTE, LA., April 30, 2019/BusinessWire/ -- MidSouth Bancorp, Inc. (“MidSouth”) (NYSE:MSL) today reported a quarterly net loss available to common shareholders of $6.64 million for the three months ended March 31, 2019, compared to net loss available to common shareholders of $450,000 reported for the three months ended March 31, 2018 and $23.1 million in net loss available to common shareholders for the fourth quarter of 2018. The first quarter loss is primarily due to the $6.6 million impairment charge for a shared national healthcare credit. MidSouth has one additional pass rated shared national credit for $10.3 million with a company headquartered in the Acadiana market. The first quarter of 2018 included after-tax

charges of $691,000 resulting from the transfer of loans to held for sale, $3.1 million for regulatory remediation costs, $115,000 related to branch closures during the quarter and $70,000 for legal fees related to a bulk loan sale. The fourth quarter of 2018 included an after-tax charge of $3.9 million for regulatory remediation costs, a $11.4 million tax-related charge for the establishment of a valuation allowance to fully reserve against net deferred tax assets given the company’s cumulative pretax loss position. Excluding 2018 non-operating expenses, a loss of $0.40 per diluted share was reported for the first quarter of 2019, compared to diluted loss per common share of $0.73 for the fourth quarter of 2018 and diluted income per share of $0.21 for the first quarter of 2018.

Balance Sheet

Consolidated assets decreased $112.4 million to $1.7 billion at March 31, 2019 from $1.9 billion at March 31, 2018 and essentially unchanged from $1.7 billion at December 31, 2018. Our stable core deposit base, which excludes time deposits, totaled $1.3 billion at March 31, 2019 and December 31, 2018 and accounted for 87.5% and 87.6% of deposits at March 31, 2019 and December 31, 2018, respectively. Net loans totaled $868.9 million at March 31, 2019, compared to $882.4 million at December 31, 2018 and $1.1 billion at March 31, 2018. Loans held for sale of $1.5 million at March 31, 2019 declined from $23.9 million at December 31, 2018, due to the successful execution of a $16.9 million loan sale in the first quarter of 2019.

MidSouth’s Tier 1 leverage capital ratio was 11.60% at March 31, 2019, compared to 11.45% at December 31, 2018. Tier 1 risk-based capital and total risk-based capital ratios were 18.22% and 19.49% at March 31, 2019, respectively, compared to 17.79% and 19.04% at December 31, 2018, respectively. Tier 1 common equity to total risk-weighted assets at March 31, 2019 was 12.48%, compared to 12.20% at December 31, 2018. Tangible common equity totaled $135.9 million at March 31, 2019, compared to $136.4 million at December 31, 2018. Tangible book value per share at March 31, 2019 was $8.13 compared to $8.20 at December 31, 2018.

Asset Quality

Nonperforming assets totaled $23.9 million at March 31, 2019, a decrease of $6.6 million compared to $30.5 million reported at December 31, 2018. The decrease is primarily attributable to the sale of $16.9 million of nonperforming loans offset by a $13.2 million increase in non-

accrual loans due primarily to a $11.4 million shared national healthcare credit. Allowance coverage for nonperforming loans decreased to 106.85% at March 31, 2019, compared to 195.40% at December 31, 2018. The ALLL/total loans ratio was 2.77% at March 31, 2019 and 1.94% at December 31, 2018. The ratio of annualized net charge-offs to total loans decreased to 0.11% for the three months ended March 31, 2019 compared to 8.45% for the three months ended December 31, 2018, primarily as a result of the charge-offs taken in the fourth quarter due to the impending bulk loan sale.

Total nonperforming assets, excluding nonperforming loans held for sale to total loans plus ORE and other assets repossessed was 2.68% at March 31, 2019 compared to 3.39% at December 31, 2018. Loans classified as troubled debt restructurings, accruing (“TDRs, accruing”) totaled $713,000 at March 31, 2019 compared to $1.3 million at December 31, 2018. Total classified assets, including ORE, were $44.4 million at March 31, 2019 compared to $51.2 million at December 31, 2018. The balance of classified loans decreased as a result of principal reductions through payoffs and/or pay-downs and settlements and the completion of problem asset sales of $18.3 million offset by the downgrade of a shared national credit in the healthcare industry in the amount of $11.4 million. The classified assets to capital ratio at MidSouth Bank was 25% at March 31, 2019 versus 29% at December 31, 2018.

More information on our energy loan portfolio and other information on quarterly results can be found on our website at MidSouthBank.com under Investor Relations/Presentations.

First Quarter 2019 vs. Fourth Quarter 2018 Earnings Comparison

MidSouth reported a net loss available to common shareholders of $6.6 million for the three months ended March 31, 2019, compared to net loss available to common shareholders of $23.1 million for the three months ended December 31, 2018. Revenues from consolidated operations decreased $324,000 from $24.0 million in the fourth quarter of 2018 to $23.7 million in the first quarter 2019, primarily as a result of the gain on sale of loans of $1.3 million and gain on sale of securities of $373,000 offset by a decrease in loan income of $1.5 million.

The first quarter of 2019 did not include any remediation costs. The fourth quarter of 2018 included a non-recurring charge of $5.0 million of regulatory remediation costs. Excluding these non-operating expenses, noninterest expense increased $212,000 and consisted primarily of a

continued investment in compliance staffing and an $805,000 offset due to lower professional fees.

The provision for loan losses decreased $4.4 million from the fourth quarter 2018 to the first quarter 2019. A $11.4 million tax-related charge was recorded during the fourth quarter of 2018 associated with the establishment of a valuation reserve against the net deferred tax assets. Excluding this adjustment, we recorded income tax expense of $7.6 million for the fourth quarter of 2018, compared to no income tax expense for the first quarter of 2019.

Dividends on the Series B Preferred Stock issued to the U.S. Treasury as a result of our participation in the Small Business Lending Fund totaled $720,000 for the first quarter of 2019 and the fourth quarter of 2018 based on a dividend rate of 9%. Dividends on the Series C Preferred Stock issued with the December 28, 2012 acquisition of PSB Financial Corporation totaled $90,000 for the three months ended March 31, 2019 and December 31, 2018.

Fully taxable-equivalent (“FTE”) net interest income decreased $1.9 million from the fourth quarter 2018 to the first quarter 2019, primarily due to a decrease in interest income on loans and interest bearing deposits with other banks of $1.5 million and $360,000, respectively. Higher loan yields for the fourth quarter 2018 are reflective of management’s recognition of the remaining PSB loan accretion discounts into income. Excluding these purchase accounting adjustments, the loan yield decreased 11 bps, from 5.85% to 5.74% during the same period. The average yield on investment securities decreased 30 basis points, from 3.16% to 2.86%, due to a repositioning of the bond portfolio through the sale of higher yielding municipal and corporate bonds and the timing impact of the sales and reinvestments on average balances. The average yield on total earning assets decreased 54 bps for the same period, from 4.87% to 4.41%, respectively. The FTE net interest margin decreased 53 bps from 4.35% for the fourth quarter 2018 to 3.89% for the first quarter of 2019. Excluding purchase accounting adjustments, the FTE net interest margin decreased 22 bps, from 4.04% for the fourth quarter of 2018 to 3.89% for the first quarter of 2019.

First Quarter 2019 vs. First Quarter 2018 Earnings Comparison

MidSouth reported a net loss available to common shareholders of $6.6 million for the three months ended March 31, 2019, compared to net loss available to common shareholders of

$450,000 for the three months ended March 31, 2018. Revenues from consolidated operations decreased $108,000 in quarterly comparison, from $23.8 million for the three months ended March 31, 2018 to $23.7 million for the three months ended March 31, 2019. Net interest income decreased $2.0 million in quarterly comparison, resulting from a $1.6 million decrease in interest income primarily driven by lower loan levels, in addition to a higher interest expense of $435,000 reflecting the impact of higher interest rates. Operating noninterest income decreased $203,000 which excludes $1.6 million gains on assets sales including loans and investments.

Excluding remediation expenses of $3.9 million for the first quarter of 2018, noninterest expenses increased $1.9 million in quarterly comparison and consisted primarily of a $2.0 million increase in salaries and employee benefits costs. The provision for loan losses increased $7.6 million in quarterly comparison, from $0 for the three months ended March 31, 2018 to $7.6 million the three months ended March 31, 2019. We recorded an income tax benefit of $34,000 for the first quarter of 2018 versus no benefit for the first quarter of 2019.

Dividends on preferred stock totaled $810,000 for the three months ended March 31, 2019 and 2018. Dividends on the Series B Preferred Stock were $720,000 for the three months ended March 31, 2019 and 2018. Dividends on the Series C Preferred Stock totaled $90,000 for the three months ended March 31, 2019 and 2018.

Interest income on loans decreased $3.0 million primarily due to a $255.4 million decline in average loans given ongoing efforts to reduce problem loans and slower loan originations due to an internal focus on improving loan portfolio management and loan operations.

Investment securities totaled $469.8 million, or 26.9% of total assets at March 31, 2019, versus $367.2 million, or 19.8% of total assets at March 31, 2018. The investment portfolio had an effective duration of 2.6 years and a net unrealized loss of $70,000 at March 31, 2019. FTE interest income on investments increased $947,000 in prior year quarterly comparison. The average volume of investment securities increased $90.0 million in prior year quarterly comparison, and the average tax equivalent yield on investment securities increased 32 basis points, from 2.54% to 2.86%.

The average yield on all earning assets decreased 15 basis points in prior year quarterly comparison, from 4.56% for the first quarter of 2018 to 4.41% for the first quarter of 2019, due to a less favorable mix of earning assets given the decline in loans on a year-over-year basis.

Interest expense increased $435,000 in prior year quarterly comparison primarily due to a $442,000 increase in interest expense on deposits and a $67,000 increase in interest expense on junior subordinated debt, which were partially offset by a $74,000 decrease in interest expense on repurchase agreements and FHLB borrowings.

As a result of these changes in volume and yield on earning assets and interest-bearing liabilities, the FTE net interest margin decreased 23 basis points, from 4.12% for the first quarter of 2018 to 3.89% for the first quarter of 2019.

About MidSouth Bancorp, Inc.

MidSouth Bancorp, Inc. is a bank holding company headquartered in Lafayette, Louisiana, with assets of $1.7 billion as of March 31, 2019. MidSouth Bancorp, Inc. trades on the NYSE under the symbol “MSL.” Through its wholly owned subsidiary, MidSouth Bank, N.A., MidSouth offers a full range of banking services to commercial and retail customers in Louisiana and Texas. MidSouth Bank currently has 42 locations in Louisiana and Texas and is connected to a worldwide ATM network that provides customers with access to more than 55,000 surcharge-free ATMs. Additional corporate information is available at MidSouthBank.com.

Non-GAAP Financial Measures

This press release, including the accompanying financial statement tables, contains financial information determined by methods other than in accordance with generally accepted accounting principles, or GAAP. This financial information includes certain operating performance measures, which exclude charges that are not considered part of recurring operations. Non-GAAP measures in this press release include, but are not limited to, descriptions such as “operating noninterest income,” “operating (loss) earnings per share,” “tangible common equity”, “tangible book value per share,” “operating return on average common equity,” “operating return on average assets,” and “operating efficiency ratio.” In addition, this press release, consistent with SEC Industry Guide 3, presents total revenue, net interest income, net interest margin, "non-operating expenses" and efficiency ratios on a fully taxable equivalent (“FTE”) basis, and ratios on an annualized basis. The FTE basis adjusts for the tax-favored status of net interest income from certain loans and investments using a federal tax rate of 21% for all periods beginning on or after January 1, 2018, as well as state income taxes, where applicable, to increase tax-exempt interest income to a taxable-equivalent basis. MidSouth believes this measure to be the preferred industry measurement of net interest income and it enhances comparability of net interest income arising from taxable and tax-exempt sources.

We use non-GAAP measures because we believe they are useful for evaluating our financial condition and performance over periods of time, as well as in managing and evaluating our business and in discussions about our performance. We also believe these non-GAAP financial measures provide users of our financial information with a meaningful measure for assessing our financial condition as well as comparison to financial results for prior periods. These measures

should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented by other companies. To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable measures as reported in accordance with GAAP are included with the accompanying financial statement tables.

Forward-Looking Statements

Certain statements contained herein are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties. These statements include, among others, statements regarding expected future performance and shareholder value. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “will,” “would,” “could,” “should,” “guidance,” “potential,” “continue,” “project,” “forecast,” “confident,” and similar expressions are typically used to identify forward-looking statements.

These statements are based on assumptions and assessments made by management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Any forward-looking statements are not guarantees of our future performance and are subject to risks and uncertainties and may be affected by various factors that may cause actual results, developments and business decisions to differ materially from those in the forward-looking statements. Factors that might cause such a difference include, among other matters, changes in interest rates and market prices that could affect the net interest margin, asset valuation, and expense levels; changes in local economic and business conditions in the markets we serve, including, without limitation, changes related to the oil and gas industries that could adversely affect customers and their ability to repay borrowings under agreed upon terms, adversely affect the value of the underlying collateral related to their borrowings, and reduce demand for loans; increases in competitive pressure in the banking and financial services industries; increased competition for deposits and loans which could affect compositions, rates and terms; changes in the levels of prepayments received on loans and investment securities that adversely affect the yield and value of the earning assets; our ability to successfully implement and manage our strategic initiatives; costs and expenses associated with our strategic initiatives and regulatory remediation efforts and possible changes in the size and components of the expected costs and charges associated with our strategic initiatives and regulatory remediation efforts; our ability to realize the anticipated benefits and cost savings from our strategic initiatives within the anticipated time frame, if at all; the ability of the Company to comply with the terms of the formal agreement and the consent order with the Office of the Comptroller of the Currency; risk of noncompliance with and further enforcement actions regarding the Bank Secrecy Act and other anti-money laundering statues and regulations; credit losses due to loan concentration, particularly our energy lending and commercial real estate portfolios; a deviation in actual experience from the underlying assumptions used to determine and establish our allowance for loan and lease losses (“ALLL”), which could result in greater than expected loan losses; the adequacy of the level of our ALLL and the amount of loan loss provisions required in future periods including the impact of implementation of the new CECL (current expected credit loss) methodology; future examinations by our regulatory authorities, including the possibility that the regulatory authorities may, among other things, impose additional enforcement actions or conditions on our operations, require additional regulatory remediation efforts or require us to increase our allowance for loan losses or write-down assets; changes in the availability of funds resulting from reduced liquidity or increased costs; the timing and impact of future acquisitions or divestitures, the success or failure of integrating acquired operations, and the ability to capitalize on growth opportunities upon entering new markets; the ability to acquire, operate, and maintain effective and efficient operating systems; the identified material weaknesses in our internal control over financial reporting; increased asset levels and changes in the composition of assets that would impact capital levels and regulatory capital ratios; loss of critical personnel and the challenge of hiring qualified personnel at reasonable compensation levels; legislative and regulatory changes, including the impact of regulations under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and other changes in banking, securities and tax laws and regulations and their application by our regulators, changes in the scope and cost of FDIC insurance and other coverage; regulations and restrictions resulting from our participation in government-sponsored programs such as the U.S. Treasury’s Small Business Lending Fund, including potential retroactive changes in such programs; changes in accounting principles, policies, and guidelines applicable to financial holding companies and banking; increases in cybersecurity risk, including potential business disruptions or financial losses; acts of war, terrorism, cyber intrusion, weather, or other catastrophic events beyond our control; and other factors discussed under the heading “Risk Factors” in MidSouth’s Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC on March 18, 2019 and in its other filings with the SEC.

MidSouth does not undertake any obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information, future events or otherwise, except as required by law.



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

	Quarter			Quarter			Quarter			Quarter			Quarter
	Ended			Ended			Ended			Ended			Ended
EARNINGS DATA	March 31			December 31			September 30			June 30			March 31
Total interest income	$	17,445		$	19,340		$	18,436		$	18,739		$	18,997
Total interest expense	2,062			2,097			1,970			1,814			1,627
Net interest income	15,383			17,243			16,466			16,925			17,370
Provision for loan losses	7,600			12,000			4,300			440			—
Non-interest income	6,273			4,702			5,090			4,882			4,829
Non-interest expense	19,886			24,644			23,527			22,273			21,873
(Loss) earnings before income taxes	(5,830		)	(14,699		)	(6,271		)	(906		)	326
Income tax (benefit) expense	—			7,610			(1,373		)	(237		)	(34		)
Net (loss) earnings	(5,830		)	(22,309		)	(4,898		)	(669		)	360
Dividends on preferred stock	810			809			810			810			810
Net loss available to common shareholders	$	(6,640	)	$	(23,118	)	$	(5,708	)	$	(1,479	)	$	(450	)

PER COMMON SHARE DATA
Basic loss per share	(0.40		)	(1.39		)	(0.34		)	(0.09		)	(0.03		)
Diluted loss per share	(0.40		)	(1.39		)	(0.34		)	(0.09		)	—
Diluted (loss) earnings per share, operating (Non-GAAP)(*)	(0.40		)	(0.66		)	(0.08		)	0.17			0.21
Quarterly dividends per share	0.01			0.01			0.01			0.01			0.01
Book value per share at end of period	10.78			10.88			12.05			12.50			12.62
Tangible book value per share at period end (Non-GAAP)(*)	8.13			8.20			9.35			9.78			9.89
Market price per share at end of period	11.41			10.60			15.40			13.25			12.65
Shares outstanding at period end	16,715,671			16,641,017			16,641,105			16,619,894			16,621,811
Weighted average shares outstanding:
Basic	16,673,818			16,640,174			16,557,664			16,525,571			16,495,438
Diluted	16,673,818			16,640,174			16,557,664			16,525,571			16,495,438
AVERAGE BALANCE SHEET DATA
Total assets	$	1,742,686		$	1,791,990		$	1,830,834		$	1,860,906		$	1,860,070
Loans and leases	904,293			944,545			1,020,834			1,109,371			1,159,671
Total deposits	1,440,961			1,476,211			1,503,528			1,514,321			1,495,907
Total common equity	182,231			202,796			209,010			210,291			214,183
Total tangible common equity(*)	137,793			158,083			164,020			165,024			168,629
Total equity	223,203			243,768			249,997			251,278			255,170
SELECTED RATIOS
Return on average assets, operating()(*)	(1.52		)%	(2.70		)%	(0.30		)%	0.59		%	0.76		%
Return on average common equity, operating()(*)	(14.57		)%	(23.83		)%	(2.60		)%	5.22		%	6.59		%
Return on average tangible common equity, operating()(*)	(19.28		)%	(30.57		)%	(3.31		)%	6.65		%	8.37		%
Efficiency ratio, operating(*)	91.83		%	89.35		%	83.36		%	77.38		%	75.57		%
Average loans to average deposits	62.76		%	63.98		%	67.90		%	73.26		%	77.52		%
Tier 1 leverage capital ratio	11.60		%	11.45		%	12.53		%	12.71		%	12.80		%
CREDIT QUALITY
Allowance for loan and lease losses (ALLL) as a % of total loans	2.77		%	1.94		%	2.54		%	2.22		%	2.23		%
Nonperforming assets to tangible equity + ALLL	14.89		%	6.44		%	23.75		%	32.99		%	36.86		%
Nonperforming assets to total loans, other real estate owned and other repossessed assets	2.67		%	1.12		%	5.45		%	7.07		%	7.47		%
QTD net charge-offs to total loans (**)	0.11		%	8.45		%	1.40		%	0.87		%	0.54		%
(**) Annualized
(*) See reconciliation of Non-GAAP financial measures on pages 18-20.



MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Consolidated Balance Sheets (unaudited)
(in thousands)

	March 31,			December 31,			September 30,			June 30,			March 31,
	2019			2018			2018			2018			2018
Assets
Cash and cash equivalents	$	243,430		$	205,371		$	302,888		$	278,776		$	211,486
Securities available-for-sale	434,679			437,754			352,606			308,937			293,970
Securities held-to-maturity	35,107			37,759			64,893			67,777			73,255
Total investment securities	469,786			475,513			417,499			376,714			367,225
Other investments	17,083			16,614			16,508			14,927			12,896
Loans held for sale	1,511			23,876			—			—			1,117
Total loans	893,650			899,785			962,743			1,057,963			1,137,255
Allowance for loan losses	(24,779		)	(17,430		)	(24,450		)	(23,514		)	(25,371		)
Loans, net	868,871			882,355			938,293			1,034,449			1,111,884
Premises and equipment	55,097			55,382			56,006			56,834			57,848
Lease right of use asset	8,263			—			—			—			—
Goodwill and other intangibles	44,303			44,580			44,856			45,133			45,409
Deferred Tax Asset	11,207			11,373			8,452			6,659			4,854
Deferred Tax Asset Valuation Allowance	(11,207		)	(11,373		)	—			—			—
Other assets	36,991			39,707			41,752			45,425			45,036
Total assets	$	1,745,335		$	1,743,398		$	1,826,254		$	1,858,917		$	1,857,755

Liabilities and Shareholders' Equity
Non-interest bearing deposits	$	418,321		$	383,167		$	425,696		$	419,517		$	427,504
Interest-bearing deposits	1,027,314			1,068,904			1,083,433			1,103,503			1,076,433
Total deposits	1,445,635			1,452,071			1,509,129			1,523,020			1,503,937
Securities sold under agreements to repurchase	11,968			11,220			13,676			14,886			33,026
Lease liability	8,203			—			—			—			—
FHLB advances	27,500			27,500			27,506			37,511			37,516
Junior subordinated debentures	22,167			22,167			22,167			22,167			22,167
Other liabilities	8,696			8,450			12,325			12,661			10,272
Total liabilities	1,524,169			1,521,408			1,584,803			1,610,245			1,606,918
Total shareholders' equity	221,166			221,990			241,451			248,672			250,837
Total liabilities and shareholders' equity	$	1,745,335		$	1,743,398		$	1,826,254		$	1,858,917		$	1,857,755



MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Consolidated Statements of Operation (unaudited)
(in thousands except per share data)

	Three Months Ended
	3/31/2019			12/31/2018			9/30/2018			6/30/2018			3/31/2018
Interest income:
Loans, including fees	$	12,987		$	14,536		$	14,590		$	15,344		$	16,015
Investment securities	3,326			3,230			2,429			2,370			2,363
Other interest income	1,132			1,574			1,417			1,025			619
Total interest income	17,445			19,340			18,436			18,739			18,997
Interest expense:
Deposits	1,680			1,669			1,602			1,410			1,238
Securities sold under agreement to repurchase	14			17			16			25			40
FHLB borrowings	81			136			81			120			129
Other borrowings	287			275			271			259			220
Total interest expense	2,062			2,097			1,970			1,814			1,627
Net interest income	15,383			17,243			16,466			16,925			17,370
Provision for loan losses	7,600			12,000			4,300			440			—
Net interest income after provision for loan losses	7,783			5,243			12,166			16,485			17,370
Noninterest income:
Service charges on deposit accounts	1,793			1,414			2,159			2,065			2,206
Gain (loss) on securities, net	373			(49		)	—			—			—
Gain on sale of loans, net	1,274			—			—			—			—
ATM and debit card income	1,925			2,624			1,796			1,877			1,784
Other charges and fees	908			713			1,135			940			839
Total noninterest income	6,273			4,702			5,090			4,882			4,829
Noninterest expense:
Salaries and employee benefits	9,700			8,895			7,762			7,916			7,719
Occupancy expense	3,307			3,186			3,077			3,193			3,045
ATM and debit card	624			678			653			648			576
Legal and professional fees	1,883			3,457			2,543			1,100			1,689
Remediation expense	—			4,970			5,502			5,323			3,926
Other non-interest expense	4,372			3,458			3,990			4,093			4,918
Total noninterest expense	19,886			24,644			23,527			22,273			21,873
Earnings (loss) before income taxes	(5,830		)	(14,699		)	(6,271		)	(906		)	326
Income tax (benefit)/expense	—			7,610			(1,373		)	(237		)	(34		)
Net (loss) earnings	(5,830		)	(22,309		)	(4,898		)	(669		)	360
Dividends on preferred stock	810			809			810			810			810
Net (loss) earnings available to common shareholders	$	(6,640	)	$	(23,118	)	$	(5,708	)	$	(1,479	)	$	(450	)
(Loss) earnings per common share, diluted	$	(0.40	)	$	(1.39	)	$	(0.34	)	$	(0.09	)	$	(0.03	)
Operating (loss) earnings per common share, diluted on pages 18-20 (Non-GAAP)(*)	$	(0.40	)	$	(0.73	)	$	(0.08	)	$	0.17		$	0.21
(*) See reconciliation of Non-GAAP financial measures.



MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Loans, Deposits and Asset Quality (unaudited)
(in thousands)
COMPOSITION OF LOANS	March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018			March 31, 2018
Commercial, financial, and agricultural	$	255,410		$	267,340		$	294,971		$	354,944		$	401,048
Real estate - construction	89,723			89,621			90,444			98,108			94,679
Real estate - commercial	376,523			368,449			394,416			414,526			438,779
Real estate - residential	130,700			130,320			136,151			141,104			145,671
Consumer and other	40,784			43,506			46,169			48,649			56,386
Lease financing receivable	510			549			592			632			692
Total loans	$	893,650		$	899,785		$	962,743		$	1,057,963		$	1,137,255

COMPOSITION OF DEPOSITS	March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018			March 31, 2018
Noninterest bearing	418,321			$	383,167		$	425,696		$	419,517		$	427,504
NOW & other	410,792			400,625			442,487			461,726			459,394
Money market/savings	436,317			488,181			454,867			466,711			441,801
Time deposits of less than $100,000	121,460			121,703			125,363			111,758			113,665
Time deposits of $100,000 or more	58,745			58,395			60,716			63,308			61,573
Total deposits	$	1,445,635		$	1,452,071		$	1,509,129		$	1,523,020		$	1,503,937

ASSET QUALITY DATA	March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018			March 31, 2018
Nonaccrual loans	$	23,191		$	8,920		$	51,476		$	73,538		$	82,275
Loans past due 90 days and over and accruing	—			—			7			3			1
Total nonperforming loans	23,191			8,920			51,483			73,541			82,276
Nonperforming loans held for sale	—			20,441			—			—			808
Other real estate	664			1,067			1,022			1,365			1,803
Other repossessed assets	66			55			—			—			194
Total nonperforming assets	$	23,921		$	30,483		$	52,505		$	74,906		$	85,081
Troubled debt restructurings, accruing	$	713		$	1,334		$	896		$	1,010		$	1,153
Nonperforming assets to total assets	1.37		%	1.75		%	2.88		%	4.03		%	4.58		%
Nonperforming assets to total loans	2.68		%	3.39		%	5.45		%	7.07		%	7.47		%
ALLL to nonperforming loans	106.85		%	195.4		%	47.49		%	31.97		%	30.84		%
ALLL to total loans	2.77		%	1.94		%	2.54		%	2.22		%	2.23		%
Quarter-to-date charge-offs	384			19,277			4,339			2,801			1,836
Quarter-to-date recoveries	133			258			974			505			319
Quarter-to-date net charge-offs	251			19,019			3,365			2,296			1,517
Annualized QTD net charge-offs to total loans	0.11		%	8.45		%	1.40		%	0.87		%	0.54		%



MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Tangible Common Equity to Tangible Assets and Regulatory Ratios (unaudited)
(in thousands)

COMPUTATION OF TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS	March 31, 2019			December 31, 2018

Total equity	$	221,166		$	221,990
Less preferred equity	40,972			40,972
Total common equity	180,194			181,018
Less goodwill	42,171			42,171
Less intangibles	2,132			2,409
Tangible common equity	$	135,891		$	136,438

Total assets	$	1,745,335		$	1,743,398
Less goodwill	42,171			42,171
Less intangibles	2,132			2,409
Tangible assets	$	1,701,032		$	1,698,818

Tangible common equity to tangible assets	7.99		%	8.03		%

REGULATORY CAPITAL

Common equity tier 1 capital	$	135,696		$	137,991
Tier 1 capital	198,167			201,130
Total capital	211,905			215,310

Regulatory capital ratios:
Common equity tier 1 capital ratio	12.48		%	12.20		%
Tier 1 risk-based capital ratio	18.22		%	17.79		%
Total risk-based capital ratio	19.49		%	19.04		%
Tier 1 leverage ratio	11.60		%	11.45		%



MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Quarterly Yield Analysis (unaudited)
(in thousands)

YIELD ANALYSIS	Three Months Ended						Three Months Ended						Three Months Ended						Three Months Ended						Three Months Ended
YIELD ANALYSIS	March 31, 2019						December 31, 2018						September 30, 2018						June 30, 2018						March 31, 2018

			Tax						Tax						Tax						Tax						Tax
	Average		Equivalent		Yield/		Average		Equivalent		Yield/		Average		Equivalent		Yield/		Average		Equivalent		Yield/		Average		Equivalent		Yield/
	Balance		Interest		Rate		Balance		Interest		Rate		Balance		Interest		Rate		Balance		Interest		Rate		Balance		Interest		Rate
Taxable securities	$	436,549	$	3,071	2.81	%	$	375,467	$	2,950	3.14	%	$	347,205	$	2,156	2.48	%	$	340,080	$	2,093	2.46	%	$	334,419	$	2,047	2.45	%
Tax-exempt securities (*)	38,424		323		3.36	%	43,010		355		3.30	%	43,151		345		3.20	%	43,858		351		3.20	%	50,550		400		3.17	%
Total investment securities	474,973		3,394		2.86	%	418,477		3,305		3.16	%	390,356		2,501		2.56	%	383,938		2,444		2.54	%	384,969		2,447		2.54	%
Federal funds sold	5,493		32		2.33	%	5,878		33		2.25	%	7,250		32		1.77	%	5,008		21		1.63	%	4,978		18		1.45	%
Interest bearing deposits in other banks	185,418		1,004		2.17	%	208,001		1,364		2.62	%	250,349		1,279		2.04	%	201,281		912		1.79	%	132,940		514		1.55	%
Other investments	16,936		95		2.24	%	16,573		177		4.27	%	15,640		106		2.71	%	14,924		91		2.45	%	12,721		87		2.74	%
Loans	904,293		12,987		5.74	%	944,546		14,536		6.16	%	1,020,834		14,590		5.72	%	1,109,371		15,344		5.55	%	1,159,671		16,015		5.60	%
Total interest earning assets	1,587,113		17,512		4.41	%	1,593,475		19,415		4.87	%	1,684,429		18,508		4.40	%	1,714,522		18,812		4.39	%	1,695,279		19,081		4.56	%
Non-interest earning assets	155,573						198,515						146,405						146,384						164,791
Total assets	$	1,742,686					$	1,791,990					$	1,830,834					$	1,860,906					$	1,860,070
Interest-bearing liabilities:
Deposits	$	1,042,918	$	1,680	0.64	%	$	1,066,322	$	1,670	0.63	%	$	1,083,404	$	1,602	0.59	%	$	1,087,746	$	1,409	0.52	%	$	1,056,417	$	1,238	0.47	%
Repurchase agreements	12,069		14		0.46	%	13,031		17		0.52	%	14,641		16		0.44	%	26,230		25		0.39	%	40,115		40		0.40	%
FHLB advances	27,500		81		1.18	%	27,500		135		1.96	%	29,139		81		1.11	%	37,514		120		1.28	%	38,741		129		1.33	%
Junior subordinated debentures	22,167		287		5.18	%	22,167		275		4.96	%	22,167		271		4.89	%	22,167		260		4.63	%	22,167		220		3.97	%
Total interest bearing liabilities	1,104,654		2,062		0.75	%	1,129,020		2,097		0.74	%	1,149,351		1,970		0.69	%	1,173,657		1,814		0.62	%	1,157,440		1,627		0.57	%
Non-interest bearing liabilities	414,829						419,202						431,486						435,971						447,460
Shareholders' equity	223,203						243,768						249,997						251,278						255,170
Total liabilities and shareholders' equity	1,742,686						1,791,990						1,830,834						1,860,906						1,860,070
Net interest income (TE) and spread			$	15,450	3.66	%			$	17,318	4.13	%			$	16,538	3.71	%			$	16,998	3.77	%			$	17,454	3.99	%
Net interest margin					3.89	%					4.35	%					3.93	%					3.97	%					4.12	%
(*) Reflects taxable equivalent adjustments using the federal statutory tax rate of 21% in adjusting interest on tax-exempt securities to a fully taxable basis. The taxable equivalent adjustments included above amount to $68,000 for 1Q19, $75,000 for 4Q18 $72,000 for 3Q18, $74,000 for 2Q18, and $84,000 for 1Q18.



MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures (unaudited)
(in thousands except per share data)
	Three Months Ended
	March 31, 2019		December 31, 2018		September 30, 2018		June 30, 2018		March 31, 2018
Tangible common equity and tangible book value per share

Total shareholders' equity	$	221,166	$	221,990	$	241,451	$	248,672	$	250,837
Less:
Preferred common shareholders' equity	40,972		40,972		40,972		40,987		40,987
Total common equity	180,194		181,018		200,479		207,685		209,850

Less:
Goodwill	$	42,171	$	42,171	$	42,171	$	42,171	$	42,171
Other intangible assets	$	2,132	$	2,409	$	2,685	$	2,962	$	3,238
Total tangible common equity	$	135,891	$	136,438	$	155,623	$	162,552	$	164,441

Period end number of shares	$	16,715,671	$	16,641,017	$	16,641,105	$	16,619,894	$	16,621,811
Book value per share (period end)	$	10.78	$	10.88	$	12.05	$	12.50	$	12.62
Tangible book value per share (period end)	$	8.13	$	8.20	$	9.35	$	9.78	$	9.89



MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures (unaudited) (continued)
(in thousands except per share data)

Operating (loss) earnings per share	March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018			March 31, 2018
Net loss available to common shareholders'	$	(6,640	)	$	(23,118	)	$	(5,708	)	$	(1,479	)	$	(450	)
Adjustment items:
Regulatory remediation costs	—			4,970			5,502			5,323			3,926
Loans held for sale expense	—			—			4			20			963
Branch closure expenses	—			—			—			—			145
Discount accretion acceleration	—			(726		)	—			—			—
Tax effect of adjustments	—			(891		)	(1,156		)	(1,122		)	(1,057		)
After tax adjustment items	—			3,353			4,350			4,221			3,977
Tax expense adjustment item:
Attributable to valuation allowance on deferred tax	—			7,685			—			—			—
Adjusted net (loss) income	$	(6,640	)	$	(12,080	)	$	(1,358	)	$	2,742		$	3,527

Weighted average number of shares - diluted	16,673,818			16,640,174			16,557,664			16,525,571			16,495,438
Net (loss) earnings per diluted share	$	(0.40	)	$	(1.39	)	$	(0.34	)	$	(0.09	)	$	(0.03	)
Operating net (loss) earnings per diluted share	$	(0.40	)	$	(0.73	)	$	(0.08	)	$	0.17		$	0.21

Operating ratios
Return on average assets	(1.52		)%	(5.16		)%	(1.25		)%	(0.32		)%	(0.10		)%
Effect of adjustment items	—		%	2.46		%	0.95		%	0.91		%	0.86		%
Operating return on average assets	(1.52		)%	(2.70		)%	(0.30		)%	0.59		%	0.76		%

Return on average common equity	(14.57		)%	(45.60		)%	(10.92		)%	(2.81		)%	(0.84		)%
Effect of adjustment items	—		%	21.77		%	8.32		%	8.03		%	7.43		%
Operating return on average common equity	(14.57		)%	(23.83		)%	(2.60		)%	5.22		%	6.59		%

Return on average tangible common equity	(19.28		)%	(58.50		)%	(13.92		)%	(3.58		)%	(1.07		)%
Effect of adjustment items	—		%	27.93		%	10.61		%	10.23		%	9.44		%
Operating return on average tangible common equity	(19.28		)%	(30.57		)%	(3.31		)%	6.65		%	8.37		%



MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures (unaudited) (continued)
(in thousands except per share data)

				Three Months Ended
OPERATING EFFICIENCY RATIO (TE)	March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018			March 31, 2018
Operating noninterest expense
Total Noninterest Expense	$	19,886		$	24,644		$	23,527		$	22,273		$	21,873
Adjustment items:
Regulatory remediation costs	—			$	(4,970	)	$	(5,502	)	$	(5,323	)	$	(3,926	)
Loans held for sale expense	—			—			4			(20		)	(963		)
Branch closure expenses	—			—			—			—			(145		)
Operating noninterest expense	$	19,886		$	19,674		$	18,029		$	16,930		$	16,839

Operating efficiency ratio
Net interest income (TE)	15,436			17,318			16,538			16,998			17,454
Noninterest income	6,273			4,702			5,090			4,882			4,829
Total Revenue (TE)	21,709			22,020			21,628			21,880			22,283
Adjustment items
Gain on sale of securities	373			—			—			—			—
Gain on sale of loans	1,274			—			—			—			—
Adjusted total revenue (TE)	20,062			22,020			21,628			21,880			22,283
Efficiency ratio	91.83		%	112.30		%	109.14		%	102.14		%	98.53		%
Operating efficiency ratio	99.12		%	89.35		%	83.36		%	77.38		%	75.57		%