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 Banking Sector Receives Boost with Investar Bank’s Acquisition of First National Bank
In a significant development within the Texas banking industry, Investar Bank has announced its intention to acquire First National Bank, a major institution in the Dallas market. Valued at approximately $83.6 million in cash and stock, this acquisition marks a pivotal moment for Investar as it seeks to expand its footprint in Texas.
Key Details of the Acquisition
This acquisition includes Wichita Falls Bancshares, the parent company of First National Bank. To finance this strategic move, Investar has successfully raised $32.5 million through the sale of its Class A Preferred stock. This deal represents Investar’s largest acquisition to date and is part of a broader strategy aimed at strengthening their operations across multiple states.
Company Profiles
Investar Bank, established in 2006 in Baton Rouge, Louisiana, has experienced significant growth over the years. Initially starting from modest beginnings in a single-wide trailer following Hurricane Katrina, the bank has expanded to include 29 branches and over 329 employees throughout Louisiana, East Texas, and Alabama. As of March 31, 2025, Investar reported $2.3 billion in deposits and $2.7 billion in total assets.
First National Bank, with its solid presence in North Texas, operates seven branches and has $1.2 billion in deposits along with $1.5 billion in assets. Following the acquisition, Investar’s total assets will surpass $4 billion, managing approximately $3.5 billion in deposits across a total of 36 branches, with 10 branches situated in Texas. This significant increase positions Investar for further growth within the state.
Implications of the Acquisition
The merger of these two institutions is expected to bolster Investar’s financial resources and enhance its community banking model, combining the strengths of both organizations. The deal has received approval from both banks’ boards and is expected to close in the fourth quarter of 2025, pending regulatory and shareholder approvals. Once finalized, First National Bank will operate under the Investar Bank brand, with the existing staff remaining in place to promote a smooth transition for customers.
Strategic Growth and Future Prospects
This acquisition is not just about immediate growth; it signifies Investar’s ambitions within a competitive market. Historically, Investar has focused on acquiring smaller banks with assets of $250 million or less, but this recent venture is a noticeable shift in strategy, aiming to establish a stronger foothold in larger markets.
As Investar Bank continues to expand and evolve, it is positioning itself as a strong player in the Texas banking landscape. There is potential for subsequent acquisitions, which may attract attention in the future. For now, Investar will concentrate on integrating First National Bank and maintaining its commitment to community engagement and exceptional banking practices.
This acquisition is anticipated to create new opportunities for both banks and their combined customer base, ushering in a new era of banking services in Texas. The integration process will be closely monitored by industry experts and customers alike, as Investar’s journey continues to evolve.
Deeper Dive: News & Info About This Topic
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Author: STAFF HERE AUSTIN WRITER
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