MidSouth Bank | Reports

Quarterly Report

MIDSOUTH BANCORP, INC. Reports Third Quarter Earnings.

Lafayette, La. October 24, 2002. MidSouth Bancorp, Inc. announced net income of $1,241,673 for the third quarter of 2002, a 59% increase compared to $783,127 for the third quarter of 2001. Basic earnings per share were $.43 and $.29 for the quarters ended September 30, 2002 and 2001, respectively. Diluted earnings per share were $.42 for the third quarter of 2002 compared to $.27 for the third quarter of 2001. The increase resulted from increases of $555,797 in net interest income, attributable primarily to a decline in interest expense, and of $585,273 in non-interest income, primarily due to increased transaction volume on deposit accounts. The increases in net interest income and non-interest income were partially offset by a $477,848 increase in non-interest expense which included increases in salaries and benefits, building lease expense, maintenance and depreciation of computer hardware and software, advertising and other professional fees.

Net income for the nine months ended September 30, 2002 totaled $3,147,049 compared to $2,048,141 for the nine months ended September 30, 2001. Basic earnings per share were $1.09 for the nine months ended September 30, 2002 and $.79 for the nine months ended September 30, 2001. Diluted earnings per share were $1.07 compared to $.72 for the two nine month periods, respectively. Increases in net interest income of $972,171 and non-interest income of $1,198,131 were partially offset by a $1,227,690 increase in non-interest expense, but a decrease in provision for loan losses of $673,417 helped to boost net earnings 54% in year-to-date comparison.

MidSouth ended the third quarter 2002 with consolidated assets of $382.3 million, an increase of $30.4 million from the $351.9 million reported at September 30, 2001. Interest-bearing deposits increased $26.0 million and total deposits increased $31.8 million, from $310.8 million at September 30, 2001 to $342.6 million at September 30, 2002.

Loans, net of Allowance for Loan Losses ("ALL"), increased $20.6 million or 10%, from $211.5 million in the third quarter of 2001 to $232.1 million in the third quarter of 2002. Provisions for loan and lease losses totaled $429,250 in the third quarter of 2002 compared to $439,323 in the third quarter of 2001, and $1,123,250 in the first nine months of 2002 compared to $1,796,667 in the comparable 2001 period. Provisions for loan losses were higher in 2001 due to the default and charge-off of a large commercial loan in the second quarter of that year.

Nonperforming loans as a percentage of total loans increased from .09% at September 30, 2001 to .31% at September 30, 2002, primarily due to two large credits totaling $578,000. Loans past due ninety days and over decreased slightly, from $1,344,389 at September 30, 2001 to $1,275,233 at September 30, 2002. Other real estate owned decreased $44,134 for the same period. The ALL represented 298% of nonperforming assets as of September 30, 2002 compared to 497% as of September 30, 2001.

MidSouth's leverage ratio was 8.24% at September 30, 2002, up from 8.09% at September 30, 2001. Return on average common equity for the third quarter of 2002 was 18.92% compared to 14.69% for the third quarter of 2001. Return on average assets was 1.31% for the quarter ended September 30, 2002 compared to .90% for the quarter ended September 30, 2001. MidSouth's common stock is traded on the American Stock Exchange under the symbol MSL. Contact: Sally Gary, Investor Relations at 337-267-4202 or e-mail at sallyg@midsouthbank.com; Teri Stelly, Controller at 337-267-4208 or C. R. Rusty Cloutier, President at 337-267-4201

Contact: Sally Gary, Investor Relations at 337-267-4202 or e-mail at sallyg@midsouthbank.com; Teri Stelly, Controller at 337-267-4208 or C. R. Rusty Cloutier, President at 337-267-4201

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