----

----

| UNITED                STATESSECURITIES                AND EXCHANGE COMMISSION**WASHINGTON,                D.C.  20549**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| **FORM                10-Q**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| xQUARTERLY                REPORT                PURSUANT TO SECTION 13 OR 15(d) OF THE                                                                                                                      SECURITIES EXCHANGE ACT OF 1934                                                                                                                      For                the quarterly period ended **September 30,                2007**OR¨TRANSITION                REPORT                PURSUANT TO SECTION 13 OR 15(d) OF THE                                                                       SECURITIES                EXCHANGE ACT OF 1934                                                                                      For the transition period from _____ to _____ |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| **COMMISSION                FILE NUMBER 1-11826****MIDSOUTH                BANCORP,                INC.**(Exact                name of registrant as specified in its charter)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| **Louisiana**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | **72                –1020809** |
| (State                of other jurisdiction of incorporation or organization)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | (I.R.S.                Employer Identification No.) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                                                                     102 Versailles Boulevard, Lafayette, Louisiana 70501** **(Address                of principal executive offices, including zip code)**(337)                237-8343**(Registrant’s                telephone number, including area code)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Indicate                by checkmark whether the registrant (1) has filed all reports required                to                be filed by Section 13 or 15(d) of the Securities Exchange Act during                the                preceding 12 months (or for such shorter period that the registrant                was                required to file such reports), and (2) has been subject to such                filing                requirements for the past 90 days.YES   x   NO   ¨                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Indicate                  by check mark whether the registrant is a large accelerated filer,                  an                  accelerated filer, or a non-accelerated filer.Large                accelerated filer ¨                                                      Accelerated                filer x                                           Non-accelerated                filer ¨                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Indicate                by check mark whether the registrant is a shell company (as defined                in                Rule 12b-2 of the Act.)YES   ¨   NO   x                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| As                of November 1, 2007, there                were 6,582,004 shares of the registrant’s Common Stock, par value $0.10                per share, outstanding.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

----

----

Part      I – Financial Information 

Item      1. Financial Statements. 

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

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

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

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

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

|   | Notes                to Interim Consolidated Financial                Statements |
|--------|----------------------------------------------------------------------------------|
Item      2. Management’s Discussion and Analysis of Financial Condition      and Results of Operation. 

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

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

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

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

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

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

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. Submission of Matters to a Vote of Security      Holders. 

Item      5. Other Information. 

Item      6. Exhibits. 

Signatures 

----

*Table          of Contents*

**Part      I – Financial Information**

**Item      1. Financial Statements.**

|                                                                                                                                                                                                                                                      |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| **MidSouth                Bancorp, Inc. and Subsidiaries**                                                                                                                                                                                                |   |
| **Consolidated                Statements of Condition**                                                                                                                                                                                                   |   |
|                                                                                                                                                                                                                                                      |   | **September                  30,****2007****(unaudited)** |   |   | **December                  31, 2006****(audited)** |   |
| **Assets**                                                                                                                                                                                                                                                |   |   |   |   |   |   |
| Cash                and due from banks                                                                                                                                                                                                                    |   | $ | 27,885,071 |   |   | $ | 30,564,604 |   |
| Interest                bearing deposits in banks and federal funds sold                                                                                                                                                                                  |   |   | 3,088,574 |   |   |   | 26,839,737 |   |
| Total                cash and cash                equivalents                                                                                                                                                                                             |   |   | 30,973,645 |   |   |   | 57,404,341 |   |
| Securities                available-for-sale, at fair value (cost of $182,146,375 at September                30,                2007 and $181,973,949 at December 31, 2006)                                                                              |   |   | 181,719,338 |   |   |   | 180,673,747 |   |
| Securities                held-to-maturity (estimated fair value of $11,709,372 at September                30,                2007 and $16,166,937 at December 31, 2006)                                                                                 |   |   | 11,514,732 |   |   |   | 15,900,611 |   |
| Loans,                net of allowance for loan losses of $5,297,280 at September 30, 2007                and                $4,976,857 at December 31, 2006                                                                                              |   |   | 547,750,783 |   |   |   | 494,068,845 |   |
| Other                investments                                                                                                                                                                                                                          |   |   | 5,157,740 |   |   |   | 2,501,150 |   |
| Accrued                interest receivable                                                                                                                                                                                                                |   |   | 5,815,119 |   |   |   | 5,491,730 |   |
| Bank                premises and equipment, net                                                                                                                                                                                                           |   |   | 36,450,478 |   |   |   | 30,609,332 |   |
| Goodwill                and intangibles                                                                                                                                                                                                                   |   |   | 9,800,122 |   |   |   | 9,957,364 |   |
| Cash                surrender value of life insurance                                                                                                                                                                                                     |   |   | 4,181,378 |   |   |   | 4,068,116 |   |
| Other                assets                                                                                                                                                                                                                               |   |   | 3,523,848 |   |   |   | 4,346,450 |   |
| Total                assets                                                                                                                                                                                                                               |   | $ | 836,887,183 |   |   | $ | 805,021,686 |   |
|                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| **Liabilities                and Stockholders’ Equity**                                                                                                                                                                                             |   |   |   |   |   |   |   |   |
| Liabilities:                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |
| Deposits:                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Non-interest                bearing                                                                                                                                                                                                                       |   | $ | 179,859,508 |   |   | $ | 182,595,931 |   |
| Interest                bearing                                                                                                                                                                                                                           |   |   | 534,494,458 |   |   |   | 533,583,610 |   |
| Total                deposits                                                                                                                                                                                                                             |   |   | 714,353,966 |   |   |   | 716,179,541 |   |
| Securities                sold under repurchase agreements                                                                                                                                                                                                |   |   | 19,015,860 |   |   |   | 4,474,786 |   |
| Federal                funds purchased                                                                                                                                                                                                                    |   |   | 5,000,000 |   |   |   | - |   |
| Federal                Home Loan Bank advances                                                                                                                                                                                                            |   |   | 12,330,000 |   |   |   | 5,650,000 |   |
| Accrued                interest payable                                                                                                                                                                                                                   |   |   | 1,090,551 |   |   |   | 1,196,822 |   |
| Junior                subordinated debentures                                                                                                                                                                                                             |   |   | 15,465,000 |   |   |   | 15,465,000 |   |
| Other                liabilities                                                                                                                                                                                                                          |   |   | 3,344,968 |   |   |   | 2,312,061 |   |
| Total                liabilities                                                                                                                                                                                                                          |   |   | 770,600,345 |   |   |   | 745,278,210 |   |
| Stockholders’                Equity:                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Common                stock, $0.10 par value- 10,000,000 shares authorized; 6,723,523 and                6,355,946 issued and 6,582,577 and 6,236,989 outstanding at September                30,                2007 and December 31, 2006, respectively |   |   | 672,353 |   |   |   | 635,595 |   |
| Capital                surplus                                                                                                                                                                                                                            |   |   | 51,292,909 |   |   |   | 42,907,597 |   |
| Unearned                ESOP shares                                                                                                                                                                                                                       |   |   | (163,057 | ) |   |   | (251,259 | ) |
| Accumulated                other comprehensive income                                                                                                                                                                                                     |   |   | (281,844 | ) |   |   | (858,133 | ) |
| Treasury                stock- 140,946 shares at September 30, 2007 and 118,957 shares at                December                31, 2006, at cost                                                                                                        |   |   | (2,899,662 | ) |   |   | (2,518,411 | ) |
| Retained                earnings                                                                                                                                                                                                                          |   |   | 17,666,139 |   |   |   | 19,828,087 |   |
| Total                stockholders’                equity                                                                                                                                                                                            |   |   | 66,286,838 |   |   |   | 59,743,476 |   |
| Total                liabilities and                stockholders’ equity                                                                                                                                                                            |   | $ | 836,887,183 |   |   | $ | 805,021,686 |   |
|                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| See                notes to unaudited consolidated financial statements.                                                                                                                                                                                  |   |   |   |   |   |   |   |   |

----

*Table          of Contents*

|                                                                                                            |   |
|-----------------------------------------------------------------------------------------------------------------|--------|
| **MidSouth                Bancorp, Inc. and Subsidiaries**                                                      |   |
| **Consolidated                Statements of Earnings (unaudited)**                                              |   |
|                                                                                                            |   | **Three                Months Ended September 30,** |   |   | **Nine                Months Ended September 30,** |   |
|                                                                                                            |   | **2007** |   |   | **2006** |   |   | **2007** |   |   | **2006** |   |
| Interest                income:                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans,                including fees                                                                            |   | $ | 12,460,906 |   |   | $ | 10,860,528 |   |   | $ | 35,439,056 |   |   | $ | 30,143,044 |   |
| Securities                and other investments                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                                                                         |   |   | 1,105,589 |   |   |   | 1,274,496 |   |   |   | 3,186,209 |   |   |   | 3,451,061 |   |
| Nontaxable                                                                                                      |   |   | 1,036,780 |   |   |   | 900,593 |   |   |   | 3,097,464 |   |   |   | 2,467,370 |   |
| Federal                funds sold                                                                               |   |   | 47,230 |   |   |   | 68,081 |   |   |   | 672,377 |   |   |   | 768,667 |   |
| Total                interest                income                                                             |   |   | 14,650,505 |   |   |   | 13,103,698 |   |   |   | 42,395,106 |   |   |   | 36,830,142 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                expense:                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                                                        |   |   | 4,430,762 |   |   |   | 4,268,473 |   |   |   | 13,713,330 |   |   |   | 11,603,901 |   |
| Securities                sold under repurchase agreements, federal funds purchased and                advances |   |   | 452,492 |   |   |   | 58,332 |   |   |   | 645,195 |   |   |   | 107,247 |   |
| Junior                subordinated                debentures                                                    |   |   | 350,281 |   |   |   | 350,782 |   |   |   | 1,044,174 |   |   |   | 1,020,499 |   |
| Total                interest                expense                                                            |   |   | 5,233,535 |   |   |   | 4,677,587 |   |   |   | 15,402,699 |   |   |   | 12,731,647 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest income                                                                              |   |   | 9,416,970 |   |   |   | 8,426,111 |   |   |   | 26,992,407 |   |   |   | 24,098,495 |   |
| Provision                for loan losses                                                                        |   |   | 300,000 |   |   |   | 50,000 |   |   |   | 650,000 |   |   |   | 670,000 |   |
| Net                interest income after provision for loan losses                                              |   |   | 9,116,970 |   |   |   | 8,376,111 |   |   |   | 26,342,407 |   |   |   | 23,428,495 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest                income:                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Service                charges on deposits                                                                      |   |   | 2,449,769 |   |   |   | 2,459,671 |   |   |   | 7,245,344 |   |   |   | 6,560,086 |   |
| Gains                (losses) on securities, net                                                                |   |   | - |   |   |   | (7,553 | ) |   |   | - |   |   |   | (7,553 | ) |
| Credit                life insurance                                                                            |   |   | 42,402 |   |   |   | 40,887 |   |   |   | 138,274 |   |   |   | 129,761 |   |
| Other                charges and fees                                                                           |   |   | 1,081,725 |   |   |   | 936,880 |   |   |   | 3,143,410 |   |   |   | 2,681,960 |   |
| Total                non-interest                income                                                         |   |   | 3,573,896 |   |   |   | 3,429,885 |   |   |   | 10,527,028 |   |   |   | 9,364,254 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest                expenses:                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries                and employee benefits                                                                   |   |   | 5,215,368 |   |   |   | 4,249,564 |   |   |   | 14,716,502 |   |   |   | 11,972,079 |   |
| Occupancy                expense                                                                                |   |   | 1,760,542 |   |   |   | 1,597,830 |   |   |   | 4,947,729 |   |   |   | 4,458,038 |   |
| Other                                                                                                           |   |   | 2,765,900 |   |   |   | 2,641,205 |   |   |   | 8,402,045 |   |   |   | 7,623,727 |   |
| Total                non-interest                expenses                                                       |   |   | 9,741,810 |   |   |   | 8,488,599 |   |   |   | 28,066,276 |   |   |   | 24,053,844 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                before income taxes                                                                       |   |   | 2,949,056 |   |   |   | 3,317,397 |   |   |   | 8,803,159 |   |   |   | 8,738,905 |   |
| Provision                for income taxes                                                                       |   |   | 508,445 |   |   |   | 900,260 |   |   |   | 1,921,406 |   |   |   | 2,267,494 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                earnings                                                                                     |   | $ | 2,440,611 |   |   | $ | 2,417,137 |   |   | $ | 6,881,753 |   |   | $ | 6,471,411 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings                per share:                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                           |   | $ | 0.37 |   |   | $ | 0.37 |   |   | $ | 1.05 |   |   | $ | 0.99 |   |
| Diluted                                                                                                         |   | $ | 0.37 |   |   | $ | 0.36 |   |   | $ | 1.04 |   |   | $ | 0.97 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 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, 2007**                                              |   |
|                                                                                                         |   |
|                                                                                                         |   | **Common                  Stock** |   |   |   |   |   |   |   |   |  **Unrealized                Losses on** |   |   |   |   |   |   |   |   |   |   |
|                                                                                                         |   | **Shares** |   |   | **Amount** |   |   | **Capital                  Surplus** |   |   | **ESOP                  Obligation** |   |   | **Securities                  AFS, net** |   |   | **Treasury                  Stock** |   |   | **Retained                  Earnings** |   |   | **Total** |   |
| Balance-                January 1, 2007                                                                      |   |   | 6,355,946 |   |   | $ | 635,595 |   |   | $ | 42,907,597 |   |   | $ | (251,259 | ) |   | $ | (858,133 | ) |   | $ | (2,518,411 | ) |   | $ | 19,828,087 |   |   | $ | 59,743,476 |   |
| Net                earnings                                                                                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 6,881,753 |   |   |   | 6,881,753 |   |
| Comprehensive                income:                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                change in unrealized losses                on securities available-for-sale, net of taxes |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 576,289 |   |   |   | - |   |   |   | - |   |   |   | 576,289 |   |
| Comprehensive                income                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 7,458,042 |   |
| Cash                dividends on common stock, $0.18 per share                                               |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,189,986 | ) |   |   | (1,189,986 | ) |
| Common                stock dividend, 5% per common share                                                    |   |   | 320,168 |   |   |   | 32,017 |   |   |   | 7,821,698 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (7,853,715 | ) |   |   | - |   |
| Exercise                of stock options                                                                     |   |   | 47,409 |   |   |   | 4,741 |   |   |   | 266,001 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 270,742 |   |
| Tax                benefit resulting from exercise of stock options                                          |   |   | - |   |   |   | - |   |   |   | 137,716 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 137,716 |   |
| Purchase                of treasury stock                                                                    |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (381,251 | ) |   |   | - |   |   |   | (381,251 | ) |
| ESOP                obligation, net of repayments                                                            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 88,202 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 88,202 |   |
| Excess                of market value over book value of ESOP shares released, net                adjustment |   |   | - |   |   |   | - |   |   |   | 86,250 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 86,250 |   |
| Stock                option expense                                                                          |   |   | - |   |   |   | - |   |   |   | 73,647 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 73,647 |   |
| Balance-                September 30, 2007                                                                   |   |   | 6,723,523 |   |   | $ | 672,353 |   |   | $ | 51,292,909 |   |   | $ | (163,057 | ) |   | $ | (281,844 | ) |   | $ | (2,899,662 | ) |   | $ | 17,666,139 |   |   | $ | 66,286,838 |   |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See                notes to unaudited consolidated financial statements.                                     |   |

----

*Table          of Contents*

|                                                                                                         |   |
|--------------------------------------------------------------------------------------------------------------|--------|
| **MidSouth                Bancorp, Inc. and Subsidiaries**                                                   |   |
| **Consolidated                Statement of Stockholders’ Equity                (unaudited)**           |   |
| **For                the Nine Months Ended September 30, 2006**                                              |   |
|                                                                                                         |   | **Common                  Stock** |   |   |   |   |   |   |   |   |  **Unrealized Losses** |   |   |   |   |   |   |   |   |   |   |
|                                                                                                         |   | **Shares** |   |   | **Amount** |   |   | **Capital                  Surplus** |   |   | **ESOP                  Obligation** |   |   | ** on                  Securities AFS, net** |   |   | **Treasury                  Stock** |   |   | **Retained                  Earnings** |   |   | **Total** |   |
| Balance-                January 1, 2006                                                                      |   |   | 6,570,993 |   |   | $ | 657,099 |   |   | $ | 41,753,670 |   |   | $ | (47,194 | ) |   | $ | (1,032,694 | ) |   | $ | (1,229,213 | ) |   | $ | 13,083,900 |   |   | $ | 53,185,568 |   |
| Net                earnings                                                                                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 6,471,411 |   |   |   | 6,471,411 |   |
| Comprehensive                income:                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                change in unrealized losses                on securities available-for-sale, net of taxes |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 128,922 |   |   |   | - |   |   |   | - |   |   |   | 128,922 |   |
| Comprehensive                income                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 6,600,333 |   |
| Cash                dividends on common stock, $0.13 per share                                               |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (895,957 | ) |   |   | (895,957 | ) |
| Exercise                of stock options                                                                     |   |   | 83,789 |   |   |   | 8,379 |   |   |   | 333,432 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 341,811 |   |
| Tax                benefit resulting from exercise of stock options                                          |   |   | - |   |   |   | - |   |   |   | 594,899 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 594,899 |   |
| Purchase                of treasury stock                                                                    |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (655,720 | ) |   |   | - |   |   |   | (655,720 | ) |
| ESOP                obligation, net of repayments                                                            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (232,604 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (232,604 | ) |
| Excess                of market value over book value of ESOP shares released, net                adjustment |   |   | - |   |   |   | - |   |   |   | 52,500 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 52,500 |   |
| Stock                option expense                                                                          |   |   | - |   |   |   | - |   |   |   | 45,333 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 45,333 |   |
| Balance-                September 30, 2006                                                                   |   |   | 6,654,782 |   |   | $ | 665,478 |   |   | $ | 42,779,834 |   |   | $ | (279,798 | ) |   | $ | (903,772 | ) |   | $ | (1,884,933 | ) |   | $ | 18,659,354 |   |   | $ | 59,036,163 |   |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See                notes to unaudited consolidated financial statements.                                     |   |

----

*Table          of Contents*

|                                                                                                            |   |
|-----------------------------------------------------------------------------------------------------------------|--------|
| **MidSouth                Bancorp, Inc. and Subsidiaries**                                                      |   |
| **Consolidated                Statements of Cash Flows(unaudited)**                                             |   |
|                                                                                                            |   | **For                the Nine Months Ended September 30,** |   |
|                                                                                                            |   | **2007** |   |   | **2006** |   |
| Cash                flows from operating activities:                                                            |   |   |   |   |   |   |
| Net                earnings                                                                                     |   | $ | 6,881,753 |   |   | $ | 6,471,411 |   |
| Adjustments                to reconcile net income to net cash provided by operating                activities: |   |   |   |   |   |   |   |   |
| Depreciation                and amortization                                                                    |   |   | 2,070,223 |   |   |   | 2,044,232 |   |
| Provision                for loan losses                                                                        |   |   | 650,000 |   |   |   | 670,000 |   |
| Deferred                income tax expense (benefit)                                                            |   |   | 497,784 |   |   |   | (255,005 | ) |
| Amortization                of premiums on securities, net                                                      |   |   | 449,973 |   |   |   | 538,504 |   |
| Net                loss on sale of securities                                                                   |   |   | - |   |   |   | 7,553 |   |
| Net                loss on sale of premises and equipment                                                       |   |   | 27,510 |   |   |   | 416 |   |
| Net                loss on sale of other real estate owned                                                      |   |   | 27,533 |   |   |   | 13,210 |   |
| Impairment                on premises and equipment                                                             |   |   | (20,706 | ) |   |   | - |   |
| Stock                option compensation expense                                                                |   |   | 73,647 |   |   |   | 45,333 |   |
| Change                in accrued interest receivable                                                            |   |   | (323,389 | ) |   |   | (539,517 | ) |
| Change                in accrued interest payable                                                               |   |   | (106,271 | ) |   |   | (103,052 | ) |
| Other,                net                                                                                       |   |   | 932,460 |   |   |   | 533,312 |   |
| Net                cash provided by operating                activities                                         |   |   | 11,160,517 |   |   |   | 9,426,397 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |
| Cash                flows from investing activities:                                                            |   |   |   |   |   |   |   |   |
| Proceeds                from maturities and calls of securities available-for-sale                              |   |   | 21,966,866 |   |   |   | 26,308,619 |   |
| Proceeds                from maturities and calls of securities held-to-maturity                                |   |   | 4,395,500 |   |   |   | 3,219,900 |   |
| Proceeds                from sales of securities available-for-sale                                             |   |   | - |   |   |   | 2,988,590 |   |
| Purchases                of securities available-for-sale                                                       |   |   | (22,600,250 | ) |   |   | (74,763,571 | ) |
| Purchases                of other investments                                                                   |   |   | (2,655,225 | ) |   |   | (910,950 | ) |
| Loan                originations, net of repayments                                                             |   |   | (54,494,614 | ) |   |   | (53,029,037 | ) |
| Purchase                of premises and equipment                                                               |   |   | (7,818,016 | ) |   |   | (7,304,836 | ) |
| Proceeds                from sale of premises and equipment                                                     |   |   | 57,085 |   |   |   | 275 |   |
| Proceeds                from sales of other real estate owned                                                   |   |   | 448,522 |   |   |   | 151,450 |   |
| Net                cash used in investing                activities                                             |   |   | (60,700,132 | ) |   |   | (103,339,560 | ) |
|                                                                                                            |   |   |   |   |   |   |   |   |
| Cash                flows from financing activities:                                                            |   |   |   |   |   |   |   |   |
| Change                in deposits                                                                               |   |   | (1,825,575 | ) |   |   | 66,408,333 |   |
| Change                in repurchase agreements                                                                  |   |   | 14,541,074 |   |   |   | 980,872 |   |
| Change                in federal funds purchased                                                                |   |   | 5,000,000 |   |   |   | 1,200,000 |   |
| Proceeds                from FHLB advances                                                                      |   |   | 260,508,500 |   |   |   | - |   |
| Repayments                of FHLB advances                                                                      |   |   | (253,828,500 | ) |   |   | - |   |
| Purchase                of treasury stock                                                                       |   |   | (381,251 | ) |   |   | (655,720 | ) |
| Payment                of dividends on common stock                                                             |   |   | (1,313,787 | ) |   |   | (1,190,449 | ) |
| Proceeds                from exercise of stock options                                                          |   |   | 270,742 |   |   |   | 341,811 |   |
| Excess                tax benefit from stock option exercises                                                   |   |   | 137,716 |   |   |   | 594,899 |   |
| Net                cash provided by financing                activities                                         |   |   | 23,108,919 |   |   |   | 67,679,746 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |
| Net                decrease in cash and cash equivalents                                                        |   |   | (26,430,696 | ) |   |   | (26,233,417 | ) |
|                                                                                                            |   |   |   |   |   |   |   |   |
| Cash                and cash equivalents, beginning of period                                                   |   |   | 57,404,341 |   |   |   | 52,437,002 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |
| Cash                and cash equivalents, end of period                                                         |   | $ | 30,973,645 |   |   | $ | 26,203,585 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |
| See                notes to unaudited consolidated financial statements.                                        |   |   |   |   |   |   |   |   |

----

*Table          of Contents*

| **MidSouth                Bancorp, Inc. and Subsidiaries**                           |
|--------------------------------------------------------------------------------------|
| **Notes                to Interim Consolidated Financial                Statements** |
| **September                30, 2007**                                                |
| **(Unaudited)**                                                                      |

***1.           Basis      of Presentation***

***Use      of Estimates***

***Summary      of Significant Accounting Policies***

***Recent      Accounting Pronouncements—***
*Accounting for Uncertainty in Income      Taxes*

*Fair Value Measurements*

*The Fair Value Option for      Financial Assets and Financial Liabilities*

*Accounting for Purchases of Life Insurance — Determining the      Amount that Could Be Realized in Accordance with FASB Technical Bulletin      85-4*

***Reclassifications—***

----

*Table            of Contents*

***2.           Employee      Stock Compensation Plan***

***3.           Allowance      for Loan Losses***

|                                        |   | **Three                  Months Ended September 30,** |   |   | **Nine                  Months Ended September 30,** |   |
|---------------------------------------------|--------|-------------------------------------------------------|--------|--------|------------------------------------------------------|--------|
|                                        |   | **2007**                                              |   |   | **2006**                                             |   |   | **2007** |   |   | **2006** |   |
| Balance,                beginning of period |   | $                                                     | 5,182  |   |                                                 | $      | 4,887 |   |   | $ | 4,977 |   |   | $ | 4,355 |   |
| Provision                for loan losses    |   |                                                  | 300    |   |                                                 |   | 50 |   |   |   | 650 |   |   |   | 670 |   |
| Recoveries                                  |   |                                                  | 36     |   |                                                 |   | 44 |   |   |   | 78 |   |   |   | 266 |   |
| Loans                charged-off            |   |                                                  | (221   | )      |                                                 |   | (71 | ) |   |   | (408 | ) |   |   | (381 | ) |
| Balance,                end of period       |   | $                                                     | 5,297  |   |                                                 | $      | 4,910 |   |   | $ | 5,297 |   |   | $ | 4,910 |   |

***4.           Earnings      Per Common Share***

|                                                                                                                                                                                           |   | **Three                  Months Ended September 30,** |   |   | **Nine                  Months Ended September 30,** |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|--------|--------|------------------------------------------------------|--------|
|                                                                                                                                                                                           |   | **2007**                                              |   |   | **2006**                                             |   |   | **2007** |   |   | **2006** |   |
| Net                earnings                                                                                                                                                                    |   | $                                                     | 2,441  |   |                                                 | $      | 2,417 |   |   | $ | 6,882 |   |   | $ | 6,471 |   |
| Weighted                average number of common shares outstanding used in computation of                basic                earnings per common share                                       |   |                                                  | 6,573  |   |                                                 |   | 6,548 |   |   |   | 6,568 |   |   |   | 6,512 |   |
| Effect                of dilutive securities:Stock                options                                                                                                                      |   |                                                  | 65     |   |                                                 |   | 116 |   |   |   | 71 |   |   |   | 112 |   |
| Weighted                average number of common shares outstanding plus effect of dilutive                securities – used in computation of diluted earnings per                share |   |                                                  | 6,638  |   |                                                 |   | 6,664 |   |   |   | 6,639 |   |   |   | 6,624 |   |

***5.           Declaration      of Dividends***

----

*Table          of Contents*

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

*Forward      Looking Statements*

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

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

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

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

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

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

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

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

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

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

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

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

*Critical      Accounting Policies*

*see*
*.*

*Goodwill and Other Intangible Assets*

*Share-Based Payment*

----

*Table          of Contents*

*Results      of Operations*

** **

----

*Table          of Contents*

a

----

*Table          of Contents*

|                                                                                                  |   |
|-------------------------------------------------------------------------------------------------------|--------|
| **Table                1**                                                                            |   |
| **Consolidated                Average Balances, Interest and Rates**(in                thousands)     |   |
|                                                                                                  |   | **Three                Months Ended September 30,** |   |
|                                                                                                  |   | **2007** |   |   | **2006** |   |
|                                                                                                  |   | **Average****Volume** |   |   | **Interest** |   |   | **Average****Yield/Rate** |   |   | **Average****Volume** |   |   | **Interest** |   |   | **Average****Yield/Rate** |   |
| **Assets**                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment                securities and interest bearing deposits1                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                                                               |   | $ | 87,063 |   |   | $ | 1,046 |   |   |   | 4.70 | % |   | $ | 108,737 |   |   | $ | 1,251 |   |   |   | 4.50 | % |
| Tax                exempt2                                                                            |   |   | 110,262 |   |   |   | 1,467 |   |   |   | 5.21 | % |   |   | 98,710 |   |   |   | 1,271 |   |   |   | 5.15 | % |
| Other                investments                                                                      |   |   | 4,667 |   |   |   | 59 |   |   |   | 4.95 | % |   |   | 2,442 |   |   |   | 23 |   |   |   | 3.69 | % |
| Total                investments                                                                      |   |   | 201,992 |   |   |   | 2,572 |   |   |   | 4.98 | % |   |   | 209,889 |   |   |   | 2,545 |   |   |   | 4.47 | % |
| Federal                funds sold and securities purchased under agreements to                resell  |   |   | 3,705 |   |   |   | 47 |   |   |   | 5.03 | % |   |   | 5,157 |   |   |   | 68 |   |   |   | 5.24 | % |
| Loans                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                and real estate                                                             |   |   | 439,089 |   |   |   | 10,079 |   |   |   | 9.11 | % |   |   | 390,297 |   |   |   | 8,742 |   |   |   | 8.89 | % |
| Installment                                                                                           |   |   | 112,251 |   |   |   | 2,382 |   |   |   | 8.42 | % |   |   | 98,772 |   |   |   | 2,119 |   |   |   | 8.51 | % |
| Total                loans3                                                                           |   |   | 551,340 |   |   |   | 12,461 |   |   |   | 8.97 | % |   |   | 489,069 |   |   |   | 10,861 |   |   |   | 8.81 | % |
| Total                earning assets                                                                   |   |   | 757,037 |   |   |   | 15,080 |   |   |   | 7.90 | % |   |   | 704,115 |   |   |   | 13,474 |   |   |   | 7.59 | % |
| Allowance                for loan losses                                                              |   |   | (5,138 | ) |   |   |   |   |   |   |   |   |   |   | (4,882 | ) |   |   |   |   |   |   |   |   |
| Nonearning                assets                                                                      |   |   | 79,479 |   |   |   |   |   |   |   |   |   |   |   | 72,658 |   |   |   |   |   |   |   |   |   |
| Total                assets                                                                           |   | $ | 831,378 |   |   |   |   |   |   |   |   |   |   | $ | 771,891 |   |   |   |   |   |   |   |   |   |
|                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Liabilities                and stockholders’ equity**                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW,                money market, and savings                                                         |   | $ | 417,022 |   |   | $ | 3,169 |   |   |   | 3.01 | % |   | $ | 403,623 |   |   | $ | 3,286 |   |   |   | 3.23 | % |
| Certificates                of deposits                                                               |   |   | 117,588 |   |   |   | 1,262 |   |   |   | 4.26 | % |   |   | 111,735 |   |   |   | 982 |   |   |   | 3.49 | % |
| Total                interest bearing deposits                                                        |   |   | 534,610 |   |   |   | 4,431 |   |   |   | 3.29 | % |   |   | 515,358 |   |   |   | 4,268 |   |   |   | 3.29 | % |
| Federal                funds purchased and securities sold under repurchase                agreements |   |   | 17,041 |   |   |   | 198 |   |   |   | 4.61 | % |   |   | 4,686 |   |   |   | 58 |   |   |   | 4.94 | % |
| FHLB                advances                                                                          |   |   | 19,583 |   |   |   | 255 |   |   |   | 5.17 | % |   |   | - |   |   |   | - |   |   |   | - |   |
| Junior                subordinated debentures                                                         |   |   | 15,465 |   |   |   | 350 |   |   |   | 8.98 | % |   |   | 15,465 |   |   |   | 351 |   |   |   | 9.00 | % |
| Total                interest bearing liabilities                                                     |   |   | 586,699 |   |   |   | 5,234 |   |   |   | 3.54 | % |   |   | 535,509 |   |   |   | 4,677 |   |   |   | 3.47 | % |
|                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand                deposits                                                                        |   |   | 176,893 |   |   |   |   |   |   |   |   |   |   |   | 176,282 |   |   |   |   |   |   |   |   |   |
| Other                liabilities                                                                      |   |   | 4,023 |   |   |   |   |   |   |   |   |   |   |   | 3,615 |   |   |   |   |   |   |   |   |   |
| Stockholders’                equity                                                             |   |   | 63,763 |   |   |   |   |   |   |   |   |   |   |   | 56,485 |   |   |   |   |   |   |   |   |   |
| Total                liabilities and stockholders’ equity                                       |   | $ | 831,378 |   |   |   |   |   |   |   |   |   |   | $ | 771,891 |   |   |   |   |   |   |   |   |   |
|                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest income and net interest spread                                            |   |   |   |   |   | $ | 9,846 |   |   |   | 4.36 | % |   |   |   |   |   | $ | 8,797 |   |   |   | 4.12 | % |
| Net                yield on interest earning assets                                                   |   |   |   |   |   |   |   |   |   |   | 5.16 | % |   |   |   |   |   |   |   |   |   |   | 4.96 | % |

----

  

  

  

----

*Table          of Contents*

|                                                                                                  |   |
|-------------------------------------------------------------------------------------------------------|--------|
| **Table                2**                                                                            |   |
| **Consolidated                Average Balances, Interest and Rates**(in                thousands)     |   |
|                                                                                                  |   | **Nine                Months Ended September 30,** |   |
|                                                                                                  |   | **2007** |   |   | **2006** |   |
|                                                                                                  |   | **Average****Volume** |   |   | **Interest** |   |   | **Average****Yield/Rate** |   |   | **Average****Volume** |   |   | **Interest** |   |   | **Average****Yield/Rate** |   |
| **Assets**                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment                securities and interest bearing deposits4                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                                                               |   | $ | 86,980 |   |   | $ | 3,083 |   |   |   | 4.73 | % |   | $ | 100,869 |   |   | $ | 3,389 |   |   |   | 4.48 | % |
| Tax                exempt5                                                                            |   |   | 110,577 |   |   |   | 4,379 |   |   |   | 5.28 | % |   |   | 91,047 |   |   |   | 3,479 |   |   |   | 5.10 | % |
| Other                investments                                                                      |   |   | 3,249 |   |   |   | 103 |   |   |   | 4.23 | % |   |   | 2,271 |   |   |   | 62 |   |   |   | 3.62 | % |
| Total                investments                                                                      |   |   | 200,806 |   |   |   | 7,565 |   |   |   | 5.02 | % |   |   | 194,187 |   |   |   | 6,930 |   |   |   | 4.76 | % |
| Federal                funds sold and securities purchased under agreements to                resell  |   |   | 17,338 |   |   |   | 672 |   |   |   | 5.18 | % |   |   | 22,045 |   |   |   | 769 |   |   |   | 4.66 | % |
| Loans                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                and real estate                                                             |   |   | 418,046 |   |   |   | 28,280 |   |   |   | 9.04 | % |   |   | 370,079 |   |   |   | 24,074 |   |   |   | 8.70 | % |
| Installment                                                                                           |   |   | 108,283 |   |   |   | 7,159 |   |   |   | 8.84 | % |   |   | 96,299 |   |   |   | 6,069 |   |   |   | 8.43 | % |
| Total                loans6                                                                           |   |   | 526,329 |   |   |   | 35,439 |   |   |   | 9.00 | % |   |   | 466,378 |   |   |   | 30,143 |   |   |   | 8.64 | % |
| Total                earning assets                                                                   |   |   | 744,473 |   |   |   | 43,676 |   |   |   | 7.84 | % |   |   | 682,610 |   |   |   | 37,842 |   |   |   | 7.41 | % |
| Allowance                for loan losses                                                              |   |   | (4,999 | ) |   |   |   |   |   |   |   |   |   |   | (4,615 | ) |   |   |   |   |   |   |   |   |
| Nonearning                assets                                                                      |   |   | 77,754 |   |   |   |   |   |   |   |   |   |   |   | 71,913 |   |   |   |   |   |   |   |   |   |
| Total                assets                                                                           |   | $ | 817,228 |   |   |   |   |   |   |   |   |   |   | $ | 749,908 |   |   |   |   |   |   |   |   |   |
|                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Liabilities                and stockholders’ equity**                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW,                money market, and savings                                                         |   | $ | 420,962 |   |   | $ | 10,008 |   |   |   | 3.18 | % |   | $ | 380,179 |   |   | $ | 8,626 |   |   |   | 3.03 | % |
| Certificates                of deposits                                                               |   |   | 119,512 |   |   |   | 3,705 |   |   |   | 4.14 | % |   |   | 117,858 |   |   |   | 2,978 |   |   |   | 3.38 | % |
| Total                interest bearing deposits                                                        |   |   | 540,474 |   |   |   | 13,713 |   |   |   | 3.39 | % |   |   | 498,037 |   |   |   | 11,604 |   |   |   | 3.12 | % |
| Securities                sold under repurchase agreements and federal funds                purchased |   |   | 10,252 |   |   |   | 362 |   |   |   | 4.72 | % |   |   | 3,159 |   |   |   | 107 |   |   |   | 4.54 | % |
| FHLB                advances                                                                          |   |   | 7,161 |   |   |   | 283 |   |   |   | 5.28 | % |   |   | - |   |   |   | - |   |   |   | - |   |
| Junior                subordinated debentures                                                         |   |   | 15,465 |   |   |   | 1,044 |   |   |   | 9.03 | % |   |   | 15,465 |   |   |   | 1,020 |   |   |   | 8.82 | % |
| Total                interest bearing liabilities                                                     |   |   | 573,352 |   |   |   | 15,402 |   |   |   | 3.59 | % |   |   | 516,661 |   |   |   | 12,731 |   |   |   | 3.29 | % |
|                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand                deposits                                                                        |   |   | 177,635 |   |   |   |   |   |   |   |   |   |   |   | 175,137 |   |   |   |   |   |   |   |   |   |
| Other                liabilities                                                                      |   |   | 4,038 |   |   |   |   |   |   |   |   |   |   |   | 3,233 |   |   |   |   |   |   |   |   |   |
| Stockholders’                equity                                                             |   |   | 62,203 |   |   |   |   |   |   |   |   |   |   |   | 54,877 |   |   |   |   |   |   |   |   |   |
| Total                liabilities and stockholders’ equity                                       |   | $ | 817,228 |   |   |   |   |   |   |   |   |   |   | $ | 749,908 |   |   |   |   |   |   |   |   |   |
|                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest income and net interest spread                                            |   |   |   |   |   | $ | 28,274 |   |   |   | 4.25 | % |   |   |   |   |   | $ | 25,111 |   |   |   | 4.12 | % |
| Net                yield on interest earning assets                                                   |   |   |   |   |   |   |   |   |   |   | 5.08 | % |   |   |   |   |   |   |   |   |   |   | 4.92 | % |

----

  

  

  

----

*Table          of Contents*

|                                                                                                                        |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|
| **Table                3****Changes                in Taxable-Equivalent Net Interest Income**(in                thousands) |   |
|                                                                                                                        |   | **Three                  Months Ended****September                  30, 2007 Compared to September 30, 2006** |   |
|                                                                                                                        |   | **Total****Increase** |   |   | **Change****Attributable                To** |   |
|                                                                                                                        |   | **(Decrease)** |   |   | **Volume** |   |   | **Rates** |   |
| Taxable-equivalent                earned on:                                                                                |   |   |   |   |   |   |   |   |   |
| Investment                securities and interest bearing deposits                                                          |   |   |   |   |   |   |   |   |   |
| Taxable                                                                                                                     |   | $ | (205 | ) |   | $ | (258 | ) |   | $ | 53 |   |
| Tax                exempt                                                                                                   |   |   | 196 |   |   |   | 153 |   |   |   | 43 |   |
| Other                investments                                                                                            |   |   | 36 |   |   |   | 26 |   |   |   | 10 |   |
| Federal                funds sold and securities purchased under agreement to                resell                         |   |   | (21 | ) |   |   | (18 | ) |   |   | (3 | ) |
| Loans,                including fees                                                                                        |   |   | 1,600 |   |   |   | 1,404 |   |   |   | 196 |   |
| Total                                                                                                                       |   | $ | 1,606 |   |   | $ | 1,307 |   |   | $ | 299 |   |
|                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                paid on:                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                bearing deposits                                                                                    |   | $ | 163 |   |   | $ | 160 |   |   | $ | 3 |   |
| Federal                funds purchased and securities sold under repurchase                agreements                       |   |   | 140 |   |   |   | 144 |   |   |   | (4 | ) |
| FHLB                advances                                                                                                |   |   | 255 |   |   |   | 255 |   |   |   | - |   |
| Junior                subordinated debentures                                                                               |   |   | (1 | ) |   |   | - |   |   |   | (1 | ) |
| Total                                                                                                                       |   | $ | 557 |   |   | $ | 559 |   |   | $ | (2 | ) |
|                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable-equivalent                net interest income                                                                       |   | $ | 1,049 |   |   | $ | 748 |   |   | $ | 301 |   |

|                                                                                                                        |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|
| **Table                4****Changes                in Taxable-Equivalent Net Interest Income**(in                thousands) |   |
|                                                                                                                        |   | **Nine                  Months Ended****September                  30, 2007 Compared to September 30, 2006** |   |
|                                                                                                                        |   | **Total****Increase** |   |   | **Change****Attributable                To** |   |
|                                                                                                                        |   | **(Decrease)** |   |   | **Volume** |   |   | **Rates** |   |
| Taxable-equivalent                earned on:                                                                                |   |   |   |   |   |   |   |   |   |
| Investment                securities and interest bearing deposits                                                          |   |   |   |   |   |   |   |   |   |
| Taxable                                                                                                                     |   | $ | (306 | ) |   | $ | (513 | ) |   | $ | 207 |   |
| Tax                exempt                                                                                                   |   |   | 900 |   |   |   | 737 |   |   |   | 163 |   |
| Other                investments                                                                                            |   |   | 41 |   |   |   | 29 |   |   |   | 12 |   |
| Federal                funds sold and securities purchased under agreement to                resell                         |   |   | (97 | ) |   |   | (177 | ) |   |   | 80 |   |
| Loans,                including fees                                                                                        |   |   | 5,296 |   |   |   | 4,011 |   |   |   | 1,285 |   |
| Total                                                                                                                       |   | $ | 5,834 |   |   | $ | 4,087 |   |   | $ | 1,747 |   |
|                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                paid on:                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                bearing deposits                                                                                    |   | $ | 2,109 |   |   | $ | 1,032 |   |   | $ | 1,077 |   |
| Federal                funds purchased and securities sold under repurchase                agreements                       |   |   | 255 |   |   |   | 250 |   |   |   | 5 |   |
| FHLB                advances                                                                                                |   |   | 283 |   |   |   | 283 |   |   |   | - |   |
| Junior                subordinated debentures                                                                               |   |   | 24 |   |   |   | - |   |   |   | 24 |   |
| Total                                                                                                                       |   | $ | 2,671 |   |   | $ | 1,565 |   |   | $ | 1,106 |   |
|                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable-equivalent                net interest income                                                                       |   | $ | 3,163 |   |   | $ | 2,522 |   |   | $ | 641 |   |

----

*Table          of Contents*

----

*Table          of Contents*

*Analysis      of Statement of Condition*

|                                                                                                              |   |
|----------------------------------------------------------------------------------------------------------------------------------|--------|
| **Table                5****Composition                of Loans**** **(in                thousands)     |   |
|                                                                                                                             |   | **September                  30, 2007** |   |   | **December                  31, 2006** |   |
| Commercial,                financial, and agricultural                                                                           |   | $ | 175,150 |   |   | $ | 155,098 |   |
| Lease                financing receivable                                                                                        |   |   | 10,017 |   |   |   | 7,902 |   |
| Real                estate – mortgage                                                                                      |   |   | 205,200 |   |   |   | 192,583 |   |
| Real                estate – construction                                                                                  |   |   | 73,787 |   |   |   | 64,126 |   |
| Installment                loans to individuals                                                                                  |   |   | 88,166 |   |   |   | 78,613 |   |
| Other                                                                                                                            |   |   | 728 |   |   |   | 724 |   |
| Total                loans                                                                                                       |   | $ | 553,048 |   |   | $ | 499,046 |   |

*Liquidity*

** **

----

*Table          of Contents*

*Asset      Quality*

|                                                                                                                              |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|
| **Table                6****Nonperforming                Assets and Loans Past Due 90 Days or More**(in                thousands) |   |
|                                                                                                                              |   | **September                30,****2007** |   |   | **September                30,****2006** |   |   | **December                31,****2006** |   |
| Nonaccrual                loans                                                                                                   |   | $ | 1,084 |   |   | $ | 501 |   |   | $ | 1,793 |   |
| Loans                past due 90 days and over                                                                                    |   |   | 510 |   |   |   | 1,789 |   |   |   | 98 |   |
| Total                nonperforming loans                                                                                          |   |   | 1,594 |   |   |   | 2,290 |   |   |   | 1,891 |   |
| Other                real estate owned                                                                                            |   |   | 143 |   |   |   | 24 |   |   |   | 368 |   |
| Other                foreclosed assets                                                                                            |   |   | 134 |   |   |   | 58 |   |   |   | 55 |   |
| Total                nonperforming                assets                                                                          |   | $ | 1,871 |   |   | $ | 2,372 |   |   | $ | 2,314 |   |
|                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Nonperforming                assets to total assets                                                                               |   |   | 0.22 | % |   |   | 0.31 | % |   |   | 0.29 | % |
| Nonperforming                assets to total loans + OREO + other foreclosed assets                                               |   |   | 0.34 | % |   |   | 0.48 | % |   |   | 0.46 | % |
| ALL                to nonperforming assets                                                                                        |   |   | 283.11 | % |   |   | 207.00 | % |   |   | 215.08 | % |
| ALL                to nonperforming loans                                                                                         |   |   | 332.31 | % |   |   | 214.41 | % |   |   | 263.19 | % |
| ALL                to total loans                                                                                                 |   |   | 0.96 | % |   |   | 0.99 | % |   |   | 1.00 | % |
|                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Year-to-date                charge-offs                                                                                           |   | $ | 408 |   |   | $ | 381 |   |   | $ | 542 |   |
| Year-to-date                recoveries                                                                                            |   |   | 78 |   |   |   | 266 |   |   |   | 314 |   |
| Year-to-date                net charge-offs                                                                                       |   | $ | 330 |   |   | $ | 115 |   |   | $ | 228 |   |
| Net                YTD charge-offs to total loans                                                                                 |   |   | 0.06 | % |   |   | 0.02 | % |   |   | 0.05 | % |

*Impact      of Inflation and Changing Prices*

----

*Table            of Contents*

**Item      3. Quantitative and Qualitative Disclosures About Market      Risk.**

**Item      4. Controls and Procedures.**

----

*Table          of Contents*

**Part      II – Other Information**

**Item      1. Legal Proceedings.**

**Item      1A. Risk Factors.**

**Item      2. Unregistered Sales of Equity Securities and Use of      Proceeds.**

|                          |   | **Total                  Number****of                  Shares Purchased** |   |   | **Average                  Price Paid per Share** |   |   | **Total                  Number of Shares Purchased as Part of a Publicly Announced Plan7** |   |   | **Maximum                  Number of Shares That May Yet be Purchased Under the Plan7** |   |
|-------------------------------|--------|---------------------------------------------------------------------------|--------|--------|---------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------------|--------|
| July                2007      |   |                                                                      | 3,662  |   |                                              | $      | 22.90  |                                                                                        |   |   | 3,662                                                                                   |   |   |   | 192,996 |   |
| August                2007    |   |                                                                      | 3,841  |   |                                              | $      | 22.03  |                                                                                        |   |   | 3,841                                                                                   |   |   |   | 189,155 |   |
| September                2007 |   |                                                                      | 972    |   |                                              | $      | 21.77  |                                                                                        |   |   | 972                                                                                     |   |   |   | 188,183 |   |

**Item      3. Defaults Upon Senior Securities.**

**Item      4. Submission of Matters to a Vote of Security      Holders.**

**Item      5. Other Information.**

**Item      6. Exhibits.**

**(a)  Exhibits**

| 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 |
|------|-------------------------------------------------------------------------------------------------------|

**(b)  Reports      Filed on Form 8-K**

----

  

----

*Table          of Contents*

**Signatures**

|                                             | MidSouth                Bancorp, Inc.(Registrant)                          |
|--------------------------------------------------|---------------------------------------------------------------------------------|
|                                             |                                                                            |
| Date:  November                7, 2007 |                                                                            |
|                                             | /s/                C. R. Cloutier                                          |
|                                             | C.                R. Cloutier, President /CEO                                   |
|                                             |                                                                            |
|                                             | /s/                J. E. Corrigan, Jr.                                     |
|                                             | J.                E. Corrigan, Jr., Executive Vice                President/CFO |

----

*Table          of          Contents*