MidSouth Bancorp, Inc. Reports Third Quarter 2012 Results

          MidSouth Bancorp, Inc. Reports Third Quarter 2012 Results

- Diluted EPS $0.21 per common share versus $0.03 per common share YOY

- Operating EPS of $0.23 per common share excluding merger-related charges

- Organic loan growth of 8% on sequential quarter basis

- Net charge offs to average loans of 7 basis points

- PSB Financial Corporation merger announced during 3rd quarter

PR Newswire

LAFAYETTE, La., Oct. 30, 2012

LAFAYETTE, La., Oct. 30, 2012 /PRNewswire/ -- MidSouth Bancorp, Inc.
("MidSouth") (NYSE MKT:MSL) today reported net earnings available to common
shareholders of $2.2 million for the third quarter of 2012, compared to net
earnings available to common shareholders of $0.3 million reported for the
third quarter of 2011 and $2.1 million in net earnings available to common
shareholders for the second quarter of 2012. Diluted earnings for the third
quarter of 2012 were $0.21 per common share, compared to $0.03 per common
share reported for the third quarter of 2011 and $0.20 per common share
reported for the second quarter of 2012. The third quarter of 2012 included
$0.02 per share of merger related expenses. Excluding these non-operating
expenses, operating earnings per share for the third quarter of 2012 were
$0.23, compared to $0.20 reported for the second quarter of 2012.

(Logo: http://photos.prnewswire.com/prnh/20100125/MIDSOUTHLOGO)

For the nine months ended September 30, 2012, net income available to common
shareholders totaled $6.8 million compared to $1.8 million for the nine months
ended September 30, 2011. Diluted earnings per share were $0.65 for 2012,
compared to $0.18 for 2011.

On September 26, 2012, MidSouth announced the signing of a definitive
agreement with PSB Financial Corporation ("PSB") to merge with and into
MidSouth. The transaction has been approved by the Board of Directors of both
companies and is expected to close in the fourth quarter of 2012, pending PSB
shareholder and regulatory approvals. PSB is the holding company of Many,
Louisiana-based The Peoples State Bank, which operates fourteen branches in
north Louisiana and one branch in Texarkana, Texas. PSB had total assets of
$493.4 million at September 30, 2012.

C.R. "Rusty" Cloutier, President and Chief Executive Officer, commenting on
third quarter results, remarked, "We are extremely pleased with our third
quarter results. We saw very strong loan growth during the quarter across our
markets in both Louisiana and Texas. This strong loan growth is also helping
us to reduce the dividend rate on our SBLF preferred stock from 5.0% for the
third quarter down to 4.6% for the fourth quarter of 2012 and to 2.4% in the
first quarter of 2013. We are also very pleased with our asset quality as net
charge offs during the quarter were only 7 basis points."

Mr. Cloutier, commenting on the pending merger with PSB Financial Corporation
said, "We continue to be very enthusiastic about the upcoming merger with
Peoples State Bank and the potential for future growth for the combined
banks. There is a great spirit of cooperation between the two organizations
which is rooted in similar core values of service to our customers and
communities."

Balance Sheet

Total consolidated assets at September 30, 2012 were $1.4 billion, compared to
$1.2 billion at September 30, 2011 and $1.4 billion at June 30, 2012.
Deposits totaled $1.2 billion at September 30, 2012, compared to $989.0
million at September 30, 2011 and $1.2 billion at June 30, 2012. Total
deposits increased $25.3 million in the third quarter of 2012 primarily due to
one large noninterest-bearing deposit transaction posted on a commercial
customer at the end of the quarter. Total loans were $808.8 million at
September 30, 2012, compared to $673.4 million at September 30, 2011 and
$751.5 million at June 30, 2012. The $135.4 million in loan growth in prior
year quarterly comparison resulted primarily from approximately $70.2 million
in loans acquired through two acquisitions completed in December 2011 and from
the $57.3 million in loan growth recorded in the third quarter of 2012.

MidSouth's Tier 1 leverage capital ratio was 10.53% at September 30, 2012
compared to 10.45% at June 30, 2012. Tier 1 risk-based capital and total
risk-based capital ratios were 15.78% and 16.62% at September 30, 2012,
compared to 16.51% and 17.38% at June 30, 2012, respectively. The Tier 1
common equity leverage ratio at September 30, 2012 was 7.31% and tangible book
value was $10.01 per common share for the same period. Tangible common equity
totaled $104.9 million at September 30, 2012, compared to $102.3 million at
June 30, 2012.

Asset Quality

Total nonperforming assets were comparable in year-over-year comparison and
increased $1.1 million, or 7.6%, in sequential quarter comparison. The
increase resulted primarily from the addition of two commercial loans placed
on nonaccrual status during the third quarter. Total nonperforming assets
were $15.5 million at September 30, 2012 compared to $15.3 million at
September 30, 2011 and $14.4 million at June 30, 2012.

The increase in nonaccrual loans in the third quarter of 2012 resulted in a
lower allowance coverage for nonperforming loans of 83.4% at September 30,
2012, compared to 97.2% at June 30, 2012. The ALL/total loans ratio decreased
to 0.91% for the third quarter of 2012, compared to 0.96% at June 30, 2012.
The ratio of annualized net charge-offs to total loans was 0.07% for the
three months ended September 30, 2012 compared to 0.23% for the three months
ended June 30, 2012.

Total nonperforming assets to total loans plus ORE and other assets
repossessed was 1.90% at September 30, 2012, unchanged from June 30, 2012.
ORE and other assets repossessed decreased $311,000 during the third quarter
primarily due to the sale of five properties. Loans classified as troubled
debt restructurings ("TDRs") totaled $242,000 at September 30, 2012, compared
to $417,000 at June 30, 2012. The $175,000 decrease resulted from the payoff
of a commercial credit previously classified as a TDR. Classified assets,
including ORE, increased $1.8 million, or 8.1% during the three months ended
September 30, 2012, from $22.2 million at June 30, 2012 to $24.0 million at
September 30, 2012. The increase in classified assets resulted primarily from
the two commercial loans placed on nonaccrual status during the third quarter.

Third Quarter 2012 vs. Third Quarter 2011 Earnings Comparison

Third quarter 2012 net earnings before dividends on preferred stock totaled
$2.6 million compared to $1.1 million for the third quarter of 2011. The
third quarter of 2012 included $223,000 of merger related expenses compared to
$876,000 in merger related charges for the third quarter of 2011. Net
earnings increased as a $2.2 million increase in net interest income, a
$350,000 decrease in the provision for loan losses and a $356,000 increase in
noninterest income were partially offset by a $455,000 increase in noninterest
expense and a $931,000 increase in income tax expense. Of the $2.2 million
increase in net interest income, a total of $1.3 million was earned from
acquisitions in the third and fourth quarters of 2011. An increase in
purchase accounting adjustments totaling $255,000 also contributed to the
increase in net interest income. Interest income on investments and other
interest-bearing accounts increased $498,000 in quarterly comparison and
included interest earned on excess cash invested from the 2011 acquisitions.

Increases in noninterest income consisted primarily of $117,000 in service
charges on deposit accounts, $159,000 in ATM/debit card income, and $69,000 in
gain on sale of securities. Increases in noninterest expenses were primarily
related to the 2011 acquisitions and included $495,000 in salaries and
benefits costs, $478,000 in occupancy expense, $90,000 in ATM and debit card
expense, and $81,000 in marketing costs. The increased costs were partially
offset by decreases of $301,000 in data processing expenses, $277,000 in
expenses on ORE and repossessed assets, and $214,000 in legal and professional
fees.

Fully taxable-equivalent ("FTE") net interest income totaled $14.2 million and
$12.0 million for the quarters ended September 30, 2012 and 2011,
respectively.The FTE net interest income increased $2.2 million in prior
year comparison primarily due to a $224.2 million increase in the volume of
average earning assets as a result of the three acquisitions completed in the
second half of 2011. The average volume of loans increased $130.2 million in
quarterly comparison and the average yield on loans decreased 21 basis points,
from 6.67% to 6.46%. Purchase accounting adjustments on acquired loans added
23 basis points to the average yield on loans for the third quarter of 2012
and 9 basis points for the third quarter of 2011. Net of the impact of the
purchase accounting adjustments, average loan yields declined 35 basis points
in prior year quarterly comparison to 6.23%. Loan yields have declined
primarily as the result of a sustained low market interest rate environment.

The average volume of investment securities increased $148.5 million in
quarterly comparison as portions of excess cash flow from the 2011
acquisitions were placed primarily in agency mortgage-backed securities. The
average tax equivalent yield on investment securities decreased 62 basis
points, from 3.25% to 2.63% primarily due to lower reinvestment rates. The
average volume of overnight interest bearing deposits earning 0.25% decreased
$54.2 million due primarily to the purchase of investment securities. The
average yield on all earning assets decreased 21 basis points in prior year
quarterly comparison, from 5.13% for the third quarter of 2011 to 4.92% for
the third quarter of 2012. Net of the impact of purchase accounting
adjustments, the average yield on total earning assets declined 28 basis
points, from 5.07% to 4.79% for the three month periods ended September 30,
2011 and 2012, respectively.

The impact to interest expense of a $176.2 million increase in the average
volume of interest bearing liabilities was mostly offset by a 13 basis point
decrease in the average rate paid on interest-bearing liabilities, from 0.75%
at September 30, 2011 to 0.62% at September 30, 2012. Net of purchase
accounting adjustments on acquired certificates of deposit, the average rate
paid on interest bearing liabilities was 0.71% for the third quarter of 2012
compared to 0.87% for the third quarter of 2011.

As a result of these changes in volume and yield on earning assets and
interest bearing liabilities, the FTE net interest margin decreased 11 basis
points, from 4.57% for the third quarter of 2011 to 4.46% for the third
quarter of 2012. Net of purchase accounting adjustments on loans and
deposits, the FTE margin decreased 17 basis points, from 4.43% for the third
quarter of 2011 to 4.26% for the third quarter of 2012.

Third Quarter 2012 vs. Second Quarter 2012 Earnings Comparison

In sequential quarter comparison, net earnings before dividends on preferred
stock increased $171,000 as a $275,000 decrease in provision for loan losses,
combined with a $160,000 decrease in noninterest expenses and a $78,000
increase in net interest income, offset a $211,000 decrease in noninterest
income and a $131,000 increase in income tax expense. The noninterest
expenses declined primarily due to decreases of $456,000 in expenses on ORE
and repossessed assets and $73,000 in ATM/debit card expenses, which were
partially offset by increases of $169,000 occupancy costs and $164,000 in
legal and professional fees. Included in the increase of legal and
professional fees is $177,000 in merger related costs. The decrease in
non-interest income consisted primarily of $116,000 in safe deposit box rental
income and $115,000 in fee income earned on credit-related products, both of
which were recorded in the second quarter of 2012.

FTE net interest income increased $79,000 in sequential quarter comparison.
Average decreases of $9.8 million in overnight funds and interest-bearing
deposits in other banks and $8.4 million in investment securities partially
funded a $24.0 million increase in the average volume of loans in linked
quarter comparison. Additionally, the average volume of interest-bearing
liabilities decreased $5.4 million in the third quarter of 2012. A $20.1
million decline in average time deposits was partially offset by a $7.8
million improvement in average NOW, money market, and savings accounts and a
$6.9 million increase in average retail repurchase agreements in
sequential-quarter comparison. The FTE net interest margin declined 5 basis
points, from 4.51% for the three months ended June 30, 2012 to 4.46% for the
three months ended September 30, 2012. Net of purchase accounting
adjustments, the FTE net interest margin increased 1 basis point, from 4.25%
to 4.26% in sequential quarter comparison.

Year-Over-Year Earnings Comparison

In year-over-year comparison, net earnings before dividends on preferred stock
increased $4.8 million primarily as a result of a $9.4 million improvement in
net interest income, a $1.6 million decrease in provision for loan loss and a
$1.6 million increase in noninterest income which offset a $5.0 million
increase in noninterest expense and a $2.8 million increase in income tax
expense. Of the $9.4 million increase in net interest income, a total of $4.0
million was earned from the branches acquired in the third and fourth quarters
of 2011. An increase in purchase accounting adjustments totaling $1.9 million
also contributed to the increase in net interest income. Interest income on
investments and other interest-bearing accounts increased $2.3 million in
prior year-to-date comparison and included interest earned on excess cash
invested from the 2011 acquisitions.

Increases in noninterest income consisted primarily of $524,000 in service
charges on deposit accounts, $601,000 in ATM and debit card income and
$105,000 in gain on sale of securities. Increases in non-interest expense
included primarily $2.5 million in salary and benefits costs, $1.6 million in
occupancy expense, and $225,000 in ATM/debit card expense.

In year-to-date comparison, FTE net interest income increased $9.3 million
primarily due to a $9.4 million increase in FTE interest income. The increase
resulted primarily from a $290.4 million increase in the average volume of
earning assets which offset a 21 basis point reduction in the average yield on
earning assets, from 5.16% at September 30, 2011 to 4.95% at September 30,
2012. Net of a 16 basis point effect of discount accretion on acquired loans,
the average yield on earning assets was 4.79% at September 30, 2012.

Interest expense increased minimally in year-over-year comparison as the
impact of the increase in average volume of interest-bearing liabilities on
interest expense was mostly offset by the impact of lower rates paid on
interest-bearing liabilities. The average volume of interest-bearing
liabilities increased $249.4 million in year-over year comparison, from $702.4
million at September 30, 2011 to $951.8 million at September 30, 2012. The
average rate paid decreased 19 basis points, from 0.82% at September 30, 2011
to 0.63% at September 30, 2012. Net of a 12 basis point effect of premium
amortization on acquired certificates of deposit, the average rate paid on
interest-bearing liabilities was 0.75% at September 30, 2012. The FTE net
interest margin declined 8 basis points, from 4.56% for the nine months ended
September 30, 2011 to 4.48% for the nine months ended September 30, 2012. Net
of purchase accounting adjustments, the FTE net interest margin declined 28
basis points, from 4.51% to 4.23% for the nine months ended September 30, 2011
and 2012, respectively.

About MidSouth Bancorp, Inc.
MidSouth Bancorp, Inc. is a bank holding company headquartered in Lafayette,
Louisiana, with assets of $1.4 billion as of September 30, 2012. 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 banking centers in Louisiana and Texas and is
connected to a worldwide ATM network that provides customers with access to
more than 43,000 surcharge-free ATMs. Additional corporate information is
available at www.midsouthbank.com. 

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
regarding the parties ability to complete the merger, the expected closing
date, the anticipated impacts of the transaction on shareholders, employees
and customers, future expansion plans and future operating results. Actual
results may differ materially from the results anticipated in these
forward-looking statements. Factors that might cause such a difference
include, among other matters, the failure to obtain necessary regulatory
approvals and the approval of PSB shareholders; the ability of the parties to
satisfy the other closing conditions; the effect of the announcement of the
proposed acquisition on relations with customers and employees; the effects of
MidSouth's expenditure of monies for legal and other professional fees, which
will be capitalized on its balance sheet and written off if the transaction is
not completed; 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, 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; the timing and ability to reach any agreement to
restructure nonaccrual loans; increased competition for deposits and loans
which could affect compositions, rates and terms; the timing and impact of
future acquisitions, the success or failure of integrating operations, and the
ability to capitalize on growth opportunities upon entering new markets; loss
of critical personnel and the challenge of hiring qualified personnel at
reasonable compensation levels; legislative and regulatory changes, including
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; and other factors discussed under the heading "Risk
Factors" in MidSouth's Annual Report on Form 10-K for the year ended December
31, 2011 filed with the SEC on March 15, 2012 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.

Additional Information about this Transaction

In connection with the proposed transaction, PSB Financial Corporation ("PSB")
will distribute to its shareholders a proxy statement that will also include
information regarding MidSouth Bancorp, Inc. ("MidSouth") and the MidSouth
securities that are expected to be privately issued in connection with the
proposed transaction. SHAREHOLDERS OF PSB ARE URGED TO READ THE PROXY
STATEMENT AND OTHER RELEVANT DOCUMENTS DISTRIBUTED BY PSB WHEN THEY BECOME
AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Shareholders of
PSB will be able to obtain a free copy of the proxy statement (when available)
by directing a request by telephone or mail to PSB Financial Corporation, 880
San Antonio Avenue, Many, LA 71449, Attention: Clay Abington, 318.238.4489

THIS DOCUMENT DOES NOT CONSTITUTE AN OFFER TO SELL, OR THE SOLICITATION OF AN
OFFER TO BUY, ANY SECURITIES, NOR SHALL THERE BE ANY SALE OF SECURITIES IN ANY
STATE OR JURISDICTION IN WHICH SUCH AN OFFER, SOLICITATION OR SALE WOULD BE
UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF
ANY SUCH STATE OR JURISDICTION.

Participants in the Solicitation

PSB and its directors, executive officers, certain members of management and
employees may have interests in the proposed transaction or be deemed to be
participants in the solicitation of proxies of PSB's shareholders to approve
matters necessary to be approved to facilitate the proposed transaction.
Certain information regarding the participants and their interests in the
solicitation will be set forth in the PSB proxy statement distributed in
connection with the proposed transaction. Shareholders may obtain additional
information regarding the interests of such participants by reading the proxy
statement for the proposed transaction when it becomes available.





MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
                                                           For the
                        For the Quarter Ended              Quarter
                                                           Ended
                        September 30,              %       June 30,     %
EARNINGS DATA           2012          2011         Change  2012         Change
 Total interest     $          $         17.0%   $       0.4%
income                  15,355        13,120                 15,298
 Total interest     1,468         1,462        0.4%    1,489        -1.4%
expense
 Net interest  13,887        11,658       19.1%   13,809       0.6%
income
 FTE net interest   14,187        11,992       18.3%   14,108       0.6%
income
 Provision for      300           650          -53.8%  575          -47.8%
loan losses
 Non-interest       3,754         3,398        10.5%   3,965        -5.3%
income
 Non-interest       13,630        13,175       3.5%    13,790       -1.2%
expense
Earnings      3,711         1,231        201.5%  3,409        8.9%
before income taxes
 Income tax         1,062         131          710.7%  931          14.1%
expense
Net earnings  2,649         1,100        140.8%  2,478        6.9%
 Dividends on       400           804          -50.2%  380          5.3%
preferred stock
 Net earnings  $         $               $     
available to common     2,249         296         659.8%     2,098  7.2%
shareholders
PER COMMON SHARE DATA
 Basic earnings     $        $               $     
per share               0.21          0.03         600.0%           5.0%
                                                           0.20
 Diluted earnings   0.21          0.03         600.0%  0.20         5.0%
per share
 Quarterly          0.07          0.07         0.0%    0.07         0.0%
dividends per share
 Book value at end  13.01         12.47        4.3%    12.78        1.8%
of period
 Tangible book      10.01         10.45        -4.2%   9.76         2.6%
value at period end
 Market price at    16.19         10.75        50.6%   14.08        15.0%
end of period
 Shares
outstanding at period   10,479,077    9,730,265    7.7%    10,475,504   0.0%
end
 Weighted average
shares outstanding
 Basic           10,478,456    9,726,024    7.7%    10,469,681   0.08%
 Diluted         10,517,999    9,740,275    8.0%    10,481,417   0.35%
AVERAGE BALANCE SHEET
DATA
 Total assets       $ 1,398,355  $            21.8%   $        0.5%
                                      1,148,516           1,390,814
 Loans and leases   772,838       642,601      20.3%   748,885      3.2%
 Total deposits     1,149,892     927,551      24.0%   1,151,543    -0.1%
 Total common       135,055       120,216      12.3%   132,968      1.6%
equity
 Total tangible     103,577       103,991      -0.4%   101,297      2.3%
common equity
 Total equity      167,055       144,757      15.4%   164,968      1.3%
SELECTED RATIOS         9/30/2012     9/30/2011            6/30/2012
 Annualized return  0.64%         0.10%        540.0%  0.61%        4.9%
on average assets
 Annualized return
on average common       6.62%         0.98%        575.5%  6.35%        4.3%
equity
 Average loans to   67.21%        69.28%       -3.0%   65.03%       3.4%
average deposits

Taxable-equivalent net  4.46%         4.57%        -2.4%   4.51%        -1.1%
interest margin
 Tier 1 leverage    10.53%        12.54%       -16.0%  10.45%       0.8%
capital ratio
CREDIT QUALITY
 Allowance for
loan losses (ALLL) as   0.91%         1.09%        -16.5%  0.96%        -5.2%
a %of total loans
 Nonperforming
assets to tangible      10.74%        10.86%       -1.1%   10.18%       5.5%
equity + ALLL
 Nonperforming
assets to total loans,
other real              1.90%         2.25%        -15.5%  1.90%        0.0%
estateowned and other
repossessed assets
 Annualized QTD
net charge-offs to      0.07%         0.37%        -80.3%  0.23%        -68.4%
total loans







MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands)
BALANCE SHEET           September  September  %       June 30,     March 31,
                        30,        30,
                        2012       2011       Change  2012         2012
Assets
Cash and cash           $      $      -39.0%  $          $  104,326
equivalents             59,655    97,802            50,646
Securities              341,170    325,736    4.7%    370,293      366,010
available-for-sale
Securities              117,628    43,736     169.0%  123,054      96,817
held-to-maturity
Total investment   458,798    369,472    24.2%   493,347      462,827
securities
Time deposits held in   709        -          100.0%  710          710
banks
Other investments       5,820      5,057      15.1%   5,815        5,634
Total loans             808,833    673,426    20.1%   751,455      747,767
Allowance for loan      (7,374)    (7,329)    0.6%    (7,222)      (7,078)
losses
Loans, net         801,459    666,097    20.3%   744,233      740,689
Premises and equipment  48,086     40,752     18.0%   45,550       44,130
Goodwill and other      31,391     19,708     59.3%   31,573       31,785
intangibles
Other assets            23,018     23,063     -0.2%   22,953       23,538
Total assets       $        $        16.9%   $1,394,827   $1,413,639
                        1,428,936  1,221,951
Liabilities and
Shareholders' Equity
Non-interest bearing    $       $       37.5%   $  269,110  $  271,447
deposits                306,463   222,937
Interest-bearing        872,549    766,073    13.9%   884,651      905,719
deposits
Total deposits       1,179,012  989,010    19.2%   1,153,761    1,177,166
Securities sold under
agreements                                    
torepurchaseand       55,233     55,078             50,347       49,055
other short                                   0.3%
termborrowings
Junior subordinated     15,465     15,465     0.0%    15,465       15,465
debentures
Other liabilities       10,891     9,031      20.6%   9,414        8,618
Total liabilities  1,260,601  1,068,584  18.0%   1,228,987    1,250,304
Total shareholders'     168,335    153,367    9.8%    165,840      163,335
equity
 Total liabilities  $        $  
and shareholders'       1,428,936  1,221,951  16.9%   $1,394,827   $1,413,639
equity







MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
                        Three Months Ended          Nine Months Ended
EARNINGS STATEMENT      September 30,       %       September 30,       %
                        2012       2011     Change  2012      2011      Change
Interest income         $15,355    $13,120  17.0%   $45,986   $36,443   26.2%
Interest expense        1,468      1,462    0.4%    4,486     4,313     4.0%
Net interest income     13,887     11,658   19.1%   41,500    32,130    29.2%
Provision for loan      300        650      -53.8%  1,550     3,150     -50.8%
losses
Service charges         1,898      1,781    6.6%    5,590     5,066     10.3%
ondeposit accounts
Other charges and fees  1,856      1,617    14.8%   5,657     4,575     23.7%
Total non-interest      3,754      3,398    10.5%   11,247    9,641     16.7%
income
Salaries and            6,273      5,778    8.6%    18,511    15,980    15.8%
employeebenefits
Occupancy expense       2,952      2,474    19.3%   8,283     6,718     23.3%
FDIC premiums           242        188      28.7%   695       711       -2.3%
Other non-interest      4,163      4,735    -12.1%  12,599    11,726    7.4%
expense
Total non-interest      13,630     13,175   3.5%    40,088    35,135    14.1%
expense
Earnings before income  3,711      1,231    201.5%  11,109    3,486     218.7%
taxes
Income tax expense      1,062      131      710.7%  3,096     292       960.3%
Net earnings            2,649      1,100    140.8%  8,013     3,194     150.9%
Dividends on preferred  400        804      -50.2%  1,180     1,402     -15.8%
stock
Net earnings available  $ 2,249   $      659.8%  $ 6,833  $ 1,792  281.3%
to common shareholders             296
Earnings per common     $  0.21  $       600.0%  $        $        261.1%
share, diluted                     0.03            0.65     0.18







MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
EARNINGS STATEMENT       Third     Second     First      Fourth     Third
QUARTERLY TRENDS         Quarter    Quarter    Quarter    Quarter    Quarter
                         2012       2012       2012       2011       2011
Interest income          $15,355    $15,298    $15,333    $14,564    $13,120
Interest expense         1,468      1,489      1,529      1,489      1,462
Net interest income      13,887     13,809     13,804     13,075     11,658
Provision for loan       300        575        675        775        650
losses
Net interest income
after provision for      13,587     13,234     13,129     12,300     11,008
loan loss
Total non-interest       3,754      3,965      3,528      3,420      3,398
income
Total non-interest       13,630     13,790     12,668     14,169     13,175
expense
Earnings before income   3,711      3,409      3,989      1,551      1,231
taxes
Income tax expense       1,062      931        1,103      272        131
Net earnings             2,649      2,478      2,886      1,279      1,100
Dividends on preferred   400        380        400        400        804
stock
Net earnings available   $ 2,249   $ 2,098   $ 2,486   $   879  $   296
to common shareholders
Earnings per common      $  0.21  $  0.20  $  0.24  $  0.09  $  0.03
share, diluted





MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands)
                       September   September  %       June 30,     March 31,
COMPOSITION OF LOANS   30,         30,
                       2012        2011       Change  2012         2012
Commercial,            $        $   
financial, and         266,046     212,232    25.4%   $  233,629  $  221,855
agricultural
Lease financing        5,041       4,472      12.7%   3,974        3,840
receivable
Real estate -          57,727      60,055     -3.9%   55,111       55,320
construction
Real estate -          293,579     262,984    11.6%   271,141      283,114
commercial
Real estate -          110,735     78,188     41.6%   112,343      112,142
residential
Installment loans to   73,334      54,779     33.9%   72,859       70,085
individuals
Other                  2,371       716        231.1%  2,398        1,411
Total loans            $        $       20.1%   $  751,455  $  747,767
                       808,833     673,426
COMPOSITION OF         September   September  %       June 30,     March 31,
DEPOSITS               30,         30,
                       2012        2011       Change  2012         2012
Noninterest bearing    $        $       37.5%   $  269,110  $  271,447
                       306,463     222,937
NOW & Other            239,937     207,096    15.9%   239,059      242,695
Money Market/Savings   377,405     313,768    20.3%   369,524      367,910
Time Deposits of less  111,356     101,436    9.8%    119,098      128,415
than $100,000
Time Deposits of       143,851     143,773    0.1%    156,970      166,699
$100,000 or more
Total deposits         $          $       19.2%   $1,153,761   $1,177,166
                       1,179,012  989,010







MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands)
                           September    September    %       June 30,  March
ASSET QUALITY DATA         30,          30,                            31,
                           2012         2011         Change  2012      2012
Nonaccrual loans           $       $       4.6%    $ 7,370  $ 
                           8,307        7,939                          7,655
Loans past due 90days     532          87           511.5%  62        418
and over
Total nonperforming loans  8,839        8,026        10.1%   7,432     8,073
Other real estate owned    6,608        7,278        -9.2%   6,968     7,120
Other repossessed assets   51           9            466.7%  2         321
Total nonperforming        $        $        1.2%    $14,402   $
assets                     15,498       15,313                         15,514
Troubled debt              $       $       -47.5%  $       $   
restructurings              242        461               417       421
Nonperforming assets       1.08%        1.25%        -13.6%  1.03%     1.10%
tototal assets
Nonperforming assets to
total loans +
OREO + otherrepossessed   1.90%        2.25%        -15.6%  1.90%     2.05%
assets
ALLL to nonperforming      83.43%       91.32%       -8.6%   97.17%    87.67%
loans
ALLL to total loans        0.91%        1.09%        -16.5%  0.96%     0.95%
Quarter-to-date            $       $       -65.7%  $       $   
charge-offs                 234        682               526       939
Quarter-to-date            86           48           79.2%   95        66
recoveries
Quarter-to-date net        $       $       -76.7%  $       $   
charge-offs                 148        634               431       873
Annualized QTD net
charge-offs to total       0.07%        0.37%        -80.3%  0.23%     0.47%
loans







MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands)
YIELD ANALYSIS    Three Months Ended              Three Months Ended
                  September 30, 2012              September 30, 2011
                              Tax                             Tax
                  Average     Equivalent  Yield/  Average     Equivalent  Yield/
                  Balance     Interest    Rate    Balance     Interest    Rate
Taxable           $          $         2.13%   $          $         2.51%
securities        384,958     2,048               223,933     1,407
Tax-exempt        78,115      997         5.11%   90,677      1,150       5.07%
securities
Total investment  463,073     3,045       2.63%   314,610     2,557       3.25%
securities
Federal funds     3,570       2           0.22%   4,647       2           0.17%
sold
Time and                                                             
interest bearing
deposits in       20,253      13          0.25%   74,438      49          0.26%
other banks
Other             5,816       55          3.78%   5,058       43          3.40%
investments
Loans (1)         772,838     12,540      6.46%   642,601     10,803      6.67%
Total interest    1,265,550   15,655      4.92%   1,041,354   13,454      5.13%
earning assets
Non-interest      132,805                         107,162
earning assets
Total assets      $1,398,355                      $1,148,516
Interest-bearing
liabilities:
Deposits (2)      $          $         0.47%   $          $         0.57%
                  873,128     1,030               703,114     1,013
Repurchase        55,953      197         1.40%   49,819      207         1.65%
agreements
Federal funds     64          -           0.00%   -           -           0.00%
purchased
Junior
subordinated      15,465      241         6.10%   15,465      242         6.12%
debentures
Total
interest-bearing  944,610     1,468       0.62%   768,398     1,462       0.75%
liabilities
Non-interest
bearing           286,690                         235,361
liabilities
Shareholders'     167,055                         144,757
equity
Total
liabilities and
shareholders'
equity            $1,398,355                      $1,148,516
Net interest income (TE) and  $  14,187  4.30%               $  11,992  4.38%
spread
Net interest margin                       4.46%                           4.57%

    Includes $388,000 and $118,000 of interest income from accretable yield on
(1) purchased loans from acquisitions for the three months ended September 30,
    2012 and 2011, respectively.
    Includes $213,000 and $228,000 of reduction in interest expense from
(2) premium amortization on time deposits acquired from acquisitions for the
    three months ended September 30, 2012 and 2011, respectively.







MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands)
YIELD ANALYSIS     Nine Months Ended               Nine Months Ended
                   September 30, 2012              September 30, 2011
                               Tax                             Tax
                   Average     Equivalent  Yield/  Average     Equivalent  Yield/
                   Balance     Interest    Rate    Balance     Interest    Rate
Taxable            $          $         2.20%   $          $         2.35%
securities         380,154     6,265               200,559     3,538
Tax-exempt         81,774      3,152       5.14%   95,546      3,664       5.11%
securities
Total investment   461,928     9,417       2.72%   296,105     7,202       3.24%
securities
Federal funds      3,657       6           0.22%   4,758       7           0.19%
sold
Time and interest                                           
bearing deposits                                   68,217                  0.33%
in other banks     36,720      73          0.26%               170
Other investments  5,737       142         3.30%   5,059       116         3.06%
Loans (1)          754,838     37,298      6.58%   598,366     30,015      6.71%
Total interest     1,262,880   46,936      4.95%   972,505     37,510      5.16%
earning assets
Non-interest       132,169                         92,732
earning assets
Total assets       $1,395,049                      $1,065,237
Interest-bearing
liabilities:
Deposits (2)       $          $         0.48%   $          $         0.62%
                   886,033     3,189               639,710     2,985
Repurchase         50,313      564         1.49%   47,230      602         1.70%
agreements
Federal funds      22          -           -       -           -           -
purchased
Other borrowings   1           -           -       -           -           -
Junior
subordinated       15,465      733         6.23%   15,465      726         6.19%
debentures
Total
interest-bearing   951,834     4,486       0.63%   702,405     4,313       0.82%
liabilities
Non-interest
bearing            278,042                         222,888
liabilities
Shareholders'      165,173                         139,944
equity
Total liabilities                                 
andshareholders'
                   $1,395,049                      $1,065,237
equity
Net interest income (TE) and   $  42,450  4.32%               $  33,197  4.34%
spread
Net interest margin                        4.48%                           4.56%

    Includes $1.4 million and $118,000 of interest income from accretable
(1) yield on purchased loans from acquisitions for the nine months ended
    September 30, 2012 and 2011, respectively.
    Includes $857,000 and $228,000 of reduction in interest expense from
(2) premium amortization on time deposits acquired from acquisitions for the
    nine months ended September 30, 2012 and 2011, respectively.





MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures (unaudited)
(in thousands except per share data)
                               For the Quarter Ended
                               September 30,    September 30,    June 30,
Per Common Share Data          2012              2011             2012
Book value per common share    $            $           $   12.78
                               13.01            12.47
Effect of intangible assets    3.00              2.02             3.02
per share
Tangible book value per        $            $           $    9.76
common share                   10.01            10.45
Earnings per share             $           $          $    0.20
                               0.21             0.03
Effect of merger-related       0.02              0.06             -
costs, after-tax
Effect of accretion -          -                 0.05             -
repayment of TARP
Operating earnings per share   $           $          $    0.20
                               0.23             0.14
Average Balance Sheet Data
Total equity                   $    167,055  $    144,757  $ 164,968
Less preferred equity          32,000            24,541           32,000
Total common equity            $    135,055  $    120,216  $ 132,968
Less intangible assets         31,478            16,225           31,671
Tangible common equity         $    103,577  $    103,991  $ 101,297

Certain financial information included in the earnings release and the
associated Condensed Consolidated Financial Information (unaudited) is
determined by methods other than in accordance with GAAP. The non-GAAP
financial measure above is calculated by using "tangible common equity," which
is defined as total common equity reduced by intangible assets. "Tangible
book value per common share" is defined as tangible common equity divided by
total common shares outstanding.
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 results should not be viewed as a substitute for results
determined in accordance with GAAP, and are not necessarily comparable to
non-GAAP performance measures that other companies may use.



SOURCE MidSouth Bancorp, Inc.

Website: http://www.midsouthbank.com
Contact: Investors, Rusty Cloutier, President & CEO or Jim McLemore, CFA, Sr.
EVP & CFO, +1-337-237-8343
 
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