MidSouth Bancorp in Lafayette, La., has agreed to sell two branches to another Louisiana bank as part of an effort by management to improve efficiency and profitability.
The $318 million-asset Bank of Montgomery said Friday that it would buy the assets and liabilities tied to MidSouth’s branches in Alexandria, La. MidSouth, which has $1.9 billion of assets, went through an abrupt leadership change when its founder and longtime CEO, Rusty Cloutier, was fired in April. The company has been underperforming its peers in recent quarters, primarily from lingering issues tied to energy loans.
James McLemore was named the company’s president and CEO last month, and he has vowed to lower expenses, partly by selling two branches and closing another five. MidSouth has 57 branches in Louisiana and Texas. McLemore also plans to lessen the company’s reliance on lending to the energy sector.
After the acquisition, Bank of Montgomery in Louisiana would have about $350 million of assets, roughly $300 million in total deposits and 14 branches.
The price of the deal, which is expected to be completed in the fourth quarter, was not disclosed.
Bank of Montgomery was advised by the law firm of Fenimore, Kay, Harrison & Ford and Jeff Fair with American Planning Corp. MidSouth was advised by the law firm of Troutman Sanders.