BancorpSouth has withdrawn applications for two planned acquisitions after the Tupelo, Miss., company drew regulatory scrutiny for its Bank Secrecy Act compliance.
The $13 billion-asset company disclosed in a regulatory filing Wednesday that it withdrew its applications to buy Ouachita Bancshares in Monroe, La., and Central Community Corp. in Temple, Texas, on Aug. 1, adding that it expects to "subsequently" refile.
BancorpSouth decided to pull the applications after the Federal Reserve Board said it would not consider regulatory approval for the acquisitions until the company addressed an issue the Federal Deposit Insurance Corp. flagged tied to the Bank Secrecy Act.
The disclosure comes two weeks after BancorpSouth said it would push back the deadlines for the two mergers to June 30, 2015.
The company also disclosed that it is in talks with the FDIC over a proposed consent order tied to the BSA issue. BancorpSouth said it expects the order will require it to review and revise its BSA-realted processes and procedures.
"The bank is implementing corrective action for each identified deficiency and expects that it will be able to satisfy the requirements of the proposed order in a timely fashion," the filing said, adding that BancorpSouth does not expect to pay a civil money penalty. The company said it could face civil money penalties if the FDIC or the Consumer Financial Protection Bureau opt to pursue formal enforcement actions.