Acquisition Activity

9 Months Ended

Sep. 30, 2012

Acquisition Activity [Abstract]

Acquisition Activity [Text Block]

2.  Acquisition Activity

On September 26, 2012, the Company entered into a definitive agreement to acquire PSB Financial Corp. ("PSB"), the holding company of Many, La., based The Peoples State Bank. Under the terms of the agreement, shareholders of PSB will receive $16.0 million in cash, subject to certain adjustments, 756,534 shares of MidSouth common stock and $10.0 million of 4.00% noncumulative convertible preferred stock. In addition, the agreement provides for potential additional cash consideration of up to $2.0 million based on the resolution of certain identified loans over a three-year period after the acquisition. As part of the transaction, PSB's preferred stock issued under the U.S. Treasury's Community Development Capital Initiative will also be redeemed in full. The transaction has been approved by the Board of Directors of each company and is expected to close in the fourth quarter of 2012. Completion of the transaction is subject to customary closing conditions, including the receipt of required regulatory approvals and the approval of PSB shareholders.