Rutherford bank raising capital [1]
The board of MidSouth Bank has launched a secondary offering of preferred shares that could raise up to $15 million.
The six-year-old bank says it will use the additional capital to take advantage of future opportunities in Rutherford County and surrounding areas. MidSouth has about $250 million in assets and five offices in Murfreesboro and Smyrna.
“As the only locally owned and operated bank in Rutherford County, our talented team of bankers is ready to capitalize on the future economic growth of our area while remaining true to the hometown values and outstanding service that sets us apart,” says Lee Moss, chairman and CEO of MidSouth Bank. “This stock offering [2] will put us in a better position to grow and prosper.”
Existing shareholders will get first dibs on the new shares until March 1. The shares, which are on sale for $5, have conversion rights and will automatically turn into two shares of MidSouth common at the end of March 2015. The bank also is granting investors warrants to buy more shares at a discount to book value.
MidSouth lost $3.2 million in the first nine months of the 2009 as two of its founders resigned to help Moss and President Dallas Caudle cut costs [3]. Combined with a small shrinkage of its loan portfolio, those cuts, which included 15 layoffs since the end of 2008, have helped the bank maintain its capital ratios despite significantly higher loan losses.
At Sept. 30, MidSouth's Tier 1 capital stood at 10.6 percent versus 10.8 percent at the end of 2008. Regulators say a well-capitalized bank needs a Tier 1 ratio of 6 percent.
- Finance [4]
- Murfreesboro [5]
- Rutherford County [6]
- MidSouth Bank [7]
- Dallas Caudle [8]
- Lee Moss [9]
- Banking [10]
- Private placements [11]