Two BancorpSouth mergers delayed by federal inquiries

BancorpSouthTUPELO — BancorpSouth Inc. has extended its merger agreements with Ouachita Bancshares Corp. and Central Community Corporation.

BancorpSouth, Ouachita Bancshares Corp. and Central Community Corporation have determined additional time will be required to obtain regulatory approvals and to satisfy closing conditions necessary to complete their respective mergers.  They have extended their respective merger agreements to June 30, 2015.

“We continue to believe our proposed mergers with Ouachita Bancshares Corp. and Central Community Corporation are in the best interest of our shareholders, customers and communities,” said Dan Rollins, BancorpSouth chairman and CEO.

As previously announced, the mergers have been unanimously approved by the boards of directors of all three companies, and by the shareholders of Ouachita Bancshares Corp. and Central Community Corporation.  The transactions remain subject to required regulatory approvals and the satisfaction of other closing conditions.

BancorpSouth has learned that federal bank regulators have identified concerns during the course of routine supervisory activities regarding BancorpSouth’s procedures, systems and processes related to certain of its compliance programs, including its Bank Secrecy Act and anti-money-laundering programs. In addition, the Consumer Financial Protection Bureau currently is conducting a review of BancorpSouth’s fair lending practices.

Rollins said, “While disappointed in the delay in being able to close these transactions, we are working diligently to resolve the compliance concerns that have been identified and to make the necessary improvements in our compliance programs.  We are pleased with the confidence that our merger partners have demonstrated through the extension of the merger agreements.”

 

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One Response to “Two BancorpSouth mergers delayed by federal inquiries”

  1. Mississippi IHL Commissioner-Elect Jim Borsig jumps sinking ship | Deep South Daily Says:

    […] During the Jones firing debacle, Board Vice President Allen Perry infamously blamed financial accountability and contract management along with the loss of a gamma knife that they seemingly thought the public wasn’t going to google despite empirical proof that people do in fact google things they’ve never heard of if it sounds as cool as something like gamma knife. Of course, there is going to be irony in that reasoning–it is Mississippi, the most ironic state in the country most of the time. Turns out, President Aubrey Patterson and Vice President Perry are in a bit of a situation concerning the financial accountability of being board members of BancorpSouth while it is under an ongoing federal investigation into mergers planned by the bank. […]

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