MidSouth Bancorp, Inc. Reports Fourth Quarter 2013 Results And Declares Quarterly Dividends

   MidSouth Bancorp, Inc. Reports Fourth Quarter 2013 Results And Declares
                             Quarterly Dividends

- Diluted EPS $0.29 per common share versus $0.12 per common share for 4Q 2012

- Quarterly return on average tangible common equity of 13.5%

- NPA's to Loans + ORE of 1.05% versus 1.70% at YE 2012

- Core FTE NIM on linked quarter basis of 4.31% versus 4.30%

- Net loan growth of $89.2 million or 8.6% YOY

- Stable core deposits represent 84.2% of total deposits and grew $38.9
million YOY

PR Newswire

LAFAYETTE, La., Jan. 28, 2014

LAFAYETTE, La., Jan. 28, 2014 /PRNewswire/ --MidSouth Bancorp, Inc.
("MidSouth") (NYSE:MSL) today reported record quarterly net earnings available
to common shareholders of $3.4 million for the fourth quarter of 2013,
compared to net earnings available to common shareholders of $1.3 million
reported for the fourth quarter of 2012 and $3.1 million in net earnings
available to common shareholders for the third quarter of 2013. Diluted
earnings for the fourth quarter of 2013 were $0.29 per common share, compared
to $0.12 per common share reported for the fourth quarter of 2012 and $0.27
per common share reported for the third quarter of 2013.

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

MidSouth's Board of Directors announced a cash dividend was declared in the
amount of $0.08 per share to be paid on its common stock on April 1, 2014 to
shareholders of record as of the close of business on March 14, 2014.
Additionally, a quarterly cash dividend of 1.00% per preferred share on its
4.00% Non-Cumulative Perpetual Convertible Preferred Stock, Series C was
declared payable on April 15, 2014 to shareholders of record as of the close
of business on April 1, 2014. The Company's Series C Preferred Stock is now
quoted on the OTC Bulletin Board ("OTCBB") under the ticker symbol MSLXP.

Dividends paid on the Series B Preferred Stock issued to the Treasury as a
result of our participation in the Small Business Lending Fund ("SBLF")
totaled $80,000 for the fourth quarter of 2013 based on a dividend rate of
1.00%. The dividend rate was set at 1.00% for the fourth quarter of 2013 due
to attaining the target 10% growth rate in qualified small business loans
during the second quarter of 2013. As a result of qualified small business
loan growth as of September 30, 2013, the dividend rate was set at 1.00% for
the period from January 1, 2014 through February 25, 2016. The Series C
Preferred Stock issued with the December 28, 2012 acquisition of PSB Financial
Corporation ("PSB") paid dividends totaling $100,000 for the three months
ended December 31, 2013.

Balance Sheet

Consolidated assets remained constant at $1.9 billion for the years ended
December 31, 2013 and December 31, 2012. Deposits totaled $1.5 billion at
December 31, 2013, compared to $1.6 billion at December 31, 2012. Our stable
core deposit base,which excludestime deposits, grew $38.9 million and
accounted for 84.2% of deposits at December 31, 2013 compared to 80% of
deposits at year end 2012. Time deposits declined $72.0 million for the year
ended December 31, 2013 primarily due to the run-off of acquired higher cost
certificate of deposit accounts. Net loans totaled $1.1 billion at December
31, 2013, compared to $1.0 billion at December 31, 2012. Net loans grew $89.2
million, or 8.6% for the year ended December 31, 2013. Net loans declined
$7.6 million in the fourth quarter of 2013 primarily due to approximately
$14.2 million in net paydowns received on commercial lines of credit.

MidSouth's Tier 1 leverage capital ratio was 9.35% at December 31, 2013
compared to 9.17% at September 30, 2013. Tier 1 risk-based capital and total
risk-based capital ratios were 13.47% and 14.19 % at December 31, 2013,
compared to 13.13% and 13.84% at September 30, 2013, respectively. Tier 1
common equity to total risk-weighted assets at December 31, 2013 was 7.86%.
Tangible common equity totaled $98.6 million at December 31, 2013, compared to
$96.9 million at September 30, 2013. Tangible book value per share at
December 31, 2013 was $8.76 versus $8.61 at September 30, 2013.

Rusty Cloutier, President & CEO, commenting on the fourth quarter earnings
stated, "We continued to see a strong return on average tangible commonequity
at 13.5% and improving trends in asset quality with stable net interest
margins. However, early in the fourth quarter, we announced that Jerry Reaux,
our Vice Chairman and COO, would lead an initiative to accelerate improvement
in earnings for our shareholders. This initiative began with a study of our
peers that report strong efficiency ratios and with the internal appointment
of Clay Abington as Business Process Manager to oversee implementation of the
initiative over the next 24 months. We also engaged FIS Consulting Services
to work with us in identifying opportunities for operating efficiencies and
enhancing revenues. To reinforce the initiative, the Board of Directors and
executive management made a commitment to paying no bonuses under the annual
incentive plan for 2013 and no raises are to be awarded to executive
management in 2014. In making the changes necessary to accomplish this
efficiency initiative, we will reinforce priorities held throughout our
history – a strong return on investment to our shareholders and a strong
return on investment in the communities we serve for the benefit of our
customers."

Asset Quality

Nonperforming assets declined 33.1% in year-over-year comparison and 9.2% in
sequential-quarter comparison as asset quality continued to improve. Total
nonperforming assets were reduced from $17.9 million at December 31, 2012 to
$13.2 million at September 30, 2013 and to $12.0 million at December 31, 2013,
primarily due to a $5.0 million reduction in nonperforming loans during 2013.


Allowance coverage for nonperforming loans increased to 166.36% at December
31, 2013 compared to 133.26% at September 30, 2013. The ALL/total loans ratio
was 0.77% at December 31, 2013, compared to 0.76% at September 30, 2013.
Including valuation accounting adjustments on acquired loans, the total
valuation accounting adjustment plus ALL was 1.50% of loans at December 31,
2013. The ratio of annualized net charge-offs to total loans was 0.24% for
the three months ended December 31, 2013 compared to 0.11% for the three
months ended September 30, 2013. The increase in annualized net charge-offs
during the fourth quarter of 2013 resulted primarily from the charge-off of
several small commercial loans totaling approximately $427,000.

Total nonperforming assets to total loans plus ORE and other assets
repossessed decreased to 1.05% at December 31, 2013 from 1.15% at September
30, 2013. Loans classified as troubled debt restructurings ("TDRs") totaled
$412,000 at December 31, 2013 compared to $419,000 at September 30, 2013.
Classified assets, including ORE, decreased $3.6 million, or 10.4%, to $30.9
million compared to $34.5 million at September 30, 2013.

Fourth Quarter 2013 vs. Fourth Quarter 2012 Earnings Comparison

Fourth quarter 2013 net earnings available to common shareholders totaled $3.4
million compared to $1.3 million for the fourth quarter of 2012. Revenues
from consolidated operations increased $7.0 million in quarterly comparison
and included a net increase of $940,000 in purchase accounting adjustments on
the 2012 and 2011 acquisitions. Noninterest income increased $1.2 million in
quarterly comparison, from $3.7 million for the three months ended December
31, 2012 to $4.9 million for the three months ended December 31, 2013.
Increases in noninterest income consisted primarily of $591,000 in service
charges on deposit accounts and $480,000 in ATM/debit card income due to the
acquired branches in the Timber Region, formerly PSB.

Noninterest expenses increased $3.9 million for the fourth quarter 2013
compared to fourth quarter 2012 and included approximately $1.8 million in
operating expenses for the Timber Region and approximately $374,000 in
operating costs for six new branches opened in late 2012 and 2013. The
remaining $1.7 million of increased operating costs consisted primarily of
$1.3 million in salaries and benefits costs, $368,000 in occupancy expense and
$281,000 in ATM/debit card expense. The increased costs were partially offset
by a $263,000 decrease in legal and professional fees, a $163,000 decrease in
data processing costs and a $184,000 decrease in expenses on ORE. The
provision for loan losses increased $300,000 primarily as a result of
increased net charge-offs in the fourth quarter of 2013. Income tax expense
increased $880,000 in quarterly comparison.

Fully taxable-equivalent ("FTE") net interest income totaled $19.8 million and
$14.0 million for the quarters ended December 31, 2013 and 2012,
respectively.The FTE net interest income increased $5.8 million in prior
year quarterly comparison primarily due to a $414.2 million increase in the
volume of average earning assets primarily as a result of the PSB
acquisition. The average volume of loans increased $342.5 million in
quarterly comparison and the average yield on loans increased 6 basis points,
from 6.21% to 6.27%. Purchase accounting adjustments on acquired loans added
51 basis points to the average yield on loans for the fourth quarter of 2013
and 22 basis points to the average yield on loans for the fourth quarter of
2012. Net of the impact of the purchase accounting adjustments, average loan
yields declined 23 basis points in prior year quarterly comparison, from 5.99%
to 5.76%. Loan yields have declined primarily as the result of a sustained
low market interest rate environment.

Investment securities totaled $497.2 million, or 26.9% of total assets at
December 31, 2013, versus $578.1 million, or 31.2% of total assets at December
31, 2012. The investment portfolio had an effective duration of 4.2 years and
an unrealized loss of $164,000 at December 31, 2013. The average volume of
investment securities increased $78.4 million in quarterly comparison
primarily due to $152.7 million in securities acquired with the PSB
acquisition at year end December 2012, of which $28.8 million were sold early
in the first quarter of 2013. The average tax equivalent yield on investment
securities decreased 5 basis points, from 2.62% to 2.57%. 

The average yield on all earning assets increased 23 basis points in prior
year quarterly comparison, from 4.83% for the fourth quarter of 2012 to 5.06%
for the fourth quarter of 2013. Net of the impact of purchase accounting
adjustments, the average yield on total earning assets increased 2 basis
points, from 4.70% to 4.72% for the three month periods ended December 31,
2012 and 2013, respectively.

The impact to interest expense of a $346.7 million increase in the average
volume of interest bearing liabilities was partially offset by a 9 basis point
decrease in the average rate paid on interest bearing liabilities, from 0.58%
at December 31, 2012 to 0.49% at December 31, 2013. Net of purchase
accounting adjustments on acquired certificates of deposit and FHLB
borrowings, the average rate paid on interest bearing liabilities was 0.66%
for the fourth quarter of 2012 and declined to 0.55% for the fourth quarter of
2013.

As a result of these changes in volume and yield on earning assets and
interest bearing liabilities, the FTE net interest margin increased 28 basis
points, from 4.41% for the fourth quarter of 2012 to 4.69% for the fourth
quarter of 2013. Net of purchase accounting adjustments on loans, deposits
and FHLB borrowings, the FTE margin increased 9 basis points, from 4.22% for
the fourth quarter of 2012 to 4.31% for the fourth quarter of 2013.

Fourth Quarter 2013 vs. Third Quarter 2013 Earnings Comparison

In sequential-quarter comparison, net earnings available to common
shareholders increased $293,000 as the positive impact from a $368,000
increase in net interest income and a $288,000 decrease in preferred dividends
was partially offset by a $350,000 increase in provision for loan losses. Net
interest income increased in sequential-quarter comparison primarily due to
$483,000 in non-recurring interest income recorded in the fourth quarter of
2013. This amount was comprised of additional discount accretion earned from
the PSB loan portfolio as a result of higher than anticipated loan payoffs.

Noninterest expenses decreased $54,000 as reductions in several noninterest
expense categories offset increases of $141,000 in salaries and benefits costs
and $203,000 in legal and professional fees.

FTE net interest income increased $348,000 in sequential-quarter comparison
primarily due to an increase in purchase accounting adjustments thatresulted
in an increase in the average yield on loans, from 6.24% for the third quarter
of 2013 to 6.27% for the fourth quarter of 2013. An average decrease of $12.0
million in investment securities partially funded an $18.7 million increase in
the average volume of loans. The average yield on total earning assets
increased 7 basis points for the same period, from 4.99% to 5.06%,
respectively. An average decrease of $6.4 million in interest bearing
deposits was offset by an average increase of $2.7 million in overnight
repurchase agreements. As a result of these changes in volume and yield on
earning assets and interest bearing liabilities, the FTE net interest margin
increased 9 basis points, from 4.60% to 4.69%. Net of purchase accounting
adjustments, the FTE net interest margin increased 1 basis point, from 4.30%
for the quarter ended September 30, 2013 to 4.31% for the quarter ended
December 31, 2013.

Year-Over-Year Earnings Comparison

In year-over-year comparison, net earnings available to common shareholders
increased $4.7 million primarily as a result of a $21.5 million improvement in
net interest income and a $4.4 million increase in noninterest income. The
$25.9 million improvement in revenues was offset by an $18.0 million increase
in noninterest expense, a $2.4 million increase in income tax expense and a
$1.0 million increase in provision for loan loss. The $21.5 million increase
in net interest income included approximately $12.6 million earned in the
acquired Timber Region and $4.1 million in increased purchase accounting
adjustments in year-to-date comparison.

Increases in noninterest income consisted primarily of $1.8 million in service
charges on deposit accounts and $1.8 million in ATM and debit card income.
Noninterest expenses increased $18.0 million in year-to-date comparison and
included approximately $7.3 million in operating expenses for the Timber
Region and approximately $2.0 million in operating expenses for the six new
branches opened in late 2012 and 2013. Increases in noninterest expense,
excluding operating expenses on the Timber Region and the new branches,
included primarily $4.2 million in salary and benefits costs, $1.7 million in
occupancy expense, $766,000 in ATM/debit card expense and $425,000 in
corporate development expense. The increase was partially offset by a
$656,000 decrease in expenses on ORE and repossessed assets, excluding
expenses on ORE and repossessed assets incurred by the Timber Region.

In year-to-date comparison, FTE net interest income increased $22.0 million
primarily due to a $402.9 million increase in the average volume of earning
assets that resulted in a $22.7 million increase in interest income. The
average yield on earning assets increased in year-to-date comparison, from
4.92% at December 31, 2012 to 5.10% at December 31, 2013. Net of a 39 basis
point effect of discount accretion on acquired loans, the average yield on
earning assets was 4.71% at December 31, 2013, compared to 4.76% at December
31, 2012, net of a 16 basis point effect of discount accretion on acquired
loans.

Interest expense increased in year-over-year comparison primarily due to a
$317.4 million increase in the average volume of interest bearing liabilities,
from $946.1 million at December 31, 2012 to $1.3 billion at December 31,
2013. The average rate paid on interest-bearing liabilities decreased 10
basis points, from 0.62% at December 31, 2012 to 0.52% at December 31, 2013.
Net of an 8 basis point effect of premium amortization on acquired
certificates of deposit and FHLB advances, the average rate paid on interest
bearing liabilities was 0.60% at December 31, 2013. The FTE net interest
margin increased 26 basis points, from 4.45% for the year ended December 31,
2012 to 4.71% for the year ended December 31, 2013. Net of purchase
accounting adjustments, the FTE net interest margin increased 4 basis points,
from 4.22% to 4.26% for the years ended December 31, 2012 and 2013,
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, 2013.
MidSouth Bancorp, Inc. trades on the NYSE under the symbol "MSL." The
Company's Series C Preferred Stock is now quoted on the OTC Bulletin Board
("OTCBB") under the ticker symbol MSLXP. 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 62 locations in Louisiana and Texas, including a Loan Production
Office in Austin, Texas, and is connected to a worldwide ATM network that
provides customers with access to more than 50,000 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, 2012 filed with the SEC on March 18, 2013 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       12/31/2013  9/30/2013   6/30/2013   3/31/2013   12/31/2012
 Total          $         $         $         $         $  
interest income     21,014     20,704      21,356      20,129      15,036
 Total          1,575       1,633       1,614       1,717       1,354
interest expense
 Net       19,439      19,071      19,742      18,412      13,682
interest income
 FTE net        19,834      19,486      20,079      18,761      13,972
interest income
 Provision for  800         450         1,250       550         500
loan losses
 Non-interest   4,896       4,988       5,004       4,431       3,697
income
 Non-interest   18,427      18,481      18,267      17,431      14,567
expense
Earnings
before income       5,108       5,128       5,229       4,862       2,312
taxes
 Income tax     1,563       1,588       1,566       1,434       683
expense
Net       3,545       3,540       3,663       3,428       1,629
earnings
 Dividends on   180         468         392         292         367
preferred stock
 Net
earnings available  $        $        $        $        $   
to common           3,365      3,072       3,271       3,136       1,262
shareholders
PER COMMON SHARE
DATA
 Basic          $       $       $       $       $    
earnings per share  0.30       0.27        0.29        0.28        0.12
 Diluted        0.29        0.27        0.29        0.27        0.12
earnings per share
 Quarterly
dividends per       0.08        0.08        0.08        0.07        0.07
share
 Book value at  13.21       13.12       12.92       13.24       13.10
end of period
 Tangible book
value at period     8.76        8.61        8.39        8.67        8.49
end
 Market price   17.86       15.50       15.53       16.26       16.35
at end of period
 Shares
outstanding at      11,256,712  11,253,216  11,253,216  11,238,786  11,236,159
period end
 Weighted
average shares
outstanding
 Basic       11,255,670  11,253,216  11,238,945  11,237,916  10,512,255
 Diluted     11,886,433  11,868,851  11,838,862  11,866,108  10,599,583
AVERAGE BALANCE
SHEET DATA
 Total assets   $           $1,863,090  $1,850,483  $1,850,759  $
                    1,862,962                                       1,400,244
 Loans and      1,141,829   1,123,086   1,080,295   1,043,780   799,316
leases
 Total          1,515,673   1,521,146   1,538,320   1,542,726   1,153,728
deposits
 Total common   149,489     146,182     150,287     148,565     136,006
equity
 Total
tangible common     98,941      95,363      98,996      96,692      104,343
equity
 Total equity  191,486     188,179     192,284     190,564     168,115
SELECTED RATIOS
 Annualized
return on average   0.72%       0.65%       0.71%       0.69%       0.36%
assets
 Annualized
return on average   8.93%       8.34%       8.73%       8.56%       3.69%
common equity
 Annualized
return on average   13.50%      12.78%      13.25%      13.15%      4.81%
tangible common
equity
 Average loans
to average          75.33%      73.83%      70.23%      67.66%      69.28%
deposits

Taxable-equivalent  4.69%       4.60%       4.87%       4.61%       4.41%
net interest
margin
 Tier 1
leverage capital    9.35%       9.17%       9.14%       8.98%       11.82%
ratio
CREDIT QUALITY
 Allowance for
loan losses (ALLL)  0.77%       0.76%       0.76%       0.72%       0.70%
as a %of total
loans
 Nonperforming
assets to tangible  8.02%       8.94%       9.51%       10.39%      12.79%
equity + ALLL
 Nonperforming
assets to total
loans, other real
estate
 owned
and other           1.05%       1.15%       1.23%       1.46%       1.76%
repossessed assets
 Annualized
QTD net             0.24%       0.11%       0.06%       0.18%       0.19%
charge-offs to
total loans



MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands)
BALANCE SHEET        December    September  June 30,    March 31,   December
                     31,         30,                                31,
                     2013        2013       2013        2013        2012
Assets
Cash and cash        $       $      $         $          $    
equivalents          59,731      43,434    59,578      118,009     73,573
Securities           341,665     358,675    367,299     387,786     424,617
available-for-sale
Securities           155,523     159,141    163,610     167,617     153,524
held-to-maturity
Total
investment           497,188     517,816    530,909     555,403     578,141
securities
Time deposits held   -           -          -           -           881
in banks
Other investments    11,526      10,951     10,951      10,017      8,310
Total loans          1,137,554   1,145,023  1,118,572   1,037,859   1,046,940
Allowance for loan   (8,779)     (8,667)    (8,531)     (7,457)     (7,370)
losses
Loans, net      1,128,775   1,136,356  1,110,041   1,030,402   1,039,570
Premises and         72,343      70,147     67,881      66,797      63,461
equipment
Goodwill and other   50,112      50,703     50,980      51,447      51,828
intangibles
Other assets         31,485      33,400     33,436      34,981      35,964
Total assets    $          $        $1,863,776  $1,867,056  $ 
                     1,851,160  1,862,807                          1,851,728
Liabilities and
Shareholders'
Equity
Non-interest         $        $       $          $          $   
bearing deposits     383,257     380,048   395,341     390,774     381,083
Interest-bearing     1,135,546   1,126,078  1,140,453   1,169,352   1,170,821
deposits
Total deposits    1,518,803   1,506,126  1,535,794   1,560,126   1,551,904
Securities sold
under agreements
to
 repurchaseand
other short term
 borrowings       53,916      77,809     51,710      48,557      41,447
Short-term FHLB      25,000      25,000     25,000      -           -
advances
Other borrowings     27,703      28,059     28,416      28,772      29,128
Junior subordinated  29,384      29,384     29,384      29,384      29,384
debentures
Other liabilities    5,605       6,800      6,039       9,384       10,624
Total           1,660,411   1,673,178  1,676,343   1,676,223   1,662,487
liabilities
Total shareholders'  190,749     189,629    187,433     190,833     189,241
equity
 Total
liabilities and      $          $        $1,863,776  $1,867,056  $ 
shareholders'        1,851,160  1,862,807                          1,851,728
equity



MIDSOUTH BANCORP, INC. and
SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
EARNINGS           Three Months Ended                                       Twelve Months Ended
STATEMENT
                   12/31/2013  9/30/2013  6/30/2013  3/31/2013  12/31/2012  12/31/2013  12/31/2012
Interest income:
Loans, including   $  16,727  $ 16,707   $ 16,370   $ 15,250   $  12,084  $  65,054  $  47,984
fees
Investment         2,876       2,956      3,063      2,898      2,496       11,793      10,963
securities
Accretion of
purchase           1,323       945        1,827      1,867      394         5,962       1,792
accounting
adjustments
Other interest     88          96         96         114        62          394         283
income
Total interest     21,014      20,704     21,356     20,129     15,036      83,203      61,022
income
Interest expense:
Deposits           1,017       1,114      1,166      1,309      1,092       4,606       5,137
Borrowings         411         414        380        395        192         1,600       756
Junior
subordinated       339         335        336        336        251         1,346       984
debentures
Accretion of
purchase           (192)       (230)      (268)      (323)      (181)       (1,013)     (1,037)
accounting
adjustments
Total interest     1,575       1,633      1,614      1,717      1,354       6,539       5,840
expense
Net interest       19,439      19,071     19,742     18,412     13,682      76,664      55,182
income
Provision for      800         450        1,250      550        500         3,050       2,050
loan losses
Net interest
income after       18,639      18,621     18,492     17,862     13,182      73,614      53,132
provision for
loan losses
Noninterest
income:
Service charges
ondeposit         2,431       2,352      2,271      2,171      1,840       9,225       7,430
accounts
ATM and debit      1,687       1,719      1,638      1,356      1,207       6,400       4,605
card income
Gain on            5           25         -          204        -           234         204
securities, net
Mortgage lending   82          109        138        71         115         400         398
Other charges and  691         783        957        629        535         3,060       2,307
fees
Total
non-interest       4,896       4,988      5,004      4,431      3,697       19,319      14,944
income
Noninterest
expense:
Salaries and       8,781       8,640      8,369      8,392      6,092       34,182      24,603
employeebenefits
Occupancy expense  3,916       3,874      3,725      3,587      3,037       15,102      11,320
ATM and debit      707         661        597        414        408         2,379       1,559
card
Professional fees  506         303        535        382        388         1,726       1,457
FDIC premiums      282         265        244        320        235         1,111       930
Marketing          545         739        521        469        346         2,274       1,463
Corporate          347         349        453        337        237         1,486       969
development
Data processing    473         482        409        471        358         1,835       1,408
Printing and       304         321        430        375        350         1,430       1,095
supplies
Expenses on ORE
and other assets   201         288        523        189        409         1,201       1,742
repossessed
Amortization of
core deposit       276         277        276        277        182         1,106       762
intangibles
Merger related     -           -          -          214        998         214         1,221
costs
Other
non-interest       2,089       2,282      2,185      2,004      1,527       8,560       6,126
expense
Total
non-interest       18,427      18,481     18,267     17,431     14,567      72,606      54,655
expense
Earnings before    5,108       5,128      5,229      4,862      2,312       20,327      13,421
income taxes
Income tax         1,563       1,588      1,566      1,434      683         6,151       3,779
expense
Net earnings       3,545       3,540      3,663      3,428      1,629       14,176      9,642
Dividends on       180         468        392        292        367         1,332       1,547
preferred stock
Net earnings
available to       $         $  3,072  $  3,271  $  3,136  $         $  12,844  $  
common             3,365                                        1,262                   8,095
shareholders
Earnings per       $        $        $        $        $        $        $   
common share,      0.29        0.27       0.29       0.27       0.12        1.12        0.77
diluted



MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands)
                   December    Percent  September   June 30,    March 31,  December        Percent
COMPOSITION OF     31,                  30,                                 31,
LOANS              2013        of       2013        2013        2013        2012            of
                               Total                                                        Total
Commercial,        $                 $        $          $          $   
financial, and     403,976     35.51%   423,073     391,241     315,397     315,655         30.15%
agricultural
Lease financing    5,542       0.49%    5,340       5,656       4,962       5,769           0.55%
receivable
Real estate -      82,691      7.27%    76,213      82,851      82,508      75,334          7.20%
construction
Real estate -      397,135     34.91%   401,080     404,543     405,705     414,384         39.58%
commercial
Real estate -      146,841     12.91%   142,431     141,689     138,284     142,858         13.65%
residential
Installment loans  97,459      8.57%    94,722      90,571      88,898      90,561          8.65%
to individuals
Other              3,910       0.34%    2,164       2,021       2,105       2,379           0.23%
Total loans        $                   $          $1,118,572  $1,037,859  $ 
                   1,137,554           1,145,023                          1,046,940
COMPOSITION OF     December    Percent  September   June 30,    March 31,  December        Percent
DEPOSITS           31,                  30,                                 31,
                   2013        of       2013        2013        2013        2012            of
                               Total                                                        Total
Noninterest        $        25.23%   $        $          $          $       ^(1) 24.56%
bearing            383,257              380,048     395,341     390,774     381,083
NOW & Other        429,279     28.26%   412,873     431,596     432,540     402,121    ^(1) 25.91%
Money              465,748     30.67%   463,621     453,729     465,954     456,222    ^(1) 29.40%
Market/Savings
Time Deposits of
less than          112,782     7.43%    116,118     119,299     125,020     133,304         8.59%
$100,000
Time Deposits of   127,737     8.41%    133,466     135,829     145,838     179,174         11.55%
$100,000 or more
Total deposits     $                   $          $1,535,794  $1,560,126  $ 
                   1,518,803           1,506,126                          1,551,904
ASSET QUALITY      December             September   June 30,    March 31,  December
DATA               31,                  30,                                 31,
                   2013                 2013        2013        2013        2012
Nonaccrual loans   $                $       $        $        $    
^(2)                5,099               5,760     6,388       7,019        8,276
Loans past due     178                  744         117         163         1,986
90days and over
Total
nonperforming      5,277                6,504       6,505       7,182       10,262
loans
Other real estate  6,687                6,672       6,900       7,552       7,496
owned
Other repossessed  20                   18          0           16          151
assets
Total              $                $       $         $         $    
nonperforming      11,984               13,194      13,405      14,750      17,909
assets
Troubled debt      $                $       $       $        $    
restructurings       412               419    405        4,211        4,137
^(2)
Nonperforming
assets tototal    0.65%                0.71%       0.72%       0.79%       0.97%
assets
Nonperforming
assets to total
loans +
OREO +
otherrepossessed  1.05%                1.15%       1.19%       1.41%       1.70%
assets
ALLL to
nonperforming      166.36%              133.26%     131.15%     103.83%     71.82%
loans
ALLL to total      0.77%                0.76%       0.76%       0.72%       0.70%
loans
Quarter-to-date    $                $       $       $       $    
charge-offs          740               375    267        523          557
Quarter-to-date    53                   61          91          60          53
recoveries
Quarter-to-date    $                $       $       $       $    
net charge-offs      687               314    176        463          504
Annualized QTD
net charge-offs    0.24%                0.11%       0.06%       0.18%       0.19%
to total loans

     A restatement of the deposit mix acquired from The Peoples State Bank is
     included in the Composition of Deposits for December 31, 2012. A total
^(1) of $64.3 millionin Money Market/Savings deposits were reclassed to NOW &
     Other deposits ($63.8 million) and to Noninterest bearing balances ($0.5
     million).
^(2) Balances have been adjusted from previously reported amounts for
     discounts associated with purchase credit impaired loans.



MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands)
YIELD ANALYSIS    Three Months Ended              Three Months Ended            Three Months Ended            Three Months Ended            Three Months Ended
                  December 31, 2013               September 30, 2013              June 30, 2013                   March 31, 2013                  December 31, 2012
                              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           $          $         2.08%   $          $         2.07%   $          $         2.07%   $          $         1.93%   $          $         2.06%
securities        409,561     2,128               418,964     2,171               434,730     2,251               426,017     2,059               352,796     1,818
Tax-exempt        98,648      1,143       4.63%   101,226     1,200       4.74%   104,747     1,149       4.39%   106,982     1,188       4.44%   77,063      1,001       5.20%
securities
Total investment  508,209     3,271       2.57%   520,190     3,371       2.59%   539,477     3,400       2.52%   532,999     3,247       2.44%   429,859     2,819       2.62%
securities
Federal funds     2,535       1           0.15%   2,180       1           0.18%   1,593       1           0.25%   8,021       4           0.20%   2,959       1           0.13%
sold
Time and
interest bearing
deposits in
other banks       14,546      9           0.24%   22,519      15          0.26%   23,346      17          0.29%   57,829      38          0.26%   26,249      19          0.28%
Other             11,263      78          2.77%   10,948      80          2.92%   10,056      78          3.10%   9,317       72          3.09%   5,820       42          2.89%
investments
Loans            1,141,829   18,050      6.27%   1,123,086   17,652      6.24%   1,080,295   18,197      6.76%   1,043,780   17,117      6.65%   799,316     12,479      6.21%
Total interest    1,678,382   21,409      5.06%   1,678,923   21,119      4.99%   1,654,767   21,693      5.26%   1,651,946   20,478      5.03%   1,264,203   15,360      4.83%
earning assets
Non-interest      184,580                         184,167                         195,716                         198,813                         136,041
earning assets
Total assets      $1,862,962                      $1,863,090                      $1,850,483                      $1,850,759                      $1,400,244
Interest-bearing
liabilities:
Deposits          $1,126,742  $        0.32%   $1,133,126  $        0.34%   $1,149,285  $        0.35%   $1,133,087  $         0.39%   $          $        0.42%
                              917                            976                            990                            1,078               861,239     911
Repurchase        67,022      207         1.23%   64,274      204         1.26%   47,667      182         1.53%   45,644      179         1.59%   52,155      192         1.46%
agreements
Federal funds     747         1           0.52%   354         -           0.00%   1,466       3           0.81%   -           -           0.00%   16          -           0.00%
purchased
Other borrowings  50,661      102         0.79%   51,853      104         0.78%   28,559      90          1.25%   29,076      108         1.49%   42          -           0.00%
Notes payable     1,174       9           3.00%   1,448       14          3.78%   1,700       13          3.03%   1,836       15          3.27%   -           -           0.00%
Junior
subordinated      29,384      339         4.51%   29,384      335         4.46%   29,384      336         4.52%   29,384      337         4.59%   15,616      251         6.29%
debentures
Total
interest-bearing  1,275,730   1,575       0.49%   1,280,439   1,633       0.51%   1,258,061   1,614       0.51%   1,239,027   1,717       0.56%   929,068     1,354       0.58%
liabilities
Non-interest
bearing           395,746                         394,472                         400,138                         421,168                         303,061
liabilities
Shareholders'     191,486                         188,179                         192,284                         190,564                         168,115
equity
Total
liabilities and
shareholders'
equity            $1,862,962                      $1,863,090                      $1,850,483                      $1,850,759                      $1,400,244
Net interest
income (TE) and               $  19,834  4.57%               $  19,486  4.48%               $  20,079  4.75%               $  18,761  4.47%               $  14,006  4.25%
spread
Net interest                              4.69%                           4.60%                           4.87%                           4.61%                           4.41%
margin
Core net
interest margin                           4.31%                           4.30%                           4.33%                           4.03%                           4.21%
^(1)

    Core net interest margin is defined as reported net interest margin less
(1) purchase accounting adjustments. See reconciliation of Non-GAAP financial
    measures on page 6.



MIDSOUTH BANCORP, INC. and SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures (unaudited)
(in thousands except per share data)
                     Three Months Ended
                     December     September  June 30,   March 31,  December
Per Common Share     31,          30,                              31,
Data                                         2013       2013
                     2013         2013                             2012
Book value per       $       $      $       $       $     
common share         13.21         13.12   12.92     13.24     13.10
Effect of
intangible assets    4.45         4.51       4.53       4.57       4.61
per share
Tangible book value  $       $      $      $      $     
per common share      8.76         8.61  8.39      8.67       8.49
Diluted earnings     $       $      $      $      $     
per share             0.29         0.27  0.29      0.27       0.12
Effect of
merger-related       -            -          -          0.01       0.06
costs, after-tax
Operating earnings   $       $      $      $      $     
per share             0.29         0.27  0.29      0.28       0.18
                     Three Months Ended
                     December     September  June 30,   March 31,  December
                     31,          30,                              31,
                     2013         2013       2013       2013       2012
Average Balance
Sheet Data
Total equity         $         $       $         $         $   
                     191,486      188,179   192,284   190,564   168,115
Less preferred       41,997       41,997     41,997     41,999     32,109
equity
Total common equity  $         $       $         $         $   
                     149,489      146,182   150,287   148,565   136,006
Less intangible      50,548       50,819     51,291     51,873     31,663
assets
Tangible common      $        $      $        $        $   
equity               98,941       95,363    98,996    96,692    104,343
                     Three Months Ended
                     December     September  June 30,   March 31,  December
Core Net Interest    31,          30,                              31,
Margin                                       2013       2013
                     2013         2013                             2012
Net interest income  $        $      $        $        $    
(TE)                 19,834       19,486    20,079    18,761    14,006
Less purchase
accounting           (1,515)      (1,175)    (2,095)    (2,190)    (575)
adjustments
Net interest
income, net of       $        $      $        $        $    
purchase accounting  18,319       18,311    17,984    16,571    13,431
adjustments
Total average        $           $        $          $          $ 
earnings assets      1,678,382   1,678,923  1,654,767  1,651,946  1,264,203
Add average balance
of loan valuation    9,347        10,323     12,019     13,786     2,676
discount
Average earnings
assets, excluding    $           $        $          $          $ 
loan valuation       1,687,729   1,689,246  1,666,786  1,665,732  1,266,879
discount
Core net interest    4.31%        4.30%      4.33%      4.03%      4.21%
margin

 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. "Core net interest margin" is defined as
reported net interest margin less purchase accounting adjustments.
 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, 337.237.8343
 
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