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 period.
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 Region.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," Cloutier said. "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.