Posted 8:50 pm Sunday, September 30, 2012
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MidSouth Bancorp plans to acquire PSB
Staff Reports
MidSouth Bancorp Inc. announced its plans to acquire PSB Financial Corp.
MidSouth Bancorp Inc. announced its plans to acquire PSB Financial Corp.
MidSouth, based in Lafayette, La., signed a definitive agreement with PSB Financial Corp., the holding company of Many, La.-based The Peoples State Bank. The transaction was approved by the Board of Directors of both companies and is expected to close in the fourth quarter of 2012, according to a prepared statement.
MidSouth Bank is a subsidiary of MidSouth Bancorp and has one Tyler location, at 1330 Old Omen Road.
Under the terms of the agreement, shareholders of PSB will receive $16 million in cash, subject to certain adjustments, 756,534 shares of MidSouth common stock and $10 million of 4 percent noncumulative convertible preferred stock. The agreement also provides for potential additional cash consideration of $2 million based on the resolution of certain identified loans over a three-year period after the acquisition. PSB preferred stock issued under the U.S. Treasury’s Community Development Capital Initiative will also be redeemed in full. Completion of the transaction is subject to customary closing conditions.
Leonard Q. “Pete” Abington, of Many, La., is chairman and chief executive officer of PSB and will be named to the board of directors of MidSouth and its subsidiary MidSouth Bank. John “JJ” Blake III, president and CEO of Peoples State Bank, will be named senior vice president and regional president of MidSouth Bank’s Timber Region. Conversion of all 16 Peoples State branches to MidSouth’s computer systems is expected by March 30.
Under the terms of the agreement, shareholders of PSB will receive $16 million in cash, subject to certain adjustments, 756,534 shares of MidSouth common stock and $10 million of 4 percent noncumulative convertible preferred stock. The agreement also provides for potential additional cash consideration of $2 million based on the resolution of certain identified loans over a three-year period after the acquisition. PSB preferred stock issued under the U.S. Treasury’s Community Development Capital Initiative will also be redeemed in full. Completion of the transaction is subject to customary closing conditions.
Leonard Q. “Pete” Abington, of Many, La., is chairman and chief executive officer of PSB and will be named to the board of directors of MidSouth and its subsidiary MidSouth Bank. John “JJ” Blake III, president and CEO of Peoples State Bank, will be named senior vice president and regional president of MidSouth Bank’s Timber Region. Conversion of all 16 Peoples State branches to MidSouth’s computer systems is expected by March 30.
“This transaction is a pure merger,” Abington, who formed PSB Financial Corp. in 1984, said in a prepared statement. “Just like MidSouth Bank, we have always been employee-oriented, and this merger will open up many new employment opportunities for our staff.”
He said joining forces with MidSouth provides Peoples State Bank the resources and expertise to further expand in the Louisiana and Texas markets, while filling in the gaps in MidSouth Bank’s footprint in the two states.
MidSouth Bank President/CEO Rusty Cloutier said when the deal is done, the combined banks will have assets of $1.9 billion and 58 banking centers.
He said joining forces with MidSouth provides Peoples State Bank the resources and expertise to further expand in the Louisiana and Texas markets, while filling in the gaps in MidSouth Bank’s footprint in the two states.
MidSouth Bank President/CEO Rusty Cloutier said when the deal is done, the combined banks will have assets of $1.9 billion and 58 banking centers.
