Investar Holding Corp. acquiring Wichita Falls Bancshares in Texas for $1.6 billion

Louisiana-based Investar Holding Corp. is set to acquire Wichita Falls Bancshares in Texas for $1.6 billion. The deal includes $1.2 billion in deposits, raising Texas deposits from 6% to 37% for Investar. The merger is expected to close in the fourth quarter, boosting Investar’s presence in Texas.

To fund the purchase, Investar completed a private placement of $32.5 million in preferred stock. The proceeds will support the acquisition and general corporate purposes. The company aims for organic growth and potential future acquisitions.

Investar agreed to pay about $84 million in cash and stock for Wichita Falls, located in North Texas. Investors responded positively, with shares trading up nearly 6% midday Wednesday at $21.56 per share.

Following the acquisition, the combined company will have $4 billion in assets, $3.3 billion in loans, and $3.5 billion in deposits. Investar projects 2026 earnings of $3.08 per share, reflecting 35% accretion.

Wichita Falls President David Flack believes the merger will bring new products and services, maintaining current banking locations and local bankers. Stan Pinkham, First National Bank’s president and CEO, sees strategic synergies through combined resources with Investar.

Investar, founded in 2006 by CEO John D’Angelo, has used M&A to fuel growth. The company aims for multistate expansion and has completed several acquisitions, including Citizens Bancshares and BOJ Bancshares in Louisiana.

In contrast to Investar’s focus on commercial and small-business lending, Wichita Falls is known for mortgage lending. The company plans to sell $200 million in mortgages to reduce residential loan concentration and pay down debt.

Investar anticipates the deal to close in about five months, aligning with a trend of more timely M&A decisions by regulators. Seaport Research Partners’ senior analyst Laurie Havener Hunsicker notes a growing number of closed bank deals in early 2025.

Read more at Yahoo Finance: Louisiana bank to enter Dallas with its second Texas deal