Lafayette-based MidSouth Bank reports third quarter earnings of $2.2 million, or 21 cents a share, up from the $300,000 the company reported for the third quarter last year.
The increase in profit margins for MidSouth comes on the heels of the bank’s announcement that it will acquire Peoples State Bank of Many and expand its footprint throughout North Louisiana and Texarkana. The merger will add 16 new branches for MidSouth by the end of the year, pending shareholder and regulatory approval.
The deal is valued at roughly $39 million, a figure that includes $16 million in cash, 756,534 shares of MidSouth common stock and $10 million liquidation value of 4 percent noncumulative convertible preferred stock. The purchase also allows for potential additional cash of up to $2 million based on the performance of certain identified loans over a three-year period following the acquisition. Peoples State’s preferred stock issued under the U.S. Treasury’s Community Development Capital Initiative will also be redeemed in full as part of the agreement.
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