MidSouth Bank reported third quarter earnings of $2.2 million, or 21 cents a share, up from the $300,000 the company reported for the third quarter last year.
The increase in profit margins for MidSouth comes on the heels of the bank's announcement that it will acquire Peoples State Bank of Many and expand its footprint throughout North Louisiana and Texarkana. The merger will add 16 new branches for MidSouth by the end of the year, pending shareholder and regulatory approval.
The deal is valued at roughly $39 million, a figure that includes $16 million in cash, 756,534 shares of MidSouth common stock and $10 million liquidation value of 4 percent noncumulative convertible preferred stock. The purchase also allows for potential additional cash of up to $2 million based on the performance of certain identified loans over a three-year period following the acquisition.
Peoples State's preferred stock issued under the U.S. Treasury's Community Development Capital Initiative will also be redeemed in full as part of the agreement.
IberiaBank posted third quarter income of $21 million (73 cents per share), up $5 million over the third quarter of last year and up 71 percent compared to the second quarter of 2012.
IberiaBank notes in its earning release that it incurred $5 million in costs after completing its acquisition of Florida Gulf Bank July 31.
"Our financial results for the third quarter demonstrate our significant progress in improving the long-term value of our franchise," says IberiaBank President and CEO Daryl Byrd. "We experienced exceptional client growth in loans and deposits, a stable margin, and record results in our mortgage and title insurance businesses. Our operating leverage improved significantly in the third quarter as revenues grew $8 million and expenses were fairly flat. Our investments in new markets and lines of business are exhibiting great promise. Our process improvement initiatives are proceeding on target, though by no means complete."
Home Bank, meanwhile, reports third quarter earnings of $3.1, an increase of $1.3 million, or 74 percent, as compared to the second quarter of this year. The company's third quarter income is up $2.1 million as compared to the third quarter of 2011, though the company notes that last year's third quarter earnings factored in $1.4 million in pre-tax expenses tied to its acquisition of GS Financial Corp.
Third quarter loans total $670.7 million for Home Bank, a decrease of $9.1 million over the second quarter of this year and an increase of $17 million as compared to the third quarter of 2011.
"The extended period of low interest rates, the lack of confidence in the national economy and the uncertainty of the upcoming elections make for a challenging environment," says Home Bank President and CEO John Bordelon.