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| xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THESECURITIES EXCHANGE ACT OF 1934For the quarterly period ended September 30, 2010OR¨TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THESECURITIES EXCHANGE ACT OF 1934For the transition period from _____ to _____ |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Louisiana                                                      | 72 –1020809                    |
|----------------------------------------------------------------|--------------------------------------|
| (State of other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |

| 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 of 1934 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   x   NO   ¨                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). YES   ¨   NO   ¨                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |
| Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a small reporting company.Large accelerated filer ¨                                                                Accelerated filer ¨                                   Non-accelerated filer x Small reporting company ¨ |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |
| Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.)YES   ¨   NO   x                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| As of November 8, 2010, there were 9,725,252 shares of the registrant’s Common Stock, par value $0.10 per share, outstanding.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

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Table of Contents

Part I – Financial Information 

Item 1. Financial Statements. 

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

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

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

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

|   | Notes to Interim Consolidated Financial Statements |
|--------|----------------------------------------------------|

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

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

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

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

|   | Analysis of Statement of Condition |
|--------|------------------------------------|

|   | Bank Liquidity |
|--------|----------------|

Item 3. Quantitative and Qualitative Disclosures About Market Risk. 

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 of Proceeds. 

Item 3. Defaults Upon Senior Securities.

Item 4. Removed and Reserved. 

Item 5. Other Information. 

Item 6. Exhibits. 

Part I

Item 1

| MidSouth Bancorp, Inc. and Subsidiaries                                                                                                                                                           |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Consolidated Statements of Condition(dollars in thousands, except share data)                                                                                                                     |   |
|                                                                                                                                                                                              |   | September 30,2010(unaudited) |   |   | December 31,2009*(audited) |   |
| Assets                                                                                                                                                                                            |   |   |   |   |   |   |
| Cash and due from banks, including required reserves of $4,006 and $3,460, respectively                                                                                                           |   | $ | 20,916 |   |   | $ | 22,842 |   |
| Interest-bearing deposits in banks                                                                                                                                                                |   |   | 28,857 |   |   |   | 509 |   |
| Federal funds sold                                                                                                                                                                                |   |   | 3,606 |   |   |   | - |   |
| Time deposits held in banks                                                                                                                                                                       |   |   | 5,060 |   |   |   | 26,122 |   |
| Securities available-for-sale, at fair value (cost of $264,821 at September 30, 2010 and $265,892 at December 31, 2009)                                                                           |   |   | 274,291 |   |   |   | 271,808 |   |
| Securities held-to-maturity (fair value of $1,617 at September 30, 2010 and $3,121 at December 31, 2009)                                                                                          |   |   | 1,588 |   |   |   | 3,043 |   |
| Other investments                                                                                                                                                                                 |   |   | 5,065 |   |   |   | 4,902 |   |
| Loans                                                                                                                                                                                             |   |   | 598,311 |   |   |   | 585,042 |   |
| Allowance for loan losses                                                                                                                                                                         |   |   | (8,446 | ) |   |   | (7,995 | ) |
| Loans, net                                                                                                                                                                                        |   |   | 589,865 |   |   |   | 577,047 |   |
| Bank premises and equipment, net                                                                                                                                                                  |   |   | 36,814 |   |   |   | 38,737 |   |
| Accrued interest receivable                                                                                                                                                                       |   |   | 4,989 |   |   |   | 4,808 |   |
| Goodwill and intangibles                                                                                                                                                                          |   |   | 9,406 |   |   |   | 9,483 |   |
| Cash surrender value of life insurance                                                                                                                                                            |   |   | 4,661 |   |   |   | 4,540 |   |
| Other assets                                                                                                                                                                                      |   |   | 7,711 |   |   |   | 8,301 |   |
| Total assets                                                                                                                                                                                      |   | $ | 992,829 |   |   | $ | 972,142 |   |
|                                                                                                                                                                                              |   |   |   |   |   |   |   |   |
| Liabilities and Stockholders’ Equity                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Liabilities:                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| Deposits:                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Non-interest-bearing                                                                                                                                                                              |   | $ | 195,496 |   |   | $ | 175,173 |   |
| Interest bearing                                                                                                                                                                                  |   |   | 584,110 |   |   |   | 598,112 |   |
| Total deposits                                                                                                                                                                                    |   |   | 779,606 |   |   |   | 773,285 |   |
| Securities sold under agreements to repurchase                                                                                                                                                    |   |   | 53,091 |   |   |   | 47,059 |   |
| Federal funds purchased                                                                                                                                                                           |   |   | - |   |   |   | 1,700 |   |
| Junior subordinated debentures                                                                                                                                                                    |   |   | 15,465 |   |   |   | 15,465 |   |
| Other liabilities                                                                                                                                                                                 |   |   | 6,970 |   |   |   | 5,356 |   |
| Total liabilities                                                                                                                                                                                 |   |   | 855,132 |   |   |   | 842,865 |   |
| Stockholders’ Equity:                                                                                                                                                                       |   |   |   |   |   |   |   |   |
| Preferred stock, no par value; 5,000,000 shares authorized, 20,000 shares issued and outstanding at September 30, 2010 and at December 31, 2009                                                   |   |   | 19,359 |   |   |   | 19,211 |   |
| Common stock, $0.10 par value; 30,000,000 shares authorized, 9,875,729 issued and 9,725,252 outstanding at September 30, 2010 and 9,488,933 issued and 9,318,268 outstanding at December 31, 2009 |   |   | 988 |   |   |   | 949 |   |
| Additional paid-in capital                                                                                                                                                                        |   |   | 89,823 |   |   |   | 85,263 |   |
| Unearned ESOP shares                                                                                                                                                                              |   |   | (133 | ) |   |   | (217 | ) |
| Accumulated other comprehensive income                                                                                                                                                            |   |   | 6,249 |   |   |   | 3,904 |   |
| Treasury stock – 150,477 shares at September 30, 2010 and 170,665 shares at December 31, 2009, at cost                                                                                      |   |   | (3,286 | ) |   |   | (3,544 | ) |
| Retained earnings                                                                                                                                                                                 |   |   | 24,697 |   |   |   | 23,711 |   |
| Total stockholders’ equity                                                                                                                                                                  |   |   | 137,697 |   |   |   | 129,277 |   |
| Total liabilities and stockholders’ equity                                                                                                                                                  |   | $ | 992,829 |   |   | $ | 972,142 |   |
|                                                                                                                                                                                              |   |   |   |   |   |   |   |   |
| See notes to unaudited consolidated financial statements.* Derived from audited financial statements.                                                                                             |   |   |   |   |   |   |   |   |

Table of Contents

| MidSouth Bancorp, Inc. and Subsidiaries                                              |   |
|--------------------------------------------------------------------------------------|--------|
| Consolidated Statements of Earnings (unaudited)(in thousands, except per share data) |   |
|                                                                                 |   | Three Months Ended September 30, |   |   | Nine Months Ended September 30, |   |
|                                                                                 |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Interest income:                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans, including fees                                                                |   | $ | 10,104 |   |   | $ | 10,426 |   |   | $ | 29,832 |   |   | $ | 31,119 |   |
| Securities and other investments:                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                                              |   |   | 925 |   |   |   | 898 |   |   |   | 2,816 |   |   |   | 3,046 |   |
| Nontaxable                                                                           |   |   | 986 |   |   |   | 1,068 |   |   |   | 3,009 |   |   |   | 3,305 |   |
| Federal funds sold                                                                   |   |   | 3 |   |   |   | 10 |   |   |   | 4 |   |   |   | 29 |   |
| Time deposits in other banks                                                         |   |   | 46 |   |   |   | 56 |   |   |   | 182 |   |   |   | 187 |   |
| Other investments and interest bearing deposits                                      |   |   | 56 |   |   |   | 40 |   |   |   | 145 |   |   |   | 102 |   |
| Total interest income                                                                |   |   | 12,120 |   |   |   | 12,498 |   |   |   | 35,988 |   |   |   | 37,788 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense:                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                             |   |   | 1,325 |   |   |   | 2,014 |   |   |   | 4,316 |   |   |   | 6,228 |   |
| Securities sold under agreements to repurchase                                       |   |   | 249 |   |   |   | 303 |   |   |   | 713 |   |   |   | 775 |   |
| Federal funds purchased                                                              |   |   | - |   |   |   | - |   |   |   | 2 |   |   |   | 5 |   |
| Other borrowed money                                                                 |   |   | - |   |   |   | - |   |   |   | 3 |   |   |   | 23 |   |
| Junior subordinated debentures                                                       |   |   | 247 |   |   |   | 249 |   |   |   | 731 |   |   |   | 777 |   |
| Total interest expense                                                               |   |   | 1,821 |   |   |   | 2,566 |   |   |   | 5,765 |   |   |   | 7,808 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                                                  |   |   | 10,299 |   |   |   | 9,932 |   |   |   | 30,223 |   |   |   | 29,980 |   |
| Provision for loan losses                                                            |   |   | 1,500 |   |   |   | 1,000 |   |   |   | 4,150 |   |   |   | 4,100 |   |
| Net interest income after provision for loan losses                                  |   |   | 8,799 |   |   |   | 8,932 |   |   |   | 26,073 |   |   |   | 25,880 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest income:                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Service charges on deposits                                                          |   |   | 2,427 |   |   |   | 2,736 |   |   |   | 7,485 |   |   |   | 7,700 |   |
| ATM and debit card income                                                            |   |   | 859 |   |   |   | 770 |   |   |   | 2,489 |   |   |   | 2,310 |   |
| Other charges and fees                                                               |   |   | 450 |   |   |   | 466 |   |   |   | 1,427 |   |   |   | 1,350 |   |
| Total non-interest income                                                            |   |   | 3,736 |   |   |   | 3,972 |   |   |   | 11,401 |   |   |   | 11,360 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest expenses:                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries and employee benefits                                                       |   |   | 5,118 |   |   |   | 5,505 |   |   |   | 15,306 |   |   |   | 16,257 |   |
| Occupancy expense                                                                    |   |   | 2,177 |   |   |   | 2,287 |   |   |   | 6,709 |   |   |   | 6,916 |   |
| FDIC insurance                                                                       |   |   | 334 |   |   |   | 328 |   |   |   | 986 |   |   |   | 1,380 |   |
| Other                                                                                |   |   | 3,488 |   |   |   | 3,206 |   |   |   | 10,019 |   |   |   | 9,171 |   |
| Total non-interest expenses                                                          |   |   | 11,117 |   |   |   | 11,326 |   |   |   | 33,020 |   |   |   | 33,724 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income before income taxes                                                           |   |   | 1,418 |   |   |   | 1,578 |   |   |   | 4,454 |   |   |   | 3,516 |   |
| Provision for income taxes                                                           |   |   | 179 |   |   |   | 147 |   |   |   | 530 |   |   |   | 107 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net earnings                                                                         |   |   | 1,239 |   |   |   | 1,431 |   |   |   | 3,924 |   |   |   | 3,409 |   |
| Dividends on preferred stock and accretion of warrants                               |   |   | 300 |   |   |   | 299 |   |   |   | 898 |   |   |   | 875 |   |
| Net earnings available to common shareholders                                        |   | $ | 939 |   |   | $ | 1,132 |   |   | $ | 3,026 |   |   | $ | 2,534 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share:                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                |   | $ | 0.09 |   |   | $ | 0.17 |   |   | $ | 0.31 |   |   | $ | 0.38 |   |
| Diluted                                                                              |   | $ | 0.09 |   |   | $ | 0.17 |   |   | $ | 0.31 |   |   | $ | 0.38 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See notes to unaudited consolidated financial statements.                            |   |

Table of Contents

| MidSouth Bancorp, Inc. and Subsidiaries                                                           |   |
|---------------------------------------------------------------------------------------------------|--------|
| Consolidated Statement of Stockholders’ Equity (unaudited)                                  |   |
| For the Nine Months Ended September 30, 2010(in thousands, except share and per share data)       |   |
|                                                                                              |   | Preferred Stock |   |   | Common Stock |   |   | Additional Paid-in |   |   | Unearned ESOP |   |   | Accumulated Other Comprehensive |   |   | Treasury |   |   | Retained |   |   |   |   |
|                                                                                              |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |   | Capital |   |   | Shares |   |   | Income |   |   | Stock |   |   | Earnings |   |   | Total |   |
| Balance- January 1, 2010                                                                          |   |   | 20,000 |   |   | $ | 19,211 |   |   |   | 9,488,933 |   |   | $ | 949 |   |   | $ | 85,263 |   |   | $ | (217 | ) |   | $ | 3,904 |   |   | $ | (3,544 | ) |   | $ | 23,711 |   |   | $ | 129,277 |   |
| Net earnings                                                                                      |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,924 |   |   |   | 3,924 |   |
| Net change in unrealized gains on securities available-for-sale, net of taxes                     |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,345 |   |   |   | - |   |   |   | - |   |   |   | 2,345 |   |
| Comprehensive income                                                                              |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 6,269 |   |
| Issuance of common and treasury stock due to overallotment, net of discount and offering expenses |   |   | - |   |   |   | - |   |   |   | 384,811 |   |   |   | 39 |   |   |   | 4,472 |   |   |   | - |   |   |   | - |   |   |   | 258 |   |   |   | - |   |   |   | 4,769 |   |
| Dividends on preferred stock and accretion of common stock warrants                               |   |   | - |   |   |   | 148 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (898 | ) |   |   | (750 | ) |
| Dividends on common stock, $0.21 per share                                                        |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (2,040 | ) |   |   | (2,040 | ) |
| Exercise of stock options                                                                         |   |   | - |   |   |   | - |   |   |   | 1,985 |   |   |   | - |   |   |   | 17 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 17 |   |
|  ESOP compensation expense                                                                   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 43 |   |   |   | 84 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 127 |   |
| Stock option expense                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 5 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 5 |   |
| Restricted stock compensation expense                                                             |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 23 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 23 |   |
| Balance- September 30, 2010                                                                       |   |   | 20,000 |   |   | $ | 19,359 |   |   |   | 9,875,729 |   |   | $ | 988 |   |   | $ | 89,823 |   |   | $ | (133 | ) |   | $ | 6,249 |   |   | $ | (3,286 | ) |   | $ | 24,697 |   |   | $ | 137,697 |   |
|                                                                                              |   |
| See notes to unaudited consolidated financial statements.                                         |   |

Table of Contents

| MidSouth Bancorp, Inc. and Subsidiaries                                             |   |
|-------------------------------------------------------------------------------------|--------|
| Consolidated Statements of Cash Flows (unaudited)(in thousands)                     |   |
|                                                                                |   | For the Nine Months Ended September 30, |   |
|                                                                                |   | 2010 |   |   | 2009 |   |
| Cash flows from operating activities:                                               |   |   |   |   |   |   |
| Net earnings                                                                        |   | $ | 3,924 |   |   | $ | 3,409 |   |
| Adjustments to reconcile net earnings to net cash provided by operating activities: |   |   |   |   |   |   |   |   |
| Depreciation and amortization                                                       |   |   | 2,623 |   |   |   | 2,797 |   |
| Provision for loan losses                                                           |   |   | 4,150 |   |   |   | 4,100 |   |
| Provision for deferred tax benefit                                                  |   |   | (838 | ) |   |   | (459 | ) |
| Amortization of premiums on securities, net                                         |   |   | 909 |   |   |   | 642 |   |
| Stock option expense                                                                |   |   | 5 |   |   |   | 19 |   |
| Restricted stock expense                                                            |   |   | 23 |   |   |   | - |   |
| Net loss on sale of other real estate owned                                         |   |   | 146 |   |   |   | 23 |   |
| Net loss on sale of premises and equipment                                          |   |   | 62 |   |   |   | 16 |   |
| Change in accrued interest receivable                                               |   |   | (181 | ) |   |   | 73 |   |
| Change in accrued interest payable                                                  |   |   | (300 | ) |   |   | (591 | ) |
| Other, net                                                                          |   |   | 2,563 |   |   |   | 2,676 |   |
| Net cash provided by operating activities                                           |   |   | 13,086 |   |   |   | 12,705 |   |
|                                                                                |   |   |   |   |   |   |   |   |
| Cash flows from investing activities:                                               |   |   |   |   |   |   |   |   |
| Net decrease (increase) in time deposits in other banks                             |   |   | 21,062 |   |   |   | (7,000 | ) |
| Proceeds from maturities and calls of securities available-for-sale                 |   |   | 26,278 |   |   |   | 63,249 |   |
| Proceeds from maturities and calls of securities held-to-maturity                   |   |   | 1,456 |   |   |   | 3,277 |   |
| Purchases of securities available-for-sale                                          |   |   | (26,107 | ) |   |   | (51,687 | ) |
| Purchases of other investments                                                      |   |   | (173 | ) |   |   | (124 | ) |
| Net change in loans                                                                 |   |   | (18,067 | ) |   |   | 15,869 |   |
| Purchase of premises and equipment                                                  |   |   | (689 | ) |   |   | (1,195 | ) |
| Proceeds from sale of premises and equipment                                        |   |   | 3 |   |   |   | 9 |   |
| Proceeds from sales of other real estate owned                                      |   |   | 766 |   |   |   | 122 |   |
| Purchase of other real estate owned                                                 |   |   | (450 | ) |   |   | - |   |
| Net cash provided by investing activities                                           |   |   | 4,079 |   |   |   | 22,520 |   |
|                                                                                |   |   |   |   |   |   |   |   |
| Cash flows from financing activities:                                               |   |   |   |   |   |   |   |   |
| Change in deposits                                                                  |   |   | 6,320 |   |   |   | 5,387 |   |
| Change in repurchase agreements                                                     |   |   | 6,032 |   |   |   | 30,390 |   |
| Change in federal funds purchased                                                   |   |   | (1,700 | ) |   |   | (14,900 | ) |
| Change in Federal Reserve Discount Window borrowings                                |   |   | - |   |   |   | (36,000 | ) |
| Net proceeds from the issuance of preferred stock                                   |   |   | - |   |   |   | 19,954 |   |
| Issuance of common stock and treasury stock, net of offering expenses               |   |   | 4,769 |   |   |   | - |   |
| Payment of dividends on preferred stock                                             |   |   | (750 | ) |   |   | (600 | ) |
| Payment of dividends on common stock                                                |   |   | (1,825 | ) |   |   | (1,654 | ) |
| Proceeds from exercise of stock options                                             |   |   | 17 |   |   |   | - |   |
| Excess tax benefit from stock option exercises, net adjustment                      |   |   | - |   |   |   | (3 | ) |
| Net cash provided by financing activities                                           |   |   | 12,863 |   |   |   | 2,574 |   |
|                                                                                |   |   |   |   |   |   |   |   |
| Net increase in cash and cash equivalents                                           |   |   | 30,028 |   |   |   | 37,799 |   |
|                                                                                |   |   |   |   |   |   |   |   |
| Cash and cash equivalents, beginning of period                                      |   |   | 23,351 |   |   |   | 24,786 |   |
|                                                                                |   |   |   |   |   |   |   |   |
| Cash and cash equivalents, end of period                                            |   | $ | 53,379 |   |   | $ | 62,585 |   |
|                                                                                |   |   |   |   |   |   |   |   |
| Supplemental information- Noncash items                                             |   |   |   |   |   |   |   |   |
| Accretion of warrants                                                               |   |   | 148 |   |   |   | 148 |   |
| Transfer of loans to other real estate owned                                        |   |   | 1,183 |   |   |   | 599 |   |
| Net change in loan to ESOP                                                          |   |   | (84 | ) |   |   | 227 |   |
|                                                                                |   |   |   |   |   |   |   |   |
| See notes to unaudited consolidated financial statements.                           |   |   |   |   |   |   |   |   |

Table of Contents

| MidSouth Bancorp, Inc. and Subsidiaries            |
|----------------------------------------------------|
| Notes to Interim Consolidated Financial Statements |
| September 30, 2010                                 |
| (Unaudited)                                        |

Table of Contents

|                                            |   | September 30, 2010 |    |
|-------------------------------------------------|--------|--------------------|---------|
|                                            |   | AmortizedCost      |    |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |   | Fair Value |   |
| Available-for-sale:                             |   |               |    |   |   |   |   |   |   |   |   |   |
| U.S. Government agencies                        |   | $                  | 116,729 |   |   | $ | 1,545 |   |   | $ | - |   |   | $ | 118,274 |   |
| Obligations of state and political subdivisions |   |               | 108,815 |   |   |   | 6,202 |   |   |   | - |   |   |   | 115,017 |   |
| GSE mortgage-backed securities                  |   |               | 11,319  |   |   |   | 809 |   |   |   | - |   |   |   | 12,128 |   |
| Collateralized mortgage obligations             |   |               | 27,886  |   |   |   | 923 |   |   |   | 15 |   |   |   | 28,794 |   |
| Financial institution equity security           |   |               | 72      |   |   |   | 6 |   |   |   | - |   |   |   | 78 |   |
|                                            |   | $                  | 264,821 |   |   | $ | 9,485 |   |   | $ | 15 |   |   | $ | 274,291 |   |

|                                            |   | December 31, 2009 |    |
|-------------------------------------------------|--------|-------------------|---------|
|                                            |   | AmortizedCost     |    |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |   | Fair Value |   |
| Available-for-sale:                             |   |              |    |   |   |   |   |   |   |   |   |   |
| U.S. Government agencies                        |   | $                 | 102,249 |   |   | $ | 459 |   |   | $ | 185 |   |   | $ | 102,523 |   |
| Obligations of state and political subdivisions |   |              | 113,232 |   |   |   | 4,180 |   |   |   | 111 |   |   |   | 117,301 |   |
| GSE mortgage-backed securities                  |   |              | 14,888  |   |   |   | 746 |   |   |   | - |   |   |   | 15,634 |   |
| Collateralized mortgage obligations             |   |              | 35,451  |   |   |   | 870 |   |   |   | 43 |   |   |   | 36,278 |   |
| Financial institution equity security           |   |              | 72      |   |   |   | - |   |   |   | - |   |   |   | 72 |   |
|                                            |   | $                 | 265,892 |   |   | $ | 6,255 |   |   | $ | 339 |   |   | $ | 271,808 |   |

|                                            |   | September 30, 2010 |   |
|-------------------------------------------------|--------|--------------------|--------|
|                                            |   | AmortizedCost      |   |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |   | Fair Value |   |
| Held-to-maturity:                               |   |               |   |   |   |   |   |   |   |   |   |   |
| Obligations of state and political subdivisions |   | $                  | 1,588  |   |   | $ | 29 |   |   | $ | - |   |   | $ | 1,617 |   |
|                                            |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                            |   | December 31, 2009 |   |
|-------------------------------------------------|--------|-------------------|--------|
|                                            |   | AmortizedCost     |   |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |   | Fair Value |   |
| Held-to-maturity:                               |   |              |   |   |   |   |   |   |   |   |   |   |
| Obligations of state and political subdivisions |   | $                 | 3,043  |   |   | $ | 78 |   |   | $ | - |   |   | $ | 3,121 |   |

Table of Contents

|                                                               |   | AmortizedCost |    |   | FairValue |   |
|--------------------------------------------------------------------|--------|---------------|---------|--------|-----------|--------|
| Available-for-sale:                                                |   |          |    |   |      |   |
| Due in one year or less                                            |   | $             | 31,374  |   |      | $      | 31,700 |   |
| Due after one year through five years                              |   |          | 136,531 |   |      |   | 140,357 |   |
| Due after five years through ten years                             |   |          | 42,205  |   |      |   | 44,990 |   |
| Due after ten years                                                |   |          | 15,434  |   |      |   | 16,244 |   |
| Mortgage-backed securities and collateralized mortgage obligations |   |          | 39,205  |   |      |   | 40,922 |   |
| Equity securities with readily determinable market values          |   |          | 72      |   |      |   | 78 |   |
|                                                               |   | $             | 264,821 |   |      | $      | 274,291 |   |

|                                  |   | AmortizedCost |   |   | FairValue |   |
|---------------------------------------|--------|---------------|--------|--------|-----------|--------|
| Held-to-maturity:                     |   |          |   |   |      |   |
| Due in one year or less               |   | $             | 900    |   |      | $      | 907 |   |
| Due after one year through five years |   |          | 688    |   |      |   | 710 |   |
|                                  |   | $             | 1,588  |   |      | $      | 1,617 |   |
|                                  |   |          |   |   |      |   |   |   |

|                                |   | September 30, 2010                     |   |
|-------------------------------------|--------|----------------------------------------|--------|
|                                |   | Securities with losses under 12 months |   |   | Securities with losses over 12 months |   |   | Total |   |
| Available-for-sale:                 |   | Fair Value                             |   |   | Gross Unrealized Loss |   |   | Fair Value |   |   | Gross Unrealized Loss |   |   | Fair Value |   |   | Gross Unrealized Loss |   |
| Collateralized mortgage obligations |   | $                                      | -      |   |   | $ | - |   |   | $ | 238 |   |   | $ | 15 |   |   | $ | 238 |   |   | $ | 15 |   |

|                                            |   | December 31, 2009                      |   |
|-------------------------------------------------|--------|----------------------------------------|--------|
|                                            |   | Securities with losses under 12 months |   |   | Securities with losses over 12 months |   |   | Total |   |
| Available-for-sale:                             |   | Fair Value                             |   |   | Gross Unrealized Loss |   |   | Fair Value |   |   | Gross Unrealized Loss |   |   | Fair Value |   |   | Gross Unrealized Loss |   |
| U.S. Government agencies                        |   | $                                      | 50,041 |   |   | $ | 185 |   |   | $ | - |   |   | $ | - |   |   | $ | 50,041 |   |   | $ | 185 |   |
| Obligations of state and political subdivisions |   |                                   | 7,694  |   |   |   | 111 |   |   |   | - |   |   |   | - |   |   |   | 7,694 |   |   |   | 111 |   |
| Collateralized mortgage obligations             |   |                                   | 1,528  |   |   |   | 22 |   |   |   | 277 |   |   |   | 21 |   |   |   | 1,805 |   |   |   | 43 |   |
|                                            |   | $                                      | 59,263 |   |   | $ | 318 |   |   | $ | 277 |   |   | $ | 21 |   |   | $ | 59,540 |   |   | $ | 339 |   |

Table of Contents

|              |   | September 30, 2010 |   |   | December 31, 2009 |   |
|-------------------|--------|--------------------|--------|--------|-------------------|--------|
|              |   |               |   |   |              |   |
| FRB-Atlanta       |   | $                  | 1,624  |   |              | $      | 1,473 |   |
| FHLB-Dallas       |   |               | 584    |   |              |   | 562 |   |
| Other bank stocks |   |               | 713    |   |              |   | 713 |   |
| CRA investment    |   |               | 2,144  |   |              |   | 2,154 |   |
|              |   | $                  | 5,065  |   |              | $      | 4,902 |   |

Table of Contents

|                         |   | Three Months EndedSeptember 30, |   |   | Nine Months EndedSeptember 30, |   |
|------------------------------|--------|---------------------------------|--------|--------|--------------------------------|--------|
|                         |   | 2010                            |   |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
| Balance, beginning of period |   | $                               | 8,471  |   |                           | $      | 8,039 |   |   | $ | 7,995 |   |   | $ | 7,586 |   |
| Provision for loan losses    |   |                            | 1,500  |   |                           |   | 1,000 |   |   |   | 4,150 |   |   |   | 4,100 |   |
| Recoveries                   |   |                            | 58     |   |                           |   | 68 |   |   |   | 209 |   |   |   | 200 |   |
| Loans charged-off            |   |                            | (1,583 | )      |                           |   | (1,092 | ) |   |   | (3,908 | ) |   |   | (3,871 | ) |
| Balance, end of period       |   | $                               | 8,446  |   |                           | $      | 8,015 |   |   | $ | 8,446 |   |   | $ | 8,015 |   |

| Allowance for Loan Losses and Recorded Investment in Loans       |   |
|------------------------------------------------------------------|--------|
| For the Nine Months Ended September 30, 2010 (in thousands) |   |
|                                                             |   |   |   |   | Real Estate |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                             |   | Coml, Fin, and Agric |   |   | Construction |   |   | Commercial |   |   | Residential |   |   | Consumer |   |   | Finance Leases Coml |   |   | Other |   |   | Total |   |
| Allowance for loan losses:                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Beginning balance                                                |   | $ | 2,105 |   |   | $ | 2,240 |   |   | $ | 1,683 |   |   | $ | 631 |   |   | $ | 1,315 |   |   | $ | 21 |   |   | $ | - |   |   | $ | 7,995 |   |
| Charge-offs                                                      |   |   | 1,094 |   |   |   | 1,478 |   |   |   | 51 |   |   |   | 127 |   |   |   | 1,157 |   |   |   | 1 |   |   |   | - |   |   |   | 3,908 |   |
| Recoveries                                                       |   |   | 19 |   |   |   | 1 |   |   |   | - |   |   |   | 58 |   |   |   | 130 |   |   |   | 1 |   |   |   | - |   |   |   | 209 |   |
| Provision                                                        |   |   | 719 |   |   |   | 1,500 |   |   |   | 1,025 |   |   |   | 274 |   |   |   | 624 |   |   |   | 7 |   |   |   | 1 |   |   |   | 4,150 |   |
| Ending balance                                                   |   | $ | 1,749 |   |   | $ | 2,263 |   |   | $ | 2,657 |   |   | $ | 836 |   |   | $ | 912 |   |   | $ | 28 |   |   | $ | 1 |   |   | $ | 8,446 |   |
| Ending balance: individually evaluated for impairment            |   | $ | 95 |   |   | $ | 1,456 |   |   | $ | 1,000 |   |   | $ | 20 |   |   | $ | 87 |   |   | $ | - |   |   | $ | - |   |   | $ | 2,658 |   |
|                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans:                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance                                                   |   | $ | 194,729 |   |   | $ | 47,407 |   |   | $ | 208,491 |   |   | $ | 74,820 |   |   | $ | 66,544 |   |   | $ | 5,192 |   |   | $ | 1,128 |   |   | $ | 598,311 |   |
| Ending balance: individually evaluated for impairment            |   | $ | 7,618 |   |   | $ | 10,807 |   |   | $ | 9,004 |   |   | $ | 1,668 |   |   | $ | 210 |   |   | $ | - |   |   | $ | - |   |   | $ | 29,307 |   |

Table of Contents

| Credit Quality Indicators                        |
|--------------------------------------------------|
| As of September 30, 2010 (in thousands)     |
|                                             |   |   |   |   |   |   |   |   |   |
| Commercial Credit Exposure                       |   |   |   |   |   |   |   |   |   |
| Credit Risk Profile by Internally Assigned Grade |   |   |   |   |   |   |   |   |   |
|                                             |   | Commercial, Financial, and Agricultural |   |   | Commercial Real Estate- Construction |   |   | Commercial Real Estate -Other |   |
| Prime                                            |   | $ | 6,823 |   |   | $ | 29 |   |   | $ | 3,276 |   |
| Excellent                                        |   |   | 6,596 |   |   |   | 2,613 |   |   |   | 7,557 |   |
| Above average                                    |   |   | 37,828 |   |   |   | 4,765 |   |   |   | 33,004 |   |
| Satisfactory                                     |   |   | 129,549 |   |   |   | 18,967 |   |   |   | 146,452 |   |
| Other assets especially mentioned                |   |   | 2,512 |   |   |   | 4,011 |   |   |   | 3,973 |   |
| Substandard                                      |   |   | 11,063 |   |   |   | 12,080 |   |   |   | 14,229 |   |
| Doubtful                                         |   |   | 358 |   |   |   | - |   |   |   | - |   |
| Loss                                             |   |   | - |   |   |   | - |   |   |   | - |   |
|                                             |   | $ | 194,729 |   |   | $ | 42,465 |   |   | $ | 208,491 |   |
|                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer Credit Exposure                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Credit Risk Profile by Creditworthiness Category |   |   |   |   |   |   |   |   |   |   |   |   |
|                                             |   | Residential - Construction |   |   | Residential - Prime |   |   | Residential - Subprime |   |
| Grade:                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Pass                                             |   | $ | 4,890 |   |   | $ | 69,551 |   |   | $ | - |   |
| Special mention                                  |   |   | - |   |   |   | 2,318 |   |   |   | - |   |
| Substandard                                      |   |   | 52 |   |   |   | 2,951 |   |   |   | - |   |
|                                             |   | $ | 4,942 |   |   | $ | 74,820 |   |   | $ | - |   |

|                                          |   |                   |   |   |            |   |   |                      |   |   |   |        |   |    |                                                                      |   |
|-----------------------------------------------|--------|------------------------|--------|--------|-----------------|--------|--------|---------------------------|--------|--------|--------|-------------|--------|---------|---------------------------------------------------------------------------|--------|
| Consumer and Commercial Credit Exposure       |   |                   |   |   |            |   |   |                      |   |   |   |        |   |    |                                                                      |   |
| Credit Risk Profile Based on Payment Activity |   |                   |   |   |            |   |   |                      |   |   |   |        |   |    |                                                                      |   |
|                                          |   | Consumer - Credit Card |   |   | Consumer -Other |   |   | Finance Leases Commercial |   |   |   | Other Loans |   |
| Performing                                    |   | $                      | 4,896  |   |            | $      | 61,402 |                      |   | $      | 5,192  |        |   | $  | 1,128                                                                     |   |
| Nonperforming                                 |   |                   | 26     |   |            |   | 220    |                      |   |   | -      |        |   |    |             - |   |
|                                          |   | $                      | 4,922  |   |            | $      | 61,622 |                      |   | $      | 5,192  |        |   |  $ |    1,128                                                   |   |

Table of Contents

| Age Analysis of Past Due Loans               |   |
|----------------------------------------------|--------|
| As of September 30, 2010 (in thousands) |   |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                         |   | 30-89 Days Past Due |   |   | Greater than 90 Days Past Due |   |   | Total Past Due |   |   | Current |   |   | Total Loans |   |   | Recorded Investment > 90 days and Accruing |   |
| Commercial, financial, and agricultural      |   | $ | 1,140 |   |   | $ | 3,374 |   |   | $ | 4,514 |   |   | $ | 190,215 |   |   | $ | 194,729 |   |   | $ | 42 |   |
| Commercial real estate - construction        |   |   | 3,577 |   |   |   | 3,324 |   |   |   | 6,901 |   |   |   | 35,564 |   |   |   | 42,465 |   |   |   | - |   |
| Commercial real estate - other               |   |   | 7,389 |   |   |   | 830 |   |   |   | 8,219 |   |   |   | 200,272 |   |   |   | 208,491 |   |   |   | - |   |
| Consumer - credit card                       |   |   | 29 |   |   |   | 26 |   |   |   | 55 |   |   |   | 4,867 |   |   |   | 4,922 |   |   |   | 26 |   |
| Consumer - other                             |   |   | 557 |   |   |   | 231 |   |   |   | 788 |   |   |   | 60,834 |   |   |   | 61,622 |   |   |   | 60 |   |
| Residential - construction                   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,942 |   |   |   | 4,942 |   |   |   | - |   |
| Residential - prime                          |   |   | 934 |   |   |   | 1,232 |   |   |   | 2,166 |   |   |   | 72,654 |   |   |   | 74,820 |   |   |   | 496 |   |
| Residential - subprime                       |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Other loans                                  |   |   | 147 |   |   |   | - |   |   |   | 147 |   |   |   | 981 |   |   |   | 1,128 |   |   |   | - |   |
| Finance leases commercial                    |   |   | 43 |   |   |   | - |   |   |   | 43 |   |   |   | 5,149 |   |   |   | 5,192 |   |   |   | - |   |
|                                         |   | $ | 13,816 |   |   | $ | 9,017 |   |   | $ | 22,833 |   |   | $ | 575,478 |   |   | $ | 598,311 |   |   | $ | 624 |   |

| Impaired Loans                                               |   |
|--------------------------------------------------------------|--------|
| For the Quarter Ended September 30, 2010 (in thousands) |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         |   | Recorded Investment |   |   | Unpaid Principal Balance |   |   | Related Allowance |   |   | Average Recorded Investment |   |   | Interest Income Recognized |   |
| With no related allowance recorded:                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial, financial, and agricultural                      |   | $ | 7,212 |   |   | $ | 7,428 |   |   | $ | - |   |   | $ | 6,872 |   |   | $ | 17 |   |
| Commercial real estate – construction                  |   |   | 7,435 |   |   |   | 10,691 |   |   |   | - |   |   |   | 5,339 |   |   |   | 123 |   |
| Commercial real estate – other                         |   |   | 2,222 |   |   |   | 2,222 |   |   |   | - |   |   |   | 2,728 |   |   |   | 92 |   |
| Consumer – other                                       |   |   | 42 |   |   |   | 42 |   |   |   | - |   |   |   | 115 |   |   |   | - |   |
| Residential – prime                                    |   |   | 1,557 |   |   |   | 1,618 |   |   |   | - |   |   |   | 1,596 |   |   |   | 43 |   |
| Subtotal:                                                    |   | $ | 18,468 |   |   | $ | 22,001 |   |   | $ | - |   |   | $ | 16,650 |   |   | $ | 275 |   |
| With an allowance recorded:                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                   |   |   | 407 |   |   |   | 407 |   |   |   | 95 |   |   |   | 536 |   |   |   | 1 |   |
| Commercial real estate – construction                  |   |   | 3,371 |   |   |   | 3,371 |   |   |   | 1,456 |   |   |   | 4,150 |   |   |   | 15 |   |
| Commercial real estate – other                         |   |   | 6,782 |   |   |   | 6,782 |   |   |   | 1,000 |   |   |   | 6,807 |   |   |   | 1 |   |
| Consumer – other                                       |   |   | 167 |   |   |   | 172 |   |   |   | 87 |   |   |   | 161 |   |   |   | - |   |
| Residential – prime                                    |   |   | 111 |   |   |   | 111 |   |   |   | 20 |   |   |   | 81 |   |   |   | - |   |
| Subtotal:                                                    |   | $ | 10,838 |   |   | $ | 10,843 |   |   | $ | 2,658 |   |   | $ | 11,735 |   |   | $ | 17 |   |
| Totals:                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                   |   |   | 27,429 |   |   |   | 30,901 |   |   |   | 2,551 |   |   |   | 26,432 |   |   |   | 249 |   |
| Consumer                                                     |   |   | 209 |   |   |   | 214 |   |   |   | 87 |   |   |   | 276 |   |   |   | - |   |
| Residential                                                  |   |   | 1,668 |   |   |   | 1,729 |   |   |   | 20 |   |   |   | 1,677 |   |   |   | 43 |   |
| Grand Total:                                                 |   | $ | 29,306 |   |   | $ | 32,844 |   |   | $ | 2,658 |   |   | $ | 28,385 |   |   | $ | 292 |   |

Table of Contents

| Modifications                                                                      |   |
|------------------------------------------------------------------------------------|--------|
| As of September 30, 2010 (in thousands)                                       |   |
|                                                                               |   |   |   |   |   |   |   |   |   |
|                                                                               |   | Number of Contracts |   |   | Pre-Modification Outstanding Recorded Investment |   |   | Post-Modification Outstanding Recorded Investment |   |
| Troubled debt restructuring occurring during the quarter ended September 30, 2010: |   |   |   |   |   |   |   |   |   |
| Commercial, financial, and agricultural                                            |   |   | 2 |   |   | $ | 661 |   |   | $ | 661 |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |

| Loans on Nonaccrual Status                   |   |
|----------------------------------------------|--------|
| As of September 30, 2010 (in thousands) |   |
|                                         |   |   |   |
| Commercial, financial, and agricultural      |   | $ | 7,342 |   |
| Commercial real estate - construction        |   |   | 8,211 |   |
| Commercial real estate - other               |   |   | 7,070 |   |
| Consumer - credit card                       |   |   | - |   |
| Consumer - other                             |   |   | 210 |   |
| Residential - construction                   |   |   | - |   |
| Residential - prime                          |   |   | 736 |   |
| Residential - subprime                       |   |   | - |   |
| Other loans                                  |   |   | - |   |
| Finance leases commercial                    |   |   | - |   |
|                                         |   | $ | 23,569 |   |

|                                                                                                                                              |   | Three Months Ended September 30, |   |   | Nine Months Ended September 30, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|--------|--------|---------------------------------|--------|
|                                                                                                                                              |   | 2010                             |   |   | 2009                            |   |   | 2010 |   |   | 2009 |   |
| Net earnings available to common shareholders                                                                                                     |   | $                                | 939    |   |                            | $      | 1,132 |   |   | $ | 3,026 |   |   | $ | 2,534 |   |
| Weighted average number of common shares outstanding used in computation of basic earnings per common share                                       |   |                             | 9,709  |   |                            |   | 6,592 |   |   |   | 9,697 |   |   |   | 6,596 |   |
| Effect of dilutive securities:                                                                                                                    |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Stock options and warrants                                                                                                                        |   |                             | 16     |   |                            |   | 20 |   |   |   | 18 |   |   |   | 17 |   |
| Weighted average number of common shares outstanding plus effect of dilutive securities – used in computation of diluted earnings per share |   |                             | 9,725  |   |                            |   | 6,612 |   |   |   | 9,715 |   |   |   | 6,613 |   |

Table of Contents

Table of Contents

Table of Contents

|                                            |   | Assets / Liabilities Measured at Fair Value at |    |   | Fair Value Measurements atSeptember 30, 2010 using: |   |
|-------------------------------------------------|--------|------------------------------------------------|---------|--------|-----------------------------------------------------|--------|
| Description                                     |   |  September 30, 2010                       |    |   | Level 1                                             |   |   | Level 2 |   |   | Level 3 |   |
| Available-for-sale securities:                  |   |                                           |    |   |                                                |   |   |   |   |   |   |   |
| U.S. Government agencies                        |   | $                                              | 118,274 |   |                                                | $      | - |   |   | $ | 118,274 |   |   | $ | - |   |
| Obligations of state and political subdivisions |   |                                           | 115,017 |   |                                                |   | - |   |   |   | 115,017 |   |   |   | - |   |
| GSE mortgage-backed securities                  |   |                                           | 12,128  |   |                                                |   | - |   |   |   | 12,128 |   |   |   | - |   |
| Collateralized mortgage obligations             |   |                                           | 28,794  |   |                                                |   | - |   |   |   | 28,794 |   |   |   | - |   |
| Financial institution equity security           |   |                                           | 78      |   |                                                |   | 78 |   |   |   | - |   |   |   | - |   |

|                    |   | Assets / Liabilities Measured at Fair Value at |   |   | Fair Value Measurements atSeptember 30, 2010 using: |   |
|-------------------------|--------|------------------------------------------------|--------|--------|-----------------------------------------------------|--------|
| Description             |   | September 30, 2010                             |   |   | Level 1                                             |   |   | Level 2 |   |   | Level 3 |   |
| Impaired loans          |   | $                                              | 8,181  |   |                                                | $      | - |   |   | $ | 8,181 |   |   | $ | - |   |
| Other real estate owned |   |                                           | 1,401  |   |                                                |   | - |   |   |   | 1,401 |   |   |   | - |   |

Table of Contents

|                                            |   | September 30, 2010 |    |   | December 31, 2009 |   |
|-------------------------------------------------|--------|--------------------|---------|--------|-------------------|--------|
|                                            |   | CarryingAmount     |    |   | FairValue         |   |   | CarryingAmount |   |   | FairValue |   |
| Financial assets:                               |   |               |    |   |              |   |   |   |   |   |   |   |
| Cash and cash equivalents                       |   | $                  | 53,379  |   |              | $      | 53,379 |   |   | $ | 23,351 |   |   | $ | 23,351 |   |
| Time deposits held in banks                     |   |               | 5,060   |   |              |   | 5,129 |   |   |   | 26,122 |   |   |   | 26,122 |   |
| Securities available-for-sale                   |   |               | 274,291 |   |              |   | 274,291 |   |   |   | 271,808 |   |   |   | 271,808 |   |
| Securities held-to-maturity                     |   |               | 1,588   |   |              |   | 1,617 |   |   |   | 3,043 |   |   |   | 3,121 |   |
|     Other investments            |   |               | 5,065   |   |              |   | 5,065 |   |   |   | 4,902 |   |   |   | 4,902 |   |
| Loans, net                                      |   |               | 589,865 |   |              |   | 598,113 |   |   |   | 577,047 |   |   |   | 583,142 |   |
| Cash surrender value of life insurance policies |   |               | 4,661   |   |              |   | 4,661 |   |   |   | 4,540 |   |   |   | 4,540 |   |
| Financial liabilities:                          |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-bearing deposits                   |   |               | 195,496 |   |              |   | 195,496 |   |   |   | 175,173 |   |   |   | 175,173 |   |
| Interest-bearing deposits                       |   |               | 584,110 |   |              |   | 585,389 |   |   |   | 598,112 |   |   |   | 598,932 |   |
| Borrowings                                      |   |               | 53,091  |   |              |   | 53,091 |   |   |   | 48,759 |   |   |   | 48,759 |   |
| Junior subordinated debentures                  |   |               | 15,465  |   |              |   | 16,614 |   |   |   | 15,465 |   |   |   | 15,771 |   |

Table of Contents

Item 2.

Forward

Critical Accounting 

Table of Contents

Results of Operations

Table of Contents

Table of Contents

| Table 1                                                         |   |
|-----------------------------------------------------------------|--------|
| Consolidated Average Balances, Interest and Rates(in thousands) |   |
|                                                            |   | Three Months Ended September 30, |   |
|                                                            |   | 2010 |   |   | 2009 |   |
|                                                            |   | AverageVolume |   |   | Interest |   |   | AverageYield/Rate |   |   | AverageVolume |   |   | Interest |   |   | AverageYield/Rate |   |
| Assets                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment securities1                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                         |   | $ | 161,183 |   |   | $ | 925 |   |   |   | 2.30 | % |   | $ | 99,178 |   |   | $ | 898 |   |   |   | 3.62 | % |
| Tax exempt2                                                     |   |   | 108,555 |   |   |   | 1,392 |   |   |   | 5.13 | % |   |   | 112,670 |   |   |   | 1,511 |   |   |   | 5.36 | % |
| Other investments                                               |   |   | 24,906 |   |   |   | 56 |   |   |   | 0.90 | % |   |   | 7,562 |   |   |   | 40 |   |   |   | 2.12 | % |
| Total investments                                               |   |   | 294,644 |   |   |   | 2,373 |   |   |   | 3.22 | % |   |   | 219,410 |   |   |   | 2,449 |   |   |   | 4.46 | % |
| Time deposits in other banks                                    |   |   | 13,864 |   |   |   | 46 |   |   |   | 0.26 | % |   |   | 16,458 |   |   |   | 56 |   |   |   | 1.35 | % |
| Federal funds                                                   |   |   | 4,594 |   |   |   | 3 |   |   |   | 1.32 | % |   |   | 24,587 |   |   |   | 10 |   |   |   | 0.16 | % |
| Loans                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial and real estate                                      |   |   | 495,940 |   |   |   | 8,150 |   |   |   | 6.52 | % |   |   | 483,993 |   |   |   | 8,070 |   |   |   | 6.62 | % |
| Installment                                                     |   |   | 91,656 |   |   |   | 1,954 |   |   |   | 8.46 | % |   |   | 110,057 |   |   |   | 2,356 |   |   |   | 8.49 | % |
| Total loans3                                                    |   |   | 587,596 |   |   |   | 10,104 |   |   |   | 6.82 | % |   |   | 594,050 |   |   |   | 10,426 |   |   |   | 6.96 | % |
| Total earning assets                                            |   |   | 900,698 |   |   |   | 12,526 |   |   |   | 5.52 | % |   |   | 854,505 |   |   |   | 12,941 |   |   |   | 6.01 | % |
| Allowance for loan losses                                       |   |   | (8,249 | ) |   |   |   |   |   |   |   |   |   |   | (7,867 | ) |   |   |   |   |   |   |   |   |
| Nonearning assets                                               |   |   | 93,333 |   |   |   |   |   |   |   |   |   |   |   | 87,881 |   |   |   |   |   |   |   |   |   |
| Total assets                                                    |   | $ | 985,782 |   |   |   |   |   |   |   |   |   |   | $ | 934,519 |   |   |   |   |   |   |   |   |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities and stockholders’ equity                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW, money market, and savings                                  |   | $ | 465,420 |   |   | $ | 872 |   |   |   | 0.74 | % |   | $ | 444,378 |   |   | $ | 1,216 |   |   |   | 1.09 | % |
| Time deposits                                                   |   |   | 120,838 |   |   |   | 453 |   |   |   | 1.49 | % |   |   | 140,555 |   |   |   | 798 |   |   |   | 2.25 | % |
| Total interest bearing deposits                                 |   |   | 586,258 |   |   |   | 1,325 |   |   |   | 0.90 | % |   |   | 584,933 |   |   |   | 2,014 |   |   |   | 1.37 | % |
| Securities sold under repurchase agreements                     |   |   | 51,920 |   |   |   | 249 |   |   |   | 1.90 | % |   |   | 50,359 |   |   |   | 303 |   |   |   | 2.39 | % |
| Federal funds purchased                                         |   |   | - |   |   |   | - |   |   |   | 0.00 | % |   |   | - |   |   |   | - |   |   |   | - |   |
| Junior subordinated debentures                                  |   |   | 15,465 |   |   |   | 247 |   |   |   | 6.25 | % |   |   | 15,465 |   |   |   | 249 |   |   |   | 6.30 | % |
| Total interest bearing liabilities                              |   |   | 653,643 |   |   |   | 1,821 |   |   |   | 1.11 | % |   |   | 650,757 |   |   |   | 2,566 |   |   |   | 1.56 | % |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand deposits                                                 |   |   | 187,755 |   |   |   |   |   |   |   |   |   |   |   | 180,843 |   |   |   |   |   |   |   |   |   |
| Other liabilities                                               |   |   | 6,997 |   |   |   |   |   |   |   |   |   |   |   | 6,181 |   |   |   |   |   |   |   |   |   |
| Stockholders’ equity                                      |   |   | 137,387 |   |   |   |   |   |   |   |   |   |   |   | 96,738 |   |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders’ equity                |   | $ | 985,782 |   |   |   |   |   |   |   |   |   |   | $ | 934,519 |   |   |   |   |   |   |   |   |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income and net interest spread                     |   |   |   |   |   | $ | 10,705 |   |   |   | 4.41 | % |   |   |   |   |   | $ | 10,375 |   |   |   | 4.45 | % |
| Net yield on interest earning assets                            |   |   |   |   |   |   |   |   |   |   | 4.72 | % |   |   |   |   |   |   |   |   |   |   | 4.82 | % |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

  

  

  

Table of Contents

| Table 2                                                         |   |
|-----------------------------------------------------------------|--------|
| Consolidated Average Balances, Interest and Rates(in thousands) |   |
|                                                            |   | Nine Months Ended September 30, |   |
|                                                            |   | 2010 |   |   | 2009 |   |
|                                                            |   | AverageVolume |   |   | Interest |   |   | AverageYield/Rate |   |   | AverageVolume |   |   | Interest |   |   | AverageYield/Rate |   |
| Assets                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment securities4                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                         |   | $ | 152,383 |   |   | $ | 2,816 |   |   |   | 2.46 | % |   | $ | 97,979 |   |   | $ | 3,046 |   |   |   | 4.15 | % |
| Tax exempt5                                                     |   |   | 109,938 |   |   |   | 4,247 |   |   |   | 5.15 | % |   |   | 116,116 |   |   |   | 4,678 |   |   |   | 5.37 | % |
| Other investments                                               |   |   | 22,043 |   |   |   | 145 |   |   |   | 0.88 | % |   |   | 5,539 |   |   |   | 102 |   |   |   | 2.46 | % |
| Total investments                                               |   |   | 284,364 |   |   |   | 7,208 |   |   |   | 3.38 | % |   |   | 219,634 |   |   |   | 7,826 |   |   |   | 4.75 | % |
| Time deposits in other banks                                    |   |   | 19,757 |   |   |   | 182 |   |   |   | 1.23 | % |   |   | 11,895 |   |   |   | 187 |   |   |   | 2.10 | % |
| Federal funds                                                   |   |   | 2,351 |   |   |   | 4 |   |   |   | 0.22 | % |   |   | 17,418 |   |   |   | 29 |   |   |   | 0.22 | % |
| Loans                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial and real estate                                      |   |   | 486,231 |   |   |   | 23,868 |   |   |   | 6.56 | % |   |   | 486,154 |   |   |   | 24,044 |   |   |   | 6.61 | % |
| Installment                                                     |   |   | 96,673 |   |   |   | 5,964 |   |   |   | 8.25 | % |   |   | 110,749 |   |   |   | 7,075 |   |   |   | 8.54 | % |
| Total loans6                                                    |   |   | 582,904 |   |   |   | 29,832 |   |   |   | 6.84 | % |   |   | 596,903 |   |   |   | 31,119 |   |   |   | 6.97 | % |
| Total earning assets                                            |   |   | 889,376 |   |   |   | 37,226 |   |   |   | 5.60 | % |   |   | 845,850 |   |   |   | 39,161 |   |   |   | 6.19 | % |
| Allowance for loan losses                                       |   |   | (7,952 | ) |   |   |   |   |   |   |   |   |   |   | (7,627 | ) |   |   |   |   |   |   |   |   |
| Nonearning assets                                               |   |   | 92,896 |   |   |   |   |   |   |   |   |   |   |   | 89,599 |   |   |   |   |   |   |   |   |   |
| Total assets                                                    |   | $ | 974,320 |   |   |   |   |   |   |   |   |   |   | $ | 927,822 |   |   |   |   |   |   |   |   |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities and stockholders’ equity                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW, money market, and savings                                  |   | $ | 466,372 |   |   | $ | 2,834 |   |   |   | 0.81 | % |   | $ | 434,076 |   |   | $ | 3,483 |   |   |   | 1.07 | % |
| Time deposits                                                   |   |   | 123,264 |   |   |   | 1,482 |   |   |   | 1.61 | % |   |   | 141,342 |   |   |   | 2,745 |   |   |   | 2.60 | % |
| Total interest bearing deposits                                 |   |   | 589,636 |   |   |   | 4,316 |   |   |   | 0.98 | % |   |   | 575,418 |   |   |   | 6,228 |   |   |   | 1.45 | % |
| Securities sold under repurchase agreements                     |   |   | 47,433 |   |   |   | 713 |   |   |   | 2.01 | % |   |   | 41,085 |   |   |   | 775 |   |   |   | 2.52 | % |
| Federal funds purchased                                         |   |   | 325 |   |   |   | 2 |   |   |   | 0.81 | % |   |   | 770 |   |   |   | 5 |   |   |   | 0.86 | % |
| Other borrowings                                                |   |   | 912 |   |   |   | 3 |   |   |   | 0.44 | % |   |   | 6,183 |   |   |   | 23 |   |   |   | 0.50 | % |
| Junior subordinated debentures                                  |   |   | 15,465 |   |   |   | 731 |   |   |   | 6.23 | % |   |   | 15,465 |   |   |   | 777 |   |   |   | 6.63 | % |
| Total interest bearing liabilities                              |   |   | 653,771 |   |   |   | 5,765 |   |   |   | 1.18 | % |   |   | 638,921 |   |   |   | 7,808 |   |   |   | 1.63 | % |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand deposits                                                 |   |   | 178,492 |   |   |   |   |   |   |   |   |   |   |   | 187,710 |   |   |   |   |   |   |   |   |   |
| Other liabilities                                               |   |   | 6,247 |   |   |   |   |   |   |   |   |   |   |   | 5,574 |   |   |   |   |   |   |   |   |   |
| Stockholders’ equity                                      |   |   | 135,810 |   |   |   |   |   |   |   |   |   |   |   | 95,617 |   |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders’ equity                |   | $ | 974,320 |   |   |   |   |   |   |   |   |   |   | $ | 927,822 |   |   |   |   |   |   |   |   |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income and net interest spread                     |   |   |   |   |   | $ | 31,461 |   |   |   | 4.42 | % |   |   |   |   |   | $ | 31,353 |   |   |   | 4.56 | % |
| Net yield on interest earning assets                            |   |   |   |   |   |   |   |   |   |   | 4.73 | % |   |   |   |   |   |   |   |   |   |   | 4.96 | % |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

  

  

Table of Contents

|                                                                   |   |
|------------------------------------------------------------------------|--------|
| Table 3Changes in Taxable-Equivalent Net Interest Income(in thousands) |   |
|                                                                   |   | Three Months EndedSeptember 30, 2010 compared to September 30, 2009 |   |
|                                                                   |   | TotalIncrease |   |   | ChangeAttributable To |   |
|                                                                   |   | (Decrease) |   |   | Volume |   |   | Rates |   |
| Taxable-equivalent earned on:                                          |   |   |   |   |   |   |   |   |   |
| Investment securities                                                  |   |   |   |   |   |   |   |   |   |
| Taxable                                                                |   | $ | 27 |   |   | $ | 432 |   |   | $ | (405 | ) |
| Tax exempt                                                             |   |   | (119 | ) |   |   | (54 | ) |   |   | (65 | ) |
| Other investments                                                      |   |   | 16 |   |   |   | 50 |   |   |   | (34 | ) |
| Federal funds sold                                                     |   |   | (7 | ) |   |   | (11 | ) |   |   | 4 |   |
| Time deposits in other banks                                           |   |   | (10 | ) |   |   | (9 | ) |   |   | (1 | ) |
| Loans, including fees                                                  |   |   | (322 | ) |   |   | (112 | ) |   |   | (210 | ) |
| Total                                                                  |   |   | (415 | ) |   |   | 296 |   |   |   | (711 | ) |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest paid on:                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest bearing deposits                                              |   |   | (689 | ) |   |   | 5 |   |   |   | (694 | ) |
| Securities sold under repurchase agreements                            |   |   | (54 | ) |   |   | 9 |   |   |   | (63 | ) |
| Junior subordinated debentures                                         |   |   | (2 | ) |   |   | - |   |   |   | (2 | ) |
| Total                                                                  |   |   | (745 | ) |   |   | 14 |   |   |   | (759 | ) |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable-equivalent net interest income                                 |   | $ | 330 |   |   | $ | 282 |   |   | $ | 48 |   |

| Table 4Changes in Taxable-Equivalent Net Interest Income(in thousands) |   |
|------------------------------------------------------------------------|--------|
|                                                                   |   | Nine Months EndedSeptember 30, 2010 compared to September 30, 2009 |   |
|                                                                   |   | TotalIncrease |   |   | ChangeAttributable To |   |
|                                                                   |   | (Decrease) |   |   | Volume |   |   | Rates |   |
| Taxable-equivalent earned on:                                          |   |   |   |   |   |   |   |   |   |
| Investment securities                                                  |   |   |   |   |   |   |   |   |   |
| Taxable                                                                |   | $ | (230 | ) |   | $ | 1,293 |   |   | $ | (1,523 | ) |
| Tax exempt                                                             |   |   | (431 | ) |   |   | (243 | ) |   |   | (188 | ) |
| Other investments                                                      |   |   | 43 |   |   |   | 144 |   |   |   | (101 | ) |
| Federal funds sold                                                     |   |   | (25 | ) |   |   | (26 | ) |   |   | 1 |   |
| Time deposits in other banks                                           |   |   | (5 | ) |   |   | 92 |   |   |   | (97 | ) |
| Loans, including fees                                                  |   |   | (1,287 | ) |   |   | (722 | ) |   |   | (565 | ) |
| Total                                                                  |   |   | (1,935 | ) |   |   | 538 |   |   |   | (2,473 | ) |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest paid on:                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest bearing deposits                                              |   |   | (1,912 | ) |   |   | 150 |   |   |   | (2,062 | ) |
| Securities sold under repurchase agreements                            |   |   | (62 | ) |   |   | 109 |   |   |   | (171 | ) |
| Federal funds purchased                                                |   |   | (3 | ) |   |   | (3 | ) |   |   | - |   |
| Other borrowings                                                       |   |   | (20 | ) |   |   | (18 | ) |   |   | (2 | ) |
| Junior subordinated debentures                                         |   |   | (46 | ) |   |   | - |   |   |   | (46 | ) |
| Total                                                                  |   |   | (2,043 | ) |   |   | 238 |   |   |   | (2,281 | ) |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable-equivalent net interest income                                 |   | $ | 108 |   |   | $ | 300 |   |   | $ | (192 | ) |

Table of Contents

Analysis of Statement of Condition

Table of Contents

| Table 5Composition of Loans (in thousands) |   |               |    |   |              |   |
|-------------------------------------------------|--------|--------------------|---------|--------|-------------------|--------|
|                                            |   | September 30, 2010 |    |   | December 31, 2009 |   |
| Commercial, financial, and agricultural         |   | $                  | 194,729 |   |              | $      | 193,351 |   |
| Lease financing receivable                      |   |               | 5,192   |   |              |   | 7,589 |   |
| Real estate – commercial                  |   |               | 208,491 |   |              |   | 188,045 |   |
| Real estate – residential                 |   |               | 74,820  |   |              |   | 77,130 |   |
| Real estate – construction                |   |               | 47,407  |   |              |   | 39,544 |   |
| Installment loans to individuals                |   |               | 66,544  |   |              |   | 77,068 |   |
| Other                                           |   |               | 1,128   |   |              |   | 2,315 |   |
| Total loans                                     |   | $                  | 598,311 |   |              | $      | 585,042 |   |

Off-Balance Sheet 

Bank Liquidity

Table of Contents

Compa

Capital

Table of Contents

Asset Quality

| Table 6Nonperforming Assets and Loans Past Due 90 Days or More and Still Accruing(in thousands) |   |
|-------------------------------------------------------------------------------------------------|--------|
|                                                                                            |   | September 30, 2010 |   |   | December 31, 2009 |   |   | September 30, 2009 |   |
| Nonaccrual loans                                                                                |   | $ | 23,569 |   |   | $ | 16,183 |   |   | $ | 15,520 |   |
| Loans past due 90 days and over and still accruing                                              |   |   | 624 |   |   |   | 378 |   |   |   | 1,600 |   |
| Total nonperforming loans                                                                       |   |   | 24,193 |   |   |   | 16,561 |   |   |   | 17,120 |   |
| Other real estate owned                                                                         |   |   | 1,401 |   |   |   | 792 |   |   |   | 758 |   |
| Other foreclosed assets                                                                         |   |   | 55 |   |   |   | 51 |   |   |   | 89 |   |
| Total nonperforming assets                                                                      |   | $ | 25,649 |   |   | $ | 17,404 |   |   | $ | 17,967 |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Troubled debt restructurings                                                                    |   | $ | 661 |   |   | $ | - |   |   | $ | - |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Nonperforming assets to total assets                                                            |   |   | 2.58 | % |   |   | 1.79 | % |   |   | 1.90 | % |
| Nonperforming assets to total loans + OREO + other foreclosed assets                            |   |   | 4.28 | % |   |   | 2.97 | % |   |   | 3.05 | % |
| ALLL to nonperforming loans                                                                     |   |   | 34.91 | % |   |   | 48.28 | % |   |   | 46.82 | % |
| ALLL to total loans                                                                             |   |   | 1.41 | % |   |   | 1.37 | % |   |   | 1.36 | % |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| YTD charge-offs                                                                                 |   | $ | 3,908 |   |   | $ | 5,268 |   |   | $ | 3,871 |   |
| YTD recoveries                                                                                  |   |   | (209 | ) |   |   | (227 | ) |   |   | (200 | ) |
| YTD net charge-offs                                                                             |   | $ | 3,699 |   |   | $ | 5,041 |   |   | $ | 3,671 |   |
| Annualized net charge-offs to total loans                                                       |   |   | 0.83 | % |   |   | 0.86 | % |   |   | 0.83 | % |

Table of Contents

Impact of Inflation 

Item 3

Table of Contents

Item 4

Table of Contents

Part II 

Item 1.

Item 1A

Item 2

Item 3. 

Table of Contents

Item 4

Item 

Item 6

| 31.1 | Certification pursuant to Exchange Act Rules 13(a) – 14(a) * |
|------|--------------------------------------------------------------------|

| 31.2 | Certification pursuant to Exchange Act Rules 13(a) – 14(a) * |
|------|--------------------------------------------------------------------|

| 32.1 | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 ** |
|------|----------------------------------------------------------------------------|

| 32.2 | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 ** |
|------|----------------------------------------------------------------------------|

| *  | Filed herewith.     |
|----|---------------------|
| ** | Furnished herewith. |

Table of Contents

|                              | MidSouth Bancorp, Inc.(Registrant)                  |
|-----------------------------------|----------------------------------------------------------|
|                              |                                                     |
| Date:  November 9, 2010 |                                                     |
|                              | /s/ C. R. Cloutier                                       |
|                              | C. R. Cloutier, President /CEO                           |
|                              | (Principal Executive Officer)                       |
|                              | /s/ James R. McLemore                                    |
|                              | James R. McLemore, CFO                                   |
|                              | (Principal Financial Officer)                       |
|                              | /s/ Teri S. Stelly                                       |
|                              | Teri S. Stelly, Controller(Principal Accounting Officer) |