Baton Rouge-based Investar Holding Corporation and its wholly-owned subsidiary, Investar Bank, is acquiring Mainland Bank, a Texas bank headquartered in Texas City, for $19.9 million.
The transaction, valued at $79.22 per share, has been approved by the boards of directors for both banks and is expected to close in the first quarter of 2019, according to an announcement from Investar.
The acquisition expands Investar’s footprint into the greater Houston market, further bolstering its core deposit base. Although Mainland Bank will transition to the Investar name, Mainland’s staff is expected to remain intact.
“Investar is extremely excited to take its ‘star’ to Texas through the acquisition of Mainland Bank in the greater Houston market,” says Investar President and CEO John D’Angelo. “Expansion into Texas enhances our regional footprint and provides the opportunity for additional mergers and acquisitions in Texas markets.”
As of June 30, Mainland Bank had approximately $131.3 million in assets, $87.7 million in net loans and a loan-to-deposit ratio of 79%. The bank offers a range of banking products and services to the residents and businesses of Harris and Galveston counties through its main office in Texas City and two branch locations in Houston and Dickinson, Texas.
“We view this as an opportunity to become part of a larger community bank, allowing us to better serve our customers and to further expand our business model in our current high growth markets,” Mainland Bank’s President and CEO Robert Harris says.