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.

Investar Bank Steps Up in Texas with Major Acquisition

As the Texas banking scene shuffles and reshapes, Investar Bank has decided to roll the dice and take a leap into the thriving Dallas market. In a bold move announced recently, they’re acquiring First National Bank—a local favorite in Texas—for a whopping $83.6 million in cash and stock. This acquisition is being hailed as Investar’s largest to date, setting them on a trajectory that promises exciting developments for both the bank and its customers.

A New Chapter in Texas Growth

Sitting proudly as the parent company of First National Bank, Wichita Falls Bancshares will officially be joining the Investar family. This strategic move gives Investar an even larger footprint in the Lone Star State, especially in the bustling Dallas-Fort Worth Metroplex area. With First National operating seven branches across north Texas, the deal offers a valuable expansion opportunity, bringing a significant increase in deposits and customer relationships.

Funding the Future

To make this acquisition a reality, Investar raised $32.5 million through the sale of Class A Preferred stock. Currently, Investar operates with 29 branches and employs 329 people in Louisiana, east Texas, and Alabama. They reported impressive numbers as of March 31 with $2.3 billion in deposits and $2.7 billion in assets. Once the deal closes, Investar is projected to possess over $4 billion in assets and $3.5 billion in deposits across 36 branches, solidifying its standing in the Texas market.

The Changing Landscape of Banking

Investar started small, gaining traction after the devastation of Hurricane Katrina and primarily focusing on acquiring smaller banks with assets below $500 million. Before this latest move, they had performed seven smaller acquisitions, demonstrating their commitment to adaptable business strategies. Going public in 2014, they made a notable splash by moving 3.3 million shares and grossing $46 million when they had $674 million in assets.

What This Means for the Community

For First National Bank customers, this merger is not just about numbers. It means more readily available products and services while still enjoying the familiarity of existing branches and staff. Investar’s CEO has emphasized that this integration is about enriching community banking. The merger is expected to wrap up in the fourth quarter of 2025, allowing for a seamless transition to the Investar brand.

Looking Ahead

The projected benefits are staggering! After the acquisition, it is forecasted that Investar’s total assets will jump to $4 billion, with earnings expected to rise to $3.08 per share in 2026, marking a remarkable 35% increase. Additionally, Investar plans to sell $200 million in mortgages to maintain a healthy balance between residential loans and corporate debt.

Strengthening the Dallas Market

This acquisition not only enhances Investar’s financial strength but also amplifies its ability to cater to a growing population. With First National Bank’s five branches within the heart of Dallas-Fort Worth, Investar is casually yet confidently bolstering its potential in one of the country’s fastest-growing markets, ensuring they have what it takes to keep up with demands.

In short, this move by Investar Bank shines brightly in the Texas banking landscape, promising a vibrant future filled with opportunities for customers. As the integration process unfolds, both banks look forward to a new era of growth and expanded services that will surely benefit the communities they serve.

Investar Bank Expands into Texas with First National Acquisition