Investar closes on its acquisition of Texas-based First National Bank

Investar Holding Corporation has completed its acquisition of Wichita Falls Bancshares Inc., the holding company for First National Bank in Wichita Falls, Texas, expanding its footprint into the north Dallas and Wichita Falls markets.

The transaction became effective Jan. 1, under a merger agreement first announced in July. Wichita Falls Bancshares shareholders received aggregate consideration of $7.2 million in cash and 3,955,334 shares of Investar common stock, valuing the deal at approximately $112.9 million based on Investar’s Dec. 31 closing price of $26.72 per share.

David Flack and James Dunkerley, former directors of Wichita Falls Bancshares and First National Bank, were appointed to the boards of Investar Holding Corp. and Investar Bank following the closing.

Investar President and CEO John D’Angelo said in a prepared statement that the acquisition advances the company’s multistate expansion strategy by combining two community banks with aligned cultures and a shared focus on shareholder value.

As of Dec. 31, First National Bank reported $1.2 billion in total assets, $1 billion in net loans, and $1 billion in total deposits.