BancorpSouth announces its first bank merger since 2007
Tupelo-based BancorpSouth late Wednesday said it’s reached an agreement, valued between $99 million and $112 million, to acquire Monroe, La.-based Ouachita Bancshares Corp. and its main subsidiary, Ouachita Independent Bank.
It’s BancorpSouth’s first acquisition since 2007 and the first under Dan Rollins, BancorpSouth’s CEO since November 2012.
BancorpSouth’s last banking acquisition was City Bancorp, the parent of The Signature Bank of Springfield, Mo. That deal, first announced in October 2006, was completed in March 2007. The deal added $852 million in assets to BancorpSouth’s portfolio.
The merger, pending regulatory approval and the approval of OIB shareholders, is expected to be complete by the second quarter of this year.
OIB has 12 full-service banking offices in Louisiana, with six in Monroe-West Monroe, four in Shreveport-Bossier City and two in Bastrop. It also has loan production offices in Madison, Miss., and Natchitoches, La.
(I wonder if the Robertson family – the Duck Dynasty folks who are based in West Monroe – are customers of the bank?)
As of Dec. 31, the company had more than $652 million in total assets.
More on the merger in a BancorpSouth news release
Under the terms of the definitive agreement, BancorpSouth will issue a maximum of 3,675,000 shares of BancorpSouth common stock plus $22.875 million in cash for all outstanding shares of Ouachita Bancshares Corp. capital stock, subject to certain conditions and potential adjustments. The terms of the agreement provide for a collar with respect to the total deal value ranging from $99 million to $112 million. If necessary, the share count will be adjusted downward or the cash consideration adjusted upward to accommodate the respective boundaries of the collar.
We are very pleased to announce the first bank transaction for our Company since 2007,” commented Dan Rollins, Chief Executive Officer of BancorpSouth. “We are excited about the opportunity to partner with the professionals at OIB. I would like to welcome their outstanding team to the BancorpSouth family. Our management has the utmost respect for the manner in which their bankers take care of customers and transact business. We are extremely impressed with the reputation and respect that OIB has developed in the markets that we serve. This transaction will give us the opportunity to significantly enhance our market share in both the Monroe-West Monroe and Shreveport-Bossier City markets. It will also provide an opportunity to enter the Bastrop market, a market which we’ve not previously served. OIB customers can expect to continue to receive the same level of personal service to which they have become accustomed, with the added advantage of additional BancorpSouth products and resources.”
“We have always respected BancorpSouth as a competitor and the presence that they have developed along the I-20 corridor,” stated Clyde White, Chairman and former Chief Executive Officer of Ouachita Bancshares Corp. “We are excited for our customers, employees, and shareholders to have the opportunity to partner with an organization like BancorpSouth. We look forward to our relationship with Dan and the entire BancorpSouth team.”
Kevin Koh, Chief Executive Officer of Ouachita Independent Bank added, “BancorpSouth is a great cultural fit with an operating style that is very similar to that of our Company. Both banks have a longstanding reputation for their commitment to the communities they serve as well as the customer-focused models that both operate. We believe these core fundamental similarities will make for a very seamless and successful transition over to the BancorpSouth team.”
Clyde White, who recently retired from active day-to-day management of OIB, will continue to serve as Chairman of the Board of OIB until the merger is completed. Kevin Koh will continue to serve as OIB’s Chief Executive Officer until the merger is completed. After that date, he will become BancorpSouth’s Division President with responsibility for Northeast Louisiana markets including Monroe-West Monroe. Lee Copeland, BancorpSouth’s Division President for North Louisiana will continue to serve as Division President for BancorpSouth’s Northwest Louisiana markets including Shreveport. Chris Windham, OIB’s Chief Lending Officer, upon consummation of the merger, will serve as Senior Lender for the Northeast Division. L.J. Holland, BancorpSouth’s Monroe-West Monroe Market President will continue in his role.