Catalyst Bancorp in Opelousas, La., has agreed to buy Lakeside Bancshares in Lake Charles, La.
The $282.9 million-asset Catalyst said in a press release that it will pay $41.1 million in cash for the $385.7 million-asset Lakeside. The deal, which is expected to close in the third quarter, priced Lakeside at 113.9% of its tangible book value.
Lakeside “has built a tremendous reputation across Southwest Louisiana,” Joe Zanco, Catalyst’s president and CEO, said in the release. The acquisition “more than doubles the size of our company and significantly enhances our earnings and future growth potential.”
Lakeside has four branches, $236.3 million in loans and $287.5 million in deposits.
Catalyst said the deal will be more than 180% accretive to earnings per share once cost savings are fully realized. It will take about three years to earn back any dilution to Catalyst’s tangible book value.
Catalyst expects to incur $4.6 million in merger-related expenses. It plans to cut 30% of Lakeside’s annual noninterest expenses.
Brean Capital and Jones Walker advised Catalyst. Sheshunoff and Fenimore Kay Harrison advised Lakeside.