Looking for a Lender – Try MidSouth
by Steve Cypher on Friday, December 26th, 2008In a recent press release the Louisiana-based lender announced a series of town hall meetings to let consumers and businesses know it is ready to assist them.
Good news for Texas and Louisiana
In a statement released today by MidSouth Bankcorp, parent company of MidSouth Bank, the lender announced a “proactive lending program designed to spur investment and expansion in its Texas and Louisiana markets.” And while those of us residing in the other 48 states may be unaffected by this move, it’s certainly a sign that someone – somewhere – is making an effort to free the current logjam in lending.
Here is the release:
LAFAYETTE, La., Dec. 23/ — MidSouth Bancorp, Inc., the parent company of MidSouth Bank, N.A. today announced a proactive lending program designed to spur investment and expansion in its Texas and Louisiana markets. At the beginning of January, the bank will launch a series of town hall-style meetings throughout Louisiana and Texas to let small businesses know MidSouth Bank is well-capitalized and ready to assist them. Elected officials will also be invited to the meetings to help stimulate the discussion.
The first step of the program began in early December. At that time, MidSouth Bancorp’s Board of Directors urged the bank’s lending team to begin a dialogue with a group of small business owners and elected officials to seek out potential economic sectors ripe for expansion. MidSouth Bank’s lenders have since identified customers in need of financing to ensure continued prosperity in a down market and are working to help them access that capital. “Our Board members are highly involved and visible in their communities, and they recognize that there are numerous opportunities for well-run companies to expand and help the overall economy position itself for any looming problems,” said MidSouth Bank President and Chief Executive Officer Rusty Cloutier. “Banks like MidSouth are the backbone of small business lending.”
MidSouth Bank was recently listed among the strongest banks in America by BauerFinancial, the country’s leading independent bank rating and research firm. As part of the new town hall campaign, the bank will deliver a message about its strength in the marketplace, according to Cloutier.
“In the last 90 days, we have closed $95.8 million in commercial and consumer loans, and our pipeline of applications is exceptionally stout,” the bank president said. “We are well-capitalized and ready to deploy that capital,” he added. “That’s what we do; it’s how we make money.”
MidSouth Bancorp also announced last week that it has been approved for participation in the U.S. Treasury Department’s Capital Purchase Program. If it elects to participate, the Company may issue up to $20 million in senior preferred stock, with related warrants to purchase up to $3 million in common stock, to the U.S. Treasury. The anticipated sale of the preferred stock and warrants would close within 30 days and is contingent upon the completion of standard closing documents and subsequent registration with the Securities and Exchange Commission.
“Congress’ intent was for this money to increase lending,” Cloutier said. “If we elect to borrow these funds, we will accelerate our lending efforts even further, especially in the areas we serve that were hardest hit by four major hurricanes in the past three years.”
The Bottom Line
Even though MidSouth’s efforts are aimed primarily at small businesses, it’s gratifying for us at Auto Credit Express to see the beginning of the “trickle down” effect that consumers were promised when Congress initiated the bailout plan in September (yes, it has been that long).
