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.
Investar Bank Takes a Major Step into Dallas with First National Bank Acquisition
In an exciting turn of events for the Texas banking scene, Investar Bank has announced its plans to acquire First National Bank, a significant player in the Dallas market. This move marks a bold step forward for Investar, and it’s clear they are aiming for big things in the Lone Star State!
The Deal at a Glance
Valued at an impressive $83.6 million in cash and stock, this acquisition will see Investar take over Wichita Falls Bancshares, the parent company of First National Bank. To help fund this deal, Investar successfully raised $32.5 million through the sale of its Class A Preferred stock. This is not just any acquisition; it’s actually Investar’s largest to date and part of their ongoing strategy to expand into multiple states!
Growing Bigger and Better
For context, Investar has been making a name for itself since its founding in 2006, starting in Baton Rouge where they initially operated from a simple single-wide trailer after Hurricane Katrina. Today, with 29 branches and over 329 employees across Louisiana, East Texas, and Alabama, the bank is growing its footprint. As of March 31, 2025, Investar reported a sturdy $2.3 billion in deposits and $2.7 billion in assets!
First National Bank, on the other hand, has a solid presence in North Texas with seven branches, boasting $1.2 billion in deposits and $1.5 billion in assets. With this acquisition, Investar will surpass $4 billion in total assets and manage $3.5 billion in deposits across a total of 36 branches, including 10 branches in Texas. More than a third of Investar’s total assets will now be anchored in Texas, presenting a wealth of opportunity!
Why This Matters
The acquisition is expected to enhance Investar’s financial strength and resources significantly, bringing First National Bank’s well-established community banking model into the fold. With both banks’ boards giving the green light, the deal is set to close in the fourth quarter of 2025, pending various regulatory and shareholder approvals. After the merger, First National Bank will be operating under the Investar Bank name, and the current staff is expected to stay onboard, ensuring a seamless transition for customers.
A Bright Future Ahead
Investar’s move into Texas comes at a pivotal moment for the bank, signaling their ambition to not only grow their assets but also solidify their standing in a competitive market. John D’Angelo, the bank’s president and CEO, sees this acquisition as a crucial milestone. While the bank has a history of smaller acquisitions previously focusing on banks with assets of $250 million or less, this latest venture into a more substantial market marks a strategic shift that many will be watching closely.
As Investar Bank continues to grow and adapt, it has also positioned itself as a strong contender for future acquisitions, potentially making it an attractive target down the line. For now, the focus remains squarely on integrating First National Bank into its operations while maintaining its commitment to community service and robust banking practices.
Stay tuned as we keep an eye on how this acquisition unfolds and what it means for banking in Texas! This could be just the beginning for Investar Bank’s exciting journey.
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