News Summary
Investar Bank is making headlines with its recent acquisition of First National Bank in Texas for $83.6 million. This strategic move marks Investar’s largest acquisition, enhancing its presence in the Dallas-Fort Worth area. With First National’s seven branches, Investar seeks to broaden its customer base, manage over $4 billion in assets, and leverage the strong Texas market. The merger is expected to complete by the end of 2025, promising an enriched banking experience for First National customers while reinforcing Investar’s growth strategy.
Texas continues to attract significant attention in the banking sector as Investar Holding Corp. has announced its acquisition of First National Bank in a deal valued at $83.6 million. This strategic move marks Investar’s entry into the expanding Dallas market and signifies the company’s largest acquisition to date. The acquisition involves Wichita Falls Bancshares, the parent company of First National Bank, and aims to boost Investar’s presence in Texas, which is a vital step in its multi-state growth strategy.
To facilitate the acquisition, Investar successfully raised $32.5 million through the sale of Class A Preferred stock. This influx of capital will help finance the purchase and allows Investar to strengthen its operational capacity as it ventures into one of the fastest-growing regions in the state. Following the transaction’s completion, Investar is projected to possess over $4 billion in assets and $3.5 billion in deposits, operating across 36 branches.
Currently, Investar has a significant presence with 29 branches and 329 employees across Louisiana, east Texas, and Alabama. As of March 31, the company reported $2.3 billion in deposits and $2.7 billion in assets. In contrast, First National Bank, which operates seven branches in north Texas, has $1.2 billion in deposits and $1.5 billion in assets. The merger will mean that more than one-third of Investar’s total assets will be in Texas, solidifying the state’s role in the company’s future operations.
The financial outlook for Investar post-acquisition looks promising. Total assets after the acquisition are expected to reach $4 billion, and projected earnings for 2026 are estimated to be $3.08 per share, reflecting a 35% increase. This anticipated growth underscores Investar’s strengthened financial position and enhanced resource capacity, which will translate into an expanded array of services for customers.
This acquisition aligns with Investar’s historical strategy of targeting smaller banks for acquisition, having traditionally focused on institutions with assets of $500 million or less. Investar has already executed seven smaller acquisitions, all valued under $250 million. The company’s growth trajectory took a significant step forward when it went public in 2014, moving 3.3 million shares and grossing $46 million at that time, with assets then reported at $674 million.
The acquisition not only enhances Investar’s operational footprint but also increases its appeal as a potential acquisition target within the competitive banking sector. The Dallas-Fort Worth Metroplex, where First National operates five branches, is particularly significant due to its robust economic landscape, expected to provide Investar with various growth opportunities.
Following the merger, Investar asserted its commitment to a seamless integration process with First National Bank. The transition to the Investar brand is anticipated to occur rapidly post-completion, which is expected to take place in the fourth quarter of 2025. Retaining existing branches and staff during the integration is a priority, ensuring that customers continue to receive the services they are accustomed to while benefitting from an expanded range of products.
In a strategic move to manage residential loan concentration and corporate debt after the acquisition, Investar is also planning to sell $200 million in mortgages. This will further position the bank to effectively navigate its expanded operations while maintaining a balanced portfolio.
Overall, the merger of Investar Holding Corp. and First National Bank marks a significant milestone in the Texas banking landscape, combining the strengths of both entities to better serve customers and fortify their positions within the competitive marketplace.
Deeper Dive: News & Info About This Topic
- Business Report: Investar Bank Agrees to Acquire First National Bank in Texas
- Wikipedia: Investar Bank
- The Advocate: Company Behind Baton Rouge Bank Expands into North Texas
- Google Search: Investar Bank acquisition
- American Banker: Louisiana Bank to Enter Dallas with Second Texas Deal
- Encyclopedia Britannica: Banking in Texas
- Investing.com: Investar to Acquire Wichita Falls Bancshares in $836 Million Deal
- Google News: Investar Bank Texas
- American Banker: Why Private Investors are Scooping Up Small Banks
