MidSouth Bancorp, Inc. Completes Merger with PSB Financial Corporation
LAFAYETTE, La., Dec. 28, 2012
LAFAYETTE, La., Dec. 28, 2012 /PRNewswire/ -- MidSouth Bancorp, Inc.
("MidSouth") (NYSE MKT: MSL), the parent company for MidSouth Bank N.A.,
announced the completion of the merger with PSB Financial Corporation ("PSB"),
the holding company of Many, Louisiana based Peoples State Bank. This
transaction continues MidSouth's strategic growth and enhances the connection
between Louisiana and Texas by expanding MidSouth Bank's presence north from
Acadiana all the way up to Texarkana.
Under the terms of the definitive agreement, MidSouth will issue up to 756,536
shares of MidSouth common stock and $10 million liquidation value of a newly
created MidSouth series of 4.00% noncumulative convertible preferred stock
plus $16 million in cash. In addition, the merger agreement provides for
potential additional cash consideration of up to $2 million, plus interest,
based on the resolution of certain identified loans over a three-year
As part of the transaction, PSB's preferred stock issued under the U.S.
Treasury's Community Development Capital Initiative has been redeemed in full
and Leonard Q. "Pete" Abington, Chairman and President of PSB, has been named
to the board of directors of MidSouth and its subsidiary, MidSouth Bank, and
John J. "JJ" Blake III, President and CEO of Peoples State Bank, has been
named Senior Vice President and Regional President of MidSouth Bank's Timber
Over the weekend, signs on all 15 Peoples State Bank branch buildings will be
changed to MidSouth Bank, the first step in a two-phase conversion plan. Full
conversion of systems, products and services will take place in late March
2013. Additional information on the merger can be found on the Investor
Relations tab of MidSouth's website at www.midsouthbank.com.
"We are excited to welcome Peoples State Bank to the MidSouth team," commented
MidSouth Bank President and CEO Rusty Cloutier. "We've known each other for
more than a decade and have always viewed Peoples as an attractive partner for
so many reasons, chief among them are the quality of the employees, the
diversity of our loan portfolios and our philosophical similarities about
community involvement, customer service and the basic principles of banking,"
"Together, our combined organizations will be able to provide significant
value to our shareholders, customers and employees as we continue our
expansion efforts to enhance our competitive stance and position us for
successful growth in the future," Cloutier said.
About MidSouth Bancorp, Inc.
MidSouth Bancorp, Inc. is a bank holding company headquartered in Lafayette,
Louisiana, with assets of $1.9 billion as of December 28, 2012. Through its
wholly owned subsidiary, MidSouth Bank, N.A., MidSouth offers a full range of
banking services to commercial and retail customers in Louisiana and Texas.
MidSouth Bank currently has 57 banking centers in Louisiana and Texas and is
connected to a worldwide ATM network that provides customers with access to
more than 43,000 surcharge-free ATMs. Additional corporate information is
available at www.midsouthbank.com.
Certain statements contained herein are forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934 and subject to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995, which involve risks and
uncertainties. These statements include, among others, statements regarding
the anticipated impacts of the transaction on shareholders, employees and
customers, future expansion plans, future operating results and the
integration of PSB into MidSouth's systems.Actual results may differ
materially from the results anticipated in these forward-looking statements.
Factors that might cause such a difference include, among other matters, the
effect of the acquisition on relations with customers and employees; changes
in interest rates and market prices that could affect the net interest margin,
asset valuation, and expense levels; changes in local economic and business
conditions, including, without limitation, changes related to the oil and gas
industries, that could adversely affect customers and their ability to repay
borrowings under agreed upon terms, adversely affect the value of the
underlying collateral related to their borrowings, and reduce demand for
loans; the timing and ability to reach any agreement to restructure nonaccrual
loans; increased competition for deposits and loans which could affect
compositions, rates and terms; the timing and impact of future acquisitions,
the success or failure of integrating operations, and the ability to
capitalize on growth opportunities upon entering new markets; loss of critical
personnel and the challenge of hiring qualified personnel at reasonable
compensation levels; legislative and regulatory changes, including changes in
banking, securities and tax laws and regulations and their application by our
regulators, changes in the scope and cost of FDIC insurance and other
coverage; and other factors discussed under the heading "Risk Factors" in
MidSouth's Annual Report on Form 10-K for the year ended December 31, 2011
filed with the SEC on March 15, 2012 and in its other filings with the SEC.
MidSouth does not undertake any obligation to publicly update or revise any of
these forward-looking statements, whether to reflect new information, future
events or otherwise, except as required by law.
SOURCE MidSouth Bancorp, Inc.
Contact: Rusty Cloutier, President and CEO, or Jim McLemore, CFA, Senior
Executive Vice President and CFO, +1.337.237.8343
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