OIB sale falters but new deal in works

Ouachita Independent Bank founder Clyde White said Thursday he's confident a sale to BancorpSouth will eventually go through despite BancorpSouth's withdrawal of its application for the merger following federal regulatory scrutiny.

"The delay has given us an opportunity to make a better deal for our shareholders," said White, who retired as the bank's chairman after the initial deal was announced in January. "It's just going to be delayed."

Tupelo, Mississippi-based BancorpSouth disclosed in a regulatory filing Wednesday that it withdrew its application to buy OIB and Central Community Corp. in Temple, Texas. The filing also said BancorpSouth expects to "subsequently refile."

Earlier this summer, BancorpSouth had already announced it would push back the deadlines for the two mergers to June 30, 2015.

Kevin Koh, OIB's chief executive, said the Monroe bank will remain focused on serving its customers.

"We remain committed to the merger, but until it's complete we'll continue to operate the bank as a separate company dedicated to customer and community service and protecting our franchise and brand," Koh said.

Profits remain strong

Koh noted OIB continues to post strong profits as an independent bank. He said net income through July 31, 2014 is 14 percent higher than the same period in 2013.

BancorpSouth was to have paid up to $112 million to buy the Monroe bank — more than twice OIB's net value. White founded OIB in 1997 with $4.3 million in capital and grew its assets to $665 million.

BancorpSouth pulled the applications after the Federal Reserve Board said it wouldn't consider approval until the company addressed an issue the Federal Deposit Insurance Corp. flagged tied to the Bank Secrecy Act.

OIB and Central Community Corp. have the option to terminate the merger if BancorpSouth hasn't reapplied for regulatory approval by Feb. 28 with the FDIC or the Federal Reserve of St. Louis.

But White said, "We're sticking with them. We've already negotiated a deal."

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