MidSouth Bancorp Inc. announced its plans to acquire PSB Financial Corp.
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.
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.