MidSouth Bancorp in Lafayette, La., is planning to raise $50 million to exit the Small Business Lending Fund.
The $1.9 billion-asset company said in a press release Wednesday that any remaining funds from the offering would be used to enhance its capital structure and fund organic growth, among other things.
MidSouth, which could sell another $7.5 million in stock if there is enough demand, has been paying a 9% dividend on the $32 million it obtained from the Treasury Department in 2011.
Sandler O’Neill is the offering’s underwriter.
MidSouth, which fired founding CEO Rusty Cloutier earlier this year, has made it clear that new management has a mandate to show the company can remain independent. MidSouth has outlined several priorities that include resolving problematic credits, building capital, strengthening underwriting and reviewing the branch network, products and expenses.
James McLemore was recently named MidSouth’s permanent CEO.