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First Louisiana National Bank
Acquisition
Acquisition
August 30, 2011
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Transaction Summary
Description: Purchase of substantially all of the assets and liabilities of First Louisiana
National Bank
National Bank
Seller: First Bankshares of St. Martin, LTD and First Louisiana National Bank
Expected Closing December 31, 2011
Purchase Price: $11.5 million in cash
725,000 MSL restricted common shares
725,000 MSL restricted common shares
Assets Purchased: Estimated $115.0 million
Bank Equity: $11.0 million
Branch Locations: Breaux Bridge, LA, Lafayette, LA, St. Martinville, LA
Transaction Expenses: $500,000 pretax (25% professional fees, 75% conversion costs)
Cost Savings: Approx. 60% cost reductions based on a net one branch increase after
closing two branches
closing two branches
Earnings Accretion: 2012E - $0.20
2013E - $0.25
2013E - $0.25
2
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First Louisiana Branch Locations
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Branch Consolidation Plans
• Breaux Bridge
– Close and consolidate MSL branch into FLNB branch
– Allows for future expansion of MSL operations center, which
shares former MSL branch location, to support LA and TX
growth
shares former MSL branch location, to support LA and TX
growth
• Lafayette
– Close and consolidate FLNB branch into MSL branch
• St. Martinville
– FLNB Branch remains open
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Investor Considerations
• In-market acquisition with significant integration savings, closing
two branches for a net gain of one branch
two branches for a net gain of one branch
• Opportunity to leverage First Louisiana National consumer
based operations with MSL commercial expertise, larger lending
limit, increased branch network and stronger operating bank
platform.
based operations with MSL commercial expertise, larger lending
limit, increased branch network and stronger operating bank
platform.
• Allows for improved utilization of space for back-office
functions in one location to support anticipated growth in LA
and TX
functions in one location to support anticipated growth in LA
and TX
• The transaction is expected to be accretive to MSL earnings in
the first full fiscal year including transaction expenses, with an
anticipated IRR of 15%
the first full fiscal year including transaction expenses, with an
anticipated IRR of 15%
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Summary of Recent M&A Transactions (in millions) Jefferson Bank(1)Beacon-Tyler(2)First Louisiana(3) Deposits $164.3 $80.0 $103.5 Loans 79.5 26.6 49.0 Assets 164.3 77.0 118.4 Consideration - Cash 10.5 3.6 11.5 Consideration - Stock NA NA 7.8 Estimated transaction expenses - pretax 0.84 0.35 0.50 Estimated Cost Savings 30% 23% 60% 2012 EPS accretion/dilution $0.10 $0.05 $0.20 Closing Date 7/29/11 NLT 12/31/11 NLT 12/31/11 Notes: (1) Jefferson Bank – actual balances on closing date 7/29/11 (2) Beacon – Tyler – balances as of 7/31/11 (3) First Louisiana – balances as of 7/31/11 Consideration – stock based on closing price of MSL stock of $10.73 on 8/29/11