News Summary
Investar Bank has announced its acquisition of First National Bank, a significant player in the Dallas market, for $83.6 million in cash and stock. This acquisition marks Investar’s largest to date and is part of their strategy to expand into Texas, enhancing their total assets to over $4 billion. The deal is set to close in the fourth quarter of 2025, bringing First National Bank’s community banking model under the Investar name while ensuring current staff remains onboard for a smooth transition.
Texas Business Expansion
Investar Bank’s parent company, Investar Holding Corp., has announced the acquisition of First National Bank, a significant move that will bolster Investar’s presence in the Dallas market. The acquisition deal is valued at $83.6 million, which consists of both cash and stock for Wichita Falls Bancshares, the parent company of First National Bank. This marks Investar’s largest acquisition to date and is a crucial component of its ongoing multistate expansion strategy.
To facilitate the acquisition, Investar raised $32.5 million through the sale of its Class A Preferred stock, providing the financial backing necessary for this significant transaction. The deal is expected to enhance Investar’s financial strength and resources by integrating First National Bank’s established community banking model. Following the successful merger, Investar will surpass $4 billion in total assets and will manage $3.5 billion in deposits across 36 branches, which includes 10 locations in Texas.
Investar Bank’s President and CEO has indicated that this acquisition is a pivotal moment for the bank, reflecting its commitment to growth and development. After the merger, First National Bank will adopt the Investar Bank name, although its staff is expected to remain in their current positions. The transaction has received unanimous approval from the boards of both banks and is anticipated to close in the fourth quarter of 2025, pending regulatory and shareholder approvals.
Investar Bank, which was founded in 2006 in Baton Rouge, began its operations in a single-wide trailer following the aftermath of Hurricane Katrina. Since then, it has grown to establish 29 branches and employed 329 individuals across Louisiana, east Texas, and Alabama. As of March 31, 2025, it reported $2.3 billion in deposits and $2.7 billion in assets, making it the 13th largest bank in Louisiana, with less than 2% of all deposits in the state.
On the other hand, First National Bank operates seven branches in north Texas with $1.2 billion in deposits and $1.5 billion in assets. With the addition of First National Bank, more than a third of Investar’s total assets will be based in Texas, illustrating the focus on expanding its market share in the region.
Historically, Investar has engaged in smaller acquisitions, typically involving banks with assets of $250 million or less. This current strategy indicates a shift towards bolder expansions which could potentially make Investar a more attractive target for future acquisitions. However, the current focus remains on successfully merging with First National Bank.
Investar’s initiative to grow its footprint in Texas is not only a step towards enhancing its financial capability but also aims to better serve its customers through a more extensive network and improved banking services. As this merger progresses, stakeholders will be closely monitoring its impact on the regional banking landscape and Investar’s future ambitions in the ever-evolving financial industry.
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Author: STAFF HERE COLLEGE WRITER
The COLLEGE STATION STAFF WRITER represents the experienced team at HERECollegeStation.com, your go-to source for actionable local news and information in College Station, Brazos County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Brazos Valley Fair & Rodeo, Chilifest, and Aggie Muster. Our coverage extends to key organizations like the Bryan-College Station Chamber of Commerce and United Way of the Brazos Valley, plus leading businesses in education, biotechnology, and retail that power the local economy such as Texas A&M University, Fujifilm Diosynth Biotechnologies, and H-E-B. As part of the broader HERE network, including HEREAustinTX.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
