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MidSouth Bancorp, Inc. Reports Fourth Quarter 2012 Results

          MidSouth Bancorp, Inc. Reports Fourth Quarter 2012 Results

- Diluted EPS $0.12 per common share versus $0.09 per common share YOY

- Operating EPS of $0.18 per common share excluding merger-related charges

- Merger with PSB Financial Corporation completed

PR Newswire

LAFAYETTE, La., Jan. 29, 2013

LAFAYETTE, La., Jan. 29, 2013 /PRNewswire/ -- MidSouth Bancorp, Inc.
("MidSouth") (NYSE MKT: MSL) today reported net earnings available to common
shareholders of $1.3 million for the fourth quarter of 2012, compared to net
earnings available to common shareholders of $0.9 million reported for the
fourth quarter of 2011 and $2.2 million in net earnings available to common
shareholders for the third quarter of 2012. Diluted earnings for the fourth
quarter of 2012 were $0.12 per common share, compared to $0.09 per common
share reported for the fourth quarter of 2011 and $0.21 per common share
reported for the third quarter of 2012. The fourth quarter of 2012 included
$0.06 per share of after-tax merger related expenses, compared to $0.08 per
share for the fourth quarter of 2011 and $0.02 per share for the third quarter
of 2012. Excluding these non-operating expenses, operating earnings per share
for the fourth quarter of 2012 were $0.18, compared to $0.17 for the fourth
quarter of 2011 and $0.23 for the third quarter of 2012.

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

For the year ended December 31, 2012, net income available to common
shareholders totaled $8.1 million compared to $2.7 million for the year ended
December 31, 2011. Diluted earnings per share were $0.77 for 2012, compared
to $0.27 for 2011. Merger related expenses totaled $1.2 million for the year
ended December 31, 2012 versus $2.4 million for the year ended December 31,
2011. Repayment of the Series A Preferred Stock under the CPP resulted in
accelerated accretion of discount on the preferred stock of approximately
$444,000 in the third quarter of 2011, or approximately $0.05 per share.
Excluding these non-operating expenses, operating earnings per share for the
year ended December 31, 2012 were $0.85 versus $0.46 for the year ended
December 31, 2011.

On December 28, 2012, MidSouth completed the merger with PSB Financial
Corporation. 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. MidSouth acquired approximately $471.4 million in assets
from PSB and ended 2012 with $1.9 billion in consolidated assets. There were
no material changes in the balance sheet or material operating results of PSB
between December 28, 2012 and December 31, 2012. Therefore, the fourth
quarter of 2012 includes no operating results for PSB. Additional information
on the merger with PSB can be found under the Investor Relations tab of our
website.

Mr. Cloutier, commenting on completing the merger with PSB Financial
Corporation and 2012 results said, "We are extremely happy to welcome Peoples
State Bank to the MidSouth Bank family and are excited about the opportunity
to offer expanded services to our customers in Louisiana and Texas. In 2012,
in addition to the Peoples State Bank merger, we continued to invest in our
business with new branch locations and upgraded technology. We grew loans
over 5% and enhanced our strong core deposit franchise. Nevertheless, the
current low interest rate environment presents challenges to our business that
we will continue to work through in 2013, especially focusing on improving
efficienciesby leveraging our cost structure with continued loan growth and
expense savings to continue to build shareholder value."

Balance Sheet

Total consolidated assets at December 31, 2012 were $1.9 billion, compared to
$1.4 billion at December 31, 2011 and September 30, 2012. Deposits totaled
$1.6 billion at December 31, 2012, compared to $1.2 billion at December 31,
2011 and September 30, 2012. Continued improvement in the mix of deposits
with nontime deposits accounting for 80% of deposits helped reduce the cost of
funds to 0.42%. Deposits acquired through the PSB merger totaled $401.0
million and consisted of $311.0 million of transaction deposits and $90.0
million of time deposits.

Loans totaled $1.0 billion at December 31, 2012, which included $260.1 million
in loans acquired from PSB at fair value, compared to $746.3 million at
December 31, 2011 and $808.8 million at September 30, 2012. PSB's loan mix
consisted of 51% commercial real estate loans, 23% commercial and industrial
loans, 13% residential real estate loans, 7% consumer installment loans, and
6% construction loans. Excluding loans from PSB, loans decreased $21.9 million
on a sequential basis, including an $8.5 million reduction in the utilization
of commercial lines of credit.

MidSouth's Tier 1 leverage capital ratio was 11.82% at December 31, 2012
compared to 10.53% at September 30, 2012. Tier 1 risk-based capital and total
risk-based capital ratios were 13.46% and 14.10% at December 31, 2012,
compared to 15.78% and 16.62% at September 30, 2012, respectively. The Tier 1
common equity leverage ratio at December 31, 2012 was 6.54%. Tangible common
equity totaled $95.4 million at December 31, 2012, compared to $104.9 million
at September 30, 2012. Tangible book value per share at December 31, 2012 was
$8.49 versus $10.01 at September 30, 2012. The primary factors reducing
tangible book value per share were the recording of $18.0 million of goodwill
and $2.7 million of core deposit intangible in the PSB transaction. Also
reducing tangible book value per share was the decrease in other comprehensive
income of $1.2 million or approximately $0.11 per share for the quarter ended
December 31, 2012.

Asset Quality

Nonperforming assets totaled $18.5 million at December 31, 2012, an increase
of $4.3 million over the $14.2 million reported for year-end 201l and $3.0
million over the $15.5 million reported for September 30, 2012. The increase
resulted primarily from the addition of $4.4 million in nonperforming assets
acquired from PSB, which included $1.6 million in nonaccrual loans, $2.0
million in loans past due 90 days and over and accruing and $0.8 million in
other real estate owned ("ORE"). Net of the impact of nonperforming assets
from PSB, nonperforming assets declined $1.4 million, or 9.0% compared to
September 30, 2012.

The addition of PSB nonperforming loans reduced the allowance coverage for
nonperforming loans to 67.78% at December 31, 2012 from 83.43% at September
30, 2012. The ALL/total loans ratio decreased to 0.70% for the fourth quarter
of 2012, compared to 0.91% at September 30, 2012. The ratio of annualized net
charge-offs to total loans was 0.19% for the three months ended December 31,
2012 compared to 0.07% for the three months ended September 30, 2012.

Total nonperforming assets to total loans plus ORE and other assets
repossessed decreased from 1.90% at September 30, 2012 to 1.76% at December
31, 2012 due to the addition of $260.1 million in loans from PSB. ORE and
other assets repossessed increased $1.0 million during the fourth quarter
primarily due to the $0.8 million in ORE from PSB. Loans classified as
troubled debt restructurings ("TDRs") totaled $5.1 million at December 31,
2012 compared to $242,000 at September 30, 2012. A total of $4.8 million in
TDRs acquired with PSB included four credits, two of which are large
commercial credits. Classified assets, including ORE, increased $10.4
million, or 43.3% during the three months ended December 31, 2012, from $24.0
million at September 30, 2012 to $34.4 million. The increase in classified
assets resulted primarily from $9.7 million in classified loans and $0.8
million in ORE from PSB. 

Fourth Quarter 2012 vs. Fourth Quarter 2011 Earnings Comparison

Fourth quarter 2012 net earnings before dividends on preferred stock totaled
$1.6 million compared to $1.3 million for the fourth quarter of 2011. The
fourth quarter of 2012 included $998,000 of merger related expenses compared
to $1.3 million in merger related charges for the fourth quarter of 2011.
Additionally, operating expenses related to new branches opened in the second
half of 2012 totaled approximately $220,000 or $0.02 per share on a diluted
basis for the fourth quarter of 2012. Net earnings increased as a $607,000
increase in net interest income, a $275,000 decrease in the provision for loan
losses and a $277,000 increase in noninterest income were partially offset by
a $398,000 increase in noninterest expense and a $411,000 increase in income
tax expense.

Increases in noninterest income consisted primarily of $202,000 in ATM/debit
card income and $66,000 in mortgage banking fees. Increases in noninterest
expenses were primarily related to the 2011 acquisitions and included $419,000
in salaries and benefits costs, $474,000 in occupancy expense, $246,000 in
legal and professional fees, $127,000 in expenses on ORE and repossessed
assets and $78,000 in ATM and debit card expense. The increased costs were
partially offset by decreases of $694,000 in data processing expenses,
$122,000 in shares tax expense and $123,000 in marketing expenses.

Fully taxable-equivalent ("FTE") net interest income totaled $14.0 million and
$13.4 million for the quarters ended December 31, 2012 and 2011,
respectively.The FTE net interest income increased $605,000 in prior year
quarterly comparison primarily due to a $109.3 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 $95.7 million
in quarterly comparison and the average yield on loans decreased 48 basis
points, from 6.69% to 6.21%. Purchase accounting adjustments on acquired
loans added 22 basis points to the average yield on loans for the fourth
quarter of 2012 and 19 basis points for the fourth quarter of 2011. Net of
the impact of the purchase accounting adjustments, average loan yields
declined 51 basis points in prior year quarterly comparison to 5.99%. Loan
yields have declined primarily as the result of a sustained low market
interest rate environment.

The average volume of investment securities increased $36.5 million in
quarterly comparison primarily due to $32.6 million in securities acquired
with the First Louisiana National Bank acquisition in December of 2011.
Additionally, portions of excess cash flow from the 2011 acquisitions were
used to purchase primarily agency mortgage-backed securities for the
portfolio. As a result of the purchases, the average volume of overnight
interest bearing deposits earning 0.28% decreased $14.5 million in quarterly
comparison. The average tax equivalent yield on investment securities
decreased 41 basis points, from 3.00% to 2.59% primarily due to lower
reinvestment rates. The average yield on all earning assets decreased 29
basis points in prior year quarterly comparison, from 5.12% for the fourth
quarter of 2011 to 4.83% for the fourth quarter of 2012. Net of the impact
of purchase accounting adjustments, the average yield on total earning assets
declined 30 basis points, from 5.00% to 4.70% for the three month periods
ended December 31, 2011 and 2012, respectively.

The impact to interest expense of a $55.0 million increase in the average
volume of interest bearing liabilities was offset by a 10 basis point decrease
in the average rate paid on interest-bearing liabilities, from 0.68% at
December 31, 2011 to 0.58% at December 31, 2012. Net of purchase accounting
adjustments on acquired certificates of deposit, the average rate paid on
interest bearing liabilities was 0.66% for the fourth quarter of 2012 compared
to 0.83% for the fourth 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 19 basis
points, from 4.60% for the fourth quarter of 2011 to 4.41% for the fourth
quarter of 2012. Net of purchase accounting adjustments on loans and
deposits, the FTE margin decreased 16 basis points, from 4.38% for the fourth
quarter of 2011 to 4.22% for the fourth quarter of 2012.

Fourth Quarter 2012 vs. Third Quarter 2012 Earnings Comparison

In sequential quarter comparison, net earnings before dividends on preferred
stock decreased $1.0 million for the fourth quarter of 2012 compared with the
third quarter of 2012 primarily due to an increase of $775,000 in merger
related costs and $200,000 in additional provision expense incurred in the
fourth quarter. Noninterest expenses increased $937,000 including $775,000 of
merger related expenses and consisted primarily of increases of $331,000 in
data processing expenses (merger-related increase of $281,000), $204,000 in
legal and professional fees (net merger-related increase of $144,000),
$134,000 in expenses on ORE and repossessed assets, and $108,000 in printing
and supplies costs. The sequential increase in expenses related to branches
opened in the second half of 2012 was $138,000, or approximately $0.01 per
share. Noninterest income decreased $57,000 in sequential quarter
comparison. The net decrease resulted primarily from a $69,000 net gain on
sale of securities and a $51,000 gain on sale of ORE recorded in the third
quarter of 2012 that were partially offset by an $84,000 increase in ATM and
debit card income in the fourth quarter of 2012. The provision for loan
losses increased $200,000 primarily due to an increase in net charge-offs on
loans from 7 basis points for the third quarter of 2012 to 19 basis points in
the fourth quarter of 2012. Net interest income decreased $205,000, primarily
driven by a $249,000 decrease in interest income on investment securities.

FTE net interest income decreased $181,000 in sequential quarter comparison
primarily due to a $33.2 million decrease in the average volume of investment
securities combined with a 4 basis point decrease in the average yield on
investment securities. The impact to net interest income of a $26.5 million
increase in the average volume of loans was offset by a 25 basis decline in
the yield on loans. The average volume of interest-bearing liabilities
decreased $15.5 million and noninterest-bearing deposits increased $15.7
million in the fourth quarter of 2012. The FTE net interest margin declined 5
basis points, from 4.46% for the three months ended September 30, 2012 to
4.41% for the three months ended December 31, 2012. Net of purchase
accounting adjustments, the FTE net interest margin decreased 4 basis points,
from 4.26% to 4.22% in sequential quarter comparison.

Year-Over-Year Earnings Comparison

In year-over-year comparison, net earnings before dividends on preferred stock
increased

$5.2 million primarily as a result of a $10.0 million improvement in net
interest income, a $1.9 million decrease in provision for loan loss and a $1.9
million increase in noninterest income which offset a $5.4 million increase in
noninterest expense and a $3.2 million increase in income tax expense. Of the
$10.0 million increase in net interest income, a total of $5.4 million was
earned from the branches acquired in the third and fourth quarters of 2011.
An increase in purchase accounting adjustments totaling $1.8 million also
contributed to the increase in net interest income. Interest income on
investments and other interest-bearing accounts increased $2.1 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 $509,000 in service
charges on deposit accounts, $803,000 in ATM and debit card income, $130,000
in mortgage banking fees and a $105,000 net gain on sale of securities.
Increases in non-interest expense included primarily $3.0 million in salary
and benefits costs, $2.0 million in occupancy expense, and $303,000 in
ATM/debit card expense.

In year-to-date comparison, FTE net interest income increased $9.8 million
primarily due to a $9.9 million increase in FTE interest income. The increase
resulted primarily from a $244.7 million increase in the average volume of
earning assets which offset a 22 basis point reduction in the average yield on
earning assets, from 5.14% at December 31, 2011 to 4.92% at December 31,
2012. Net of a 16 basis point effect of discount accretion on acquired loans,
the average yield on earning assets was 4.76% at December 31, 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 $200.4 million in year-over year comparison, from $745.7
million at December 31, 2011 to $946.1 million at December 31, 2012. The
average rate paid decreased 16 basis points, from 0.78% at December 31, 2011
to 0.62% at December 31, 2012. Net of an 11 basis point effect of premium
amortization on acquired certificates of deposit, the average rate paid on
interest-bearing liabilities was 0.73% for the year ended December 31, 2012.
The FTE net interest margin declined 13 basis points, from 4.58% for the year
ended December 31, 2011 to 4.45% for the year ended December 31, 2012. Net of
purchase accounting adjustments, the FTE net interest margin declined 25 basis
points, from 4.47% to 4.22% for the years ended December 31, 2011 and 2012,
respectively.

About MidSouth Bancorp, Inc.

MidSouth Bancorp, Inc. is a financial holding company headquartered in
Lafayette, Louisiana, with assets of $1.9 billion as of December 31, 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 59 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, the expected impacts
of the recently completed PSB acquisition, 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 ability of MidSouth to
integrate the PSB operations and capitalize on new market opportunities
resulting from the acquisition; the effect of the PSB acquisition on relations
with customers and employees; 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.



MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
                                                           For the
                        For the Quarter Ended              Quarter
                                                           Ended
                        December 31,               %       September    %
                                                           30,
EARNINGS DATA           2012          2011         Change  2012         Change
 Total interest     $          $         3.2%    $       -2.1%
income                  15,036        14,564                 15,355
 Total interest     1,354         1,489        -9.1%   1,468        -7.8%
expense
 Net interest  13,682        13,075       4.6%    13,887       -1.5%
income
 FTE net interest   13,972        13,401       4.3%    14,187       -1.5%
income
 Provision for      500           775          -35.5%  300          66.7%
loan losses
 Non-interest       3,697         3,420        8.1%    3,754        -1.5%
income
 Non-interest       14,567        14,169       2.8%    13,630       6.9%
expense
Earnings      2,312         1,551        49.1%   3,711        -37.7%
before income taxes
 Income tax         683           272          151.1%  1,062        -35.7%
expense
Net earnings  1,629         1,279        27.4%   2,649        -38.5%
 Dividends on       367           400          -8.3%   400          -8.3%
preferred stock
 Net earnings  $         $               $     
available to common     1,262         879         43.6%      2,249  -43.9%
shareholders
PER COMMON SHARE DATA
 Basic earnings     $        $               $     
per share               0.12          0.09         33.3%            -42.9%
                                                           0.21
 Diluted earnings   0.12          0.09         33.3%   0.21         -42.9%
per share
 Quarterly          0.07          0.07         0.0%    0.07         0.0%
dividends per share
 Book value at end  13.10         12.41        5.6%    13.01        0.7%
of period
 Tangible book      8.49          9.34         -9.1%   10.01        -15.2%
value at period end
 Market price at    16.35         13.01        25.7%   16.19        1.0%
end of period
 Shares
outstanding at period   11,236,159    10,465,506   7.4%    10,479,077   7.2%
end
 Weighted average
shares outstanding
 Basic           10,512,255    9,976,057    5.4%    10,478,456   0.32%
 Diluted         10,599,583    9,988,472    6.1%    10,517,999   0.78%
AVERAGE BALANCE SHEET
DATA
 Total assets       $ 1,400,244  $            10.0%   $        0.1%
                                      1,273,272           1,398,355
 Loans and leases   799,316       703,590      13.6%   772,838      3.4%
 Total deposits     1,153,728     1,035,792    11.4%   1,149,892    0.3%
 Total common       136,006       123,912      9.8%    135,055      0.7%
equity
 Total tangible     104,343       104,257      0.1%    103,577      0.7%
common equity
 Total equity      168,115       155,912      7.8%    167,055      0.6%
SELECTED RATIOS         12/31/2012    12/31/2011           9/30/2012
 Annualized return  0.36%         0.27%        33.3%   0.64%        -43.8%
on average assets
 Annualized return
on average common       3.69%         3.34%        10.5%   6.62%        -44.3%
equity
 Average loans to   69.28%        67.93%       2.0%    67.21%       3.1%
average deposits

Taxable-equivalent net  4.40%         4.60%        -4.3%   4.46%        -1.3%
interest margin
 Tier 1 leverage    11.82%        11.14%       6.1%    10.53%       12.3%
capital ratio
CREDIT QUALITY
 Allowance for
loan losses (ALLL) as   0.70%         0.97%        -27.8%  0.91%        -23.1%
a %of total loans
 Nonperforming
assets to tangible      12.79%        10.33%       23.8%   10.74%       19.1%
equity + ALLL
 Nonperforming
assets to total loans,
other real estate
 owned and
other repossessed       1.76%         1.88%        -6.6%   1.90%        -7.6%
assets
 Annualized QTD
net charge-offs to      0.19%         0.44%        -56.5%  0.07%        173.6%
total loans





MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands)
BALANCE SHEET           December     December     %       September  June 30,
                        31,          31,                  30,
                        2012         2011         Change  2012       2012
Assets
Cash and cash           $       $       -11.5%  $      $    
equivalents             73,745       83,303                59,655   50,646
Securities              424,617      367,241      15.6%   341,170    370,293
available-for-sale
Securities              153,524      100,472      52.8%   117,628    123,054
held-to-maturity
Total investment   578,141      467,713      23.6%   458,798    493,347
securities
Time deposits held in   709          710          -0.1%   709        710
banks
Other investments       8,310        5,637        47.4%   5,820      5,815
Total loans             1,046,940    746,305      40.3%   808,833    751,455
Allowance for loan      (7,370)      (7,276)      1.3%    (7,374)    (7,222)
losses
Loans, net         1,039,570    739,029      40.7%   801,459    744,233
Premises and equipment  63,461       44,598       42.3%   48,086     45,550
Goodwill and other      51,831       32,106       61.4%   31,391     31,573
intangibles
Other assets            35,964       23,660       52.0%   23,018     22,953
Total assets       $          $          32.6%   $       $   
                        1,851,731   1,396,756           1,428,936  1,394,827
Liabilities and
Shareholders' Equity
Non-interest bearing    $        $        49.4%   $      $    
deposits                380,557      254,755              306,463   269,110
Interest-bearing        1,171,347    910,051      28.7%   872,549    884,651
deposits
Total deposits       1,551,904    1,164,806    33.2%   1,179,012  1,153,761
Securities sold under
agreements to
 repurchaseand
other short term
 borrowings          41,447       46,078       -10.1%  55,233     50,347
Federal Home Loan Bank  27,128       0            100.0%  0          0
advances
Notes payable           2,000        0            100.0%  0          0
Junior subordinated     29,384       15,465       90.0%   15,465     15,465
debentures
Other liabilities       10,624       8,570        24.0%   10,891     9,414
Total liabilities  1,662,487    1,234,919    34.6%   1,260,601  1,228,987
Total shareholders'     189,244      161,837      16.9%   168,335    165,840
equity
 Total liabilities  $          $                  $       $   
and shareholders'       1,851,731   1,396,756   32.6%   1,428,936  1,394,827
equity







MIDSOUTH BANCORP, INC. and
SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
                          Three Months Ended          Year Ended
EARNINGS STATEMENT        December 31,        %       December 31,      %
                          2012       2011     Change  2012     2011     Change
Interest income           $         $       3.2%    $       $       19.6%
                          15,036    14,564          61,022  51,007
Interest expense          1,354      1,489    -9.1%   5,840    5,802    0.7%
Net interest income       13,682     13,075   4.6%    55,182   45,205   22.1%
Provision for loan        500        775      -35.5%  2,050    3,925    -47.8%
losses
Service charges           1,840      1,855    -0.8%   7,430    6,921    7.4%
ondeposit accounts
Other charges and fees    1,857      1,565    18.7%   7,514    6,140    22.4%
Total non-interest        3,697      3,420    8.1%    14,944   13,061   14.4%
income
Salaries and              6,202      5,783    7.2%    24,713   21,763   13.6%
employeebenefits
Occupancy expense         3,037      2,563    18.5%   11,320   9,281    22.0%
FDIC premiums             235        210      11.9%   930      921      1.0%
Other non-interest        5,093      5,613    -9.3%   17,692   17,339   2.0%
expense
Total non-interest        14,567     14,169   2.8%    54,655   49,304   10.9%
expense
Earnings before income    2,312      1,551    49.1%   13,421   5,037    166.4%
taxes
Income tax expense        683        272      151.1%  3,779    564      570.0%
Net earnings              1,629      1,279    27.4%   9,642    4,473    115.6%
Dividends on preferred    367        400      -8.3%   1,547    1,802    -14.2%
stock
Net earnings available    $        $     43.6%   $      $      203.1%
to common shareholders    1,262      879            8,095   2,671
Earnings per common       $       $     33.3%   $     $     185.2%
share, diluted            0.12      0.09            0.77    0.27







MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
EARNINGS STATEMENT   Fourth      Third       Second      First       Fourth
QUARTERLY TRENDS     Quarter     Quarter     Quarter     Quarter     Quarter
                     2012        2012        2012        2012        2011
Interest income      $ 15,036    $ 15,355    $ 15,298   $ 15,333   $ 14,564
Interest expense     1,354       1,468       1,489       1,529       1,489
Net interest income  13,682      13,887      13,809      13,804      13,075
Provision for loan   500         300         575         675         775
losses
Net interest income
after provision for  13,182      13,587      13,234      13,129      12,300
loan loss
Total non-interest   3,697       3,754       3,965       3,528       3,420
income
Total non-interest   14,567      13,630      13,790      12,668      14,169
expense
Earnings before      2,312       3,711       3,409       3,989       1,551
income taxes
Income tax expense   683         1,062       931         1,103       272
Net earnings         1,629       2,649       2,478       2,886       1,279
Dividends on         367         400         380         400         400
preferred stock
Net earnings                                                         $   
available to common  $  1,262   $  2,249   $  2,098  $  2,486  879
shareholders
Earnings per common  $   0.12  $   0.21  $         $         $  
share, diluted                               0.20       0.24       0.09





MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands)
                                                                     Acquired
                                                                     from
                      December 31,  December 31,  %       September  PSB at
COMPOSITION OF LOANS                                      30,        Fair
                      2012          2011          Change  2012       Value (1)
Commercial,           $         $                 $       $    
financial, and        315,655       223,283       41.4%   266,046   59,093
agricultural
Lease financing       5,769         4,276         34.9%   5,041      0
receivable
Real estate -         75,334        52,712        42.9%   57,727     16,431
construction
Real estate -         414,384       280,798       47.6%   293,579    132,071
commercial
Real estate -         142,858       113,582       25.8%   110,735    34,687
residential
Installment loans to  90,561        69,980        29.4%   73,334     17,652
individuals
Other                 2,379         1,674         42.1%   2,371      119
Total loans           $           $         40.3%   $       $   
                      1,046,940    746,305               808,833   260,053
                                                                     Acquired
                                                                     from
COMPOSITION OF        December 31,  December 31,  %       September  PSB at
DEPOSITS                                                  30,        Fair
                      2012          2011          Change  2012       Value (1)
Noninterest bearing   $         $         49.4%   $       $    
                      380,557       254,755               306,463   85,048
NOW & Other           338,296       235,168       43.9%   239,937    81,659
Money Market/Savings  520,573       350,342       48.6%   377,405    143,826
Time Deposits of      133,304       140,428       -5.1%   111,356    33,777
less than $100,000
Time Deposits of      179,174       184,113       -2.7%   143,851    56,257
$100,000 or more
Total deposits        $           $           33.2%   $        $   
                      1,551,904    1,164,806            1,179,012  400,567
(1) Amounts acquired from PSB at fair value on December 28, 2012.







MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands)
                       December     December    %        September    June 30,
ASSET QUALITY DATA     31,          31,                  30,
                       2012         2011        Change   2012         2012
                       $       $                $       $   
Nonaccrual loans        8,887        6,229   42.7%    8,307        
                                                                      7,370
Loans past due         1,986        231         759.7%   532          62
90days and over
Total nonperforming    10,873       6,460       68.3%    8,839        7,432
loans
Other real estate      7,496        7,369       1.7%     6,608        6,968
owned
Other repossessed      151          326         -53.7%   51           2
assets
Total nonperforming    $       $       30.8%    $        $   
assets                 18,520        14,155             15,498       14,402
Troubled debt          $       $                $       $   
restructurings          5,062         456  1010.1%    242        
                                                                      417
Nonperforming assets   1.00%        1.01%       -1.0%    1.08%        1.03%
tototal assets
Nonperforming assets
to total loans
+
OREO +
otherrepossessed      1.76%        1.88%       -6.4%    1.90%        1.90%
assets
ALLL to nonperforming  67.78%       112.63%     -39.8%   83.43%       97.17%
loans
ALLL to total loans    0.70%        0.97%       -27.8%   0.91%        0.96%
Quarter-to-date        $       $                $       $   
charge-offs              557        882  -36.8%     234        
                                                                      526
Quarter-to-date        53           54          -1.9%    86           95
recoveries
Quarter-to-date net    $       $                $       $   
charge-offs              504        828  -39.1%     148        
                                                                      431
Annualized QTD net
charge-offs to total   0.19%        0.44%       -56.5%   0.07%        0.23%
loans







MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands)
YIELD ANALYSIS    Three Months Ended              Three Months Ended
                  December 31, 2012               December 31, 2011
                              Tax                             Tax
                  Average     Equivalent  Yield/  Average     Equivalent  Yield/
                  Balance     Interest    Rate    Balance     Interest    Rate
Taxable           $         $         2.06%   $         $         2.40%
securities        352,796     1,818              304,741     1,825
Tax-exempt        77,063      1,001       5.20%   88,605      1,122       5.07%
securities
Total investment  429,859     2,819       2.62%   393,346     2,947       3.00%
securities
Federal funds     2,959       1           0.13%   11,933      6           0.20%
sold
Time and
interest bearing
deposits in
other banks       26,249      19          0.28%   40,742      27          0.26%
Other             5,820       42          2.89%   5,250       38          2.90%
investments
Loans (1)         799,316     12,479      6.21%   703,590     11,872      6.69%
Total interest    1,264,203   15,360      4.83%   1,154,861   14,890      5.12%
earning assets
Non-interest      136,041                         118,411
earning assets
Total assets      $                               $
                  1,400,244                      1,273,272
Interest-bearing
liabilities:
Deposits (2)      $         $       0.42%   $         $         0.51%
                  861,239     911                 801,743     1,038
Repurchase        52,155      192         1.46%   56,849      206         1.44%
agreements
Federal funds     16          -           0.00%   -           -           0.00%
purchased
Other borrowings  42          -           0.00%
Junior
subordinated      15,616      251         6.29%   15,465      245         6.20%
debentures
Total
interest-bearing  929,068     1,354       0.58%   874,057     1,489       0.68%
liabilities
Non-interest
bearing           303,061                         243,303
liabilities
Shareholders'     168,115                         155,912
equity
Total
liabilities and
shareholders'
equity            $                               $
                  1,400,244                      1,273,272
Net interest income (TE) and  $          4.25%               $          4.44%
spread                        14,006                         13,401
Net interest margin                       4.41%                           4.60%
(1) Includes $394,000 and $295,000 of interest income from accretable yield on
purchased loans from acquisitions for the threemonths ended December 31, 2012
and 2011, respectively.
(2) Includes $181,000 and $340,000 of reduction in interest expense from premium
amortization on time deposits acquired fromacquisitions for the three months
ended December 31, 2012 and 2011, respectively.





MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands)
YIELD ANALYSIS    Year Ended                      Year Ended
                  December 31, 2012               December 31, 2011
                              Tax                            Tax
                  Average     Equivalent  Yield/  Average    Equivalent  Yield/
                  Balance     Interest    Rate    Balance    Interest    Rate
Taxable           $         $         2.17%   $         $         2.36%
securities        373,277     8,083              226,819   5,362
Tax-exempt        80,590      4,120       5.11%   93,796     4,786       5.10%
securities
Total investment  453,867     12,203      2.69%   320,615    10,148      3.17%
securities
Federal funds     3,482       7           0.20%   6,567      14          0.21%
sold
Time and
interest bearing
deposits in
other banks       34,087      92          0.27%   61,292     196         0.32%
Other             5,758       184         3.20%   5,107      155         3.04%
investments
Loans (1)         766,018     49,776      6.48%   624,889    41,887      6.70%
Total interest    1,263,212   62,262      4.92%   1,018,470  52,400      5.14%
earning assets
Non-interest      132,903                         99,206
earning assets
Total assets      $                               $
                  1,396,115                      1,117,676
Interest-bearing
liabilities:
Deposits (2)      $         $         0.46%   $         $         0.59%
                  879,801     4,100              680,551   4,024
Repurchase        50,776      756         1.48%   49,654     807         1.63%
agreements
Federal funds     21          -           -       -          -           -
purchased
Other borrowings  11          -           -       -          -           -
Junior
subordinated      15,503      984         6.24%   15,465     971         6.19%
debentures
Total
interest-bearing  946,112     5,840       0.62%   745,670    5,802       0.78%
liabilities
Non-interest
bearing           284,090                         228,036
liabilities
Shareholders'     165,913                         143,970
equity
Total
liabilities and
shareholders'
equity            $                               $
                  1,396,115                      1,117,676
Net interest income (TE) and  $          4.30%              $          4.36%
spread                        56,422                        46,598
Net interest margin                       4.45%                          4.58%
(1) Includes $1.8 million and $413,000 of interest income from accretable yield
on purchased loans from acquisitions for the year ended December 31, 2012 and
2011, respectively.
(2) Includes $1.0 million and $568,000 of reduction in interest expense from
premium amortization on time deposits acquired fromacquisitions for the year
ended December 31, 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
                           December 31,      December 31,      September 30,
Per Common Share Data      2012              2011              2012
Book value per common      $             $             $    
share                      13.10            12.41            13.01
Effect of intangible       4.61              3.07              3.00
assets per share
Tangible book value per    $            $            $    
common share               8.49             9.34             10.01
Earnings per share         $            $            $     
                           0.12             0.09             0.21
Effect of
merger-related costs,      0.06              0.08              0.02
after-tax
Operating earnings per     $            $            $     
share                      0.18             0.17             0.23
Average Balance Sheet
Data
Total equity               $   168,115    $   155,912    $   167,055
Less preferred equity      32,109            32,000            32,000
Total common equity        $   136,006    $   123,912    $   135,055
Less intangible assets     31,663            19,655            31,478
Tangible common equity     $   104,343    $   104,257    $   103,577
 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: investor, Rusty Cloutier, President & CEO, or Jim McLemore, CFA, Sr.
EVP & CFO, +1.337.237.8343