BancorpSouth (BXS) in Tupelo, Miss., has agreed to buy Ouachita Bancshares in Monroe, La.
The $12.9 billion-asset BancorpSouth will pay up to $112 million in cash and stock for the $652.5 million-asset Ouachita, subject to certain conditions and potential adjustments. Eighty percent of the consideration will involve stock. The deal values Ouachita at 2.2 times tangible book value.
Ouachita also has 12 branches, two loan-production offices, $478 million in loans and $550 million in deposits.
The acquisition BancorpSouth's first bank deal since 2007 is expected to close in the second quarter. The company bought six banks between 2000 and 2007.
"Our management has the utmost respect for the manner in which [Ouachita's] bankers take care of customers and transact business," Dan Rollins, BancorpSouth's chief executive, said in a press release Thursday. "We are extremely impressed with the reputation and respect that OIB has developed in the markets that we serve."
Kevin Koh, Ouachita's CEO, will become BancorpSouth's division president with responsibility for northeast Louisiana. Lee Copeland, BancorpSouth's division president for north Louisiana, will take over responsibility for northwest Louisiana markets including Shreveport.
Ouachita was advised by Sheshunoff & Co and Fenimore, Kay, Harrison & Ford. Bracewell & Guiliani served and BancorpSouth's legal counsel.