a

Focus on growth

MIDSOUTH BANCORP, INC.

2011 ANNUAL REPORT

In 2011, MidSouth Bancorp, Inc. increased its

assets by 39 percent, and we are actively pursuing

opportunities that will further that growth. For

all of the customers who are entrusting us with

their banking needs and the scores of potential

clients unsatisfi ed with the service they are

getting from one of our competitors, we promise

you we will strive to be the local bank of choice

in every city, every market, we serve.

Sharply Focused fi nely tuned

1

(L to R) MidSouth Bank President and CEO Rusty Cloutier, SEVP and Chief Banking Offi cer Troy Cloutier, and Vice Chairman of the Board and COO Jerry Reaux

2 3

Fort Worth

College Station

Dallas

Rockwall

Mesquite

Tyler

Conroe

HoustonBeaumont

Lake Charles

Jennings

Eunice

Alexandria

CarencroLafayette

CrowleyAbbeville

Jeanerette

Morgan City

Houma

Thibodaux

Cut Off

New OrleansNew Iberia

Baton Rouge

St. Martinville

45

20

49

10

ShreveportBossier

Dear shareholders,

MidSouth Bancorp, Inc. closed the books on 2010 with a billion dollars in assets, which was by any measure a signifi cant milestone for your bank. In last year’s Annual Report, we assured you we were poised for growth and indicated that we had a clear view of the road ahead: We had set our sights on several potential acquisition targets and markets we hoped to enter. I take great satisfaction in telling you that we successfully closed three very diverse acquisitions in 2011 — two in Texas and one in Louisiana. In the process, we increased the assets of your Company by 39 percent.

In each of these situations, a disciplined approach to pricing, proactive communication with regulators and an in-depth due diligence process led to successful outcomes. The largest of the three was the Jefferson Bank acquisition in Dallas-Ft. Worth, which incorporated a creative structure utilizing Section 363 of the U.S. Bankruptcy Code to sell Jefferson Bank to an affi liated bank and then allow for the sale of fi ve branches to us. Essentially a good bank/bad bank format, this two-step process reduced potential regulatory issues. Most notably, the Jefferson purchase, in which MidSouth Bank acquired $58.0 million in loans and assumed $166.0 million in deposits, opened the door to a signifi cant entry into the very important Dallas-Ft. Worth market.

The Beacon Federal acquisition, which included $22.0 million in loans and $80.0 million in deposits in a single branch location, was completed in December. What we view as an extension of the Jefferson Bank acquisition, this transaction brought us into the dynamic Tyler-Longview markets. These markets, along with our existing operations in Texas, are a solid foundation for growth opportunity over the next few years.

The latest deal — purchasing substantially all the assets, approximately $120.0 million, of First Louisiana National Bank, a wholly owned subsidiary of First Bankshares of St. Martin, Ltd., for approximately $11.5 million in cash and 725,000 shares of MidSouth’s

common stock — was an in-market transaction of a healthy, profi table, well-capitalized bank. It was accretive to our earnings per share and has made us an even stronger partner in our home base of Acadiana, along with allowing us to increase the size of our operations center in Breaux Bridge, Louisiana.

As a result of that acquisition, we welcomed FLNB President and CEO James Fontenot and his management staff to the MidSouth Bank team. We also want to thank our newest MidSouth Bank shareholders for their continued investment in your Company.

Although smart acquisitions increase the size and value of your Company, it is important to note that successful transactions like Jefferson Bank, Beacon and First Louisiana National Bank take months to analyze, and we are immensely proud of the team’s hard work over the last few years to position us to buy these assets and put them to work for you. Although an enterprise-wide effort, these 2011 transactions would not have come to fruition without the superb execution of our M&A team and accurate analysis by the Accounting/Finance team. We also want to acknowledge the diligence of the Human Resources team, which has hired the right people to fi ll positions critical to the successful integration of all three acquired institutions.

We are proud to say that MidSouth Bank is one of the best-capitalized fi nancial institutions in the South, a standing that was bolstered in December 2009 when we raised almost $40.0 million to better position us for developing opportunities. Due to that strength and our core expertise in commercial and industrial lending, we were one of a select group of banks approved to participate in the U.S. Treasury’s Small Business Lending Fund (SBLF). Last summer we raised $32.0 million in SBLF and used $20.0 million of that to repay $20.0 million to the U.S. Treasury for the Troubled Asset Relief Program (TARP). Based on certain growth targets of qualifi ed lending to small businesses, the dividend rate for SBLF, which is currently 5 percent, could be reduced to as little as 1 percent.

While we believe these three acquisitions and our participation in SBLF, on a combined basis, will be accretive to earnings per share in 2012, these initiatives did have some one-time costs in 2011. We remain pleased with our year-end numbers.

Diluted earnings per share for 2011 were $0.27 compared to $0.47 for 2010. Our net earnings available to common shareholders totaled $2.7 million for 2011 compared to $4.6 million for 2010. Acquisition and conversion costs related to the three acquisitions completed in 2011 were $1.6 million net of taxes. Preferred dividends increased $600,000 as a result of the increased capital raised from SBLF and the impact of repaying TARP. Earning assets added through the acquisitions contributed to a $4.5 million improvement in our net interest income for 2011, partially offsetting the impact of increased non-interest expenses.

Total loans increased $165.5 million, or 28 percent, including organic growth of $28.5 million. The credit quality of the loan portfolio also improved, as we continued to work problem assets off the balance sheet and were able to reduce the provision for loan losses by $1.1 million, from $5.0 million in 2010 to $3.9 million in 2011.

Steady growth has been a long-term plan for this Company since we began operating as a single location in 1985. Our actions over the past 27 years — combined with an adherence to sound banking principles — allowed us to weather industry challenges and enabled us to capitalize on emerging opportunities. We remain in that posture today.

We are working to help the industries that fuel our growth, such as oil and gas, which experts see expanding exponentially in the years to come. The reasons for that prediction are many and varied, among them a failure of the U.S. government to develop and implement a national energy policy, development of new technology and supply sources, international political events and our playing catch-up over the next 25 years as China, Japan, South Korea and

India demand more energy than is being produced. This is welcome news for many of our clients — and we will be here to assist them in every way possible.

For these customers, all others who have entrusted us with their banking needs, and the scores of potential clients unsatisfi ed with the service they are getting from one of our competitors, we will strive to be the local bank of choice in every city, every market, we serve.

Like all banks, we are dealing with the impending regulations governing electronic banking, including mobile banking and remote deposit capture. We feel that many smaller banks will be forced to consider merging with a solid company that will take care of their customers, employees and shareholders, much like the three we acquired this year. We are actively seeking out those potential partners.

On a more personal note, I would like to acknowledge the work of Chief Operating Offi cer Jerry Reaux and Chief Banking Offi cer Troy Cloutier, both of whom have exceeded our expectations for leadership at the highest level of this organization. Additionally, last year you, the shareholders, elected Jerry to the Board of Directors of MidSouth Bancorp, Inc. and MidSouth Bank, N.A. You also elected him to succeed Dr. J.B. Hargroder as Vice Chairman of both boards.

The board, management and employees of MidSouth Bank appreciate your loyalty as a shareholder and assure you that we remain focused on delivering the highest achievable return on your investment in us.

C. R. “Rusty” CloutierPresident and CEO

“ The latest deal — purchasing approximately $120 million in assets

of First Louisiana National Bank, a wholly owned subsidiary of

First Bankshares of St. Martin, Ltd., for approximately $11.5 million

in cash and 725,000 shares of MidSouth’s common stock — was

an in-market transaction of a healthy, profi table, well-capitalized

bank. The transaction was accretive to our earnings per share

and has made us an even stronger partner in our home base

of Acadiana, along with allowing us to increase the size of our

operations center in Breaux Bridge, Louisiana.”

Major City

Banking Center Location

The industry

that fuels our growth

4 5

Oil, Oil, Everywhere.

MidSouth Bank would never put all of its proverbial

eggs in one basket, yet when it comes to the oil and

gas industry, it is likely we will keep several of them

strategically placed in that sector.

$104.40

5Number of major shale plays serviced by our clients: Barnett, Eagle Ford, Haynesville, Tuscaloosa and Bakken

Average price of a barrel of oil in 2012 (through late March), almost $10 higher than 2011’s average

76

While the markets we serve in both states have diversifi ed economies, the common thread among them — from Houma and Lafayette to Beaumont, Houston and Tyler and all cities in between — is their connection to the oil and gas extraction industry. It is the tie that shielded Louisiana and Texas from the national recession.

Signifi cant employment in the energy sector has kept both Texas’s and Louisiana’s unemployment rates well below the national average. The nation’s unemployment rate in January 2012 was 8.3 percent, while Louisiana’s was 6.9 percent and Texas’s was 7.3 percent.

Unquestionably it is a challenging industry to grow with — one that seems to regularly face new threats, both domestic and foreign — but it is where our expertise lies. Our understanding of the dynamics of the sector is the main reason middle-market oilfi eld service companies needing capital, particularly for highly specialized equipment, are looking no farther than MidSouth Bank.

This bank was founded in Lafayette, Louisiana, in the mid-1980s during a severe downturn in the oil and gas industry, and we’ve been through many ups and downs since then. But we, and our clients, always come back stronger and more resolute. Case in point: the April 2010 Deepwater Horizon explosion and subsequent drilling moratorium. We worked patiently with our customers whose operations were adversely affected, while we also lobbied our Congressional leaders for relief from the drilling halt and tried to educate the public about the critical need for domestic energy supplies.

Although the slowdown in Gulf activity was a painful experience for all of us, we are beginning to see the rewards of those strategies: It is astounding what impact rising gasoline prices have on the public’s

perceptions of offshore drilling. By early 2012, a survey of 1,503 adults by Pew Research Center for the People & the Press showed that support for allowing more offshore oil and gas drilling in U.S. waters, which plummeted after the spill, had recovered to pre-spill levels. Nearly two-thirds (65 percent) favored allowing increased offshore drilling, up from 57 percent a year earlier and 44 percent in June 2010, during the Gulf spill.

At least for the immediate future, most of the activity in the sector will be concentrated in oil exploration and production. While natural gas is selling at a 10-year low, U.S. oil prices so far in 2012 remain nearly $10 a barrel above 2011’s record average for the commodity. By some estimates, the price will hover in the $105 per barrel range for much of the year.

There is even more optimism coming directly from our clients: For many of our oilfi eld customers, the fi rst quarter of 2012 is the best they have experienced in the past three years. With the price of oil at this level, they are commencing projects that they have been putting off for years. Additionally, some of our customers have just begun working in North Dakota, which is experiencing a boom in oil and gas production due to the Bakken Shale Formation, considered the largest oil deposit in the lower 48 states. Shale activity, which includes oil and natural gas reserves, will be a big part of the U.S. energy supply for many years to come, with a signifi cant number of our clients continuing to work at the major shale plays in Louisiana and Texas.

This type of land activity has been strong, thanks to technological advances in horizontal drilling and hydraulic fracturing, or fracking, while drilling activity in the Gulf of Mexico has decreased due to low natural gas prices and the ongoing intimidating political environment.

However, February 2011 to February 2012 numbers indicate that the pace of permitting in deep waters of the Gulf is almost back to what it was in the comparable yearlong period before the spill, February 2009 to February 2010.

With the vast amount of shale oil and gas available, America has the potential to become much less dependent on foreign resources in the coming years. Only two years ago, we were importing about 60 percent of our oil. Today the Energy Information Administration estimates we import less than half. In the next fi ve years, the U.S. could pass Saudi Arabia and then overtake Russia as the world’s largest oil producer.

World consumption of oil is expected to average about 89 million barrels per day in 2012, a considerable increase from the 76 million barrels per day a decade ago. And while petroleum demand in developed nations continues to decline due to softening economies and gains in effi ciencies, overall demand in developing countries is growing. Asian economies of China, Japan, South Korea and India will continue to require more energy than we can produce.

Outside of the energy industry, MidSouth Bank has developed a unique and profi table specialty with its Attorney/Client Loan Program, a line of credit designed for attorneys and law fi rms that engage in personal injury litigation. Using this master line of credit, a law fi rm’s plaintiff clients can pay a number of expenses, including medical, deposition and personal, while their cases move forward.

We also offer Accounts Receivable Factoring, a system that helps clients better manage their accounts receivables and cash fl ow. We purchase our clients’ existing receivables on a discounted basis

and take over the responsibility for collecting customer payments. Business Leasing lets our commercial and industrial clients acquire needed equipment while conserving operating capital and minimizing taxes, and our Insurance Premium Financing is a loan program that enables business owners and/or insurance agents to fi nance annual insurance premiums and spread payments over a 10-month period. Another popular product, our Commercial Revolving Line of Credit is ideal for clients who have short-term borrowing requirements or who need funds for traditional working capital.

Our goal is to keep the vast majority of our commercial real estate loans to those that are owner-occupied and tied to true commercial and industrial uses. Land and lot development loans are a very small portion of our total portfolio, and we have limited construction exposure, primarily funding commercial projects.

Our loans are underwritten chiefl y on cash fl ow versus collateral valuations, and what we have found is that the full suite of loan products we offer is not available among competitors our size and, more important, that big banks do not handle middle-market lending well. We have found our niche — the middle-market commercial lending segment — and we will continue to focus our efforts to serving it better than any of our competitors.

While many banks are hunkering down and just trying to survive, MidSouth is setting its sights on what we hope will be a banner year for your Company — and a banner year for our clients.

Our understanding of the

dynamics of the sector is

the main reason middle-market

oilfi eld service companies

needing capital, particularly

for highly specialized

equipment, are looking no

farther than MidSouth Bank.

Growing

opportunities

in the neighborhood

8 9

Louisiana and Texas.

For the banking business — in truth just about any

business — the landscape does not get much better:

DIVERSIFIED

LOAN PORTFOLIO

Commercial Real Estate 38%

Other Real Estate 22%

Consumer 9%

Commercial & Industrial and Agricultural 30%

Other 1%

Loan Mix as of 12.31.11Total: $746.3 million

No. 1No. 7

In its 2011 Top State Business Climate Rankings, Site Selection

magazine awarded Louisiana the No. 7 position.

In 2011 Chief Executive magazine’s seventh annual

report on the best states for business had Texas No. 1.

Thanks to medical

hubs like Baton Rouge,

Lafayette, Shreveport,

Houston, Tyler and

Dallas, health care is

another fast-growing

industry driving

economic growth in

many of our markets.

Louisiana and Texas are two of the most vibrant markets in the country. And they are MidSouth Bank’s footprint: From the southern Louisiana cities of Cut Off, Baton Rouge and Lafayette to Houston and Dallas-Ft. Worth, we will continue to expand within what we have coined the “golden rectangle.”

Long connected by the exploration and production of black gold, these two economies weathered the effects of the global recession, emerging among the most resilient and optimistic states in the country.

MidSouth, more than any of our competitors, has the resources and expertise to provide the types of products and services retail and commercial customers in these markets demand. We are also among the best-capitalized banks in the South. And we are putting that capital to work for our shareholders and customers via a “golden rectangle” infi ll strategy that will allow us to heighten that level of service, particularly in the middle-market lending sector.

In other words, Louisiana and Texas are home to us. And we do not like to venture far from home, far from our neighbors. Why should we?

Consider this about Louisiana: In its 2011 Top State Business Climate Rankings, Site Selection magazine awarded Louisiana the No. 7 position. In the half-dozen categories used to compile the rankings, Louisiana was No. 1 for per-capita project expansions, No. 1 in competitiveness and No. 3 in new projects in 2011. In another ranking by Business Facilities magazine, the state was No. 2 in the nation for economic growth potential — a new high. Additionally, the U.S. Chamber of Commerce named Louisiana the top U.S. export performer for 2011.

Consider this about Texas: Chief Executive magazine’s 2011 report on the best states for business had Texas No. 1 for the seventh consecutive year. In determining the best and worst places to do business, more than 500 CEOs analyze a wide range of criteria, from taxation and regulation to workforce quality and living environment. In naming the Lone Star State No. 1 on its Business Climate Rankings (the same list that had the Bayou State No. 7), Site Selection had this to say: “Texas is the place to be for business and industry. Companies are fl ocking to the Lone Star State — Atlas Van Lines’ annual study of corporate relocations in 2010 logged more than 7,200 relocations inbound to Texas, the sixth highest, and 5,300 outbound relocations. Overall, Texas claimed 58 percent of the inbound relocations.”

The economic engines that drive these interconnected markets are not only the oil and gas industry, but also the health care industry — thanks to medical hubs like Baton Rouge, Lafayette, Shreveport, Houston, Tyler and Dallas. Less evident to some of our stakeholders may be the fi nancial impact of universities, which stimulate innovation and creativity as they feed technology and research industries in so many of our markets. Among those institutions of higher learning are Louisiana State University, Southern University, University of Louisiana at Lafayette, Nicholls State University, McNeese State University, Lamar University, Rice University, University of Houston, Houston Baptist, Texas Southern University, University of Texas Health Science Center at Tyler, Texas Christian University, Southern Methodist University and the University of Texas at Dallas.

In every city and every market we serve, MidSouth promises you we will strive to be the local bank of choice. We will achieve that through proximity — staying within our footprint — and by hiring people who are connected and invested in their community so much

so that they have a stake in its overall success. Our management recognizes that also involves trusting those employees’ skills and knowledge and empowering them to be decision-makers.

And it means taking bold steps to let customers know they are foremost on our mind. In 2011 we became the fi rst bank in the country to launch a customer ombudsman program, promoting two employees from our collection staff to advise customers who consistently overdraw their accounts. The employees place 25 to 50 calls to customers each day, educating them on how to break the cycle of overdraft fees. The program got the attention of national trade journals, which praised MidSouth for changing the dynamics of how banks can work more closely with their customers.

We created that program because we want to be more than your banker. We want to be your neighbor. We are spreading that MidSouth philosophy throughout the markets we currently serve, and where there are opportunities to expand that message, we will seize them.

All of the markets in MidSouth Bank’s de novo and acquisition strategy have a growing population and business base that is expanding. We are looking to build on our core expertise in commercial and industrial lending, especially among businesses serving the oil and gas industry.

We have a disciplined approach to valuing prospective acquisitions and maintain internal targets of acceptable levels of return on investment. This regimented approach means we ultimately pass on many opportunities because they do not meet our investment hurdles, but our strategy remains fl exible to adapt to changing industry conditions. Initially, when we raised capital in late 2009

and early 2010, we expected to focus much of our efforts on FDIC-assisted deals. However, there have been few bank failures in our core Louisiana and Texas markets during this period, and signifi cant regulatory changes in the summer of 2010 allowed us to focus our attention on non-FDIC-assisted deals — those banks that understand the regulatory challenges driving consolidation in the banking sector.

MidSouth’s mergers and acquisition strategy is driven by our desire to enhance shareholder value by increasing market share and achieving operating scale. We target deals that will be accretive to earnings within the fi rst year and that present a manageable level of integration risk.

At this writing, we have 40 locations in Louisiana and Texas that are connected to a worldwide ATM network providing customers with access to more than 43,000 surcharge-free ATMs.

Filling in the South Louisiana portion of our footprint in 2012, we are expanding to the community of Carencro in north Lafayette Parish, to Crowley in Acadia Parish and possibly opening our fi rst banking center in Vermilion Parish. Our strategy also includes movement to the I-10/I-12 corridor, then toward central Louisiana and eventually up to Alexandria and Shreveport, the commercial and cultural center where Louisiana and Texas meet. That expansion involves both de novo locations and possible acquisitions.

We will focus most of our resources over the next several years on achieving critical mass in Houston, Tyler and Dallas, three areas we believe have the highest demand for our middle-market lending expertise and diverse suite of lending products.

10 11

One

Capable Team

To Grow With

At MidSouth Bank, we know the best way to

ensure we return value to our shareholders

is to value our customers fi rst.

12 13

CONSERVATIVE BALANCE

SHEET MANAGEMENT

Tangible Common Equity to Tangible Assets

12.31.2010

12.31.2011

Tier 1 Leverage Ratio T

Tier 1 Risk-based Capital Ratio

Total Risk-based Capital Ratio

10.8

6%

7.16

%

14.0

0%

11.1

4%

21.1

1%

16.1

0%

22.3

6%

16.9

7%

(L to R) SVP and Director of Human Resources Sara Huval, SEVP and Chief Financial Offi cer James McLemore, and SEVP and Chief Credit Offi cer John Nichols

In the current fi nancial services environment, which dictates that banks must grow considerably just to survive, the challenge for all of us is to balance that growth with the principal tenets of business that made us successful. Particularly for MidSouth Bank, chief among those tenets is a high level of personal customer service.

At all times. And for every customer. No exceptions.

This is why we believe maintaining that balance entails retaining and promoting quality, innovative employees while seeking out others with diverse experiences and fresh ideas. That philosophy defi ned our hiring practice over the past year.

Among the key team members with daily customer contact who were promoted to new positions are Lynn Fowler, Kevin Latiolais and Blake McCaskill. Fowler, who had been Regional President overseeing Houston, Conroe and College Station, returned home to Dallas and is now heading the Lone Star Region, which encompasses those markets as well as Dallas-Ft. Worth and Tyler. Fowler’s 33 years of banking experience and four years with MidSouth made him a perfect choice to lead our entry into the Dallas-Ft. Worth market after we acquired fi ve Jefferson Bank branches.

Latiolais, who has been with us for 22 years, advanced to Regional President of the Lafayette and Opelousas area. In his new role, Latiolais is responsible for managing the business development efforts throughout these markets while continuing to oversee commercial relationships. Assisting Latiolais is Jennifer Fontenot, who was elevated to Regional Retail Manager, responsible for the

11 banking centers in Lafayette, Opelousas and Carencro. A 17-year industry veteran who has been a Banking Center Manager at MidSouth Bank for the past six years, Fontenot continues to manage the Ambassador Caffery Parkway location.

McCaskill’s promotion resulted from our decision to combine the West Louisiana Region with portions of our East Texas Region, including the Beaumont and Vidor markets, to create the Sabine Region. McCaskill, who previously oversaw the West Louisiana Region, was elevated to Sabine Regional President and assumed additional responsibilities. Assisting McCaskill is Heather Hebert, whom we promoted to Regional Retail Manager overseeing what is now seven banking centers. Hebert has 17 years of fi nance experience and has been with us since 2008. She has been hard at work motivating her managers and employees to enhance existing client relationships and seek out new customers and is herself developing new business throughout southwest Louisiana and southeast Texas.

In 2011 we welcomed Robin Fowler as Business Development Offi cer for our North Texas market, a newly created position resulting from our expansion into Dallas-Ft. Worth. Fowler, who has 34 years of banking experience, is working to develop new retail and commercial business throughout our Dallas, Mesquite, Rockwall and Ft. Worth markets. For the past eight years, she worked at First National Bank Texas, most recently as Vice President/Consumer Lending and Mortgage Loan Offi cer. Prior to that, she spent four years at First Bank of Conroe as Banking Center Manager and Loan Offi cer.

We also welcomed Mark W. Thibodeaux back to MidSouth as Business Development Offi cer in the St. Martin Parish area. A 27-year banking veteran, Thibodeaux, who spent the past seven years as Senior Vice President for Retail with a local competitor, worked in retail and later as a Commercial Loan Offi cer at MidSouth Bank from 1987 to 2004.

As a result of our three acquisitions in 2011, we added a wealth of talent to the MidSouth family.

Despite the turmoil the nation’s banking industry endured over the past several years, MidSouth has not had to lay off any employees, who now number more than 460. “We, like every other bank, had to tighten our belts. Many employees took on additional responsibilities, we created task forces to accomplish initiatives and focused on cross-training our employees,” says Chief Retail Offi cer Carolyn Lay. “This really enabled us to recognize talent in our own Company and promote from within when the opportunities presented themselves.”

Those employees and our customers deserve to have all of the tools, resources and support they need if we are to consistently deliver a high level of service. That means our information systems and technology must be aligned to meet that objective. This becomes even more critical as we bring new banks into the MidSouth fold. To that end, we recruited a highly qualifi ed Chief Information Offi cer, Lorin LeBlanc, to guide our Information Technology Department into the future. LeBlanc has 27 years of technical and managerial experience at community and regional banks, working

as Information Systems Manager for Fidelity Homestead Savings Bank in New Orleans for the past nine years and before that with Entergy Nuclear. In his new role, LeBlanc is assessing the feasibility of integrated projects and ensuring that solutions comply with the bank’s strategic goals. He is also responsible for explaining technology risks to the executive team and board of directors and is evaluating the infrastructure and resources in Information Systems to ensure we have a platform that gives us a competitive edge.

MidSouth Bank Board Member Joe Tortorice, founder of the 230-store Jason’s Deli chain, is so convinced the bank’s customer service is unparalleled that he’s adopting some of its model for his own 10,000 employees. “This bank has a culture that’s unmatched in my opinion,” says Tortorice, who often drops into a banking center unannounced — and unrecognized. “That’s what I try to do in my company. I call myself chief culture offi cer. I told one of the branch managers just the other day that I want to sit down with her and pick her brain. Her people are just that good. MidSouth’s customers are dealing with real people who have a caring, friendly demeanor and truly want to serve their needs.”

Tortorice believes that attitude starts with top management of the bank.

“What I see throughout the bank is humbled, determined leadership, a willingness to learn and to listen to customers and employees,” he continues. “Those are the ingredients to building a great company.”

MidSouth Bank Board Member Joe Tortorice,

founder of the 230-store Jason’s Deli chain,

is so convinced the bank’s customer service

is unparalleled that he’s adopting some of

its model for his own 10,000 employees.

14 15

(L to R) EVP and Chief Information Offi cer Lorin LeBlanc and SVP and Treasurer Jonathan Taylor

(L to R) SVP and Chief Retail Offi cer Carolyn Lay and SVP and Risk Manager Glenda Montet

16

Where We Go From HereWe hope you enjoyed this recap of 2011, because we certainly enjoyed being part of a momentous year for MidSouth Bank.

We are proud of how far we’ve come and thank you for placing your trust in us.

It was a short time ago that we set a goal to become a billion-dollar bank. We achieved that objective in 2010 and immediately set the bar higher for 2011, increasing the operating asset base of your Company by almost 40 percent. Over the next several years, we see the opportunity to achieve signifi cant asset growth, both organically and through acquisitions.

We want to be your bank of choice and are confi dent this partnership will be mutually benefi cial.

As you know, other trustworthy and knowledgeable sources see tremendous value in what we’re doing. For the third consecutive year, MidSouth Bancorp, Inc. was named to the prestigious Russell 3000 Index, which tracks stocks with the highest market capitalizations. The Index measures the market cap of 3,000 of the largest and most liquid companies in the country, approximately 98 percent of the total value of all equity traded on U.S. exchanges.

In 2010, three Louisiana-based banks made the list. In 2011, MidSouth was one of only two.

We will continue to grow. And we ask that you allow us to bring you along for the exciting ride.

— Board, Management and Employees of MidSouth Bank

CORPORATE INFORMATION

Corporate Offi ceVersailles Center, 102 Versailles Boulevard, Lafayette, LA 70501337-237-8343 or 1-800-213-BANK

Transfer AgentTo fi nd out more about the services and programs available to you, please contact Computershare Shareowner Services, LLC directly to access your account by Internet, telephone or mail, whichever is most convenient for you.

Computershare Shareowner Services, LLC(Formerly known as Mellon Investor Services)PO Box 358015, Pittsburg, PA 15252-8015Or480 Washington Boulevard, Jersey City, NJ 07310-1900TEL 1-888-216-8113 orTDD 1-800-231-5469 (for hearing impaired)Foreign Shareowners: 201-680-6578TDD Foreign Shareowners: 201-680-6610Web: www.bnymellon.com/shareowner/equityaccess

Stock Trading InformationMidSouth’s common stock is traded on the NYSE Amex under the symbol MSL.

Dividend Reinvestment & Stock Purchase PlanMidSouth offers a convenient way for its customers and others to buy shares of MidSouth common stock through the MidSouth Bancorp, Inc. Dividend Reinvestment and Stock Purchase Plan. For more information on the Plan, you may obtain a Prospectus by calling the administrator at 1-866-353-7849 or by calling MidSouth’s Investor Relations Department at 1-800-213-BANK, ext. 33011.

You may also write to:MidSouth Bancorp, Inc. Shaleen B. Pellerin, Investor RelationsP.O. Box 3745, Lafayette, LA 70502

Or access MidSouth’s homepage at: www.midsouthbank.com

This is not an offer to sell nor solicitation to buy any securities of MidSouth. Shares of MidSouth common stock purchased through the Plan will be offered only by Prospectus.

Analysts, investors and others seeking the current market value of the stock and additional information about MidSouth should contact:

Shaleen B. PellerinAssistant Vice President/Investor Relations Offi cer102 Versailles Boulevard, Lafayette, LA 70501337-237-8343 ext. 33011 or 1-800-213-BANKshaleen.pellerin@midsouthbank.com

STRONG ASSET QUALITY

Nonperforming Assets ($ millions)

$22.

32Q

201

0

3Q 2

010

4Q 2

010

1Q 2

011

2Q 2

011

3Q 2

011

4Q 2

011

$25.

6

$20.

9

$17.

4

$16.

2

$15.

3

$14.

2

Non-Interest- Bearing Checking 22%

Time Deposits 28%

Money Market & Savings 30%

Interest-Bearing Checking 20%

Deposit Mix as of 12.31.11Total: $1.2 billion

ATTRACTIVE CORE DEPOSITS

P.O. Box 3745, Lafayette, LA 70502

1 (800) 213-2265 • 1 (337) 237-8343

www.midsouthbank.com