Community Trust Financial Corp. in Ruston, La., is expanding into Mississippi.
The $1.2 billion-asset company has a deal to buy the $65 million-asset Madison Financial Corp., which would add three branches in the neighboring state.
The deal price was not disclosed.
The seller's Madison County Bank would operate as Community Trust Bank of Mississippi after the deal closes. Henry Logue, the president and chief executive officer of Madison County Bank, would retain those titles at Community Trust Bank of Mississippi.
The buyer's Community Trust Bank has 18 branches that stretch from the Dallas-Fort Worth area to northeast Louisiana, and Ronnie Myrick, the chairman of Community Trust Bank, said in a press release that Madison County Bank gives it "an excellent opportunity" to expand into a third state.
"We've been looking for the right opportunity to enter the Mississippi market," he said.
The deal is expected to close in the second quarter of 2010. Myrick said in a brief interview that the yearlong cushion is just to make sure there is ample time for the closing.
This is the second deal for Community Trust Financial in recent months.
It expects to close this month on its purchase of the $140 million-asset First Louisiana Bancshares Inc. in Shreveport, Myrick said. The deal with First Louisiana was announced in April.
