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| UNITED      STATESSECURITIES      AND EXCHANGE COMMISSIONWASHINGTON,      D.C.  20549                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
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| FORM      10-Q                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
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| x        QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OFTHE                                                                                                             SECURITIES      EXCHANGE ACT OF 1934                                                                                                                  For the quarterly period ended September 30,      2008OR¨        TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF      THE                                                                                                                 SECURITIES EXCHANGE ACT OF 1934                                                                                                                 For the transition period from _____ to _____ |
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| COMMISSION      FILE NUMBER 1-11826MIDSOUTH BANCORP,      INC.(Exact      name of registrant as specified in its charter)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
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| Louisiana                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 72      –1020809 |
| (State      of other jurisdiction of incorporation or organization)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | (I.R.S.      Employer Identification No.) |
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|  102      Versailles Boulevard, Lafayette, Louisiana 70501 (Address      of principal executive offices, including zip code)(337)      237-8343(Registrant’s      telephone number, including area code)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
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| Indicate      by checkmark whether the registrant (1) has filed all reports required to      be filed by Section 13 or 15(d) of the Securities Exchange Act during the      preceding 12 months (or for such shorter period that the registrant was      required to file such reports), and (2) has been subject to such filing      requirements for the past 90 days.YES   þ   NO   ¨                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
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| Indicate      by check mark whether the registrant is a large accelerated filer, an      accelerated filer, a non-accelerated filer, or a smaller reporting      company.Large      accelerated filer ¨                                                      Accelerated      filer þ                                           Non-accelerated      filer ¨Smaller      reporting company ¨                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
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| Indicate      by check mark whether the registrant is a shell company (as defined in      Rule 12b-2 of the Act.)YES   ¨   NO   þ                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
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| As of October 31, 2008, there      were 6,788,884 shares of the registrant’s Common Stock, par value $0.10      per share, outstanding.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

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abl

Part I – Financial Information 

Item 1. Financial Statements. 

|   | Consolidated      Statements of Condition |
|--------|-------------------------------------------|

|   | Consolidated      Statements of Earnings (unaudited) |
|--------|------------------------------------------------------|

|   | Consolidated      Statement of Stockholders’ Equity(unaudited) |
|--------|----------------------------------------------------------------------|

|   | Consolidated      Statement of Stockholders’ Equity(unaudited) |
|--------|----------------------------------------------------------------------|

|   | Consolidated      Statements of Cash Flows(unaudited) |
|--------|-------------------------------------------------------|

|   | Notes      to Interim Consolidated FinancialStatements |
|--------|--------------------------------------------------------|

Item 2. Management’s Discussion and Analysis of FinancialCondition and Results of Operation. 

|   | Forward      Looking Statements |
|--------|---------------------------------|

|   | Critical      Accounting Policies |
|--------|-----------------------------------|

|   | Results      of Operations |
|--------|----------------------------|

|   | Liquidity |
|--------|-----------|

|   | Asset      Quality |
|--------|--------------------|

|   | Impact      of Inflation and Changing Prices |
|--------|----------------------------------------------|

Item 3. Quantitative and Qualitative Disclosures About MarketRisk. 

Item 4. Controls and Procedures. 

Part II – Other Information 

Item 1. Legal Proceedings. 

Item 1A. Risk Factors.

Item 2. Unregistered Sales of Equity Securities and Use ofProceeds. 

Item 3. Defaults Upon Senior Securities. 

Item 4. Submission of Matters to a Vote of SecurityHolders.

Item 5. Other Information. 

Item 6. Exhibits. 

Table ofContents

t 

Ite

|                                                                                                                                                                                                                            |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| MidSouth      Bancorp, Inc. and Subsidiaries                                                                                                                                                                                    |   |
| Consolidated      Statements of Condition                                                                                                                                                                                       |   |
|                                                                                                                                                                                                                            |   | September      30,2008(unaudited) |   |   | December      31, 2007(audited) |   |
| Assets                                                                                                                                                                                                                          |   |   |   |   |   |   |
| Cash      and due from banks                                                                                                                                                                                                    |   | $ | 28,838,897 |   |   | $ | 25,419,029 |   |
| Interest-bearing      deposits in other banks                                                                                                                                                                                   |   |   | 13,877 |   |   |   | 53,499 |   |
| Federal      funds sold                                                                                                                                                                                                         |   |   | 159 |   |   |   | 5,400,000 |   |
| Time      deposits in other banks                                                                                                                                                                                               |   |   | 15,000,000 |   |   |   | - |   |
| Securities      available-for-sale, at fair value (cost of $223,192,965 at September 30,      2008 and $180,220,461 at December 31, 2007)                                                                                       |   |   | 222,478,129 |   |   |   | 181,452,189 |   |
| Securities      held-to-maturity (estimated fair value of $7,670,347 at September 30, 2008      and $10,974,266 at December 31, 2007)                                                                                           |   |   | 7,533,922 |   |   |   | 10,745,947 |   |
| Other      investments                                                                                                                                                                                                          |   |   | 4,305,135 |   |   |   | 4,020,537 |   |
| Loans                                                                                                                                                                                                                           |   |   | 579,454,333 |   |   |   | 569,505,238 |   |
| Allowance      for loan losses                                                                                                                                                                                                  |   |   | (6,269,988 | ) |   |   | (5,611,582 | ) |
| Loans,      net of allowance                                                                                                                                                                                                    |   |   | 573,184,345 |   |   |   | 563,893,656 |   |
| Bank      premises and equipment, net                                                                                                                                                                                           |   |   | 40,348,665 |   |   |   | 39,229,018 |   |
| Accrued      interest receivable                                                                                                                                                                                                |   |   | 5,672,808 |   |   |   | 5,748,784 |   |
| Goodwill      and intangibles                                                                                                                                                                                                   |   |   | 9,636,812 |   |   |   | 9,759,295 |   |
| Cash      surrender value of life insurance                                                                                                                                                                                     |   |   | 4,339,616 |   |   |   | 4,219,117 |   |
| Other      assets                                                                                                                                                                                                               |   |   | 5,149,740 |   |   |   | 4,114,983 |   |
| Total      assets                                                                                                                                                                                                               |   | $ | 916,502,105 |   |   | $ | 854,056,054 |   |
|                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| Liabilities      and Stockholders’ Equity                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Liabilities:                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Deposits:                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |
| Non-interest      bearing                                                                                                                                                                                                       |   | $ | 190,769,539 |   |   | $ | 182,588,179 |   |
| Interest      bearing                                                                                                                                                                                                           |   |   | 580,341,492 |   |   |   | 550,928,818 |   |
| Total      deposits                                                                                                                                                                                                             |   |   | 771,111,031 |   |   |   | 733,516,997 |   |
| Borrowings                                                                                                                                                                                                                      |   |   | 54,041,628 |   |   |   | 30,716,572 |   |
| Accrued      interest payable                                                                                                                                                                                                   |   |   | 1,009,595 |   |   |   | 1,314,110 |   |
| Junior      subordinated debentures                                                                                                                                                                                             |   |   | 15,465,000 |   |   |   | 15,465,000 |   |
| Other      liabilities                                                                                                                                                                                                          |   |   | 4,371,280 |   |   |   | 4,574,495 |   |
| Total      liabilities                                                                                                                                                                                                          |   |   | 845,998,534 |   |   |   | 785,587,174 |   |
| Stockholders’      Equity:                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
|          Preferred stock, no par value; 5,000,000 shares authorized, none issued or      outstanding                                                                                                             |   |   | - |   |   |   | - |   |
|          Common stock, $0.10 par value- 10,000,000 shares authorized; 6,788,884 and      6,722,993 issued and 6,618,558 and 6,576,165 outstanding at September 30,      2008 and December 31, 2007, respectively |   |   | 678,888 |   |   |   | 672,299 |   |
| Capital      surplus                                                                                                                                                                                                            |   |   | 52,075,839 |   |   |   | 51,326,349 |   |
| Unearned      ESOP shares                                                                                                                                                                                                       |   |   | (45,401 | ) |   |   | (132,708 | ) |
| Accumulated      other comprehensive income                                                                                                                                                                                     |   |   | (471,792 | ) |   |   | 812,941 |   |
|          Treasury stock- 170,326 shares at September 30, 2008 and 146,828 shares at      December 31, 2007, at cost                                                                                              |   |   | (3,538,267 | ) |   |   | (3,040,489 | ) |
| Retained      earnings                                                                                                                                                                                                          |   |   | 21,804,304 |   |   |   | 18,830,488 |   |
| Total      stockholders’ equity                                                                                                                                                                                           |   |   | 70,503,571 |   |   |   | 68,468,880 |   |
| Total      liabilities and stockholders’ equity                                                                                                                                                                           |   | $ | 916,502,105 |   |   | $ | 854,056,054 |   |
|                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| See      notes to unaudited consolidated financial statements.                                                                                                                                                                  |   |   |   |   |   |   |   |   |

Table ofContents

|                                                           |   |
|----------------------------------------------------------------|--------|
| MidSouth      Bancorp, Inc. and Subsidiaries                   |   |
| Consolidated      Statements of Earnings (unaudited)           |   |
|                                                           |   | Three      Months Ended September 30, |   |   | Nine      Months Ended September 30, |   |
|                                                           |   | 2008 |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |
| Interest      income:                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans,      including fees                                     |   | $ | 11,101,597 |   |   | $ | 12,460,906 |   |   | $ | 34,309,815 |   |   | $ | 35,439,056 |   |
| Securities      and other investments                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                        |   |   | 1,346,749 |   |   |   | 1,046,379 |   |   |   | 3,536,537 |   |   |   | 3,082,751 |   |
| Nontaxable                                                     |   |   | 1,095,755 |   |   |   | 1,036,780 |   |   |   | 3,165,496 |   |   |   | 3,097,464 |   |
| Federal      funds sold                                        |   |   | 90,690 |   |   |   | 106,440 |   |   |   | 761,839 |   |   |   | 775,835 |   |
| Total      interest income                                     |   |   | 13,634,791 |   |   |   | 14,650,505 |   |   |   | 41,773,687 |   |   |   | 42,395,106 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      expense:                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                       |   |   | 3,016,349 |   |   |   | 4,430,762 |   |   |   | 11,024,387 |   |   |   | 13,713,330 |   |
| Borrowings                                                     |   |   | 265,700 |   |   |   | 452,492 |   |   |   | 661,363 |   |   |   | 645,195 |   |
| Junior subordinated      debentures                            |   |   | 296,628 |   |   |   | 350,281 |   |   |   | 918,746 |   |   |   | 1,044,174 |   |
| Total      interest expense                                    |   |   | 3,578,677 |   |   |   | 5,233,535 |   |   |   | 12,604,496 |   |   |   | 15,402,699 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest income                                       |   |   | 10,056,114 |   |   |   | 9,416,970 |   |   |   | 29,169,191 |   |   |   | 26,992,407 |   |
| Provision      for loan losses                                 |   |   | 500,000 |   |   |   | 300,000 |   |   |   | 2,555,000 |   |   |   | 650,000 |   |
| Net      interest income after provision for loan losses       |   |   | 9,556,114 |   |   |   | 9,116,970 |   |   |   | 26,614,191 |   |   |   | 26,342,407 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest      income:                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Service      charges on deposits                               |   |   | 2,760,878 |   |   |   | 2,449,769 |   |   |   | 7,693,315 |   |   |   | 7,245,344 |   |
| ATM      and debit card income                                 |   |   | 727,057 |   |   |   | 773,914 |   |   |   | 1,962,262 |   |   |   | 1,510,802 |   |
| Other      charges and fees                                    |   |   | 493,381 |   |   |   | 350,213 |   |   |   | 1,717,568 |   |   |   | 1,770,882 |   |
| Total      non-interest income                                 |   |   | 3,981,316 |   |   |   | 3,573,896 |   |   |   | 11,373,145 |   |   |   | 10,527,028 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest      expenses:                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries      and employee benefits                            |   |   | 5,394,706 |   |   |   | 5,215,368 |   |   |   | 15,771,956 |   |   |   | 14,716,502 |   |
| Occupancy      expense                                         |   |   | 2,282,969 |   |   |   | 1,760,542 |   |   |   | 6,280,926 |   |   |   | 4,947,729 |   |
| Other                                                          |   |   | 3,557,888 |   |   |   | 2,765,900 |   |   |   | 10,569,552 |   |   |   | 8,402,045 |   |
| Total      non-interest expenses                               |   |   | 11,235,563 |   |   |   | 9,741,810 |   |   |   | 32,622,434 |   |   |   | 28,066,276 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      before income taxes                                |   |   | 2,301,867 |   |   |   | 2,949,056 |   |   |   | 5,364,902 |   |   |   | 8,803,159 |   |
| Provision      for income taxes                                |   |   | 445,356 |   |   |   | 508,445 |   |   |   | 891,434 |   |   |   | 1,921,406 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      earnings                                              |   | $ | 1,856,511 |   |   | $ | 2,440,611 |   |   | $ | 4,473,468 |   |   | $ | 6,881,753 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings      per share:                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                          |   | $ | 0.28 |   |   | $ | 0.37 |   |   | $ | 0.68 |   |   | $ | 1.05 |   |
| Diluted                                                        |   | $ | 0.28 |   |   | $ | 0.37 |   |   | $ | 0.67 |   |   | $ | 1.04 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See      notes to unaudited consolidated financial statements. |   |

Table ofContents

|                                                                                |   |
|-------------------------------------------------------------------------------------|--------|
| MidSouth      Bancorp, Inc. and Subsidiaries                                        |   |
| Consolidated      Statement of Stockholders’ Equity (unaudited)               |   |
| For      the Nine Months Ended September 30, 2008                                   |   |
|                                                                                |   | Common      Stock |   |   |  Capital |   |   |  Unearned      ESOP |   |   |  Accumulated Other Comprehensive |   |   |  Treasury |   |   |  Retained |   |   |   |   |
|                                                                                |   | Shares |   |   | Amount |   |   | Surplus |   |   | Shares |   |   | Income |   |   | Stock |   |   |  Earnings |   |   | Total |   |
| Balance-      January 1, 2008                                                       |   |   | 6,722,993 |   |   | $ | 672,299 |   |   | $ | 51,326,349 |   |   | $ | (132,708 | ) |   | $ | 812,941 |   |   | $ | (3,040,489 | ) |   | $ | 18,830,488 |   |   | $ | 68,468,880 |   |
| Cumulative-effect      adjustment for the adoption of EITF 06-4                     |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (114,954 | ) |   |   | (114,954 | ) |
| Net      earnings                                                                   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,473,468 |   |   |   | 4,473,468 |   |
| Comprehensive      income:                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net change in unrealized losses      on securities available-for-sale, net of taxes |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,284,733 | ) |   |   | - |   |   |   | - |   |   |   | (1,284,733 | ) |
| Comprehensive      income                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 3,188,735 |   |
| Cash      dividends on common stock, $0.21 per share                                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,384,698 | ) |   |   | (1,384,698 | ) |
| Exercise      of stock options                                                      |   |   | 65,891 |   |   |   | 6,589 |   |   |   | 469,383 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 475,972 |   |
| Tax      benefit resulting from exercise of stock options                           |   |   | - |   |   |   | - |   |   |   | 204,032 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 204,032 |   |
| Purchase      of treasury stock                                                     |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (497,778 | ) |   |   | - |   |   |   | (497,778 | ) |
| ESOP      compensation expense                                                      |   |   | - |   |   |   | - |   |   |   | 24,500 |   |   |   | 87,307 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 111,807 |   |
| Stock      option expense                                                           |   |   | - |   |   |   | - |   |   |   | 51,575 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 51,575 |   |
| Balance-      September 30, 2008                                                    |   |   | 6,788,884 |   |   | $ | 678,888 |   |   | $ | 52,075,839 |   |   | $ | (45,401 | ) |   | $ | (471,792 | ) |   | $ | (3,538,267 | ) |   | $ | 21,804,304 |   |   | $ | 70,503,571 |   |
|                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See      notes to unaudited consolidated financial statements.                      |   |

Table ofContents

|                                                                                |   |
|-------------------------------------------------------------------------------------|--------|
| MidSouth      Bancorp, Inc. and Subsidiaries                                        |   |
| Consolidated      Statement of Stockholders’ Equity (unaudited)               |   |
| For      the Nine Months Ended September 30, 2007                                   |   |
|                                                                                |   | Common      Stock |   |   |  Capital |   |   |  Unearned  ESOP |   |   |  Accumulated Other Comprehensive |   |   |  Treasury |   |   |  Retained |   |   |   |   |
|                                                                                |   | Shares |   |   | Amount |   |   | Surplus |   |   | Shares |   |   | Income |   |   |  Stock |   |   | Earnings |   |   | Total |   |
| Balance-      January 1, 2007                                                       |   |   | 6,355,946 |   |   | $ | 635,595 |   |   | $ | 42,907,597 |   |   | $ | (251,259 | ) |   | $ | (858,133 | ) |   | $ | (2,518,411 | ) |   | $ | 19,828,087 |   |   | $ | 59,743,476 |   |
| Net      earnings                                                                   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 6,881,753 |   |   |   | 6,881,753 |   |
| Comprehensive      income:                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net change in unrealized losses      on securities available-for-sale, net of taxes |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 576,289 |   |   |   | - |   |   |   | - |   |   |   | 576,289 |   |
| Comprehensive      income                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 7,458,042 |   |
| Cash      dividends on common stock, $0.18 per share                                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,189,986 | ) |   |   | (1,189,986 | ) |
| Stock      dividend of 5% per common share                                          |   |   | 320,168 |   |   |   | 32,017 |   |   |   | 7,821,698 |   |   |   | - |   |   |   |   |   |   |   | - |   |   |   | (7,853,715 | ) |   |   | - |   |
| Exercise      of stock options                                                      |   |   | 47,409 |   |   |   | 4,741 |   |   |   | 266,001 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 270,742 |   |
| Tax      benefit resulting from exercise of stock options                           |   |   | - |   |   |   | - |   |   |   | 137,716 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 137,716 |   |
| Purchase      of treasury stock                                                     |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (381,251 | ) |   |   | - |   |   |   | (381,251 | ) |
| ESOP      compensation expense                                                      |   |   | - |   |   |   | - |   |   |   | 86,250 |   |   |   | 88,202 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 174,452 |   |
| Stock      option expense                                                           |   |   | - |   |   |   | - |   |   |   | 73,647 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 73,647 |   |
| Balance-      September 30, 2007                                                    |   |   | 6,723,523 |   |   | $ | 672,353 |   |   | $ | 51,292,909 |   |   | $ | (163,057 | ) |   | $ | (281,844 | ) |   | $ | (2,899,662 | ) |   | $ | 17,666,139 |   |   | $ | 66,286,838 |   |
|                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See      notes to unaudited consolidated financial statements.                      |   |

Table ofContents

|                                                                                          |   |
|-----------------------------------------------------------------------------------------------|--------|
| MidSouth      Bancorp, Inc. and Subsidiaries                                                  |   |
| Consolidated      Statements of Cash Flows (unaudited)                                        |   |
|                                                                                          |   | For      the Nine Months Ended September 30, |   |
|                                                                                          |   | 2008 |   |   | 2007 |   |
| Cash      flows from operating activities:                                                    |   |   |   |   |   |   |
| Net      earnings                                                                             |   | $ | 4,473,468 |   |   | $ | 6,881,753 |   |
| Adjustments      to reconcile net earnings to net cash provided by operating      activities: |   |   |   |   |   |   |   |   |
| Depreciation      and amortization                                                            |   |   | 2,461,255 |   |   |   | 2,070,223 |   |
| Provision      for loan losses                                                                |   |   | 2,555,000 |   |   |   | 650,000 |   |
| Deferred      income tax benefit                                                              |   |   | 472,707 |   |   |   | 497,784 |   |
| Amortization      of premiums on securities, net                                              |   |   | 270,955 |   |   |   | 449,973 |   |
| Net      loss on sale of premises and equipment                                               |   |   | 189,571 |   |   |   | 27,510 |   |
| Net      loss on sale of other real estate owned                                              |   |   | - |   |   |   | 27,533 |   |
| Impairment      on premises and equipment                                                     |   |   | - |   |   |   | (20,706 | ) |
| Stock      option compensation expense                                                        |   |   | 51,575 |   |   |   | 73,647 |   |
| Change      in accrued interest receivable                                                    |   |   | 75,976 |   |   |   | (323,389 | ) |
| Change      in accrued interest payable                                                       |   |   | (304,515 | ) |   |   | (106,271 | ) |
| Other,      net                                                                               |   |   | (495,976 | ) |   |   | 932,460 |   |
| Net      cash provided by operating activities                                                |   |   | 9,750,016 |   |   |   | 11,160,517 |   |
|                                                                                          |   |   |   |   |   |   |   |   |
| Cash      flows from investing activities:                                                    |   |   |   |   |   |   |   |   |
| Net      increase in interest earning deposits in other banks                                 |   |   | (15,000,000 | ) |   |   | - |   |
| Proceeds      from maturities and calls of securities available-for-sale                      |   |   | 43,961,177 |   |   |   | 21,966,866 |   |
| Proceeds      from maturities and calls of securities held-to-maturity                        |   |   | 3,218,725 |   |   |   | 4,395,500 |   |
| Proceeds      from other investments                                                          |   |   | 1,468,900 |   |   |   | - |   |
| Purchases      of securities available-for-sale                                               |   |   | (87,208,994 | ) |   |   | (22,600,250 | ) |
| Purchases      of other investments                                                           |   |   | (1,755,840 | ) |   |   | (2,655,225 | ) |
| Loan      originations, net of repayments                                                     |   |   | (12,257,899 | ) |   |   | (54,494,614 | ) |
| Purchase      of premises and equipment                                                       |   |   | (3,657,631 | ) |   |   | (7,818,016 | ) |
| Proceeds      from sale of premises and equipment                                             |   |   | 9,641 |   |   |   | 57,085 |   |
| Proceeds      from sales of other real estate owned                                           |   |   | - |   |   |   | 448,522 |   |
| Net      cash used in investing activities                                                    |   |   | (71,221,921 | ) |   |   | (60,700,132 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |
| Cash      flows from financing activities:                                                    |   |   |   |   |   |   |   |   |
| Change      in deposits                                                                       |   |   | 37,594,034 |   |   |   | (1,825,575 | ) |
| Change      in repurchase agreements                                                          |   |   | 10,343,056 |   |   |   | 14,541,074 |   |
| Change      in federal funds purchased                                                        |   |   | 500,000 |   |   |   | 5,000,000 |   |
| Proceeds      from FHLB advances                                                              |   |   | 19,100,000 |   |   |   | 260,508,500 |   |
| Repayments      of FHLB advances                                                              |   |   | (23,500,000 | ) |   |   | (253,828,500 | ) |
| Proceeds      from Federal Reserve Bank discount window                                       |   |   | 50,672,000 |   |   |   | - |   |
| Repayments      of Federal Reserve Bank discount window                                       |   |   | (33,790,000 | ) |   |   | - |   |
| Purchase      of treasury stock                                                               |   |   | (497,778 | ) |   |   | (381,251 | ) |
| Payment      of dividends on common stock                                                     |   |   | (1,649,006 | ) |   |   | (1,313,787 | ) |
| Proceeds      from exercise of stock options                                                  |   |   | 475,972 |   |   |   | 270,742 |   |
| Excess      tax benefit from stock option exercises                                           |   |   | 204,032 |   |   |   | 137,716 |   |
| Net      cash provided by financing activities                                                |   |   | 59,452,310 |   |   |   | 23,108,919 |   |
|                                                                                          |   |   |   |   |   |   |   |   |
| Net      decrease in cash and cash equivalents                                                |   |   | (2,019,595 | ) |   |   | (26,430,696 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |
| Cash      and cash equivalents, beginning of period                                           |   |   | 30,872,528 |   |   |   | 57,404,341 |   |
|                                                                                          |   |   |   |   |   |   |   |   |
| Cash      and cash equivalents, end of period                                                 |   | $ | 28,852,933 |   |   | $ | 30,973,645 |   |
|                                                                                          |   |   |   |   |   |   |   |   |
| See      notes to unaudited consolidated financial statements.                                |   |   |   |   |   |   |   |   |

Table ofContents

| MidSouth      Bancorp, Inc. and Subsidiaries            |
|---------------------------------------------------------|
| Notes      to Interim Consolidated Financial Statements |
| September      30, 2008                                 |
| (Unaudited)                                             |

Table ofContents

|                              |   | Three      Months Ended September 30, |   |   | Nine      Months Ended September 30, |   |
|-----------------------------------|--------|--------------------------------------------|--------|--------|--------------------------------------|--------|
|                              |   | 2008                                       |   |   | 2007                                 |   |   | 2008 |   |   | 2007 |   |
| Balance,      beginning of period |   | $                                          | 6,286  |   |                                 | $      | 5,182 |   |   | $ | 5,612 |   |   | $ | 4,977 |   |
| Provision      for loan losses    |   |                                       | 500    |   |                                 |   | 300 |   |   |   | 2,555 |   |   |   | 650 |   |
| Recoveries                        |   |                                       | 39     |   |                                 |   | 36 |   |   |   | 125 |   |   |   | 78 |   |
| Loans      charged-off            |   |                                       | (555   | )      |                                 |   | (221 | ) |   |   | (1,873 | ) |   |   | (408 | ) |
| Reclassifications                 |   |                                       | -      |   |                                 |   | - |   |   |   | (149 | ) |   |   | - |   |
| Balance,      end of period       |   | $                                          | 6,270  |   |                                 | $      | 5,297 |   |   | $ | 6,270 |   |   | $ | 5,297 |   |

|                                                                                                                                                           |   | Three      Months Ended September 30, |   |   | Nine      Months Ended September 30, |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|--------|--------------------------------------|--------|
|                                                                                                                                                           |   | 2008                                  |   |   | 2007                                 |   |   | 2008 |   |   | 2007 |   |
| Net      earnings                                                                                                                                              |   | $                                     | 1,857  |   |                                 | $      | 2,441 |   |   | $ | 4,473 |   |   | $ | 6,881 |   |
| Weighted      average number of common shares outstanding used in computation of basic      earnings per common share                                          |   |                                  | 6,614  |   |                                 |   | 6,573 |   |   |   | 6,604 |   |   |   | 6,568 |   |
|  Effect      of dilutive securities:                                                                                                                      |   |                                  |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Stock options                                                                                                                                                  |   |                                  | 22     |   |                                 |   | 65 |   |   |   | 23 |   |   |   | 71 |   |
| Weighted      average number of common shares outstanding plus effect of dilutive      securities – used in computation of diluted earnings per    share |   |                                  | 6,636  |   |                                 |   | 6,638 |   |   |   | 6,627 |   |   |   | 6,639 |   |

Table of Contents

|                               |   |  Total      Carrying Amount in Statement of Condition at September 30, |    |   |  Assets      / Liabilities Measured at Fair Value at September 30, |   |    | Fair      Value Measurements at September 30, 2008 using: |   |
|------------------------------------|--------|-----------------------------------------------------------------------------|---------|--------|-------------------------------------------------------------------------|--------|---------|-----------------------------------------------------------|--------|
| Description                        |   | 2008                                                                        |    |   | 2008                                                                    |   |    | Level      1                                              |   |   | Level      2 |   |   | Level      3 |   |
| Available-for-sale      securities |   | $                                                                           | 222,478 |   |                                                                    | $      | 222,478 |                                                      |   | $ | 135 |   |   | $ | 222,343 |   |   | $ | - |   |

|                                                |   | September      30, 2008 |   |   | December      31, 2007 |   |
|-----------------------------------------------------|--------|-------------------------|--------|--------|------------------------|--------|
| Securities      sold under agreements to repurchase |   | $                       | 36,660 |   |                   | $      | 26,317 |   |
| Federal      funds purchased                        |   |                    | 500    |   |                   |   | - |   |
| Federal      Reserve Bank Discount Window           |   |                    | 16,882 |   |                   |   | - |   |
| FHLB      Advances                                  |   |                    | -      |   |                   |   | 4,400 |   |
|                                                |   | $                       | 54,042 |   |                   | $      | 30,717 |   |

Table ofContents

e

|   | · | changes      in interest rates and market prices that could affect the net interest      margin, asset valuation, and expenselevels; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | · | changes      in local economic and business conditions that could adversely affect      customers and their ability to repay borrowings under agreed upon terms      and/or adversely affect the value of the underlying collateral related to      the borrowings; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | increased      competition for deposits and loans that could affect rates and      terms; |
|--------|--------|-------------------------------------------------------------------------------------------|

|   | · | changes      in the levels of prepayments received on loans and investment securities      that adversely affect the yield and value of the earning      assets; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a      deviation in actual experience from the underlying assumptions used to      determine and establish the Allowance for Loan Losses    (“ALL”); |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | changes      in the availability of funds resulting from reduced liquidity or increased      costs; |
|--------|--------|-----------------------------------------------------------------------------------------------------|

|   | · | the      timing and impact of future acquisitions, the success or failure of      integrating operations, and the ability to capitalize on growth      opportunities upon entering newmarkets; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the      ability to acquire, operate, and maintain effective and efficient      operating systems; |
|--------|--------|----------------------------------------------------------------------------------------------------|

|   | · | increased      asset levels and changes in the composition of assets that would impact      capital levels and regulatory capitalratios; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | loss      of critical personnel and the challenge of hiring qualified personnel at      reasonable compensation levels; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------|

|   | · | changes      in government regulations and accounting principles, policies, and      guidelines applicable to financial holding companies and banking;      and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | acts      of terrorism, weather, or other events beyond the Company’s      control. |
|--------|--------|-------------------------------------------------------------------------------------------|

Table ofContents

|                                                                      |   |
|---------------------------------------------------------------------------|--------|
| Table      1                                                              |   |
| Consolidated      Average Balances, Interest and Rates(in      thousands) |   |
|                                                                      |   | Three      Months Ended September 30, |   |
|                                                                      |   | 2008 |   |   | 2007 |   |
|                                                                      |   | AverageVolume |   |   | Interest |   |   | AverageYield/Rate |   |   | AverageVolume |   |   | Interest |   |   | AverageYield/Rate |   |
| Assets                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment      securities1                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                                   |   | $ | 108,346 |   |   | $ | 1,182 |   |   |   | 4.36 | % |   | $ | 86,972 |   |   | $ | 1,044 |   |   |   | 4.80 | % |
| Tax      exempt2                                                          |   |   | 115,660 |   |   |   | 1,551 |   |   |   | 5.36 | % |   |   | 110,262 |   |   |   | 1,467 |   |   |   | 5.32 | % |
| Other      investments                                                    |   |   | 4,403 |   |   |   | 39 |   |   |   | 3.54 | % |   |   | 4,667 |   |   |   | 59 |   |   |   | 5.06 | % |
| Total      investments                                                    |   |   | 228,409 |   |   |   | 2,772 |   |   |   | 4.85 | % |   |   | 201,901 |   |   |   | 2,570 |   |   |   | 5.09 | % |
| Federal      funds sold                                                   |   |   | 9,882 |   |   |   | 49 |   |   |   | 1.94 | % |   |   | 3,705 |   |   |   | 47 |   |   |   | 4.96 | % |
| Loans                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial      and real estate                                           |   |   | 457,841 |   |   |   | 8,557 |   |   |   | 7.44 | % |   |   | 439,089 |   |   |   | 10,079 |   |   |   | 9.11 | % |
| Installment                                                               |   |   | 114,834 |   |   |   | 2,544 |   |   |   | 8.81 | % |   |   | 112,251 |   |   |   | 2,382 |   |   |   | 8.42 | % |
| Total      loans3                                                         |   |   | 572,675 |   |   |   | 11,101 |   |   |   | 7.71 | % |   |   | 551,340 |   |   |   | 12,461 |   |   |   | 8.97 | % |
| Other      earning assets                                                 |   |   | 22,844 |   |   |   | 168 |   |   |   | 2.93 | % |   |   | 91 |   |   |   | 2 |   |   |   | 8.72 | % |
| Total      earning assets                                                 |   |   | 833,810 |   |   |   | 14,090 |   |   |   | 6.72 | % |   |   | 757,037 |   |   |   | 15,080 |   |   |   | 7.90 | % |
| Allowance      for loan losses                                            |   |   | (6,220 | ) |   |   |   |   |   |   |   |   |   |   | (5,138 | ) |   |   |   |   |   |   |   |   |
| Nonearning      assets                                                    |   |   | 89,038 |   |   |   |   |   |   |   |   |   |   |   | 79,479 |   |   |   |   |   |   |   |   |   |
| Total      assets                                                         |   | $ | 916,628 |   |   |   |   |   |   |   |   |   |   | $ | 831,378 |   |   |   |   |   |   |   |   |   |
|                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities      and stockholders’ equity                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW,      money market, and savings                                       |   | $ | 445,431 |   |   | $ | 1,580 |   |   |   | 1.41 | % |   | $ | 417,022 |   |   | $ | 3,169 |   |   |   | 3.01 | % |
| Certificates      of deposits                                             |   |   | 141,622 |   |   |   | 1,436 |   |   |   | 4.03 | % |   |   | 117,588 |   |   |   | 1,262 |   |   |   | 4.26 | % |
| Total      interest-bearing deposits                                      |   |   | 587,053 |   |   |   | 3,016 |   |   |   | 2.04 | % |   |   | 534,610 |   |   |   | 4,431 |   |   |   | 3.29 | % |
| Securities      sold under repurchase agreements                          |   |   | 38,712 |   |   |   | 210 |   |   |   | 2.12 | % |   |   | 13,403 |   |   |   | 149 |   |   |   | 4.35 | % |
| Federal      funds purchased                                              |   |   | 5,738 |   |   |   | 40 |   |   |   | 2.73 | % |   |   | 501 |   |   |   | 7 |   |   |   | 5.47 | % |
| Federal      Home Loan Bank advances4                                     |   |   | 5 |   |   |   | - |   |   |   | 2.52 | % |   |   | 22,720 |   |   |   | 297 |   |   |   | 5.12 | % |
| Federal      Reserve Discount window                                      |   |   | 2,753 |   |   |   | 16 |   |   |   | 2.27 | % |   |   | - |   |   |   | - |   |   |   | - |   |
| Total      borrowings                                                     |   |   | 47,208 |   |   |   | 266 |   |   |   | 2.20 | % |   |   | 36,624 |   |   |   | 453 |   |   |   | 4.84 | % |
| Junior      subordinated debentures                                       |   |   | 15,465 |   |   |   | 297 |   |   |   | 7.51 | % |   |   | 15,465 |   |   |   | 350 |   |   |   | 8.86 | % |
| Total      interest-bearing liabilities                                   |   |   | 649,726 |   |   |   | 3,579 |   |   |   | 2.19 | % |   |   | 586,699 |   |   |   | 5,234 |   |   |   | 3.54 | % |
| Demand      deposits                                                      |   |   | 189,904 |   |   |   |   |   |   |   |   |   |   |   | 176,893 |   |   |   |   |   |   |   |   |   |
| Other      liabilities                                                    |   |   | 5,231 |   |   |   |   |   |   |   |   |   |   |   | 4,023 |   |   |   |   |   |   |   |   |   |
| Stockholders’      equity                                           |   |   | 71,767 |   |   |   |   |   |   |   |   |   |   |   | 63,763 |   |   |   |   |   |   |   |   |   |
| Total      liabilities and stockholders’ equity                     |   | $ | 916,628 |   |   |   |   |   |   |   |   |   |   | $ | 831,378 |   |   |   |   |   |   |   |   |   |
|                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest income and net interest spread                          |   |   |   |   |   | $ | 10,511 |   |   |   | 4.53 | % |   |   |   |   |   | $ | 9,846 |   |   |   | 4.36 | % |
| Net      yield on interest earning assets                                 |   |   |   |   |   |   |   |   |   |   | 5.01 | % |   |   |   |   |   |   |   |   |   |   | 5.16 | % |

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Table ofContents

|                                                                      |   |
|---------------------------------------------------------------------------|--------|
| Table      2                                                              |   |
| Consolidated      Average Balances, Interest and Rates(in      thousands) |   |
|                                                                      |   | Nine      Months Ended September 30, |   |
|                                                                      |   | 2008 |   |   | 2007 |   |
|                                                                      |   | AverageVolume |   |   | Interest |   |   | AverageYield/Rate |   |   | AverageVolume |   |   | Interest |   |   | AverageYield/Rate |   |
| Assets                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment      securities5                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                                   |   | $ | 94,162 |   |   | $ | 3,182 |   |   |   | 4.51 | % |   | $ | 86,910 |   |   | $ | 3,079 |   |   |   | 4.72 | % |
| Tax      exempt6                                                          |   |   | 110,480 |   |   |   | 4,482 |   |   |   | 5.41 | % |   |   | 110,577 |   |   |   | 4,379 |   |   |   | 5.28 | % |
| Other      investments                                                    |   |   | 4,128 |   |   |   | 105 |   |   |   | 3.39 | % |   |   | 3,249 |   |   |   | 103 |   |   |   | 4.23 | % |
| Total      investments                                                    |   |   | 208,770 |   |   |   | 7,769 |   |   |   | 4.96 | % |   |   | 200,736 |   |   |   | 7,561 |   |   |   | 5.02 | % |
| Federal      funds sold                                                   |   |   | 37,709 |   |   |   | 657 |   |   |   | 2.29 | % |   |   | 17,338 |   |   |   | 672 |   |   |   | 5.11 | % |
| Loans                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial      and real estate                                           |   |   | 455,165 |   |   |   | 26,729 |   |   |   | 7.84 | % |   |   | 418,046 |   |   |   | 28,280 |   |   |   | 9.04 | % |
| Installment                                                               |   |   | 113,345 |   |   |   | 7,581 |   |   |   | 8.93 | % |   |   | 108,283 |   |   |   | 7,159 |   |   |   | 8.84 | % |
| Total      loans7                                                         |   |   | 568,510 |   |   |   | 34,310 |   |   |   | 8.06 | % |   |   | 526,329 |   |   |   | 35,439 |   |   |   | 9.00 | % |
| Other      earning assets                                                 |   |   | 17,489 |   |   |   | 355 |   |   |   | 2.71 | % |   |   | 70 |   |   |   | 4 |   |   |   | 7.64 | % |
| Total      earning assets                                                 |   |   | 832,478 |   |   |   | 43,091 |   |   |   | 6.91 | % |   |   | 744,473 |   |   |   | 43,676 |   |   |   | 7.84 | % |
| Allowance      for loan losses                                            |   |   | (5,841 | ) |   |   |   |   |   |   |   |   |   |   | (4,999 | ) |   |   |   |   |   |   |   |   |
| Nonearning      assets                                                    |   |   | 89,723 |   |   |   |   |   |   |   |   |   |   |   | 77,754 |   |   |   |   |   |   |   |   |   |
| Total      assets                                                         |   | $ | 916,360 |   |   |   |   |   |   |   |   |   |   | $ | 817,228 |   |   |   |   |   |   |   |   |   |
|                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities      and stockholders’ equity                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW,      money market, and savings                                       |   | $ | 462,974 |   |   | $ | 6,535 |   |   |   | 1.89 | % |   | $ | 420,962 |   |   | $ | 10,008 |   |   |   | 3.18 | % |
| Certificates      of deposits                                             |   |   | 142,178 |   |   |   | 4,489 |   |   |   | 4.22 | % |   |   | 119,512 |   |   |   | 3,705 |   |   |   | 4.14 | % |
| Total      interest-bearing deposits                                      |   |   | 605,152 |   |   |   | 11,024 |   |   |   | 2.43 | % |   |   | 540,474 |   |   |   | 13,713 |   |   |   | 3.39 | % |
| Securities      sold under repurchase agreements                          |   |   | 32,896 |   |   |   | 587 |   |   |   | 2.34 | % |   |   | 7,690 |   |   |   | 257 |   |   |   | 4.41 | % |
| Federal      funds purchased                                              |   |   | 1,941 |   |   |   | 41 |   |   |   | 2.78 | % |   |   | 1,086 |   |   |   | 46 |   |   |   | 5.59 | % |
| Federal      Home Loan Bank advances                                      |   |   | 604 |   |   |   | 18 |   |   |   | 3.92 | % |   |   | 8,637 |   |   |   | 342 |   |   |   | 5.22 | % |
| Federal      Reserve Discount Window                                      |   |   | 924 |   |   |   | 16 |   |   |   | 2.28 | % |   |   | - |   |   |   | - |   |   |   | - |   |
| Total      borrowings                                                     |   |   | 36,365 |   |   |   | 662 |   |   |   | 2.39 | % |   |   | 17,413 |   |   |   | 645 |   |   |   | 4.88 | % |
| Junior      subordinated debentures                                       |   |   | 15,465 |   |   |   | 919 |   |   |   | 7.81 | % |   |   | 15,465 |   |   |   | 1,045 |   |   |   | 8.91 | % |
| Total      interest-bearing liabilities                                   |   |   | 656,982 |   |   |   | 12,605 |   |   |   | 2.56 | % |   |   | 573,352 |   |   |   | 15,403 |   |   |   | 3.59 | % |
| Demand      deposits                                                      |   |   | 182,546 |   |   |   |   |   |   |   |   |   |   |   | 177,635 |   |   |   |   |   |   |   |   |   |
| Other      liabilities                                                    |   |   | 5,304 |   |   |   |   |   |   |   |   |   |   |   | 4,038 |   |   |   |   |   |   |   |   |   |
| Stockholders’      equity                                           |   |   | 71,528 |   |   |   |   |   |   |   |   |   |   |   | 62,203 |   |   |   |   |   |   |   |   |   |
| Total      liabilities and stockholders’ equity                     |   | $ | 916,360 |   |   |   |   |   |   |   |   |   |   | $ | 817,228 |   |   |   |   |   |   |   |   |   |
|                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest income and net interest spread                          |   |   |   |   |   | $ | 30,486 |   |   |   | 4.35 | % |   |   |   |   |   | $ | 28,273 |   |   |   | 4.25 | % |
| Net      yield on interest earning assets                                 |   |   |   |   |   |   |   |   |   |   | 4.89 | % |   |   |   |   |   |   |   |   |   |   | 5.08 | % |

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Table ofContents

|                                                                                  |   |
|---------------------------------------------------------------------------------------|--------|
| Table      3Changes      in Taxable-Equivalent Net Interest Income(in      thousands) |   |
|                                                                                  |   | Three      Months EndedSeptember      30, 2008 Compared to September 30, 2007 |   |
|                                                                                  |   | TotalIncrease |   |   | ChangeAttributable      To |   |
|                                                                                  |   | (Decrease) |   |   | Volume |   |   | Rates |   |
| Taxable-equivalent      earned on:                                                    |   |   |   |   |   |   |   |   |   |
| Investment      securities                                                            |   |   |   |   |   |   |   |   |   |
| Taxable                                                                               |   | $ | 138 |   |   | $ | 239 |   |   | $ | (101 | ) |
| Tax      exempt                                                                       |   |   | 84 |   |   |   | 72 |   |   |   | 12 |   |
| Other      investments                                                                |   |   | (20 | ) |   |   | (3 | ) |   |   | (17 | ) |
| Federal      funds sold                                                               |   |   | 2 |   |   |   | 44 |   |   |   | (42 | ) |
| Loans,      including fees                                                            |   |   | (1,360 | ) |   |   | 467 |   |   |   | (1,827 | ) |
| Other      earning assets                                                             |   |   | 166 |   |   |   | 167 |   |   |   | (1 | ) |
| Total                                                                                 |   | $ | (990 | ) |   | $ | 986 |   |   | $ | (1,976 | ) |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      paid on:                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      deposits                                                        |   | $ | (1,415 | ) |   | $ | 400 |   |   | $ | (1,815 | ) |
| Borrowings                                                                            |   |   | (187 | ) |   |   | 25 |   |   |   | (212 | ) |
| Junior      subordinated debentures                                                   |   |   | (53 | ) |   |   | - |   |   |   | (53 | ) |
| Total                                                                                 |   | $ | (1,655 | ) |   | $ | 425 |   |   | $ | (2,080 | ) |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable-equivalent      net interest income                                           |   | $ | 665 |   |   | $ | 561 |   |   | $ | 104 |   |

|                                                                                  |   |
|---------------------------------------------------------------------------------------|--------|
| Table      4Changes      in Taxable-Equivalent Net Interest Income(in      thousands) |   |
|                                                                                  |   | Nine      Months EndedSeptember      30, 2008 Compared to September 30, 2007 |   |
|                                                                                  |   | TotalIncrease |   |   | ChangeAttributable      To |   |
|                                                                                  |   | (Decrease) |   |   | Volume |   |   | Rates |   |
| Taxable-equivalent      earned on:                                                    |   |   |   |   |   |   |   |   |   |
| Investment      securities                                                            |   |   |   |   |   |   |   |   |   |
| Taxable                                                                               |   | $ | 103 |   |   | $ | 249 |   |   | $ | (146 | ) |
| Tax      exempt                                                                       |   |   | 103 |   |   |   | (4 | ) |   |   | 107 |   |
| Other      investments                                                                |   |   | 2 |   |   |   | 25 |   |   |   | (23 | ) |
| Federal      funds sold                                                               |   |   | (15 | ) |   |   | 497 |   |   |   | (512 | ) |
| Loans,      including fees                                                            |   |   | (1,129 | ) |   |   | 2,712 |   |   |   | (3,841 | ) |
| Other      earning assets                                                             |   |   | 351 |   |   |   | 354 |   |   |   | (3 | ) |
| Total                                                                                 |   | $ | (585 | ) |   | $ | 3,833 |   |   | $ | (4,418 | ) |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      paid on:                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      deposits                                                        |   | $ | (2,689 | ) |   | $ | 1,503 |   |   | $ | (4,192 | ) |
| Borrowings                                                                            |   |   | 17 |   |   |   | 282 |   |   |   | (265 | ) |
| Junior      subordinated debentures                                                   |   |   | (126 | ) |   |   | - |   |   |   | (126 | ) |
| Total                                                                                 |   | $ | (2,798 | ) |   | $ | 1,785 |   |   | $ | (4,583 | ) |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable-equivalent      net interest income                                           |   | $ | 2,213 |   |   | $ | 2,048 |   |   | $ | 165 |   |

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|                                                           |   |
|----------------------------------------------------------------|--------|
| Table      5Composition      of Loans (in      thousands) |   |
|                                                           |   | September      30, 2008 |   |   | December      31, 20078 |   |
| Commercial,      financial, and agricultural                   |   | $ | 185,842 |   |   | $ | 190,946 |   |
| Lease      financing receivable                                |   |   | 5,239 |   |   |   | 8,089 |   |
| Real      estate – mortgage                              |   |   | 226,321 |   |   |   | 216,305 |   |
| Real      estate – construction                          |   |   | 69,570 |   |   |   | 65,448 |   |
| Installment      loans to individuals                          |   |   | 91,356 |   |   |   | 87,775 |   |
| Other                                                          |   |   | 1,126 |   |   |   | 942 |   |
| Total loans                                                    |   | $ | 579,454 |   |   | $ | 569,505 |   |

  

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|                                                                                         |   |
|----------------------------------------------------------------------------------------------|--------|
| Table      6Non-performing      Assets and Loans Past Due 90 Days or More(in      thousands) |   |
|                                                                                         |   | September      30,2008 |   |   | September      30,2007 |   |   | December      31,2007 |   |
| Nonaccrual      loans                                                                        |   | $ | 8,112 |   |   | $ | 1,084 |   |   | $ | 1,602 |   |
| Loans      past due 90 days and over                                                         |   |   | 1,189 |   |   |   | 510 |   |   |   | 980 |   |
| Total      non-performing loans                                                              |   |   | 9,301 |   |   |   | 1,594 |   |   |   | 2,582 |   |
| Other      real estate owned                                                                 |   |   | 643 |   |   |   | 143 |   |   |   | 143 |   |
| Other      foreclosed assets                                                                 |   |   | 453 |   |   |   | 134 |   |   |   | 280 |   |
| Total non-performing      assets                                                             |   | $ | 10,397 |   |   | $ | 1,871 |   |   | $ | 3,005 |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-performing      assets to total assets                                                   |   |   | 1.13 | % |   |   | 0.22 | % |   |   | 0.35 | % |
| Non-performing      assets to total loans + OREO + other foreclosed assets                   |   |   | 1.79 | % |   |   | 0.34 | % |   |   | 0.53 | % |
| ALL      to non-performing loans                                                             |   |   | 67.41 | % |   |   | 332.31 | % |   |   | 217.35 | % |
| ALL      to total loans                                                                      |   |   | 1.08 | % |   |   | 0.96 | % |   |   | 0.99 | % |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Year-to-date      charge-offs                                                                |   | $ | 1,872 |   |   | $ | 408 |   |   | $ | 626 |   |
| Year-to-date      recoveries                                                                 |   |   | 125 |   |   |   | 78 |   |   |   | 86 |   |
| Year-to-date      net charge-offs                                                            |   | $ | 1,747 |   |   | $ | 330 |   |   | $ | 540 |   |
| Annualized      net YTD charge-offs to total loans                                           |   |   | 0.61 | % |   |   | 0.08 | % |   |   | 0.09 | % |

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|                |   | Total      Numberof      Shares Purchased |   |   | Average      Price Paid per Share |   |   | Total      Number of Shares Purchased as Part of a Publicly Announced Plan9 |   |   | Maximum      Number of Shares That May Yet be Purchased Under the Plan9 |   |
|---------------------|--------|-------------------------------------------|--------|--------|-----------------------------------|--------|--------|-----------------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------|--------|
| July      2008      |   |                                      | -      |   |                              |   | -      |                                                                        |   |   | -                                                                       |   |   |   | 170,921 |   |
| August      2008    |   |                                      | 1,603  |   |                              | $      | 18.75  |                                                                        |   |   | 1,603                                                                   |   |   |   | 169,318 |   |
| September      2008 |   |                                      | 200    |   |                              | $      | 17.90  |                                                                        |   |   | 200                                                                     |   |   |   | 169,118 |   |

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| 31.1 | Certification      of Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a)      of the Securities Exchange Act, asamended |
|------|--------------------------------------------------------------------------------------------------------------------------------------------|

| 31.2 | Certification      of Chief Financial Officer pursuant to Rule 13a-14(a) and  Rule      15d-14(a) of the Securities Exchange Act, as  amended |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.1 | Certification      by the Company’s Chief Executive Officer pursuant to 18 U.S.C. Section      1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of      2002 |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.2 | Certification      by the Company’s Chief Financial Officer pursuant to 18 U.S.C. Section      1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of      2002 |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                              | MidSouth      Bancorp, Inc.(Registrant)                   |
|-----------------------------------|----------------------------------------------------------------|
|                              |                                                           |
| Date:  November 7, 2008 |                                                           |
|                              | /s/      C. R. Cloutier                                   |
|                              | C.      R. Cloutier, President /CEO                            |
|                              |                                                           |
|                              | /s/      J. E. Corrigan, Jr.                              |
|                              | J.      E. Corrigan, Jr., Senior Executive Vice  President/CFO |