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Investar Bank Expands into Texas with First National Acquisition

Investar Bank Expansion

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: Investar Holding Corp. to Acquire First National Bank for $83.6 Million

Investar Holding Corp. has announced its plans to acquire First National Bank, based in Texas, in a deal valued at $83.6 million in cash and stock. This significant acquisition represents Investar’s entry into the expanding Dallas market and marks its largest acquisition to date.

Details of the Acquisition

The deal involves the acquisition of Wichita Falls Bancshares, the parent company of First National Bank. As of now, Investar operates 29 branches and employs 329 individuals across Louisiana, east Texas, and Alabama. After the completion of this acquisition, Investar will possess more than 36 branches, bringing its total assets to over $4 billion and deposits to $3.5 billion.

To facilitate the purchase, Investar has raised $32.5 million through the sale of Class A Preferred stock. As of March 31, the company reported $2.3 billion in deposits and $2.7 billion in assets. Meanwhile, First National Bank operates seven branches in north Texas, boasting $1.2 billion in deposits and $1.5 billion in assets, solidifying the strategic impact of this deal on Investar’s growth in Texas.

Strategic Objectives and Market Position

This acquisition aligns with Investar’s broader multistate strategy, which has included several smaller acquisitions in the past: all under $250 million in assets. This strategy has allowed the bank to expand its footprint strategically while retaining a focus on community banking. Prior to this acquisition, Investar had positioned itself as the 13th largest bank in Louisiana, holding less than 2% of total deposits in the state.

The move into Texas is particularly timely, given the region’s growth potential, especially in the Dallas-Fort Worth Metroplex, where First National operates five branches. Following the acquisition, more than one-third of Investar’s total assets will be based in Texas, strengthening its presence in the growing North Texas market.

Expected Benefits and Future Outlook

Upon the closing of the deal, anticipated for the fourth quarter of 2025, Investar’s projected earnings for 2026 are expected to reach $3.08 per share, reflecting an increase of 35%. This growth is expected to enhance Investar’s financial strength and overall resource capacity, ultimately leading to improved service offerings for its customers.

David Flack, President of Wichita Falls, underscored that the merger would provide customers with an enhanced suite of products and services while ensuring that existing branches and staff remain intact. This continuity will be crucial in maintaining customer relationships as Investar transitions First National Bank to its brand.

Following the acquisition, Investar plans to sell $200 million in mortgages to effectively manage residential loan concentration and corporate debt. This strategy aims to further bolster the bank’s financial position as it navigates its expansion into the Texas market.

Company Background

Investar began its journey post-Hurricane Katrina and has historically focused on acquiring smaller banks with assets of $500 million or less. The bank went public in 2014, moving 3.3 million shares and grossing $46 million at a time when its assets totaled $674 million.

In summary, the acquisition of First National Bank illustrates Investar’s commitment to expanding its footprint in Texas and enhancing its community banking services while looking forward to a robust financial future in one of the nation’s most competitive banking markets.

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STAFF HERE GEORGETOWN
Author: STAFF HERE GEORGETOWN

GEORGETOWN STAFF WRITER The GEORGETOWN STAFF WRITER represents the experienced team at HEREgeorgetown.com, your go-to source for actionable local news and information in Georgetown, Williamson 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 Red Poppy Festival, Georgetown Swirl, and Christmas Stroll. Our coverage extends to key organizations like the Georgetown Chamber of Commerce and the Downtown Georgetown Association, plus leading businesses in manufacturing and tourism that power the local economy such as local wineries and historic downtown shops. As part of the broader HERE network, including HEREaustin.com, HEREcollegestation.com, HEREdallas.com, HEREhouston.com, HEREgeorgetown.com, and HEREsanantonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.

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