![](https://capedge.com/proxy/8-K/0000745981-08-000042/ex99_11.jpg)
![](https://capedge.com/proxy/8-K/0000745981-08-000042/ex99_12.jpg)
AMEX: MSL
Howe Barnes, Hoefer & Arnett
August 19-20, 2008
__________________________________________________________________________________________________________
C.R. “Rusty” Cloutier
President & Chief Executive Officer
J. Eustis Corrigan, Jr.
Senior Executive Vice President and Chief Financial Officer
![](https://capedge.com/proxy/8-K/0000745981-08-000042/ex99_13.jpg)
The Private Securities Litigation Act of 1995 provides a safe harbor for
disclosure of information about a company’s anticipated future financial
performance. This act protects a company from unwarranted litigation if actual
results differ from management expectations. This discussion and analysis
reflects management’s current views and estimates of future economic
circumstances, industry conditions, MidSouth’s performance and financial
results. A number of factors and uncertainties could cause actual results to differ
from the anticipated results and expectations expressed in the discussion.
disclosure of information about a company’s anticipated future financial
performance. This act protects a company from unwarranted litigation if actual
results differ from management expectations. This discussion and analysis
reflects management’s current views and estimates of future economic
circumstances, industry conditions, MidSouth’s performance and financial
results. A number of factors and uncertainties could cause actual results to differ
from the anticipated results and expectations expressed in the discussion.
![](https://capedge.com/proxy/8-K/0000745981-08-000042/ex99_14.jpg)
Growth-oriented, bank holding company
Headquarters: Lafayette, Louisiana
Employees: 425 ● Locations: 35 ● ATMs: 170+
Market Statistics as of June 30, 2008:
Ø Total Assets: $938 Million
Ø Market Cap: $109.3 Million
Ø Stated Book Value: $10.54 (168%) ● Tangible Book Value: $9.08 (195%)
Ø Shares Outstanding: 6.62 Million
Ø Insider Ownership: 35.3% ● Institutional Ownership: 7.4%
Corporate Profile
![](https://capedge.com/proxy/8-K/0000745981-08-000042/ex99_15.jpg)
Corporate Profile
CORPORATE HISTORY
1985 - Chartered as a National Bank
1987 - Acquired Breaux Bridge Bank & Trust (LA)
1989 - Acquired Commerce & Energy Bank (LA)
1993 - Listed on AMEX: MSL
1995 - Acquired Sugarland State Bank (LA)
2004 - Acquired Lamar Bank (Beaumont, TX)
2008 - Merged MidSouth Bank Texas (f/k/a Lamar Bank) into MidSouth
Bank, N.A.
BUSINESS FUNDAMENTALS
• Small business focus supported by retail and commercial funding
• Experienced leadership
• Entrepreneurial management style
• Organic growth
• Quality relationships and dedication to customer service
![](https://capedge.com/proxy/8-K/0000745981-08-000042/ex99_16.jpg)
Corporate Profile
Reasons to Invest in MidSouth Bancorp
• Strategically positioned in attractive markets
• Liquid, well-fortified balance sheet
• Solid core deposit base
• Experienced senior management and board
• Strong capital position
![](https://capedge.com/proxy/8-K/0000745981-08-000042/ex99_17.jpg)
Financial Performance
Earnings Results
2Q08
2Q07
YOY D
1Q08
LQ D
Net Interest Income
9,839
9,237
6.5%
9,274
6.1%
Loan Loss Provision
855
350
144.3%
1,200
-28.8%
Total Non-Interest Income
3,804
3,690
3.1%
3,587
6.0%
Total Non-Interest Expense
11,093
9,245
20.0%
10,293
7.8%
Income Tax Expense
277
837
-66.9%
169
63.9%
Net Income
1,418
2,495
-43.2%
1,199
18.3%
E.P.S. (diluted)
$0.21
$0.38
-44.7%
$0.18
16.7%
![](https://capedge.com/proxy/8-K/0000745981-08-000042/ex99_18.jpg)
Financial Performance
Balance Sheet Position
2Q08
2Q07
YOY D
1Q08
LQ D
Total Loans
567,087
545,447
4.0%
569,745
-0.47%
Premises and Equipment
40,375
33,477
20.6%
39,967
1.02%
Total Assets
937,857
824,026
13.8%
937,030
0.09%
Total Deposits
810,083
716,892
13.0%
818,004
-0.97%
Total Shareholders' Equity
69,773
62,697
11.3%
70,331
-0.79%
![](https://capedge.com/proxy/8-K/0000745981-08-000042/ex99_19.jpg)
Financial Performance
Sound Capital
Levels
▪ Company is well
capitalized
▪ Current uses of
capital:
- organic growth
- stock buyback
- acquisitions
Leverage Ratio
![](https://capedge.com/proxy/8-K/0000745981-08-000042/ex99_110.jpg)
Yields
▪ NIM remains near
the top of peer group
▪ Asset-sensitive
▪ Active management
of Loan/Deposit
Pricing
▪ Focus on deposit mix
Financial Performance
![](https://capedge.com/proxy/8-K/0000745981-08-000042/ex99_111.jpg)
Financial Performance
Credit Quality
2Q07
1Q08
2Q08
LQ D
Allowance as a % of TTL Loans
0.95%
1.08%
1.11%
3 bps
NPA's to Total Assets
0.21%
0.49%
0.37%
-12 bps
Net YTD Charge-offs to TTL Loans
0.05%
0.48%
0.44%
-4 bps
• Non-accrual loans totaled $2.4 million, of which $685,000 is residential
construction, $676,000 is owner-occupied CRE and $652,000 is C&I.
construction, $676,000 is owner-occupied CRE and $652,000 is C&I.
• Charge-offs were primarily due to $478,000 in fraudulent activity related to
indirect auto loans, $545,000 in C&I, and $240,000 in residential construction
loans.
indirect auto loans, $545,000 in C&I, and $240,000 in residential construction
loans.
![](https://capedge.com/proxy/8-K/0000745981-08-000042/ex99_112.jpg)
Asset
Quality
▪ Engaged & Focused
on Regional
Economies
▪ Experienced and
Accomplished
Management &
Board
Financial Performance
![](https://capedge.com/proxy/8-K/0000745981-08-000042/ex99_113.jpg)
Financial Performance
Loan Mix
§ Diversified Loan
Portfolio:
Industry &
Geography
- Mining 11%
- Construction 11%
- Services 22%
![](https://capedge.com/proxy/8-K/0000745981-08-000042/ex99_114.jpg)
Financial Performance
Deposit Mix
§ Strong & Stable
Core Funding
Source
§ Maintaining Solid
Non-Interest
Bearing Base
§ Regional
Economies
Affecting Deposit
Levels
![](https://capedge.com/proxy/8-K/0000745981-08-000042/ex99_115.jpg)
Core Funding
▪ Funding Capacity
▪ Challenging
Markets
▪ Loan Growth
Suppressed by
Customer Liquidity
Financial Performance
![](https://capedge.com/proxy/8-K/0000745981-08-000042/ex99_116.jpg)
Earning
Asset Mix
Tax Equivalent
Yield - Securities
• 4.92%- 2Q08
• 5.04%- 2Q07
Financial Performance
5.07%
4.74%
4.08%
9.12%
8.48%
7.99%
![](https://capedge.com/proxy/8-K/0000745981-08-000042/ex99_117.jpg)
Franchise Expansion
2008 Locations
• Aggressive branch and franchise expansion plan
• Number of employees nearly doubled in 5 years
• Well-positioned in attractive markets
![](https://capedge.com/proxy/8-K/0000745981-08-000042/ex99_118.jpg)
Current Market Footprint
· Strategically Located along I-10, I-49
and Hwy 90 Corridors
49
![](https://capedge.com/proxy/8-K/0000745981-08-000042/ex99_119.jpg)
3.3
3.8
4.2
5.8
3.6
3.3
4.2
3.5
3.2
2.7
3.3
3.6
2.7
2.7
Market Employment
· Unemployment Rates significantly below national
· Sustained job growth
Source: Bureau of Economic Analysis
![](https://capedge.com/proxy/8-K/0000745981-08-000042/ex99_120.jpg)
MSA Economic Profile
Lake Charles MSA
(92,900 non-farm jobs)
Regional President: John Nichols
4 locations
● In Top 5 fastest growing MSA in the U.S.
● Projected 2,800 new jobs over 2008-09.
● Fully recovered from Hurricane Rita and
now setting record levels of employment.
now setting record levels of employment.
● 3 dominant industries: Petrochemical,
Gambling and Aircraft Repair.
Gambling and Aircraft Repair.
Unemployment Rate: 3.6%
Source: La. Economic Outlook: 2008 and 2009/Bureau of Economic Analysis
![](https://capedge.com/proxy/8-K/0000745981-08-000042/ex99_121.jpg)
MSA Economic Profile
Lafayette MSA
(152,200 non-farm jobs)
Regional Presidents:
Central LA- Glenn Decou
9 locations
Rural LA- Irving Boudreaux
7 locations
● Projected 6,300 new jobs over 2008-09.
● Third fastest growing MSA in Louisiana.
● High concentration of firms associated
with oil and gas extraction industry.
with oil and gas extraction industry.
● Home of the nation’s largest jewelry
settings manufacturer.
settings manufacturer.
Unemployment Rate: 2.8%
Source: La. Economic Outlook: 2008 and 2009/Bureau of Economic Analysis
![](https://capedge.com/proxy/8-K/0000745981-08-000042/ex99_122.jpg)
MSA Economic Profile
Baton Rouge MSA
(374,000 non-farm jobs)
Regional President: Jim Greely
3 locations
● Projected 14,800 new jobs over 2008-09.
● Home of two major universities - LSU
and Southern University, the State Capitol,
and the country’s second largest refinery.
and Southern University, the State Capitol,
and the country’s second largest refinery.
● Incurred over 35,000 permanent new
residents as a result of Hurricane Katrina.
residents as a result of Hurricane Katrina.
● Over $5 billion in construction projects
either underway or planned for this region.
either underway or planned for this region.
Unemployment Rate: 3.6%
Source: La. Economic Outlook: 2008 and 2009/Bureau of Economic Analysis
![](https://capedge.com/proxy/8-K/0000745981-08-000042/ex99_123.jpg)
MSA Economic Profile
Houma MSA
(96,800 non-farm jobs)
Regional President: Troy Cloutier
4 locations
● In Top 5 fastest growing MSA in the U.S.
and fastest growing in Louisiana.
and fastest growing in Louisiana.
● Projected 5,200 new jobs over 2008-09.
● Significant shipbuilding and fabrication
sector which benefits from the rebuild effort
of the offshore energy infrastructure.
sector which benefits from the rebuild effort
of the offshore energy infrastructure.
● $1.3 billion highway improvements on
LA 1 to improve infrastructure near Port
Fourchon.
LA 1 to improve infrastructure near Port
Fourchon.
Unemployment Rate: 3.6%
Source: La. Economic Outlook: 2008 and 2009/Bureau of Economic Analysis
![](https://capedge.com/proxy/8-K/0000745981-08-000042/ex99_124.jpg)
East Texas Economic Profile
Houston MSA
(2,619,300 non-farm jobs)
Regional President: Ron Reed
7 locations
● The Houston MSA’s job growth was #1
among the 12 largest MSAs in the country,
adding 54,100 jobs from June 2007 to June
2008.
among the 12 largest MSAs in the country,
adding 54,100 jobs from June 2007 to June
2008.
● Houston’s non-farm employment rose
2.1% compared to a 0.1 % decline
nationwide.
2.1% compared to a 0.1 % decline
nationwide.
● Houston’s MSA outpaced the nation’s
year-over-year percent change in
employment in 10 of the 11 industry
supersectors.
year-over-year percent change in
employment in 10 of the 11 industry
supersectors.
Source: US Bureau of Labor Statistics
![](https://capedge.com/proxy/8-K/0000745981-08-000042/ex99_125.jpg)
East Texas Economic Profile
▪ Houston’s annual
construction
employment grew by
1.7%, compared to a
6.1% decline
nationally.
construction
employment grew by
1.7%, compared to a
6.1% decline
nationally.
▪ Manufacturing
employment grew by
1.3%, compared to a
national 2.6%
decline.
employment grew by
1.3%, compared to a
national 2.6%
decline.
Source: US Bureau of Labor Statistics
Houston MSA Employment Growth vs. US
![](https://capedge.com/proxy/8-K/0000745981-08-000042/ex99_126.jpg)
East Texas Economic Profile
▪ Of the 12 largest
MSAs in the country,
Houston’s MSA
ranked #1 in job
growth at 2.1%.
MSAs in the country,
Houston’s MSA
ranked #1 in job
growth at 2.1%.
▪ Bolstering the East
Texas region, Dallas
followed closely at
2.0% employment
growth.
Texas region, Dallas
followed closely at
2.0% employment
growth.
Source: US Bureau of Labor Statistics
Top 12 National MSA Employment Growth
![](https://capedge.com/proxy/8-K/0000745981-08-000042/ex99_127.jpg)
Unemployment Rates
Market MSAs
Jan-08
Feb-08
Mar-08
Apr-08
May-08
Louisiana
4.6
3.5
4.3
3.5
3.7
Baton Rouge
4.5
3.4
4.2
3.4
3.6
Houma
3.4
2.5
3.2
2.5
2.7
Lafayette
3.4
2.6
3.2
2.6
2.8
Lake Charles
4.8
3.6
4.2
3.3
3.6
Texas
4.6
4.3
4.2
3.9
4.3
Beaumont
6.2
5.5
5.4
5.0
5.6
College Station
3.8
3.3
3.3
3.0
3.4
Houston
4.5
4.2
4.1
3.8
4.2
MSA Average
4.4
3.6
3.9
3.4
3.7
Source: US Bureau of Labor Statistics
![](https://capedge.com/proxy/8-K/0000745981-08-000042/ex99_128.jpg)
Historical Stock Performance
▪ Life to Date $1,000 = $12,500
▪ Last 5 Years 89% Return
Stock Performance
April 1993 - August 2008
Source: Yahoo.Finance.com April 26, 1993 - August 11, 2008
![](https://capedge.com/proxy/8-K/0000745981-08-000042/ex99_129.jpg)
Relative Stock Performance
▪ MSL vs. Major Indexes
▪ Life to Date Growth
Stock Performance
April 1993 - August 2008
Source: Yahoo.Finance.com April 26, 1993 - August 11, 2008
![](https://capedge.com/proxy/8-K/0000745981-08-000042/ex99_130.jpg)
Strategic Focus
• Concentrate heavily on growth markets: Southeast Texas and South Louisiana
• Capital and balance sheet management
• Strengthen infrastructure in regards to operations, human capital and technology
• Enhance middle market strategy and resources
• Preserve customer service focus
• Maximize shareholder value
MidSouth Bancorp
![](https://capedge.com/proxy/8-K/0000745981-08-000042/ex99_131.jpg)
MidSouth Bancorp
P.O. Box 3745 - Lafayette, LA 70502
___________________________________________________________
C.R. “Rusty” Cloutier
President & Chief Executive Officer
cloutier@midsouthbank.com
337-237-8343
J. Eustis Corrigan, Jr.
Senior Executive Vice President and Chief Financial Officer
ecorrigan@midsouthbank.com
337-237-8343