BancorpSouth to buy $653M bank company

BancorpSouth Inc. (NYSE: BXS) has penned a definitive agreement to acquire a Louisiana bank company with $652.5 million in assets.

The Tupelo, Miss.-based bank holding company, which operates six BancorpSouth branches in Springfield, agreed to purchase Monroe, La.-based Ouachita Bancshares Corp. for 3.7 million shares of BancorpSouth common stock and $22.9 million in cash for all outstanding shares of the Louisiana company. The boards of directors for both companies unanimously approved the deal, and regulatory approvals are expected to be completed in the second quarter, according to a news release.

BancorpSouth's first bank transaction since 2007, the acquisition includes 12 Ouachita Independent Bank branches, $477.8 million in loans and $549.7 million in deposits.

"This transaction will give us the opportunity to significantly enhance our market share in both the Monroe-West Monroe and Shreveport-Bossier City markets. It will also provide an opportunity to enter the Bastrop market, a market which we’ve not previously served," BancorpSouthCEO Dan Rollins said of the purchase of the Louisiana competitor.

After the acquisition is finalized, Ouachita Bancshares CEO Kevin Koh will serve as BancorpSouth's division president for northeast Louisiana.

For the third quarter ended Sept. 30, BancorpSouth recorded earnings of $24.9 million, a 4.3 percent increase compared to the same quarter a year before. The company is scheduled to report its fourth-quarter earnings on Jan. 22.

BXS shares were trading at $24.80 as of 10:18 a.m., compared to a 52-week range of $14.14 to $25.54.