Editor’s note: This story has been updated to reflect that the deal does not include any locations of Citizens Bank and Trust, a separate company that is based in Plaquemine.
Baton Rouge-based Investar Holding Corp., the parent company of Investar Bank, has entered into a definitive agreement to acquire Ville Platte-based Citizens Bancshares Inc. and its wholly owned subsidiary, Citizens Bank, in a deal worth $45.8 million. The companies announced the deal, which is expected to close in the third quarter, in a news release this afternoon.
The acquisition will expand Investar’s branch footprint in Louisiana, bolstering its core deposit base and positioning it to build on its growth and client services, company officials say in a prepared statement. Citizens’ three existing locations in Ville Platte, Mamou and Pine Prairie will be rebranded as Investar branches, with the staff to remain intact after the acquisition.
The deal does not include any locations of Citizens Bank and Trust, a separate company that is based in Plaquemine and has several locations in Baton Rouge.
The pending acquisition will provide Citizens with additional financial strength as well as the expanded resources of a larger bank. As of the end of last year, Citizens had roughly $245.5 million in assets, $126.8 million in net loans, $208.7 million in deposits and $35.6 million in stockholder’s equity.
“I am excited to add Citizens’ customers and branches into the Investar brand,” Investar President and CEO John D’Angelo says in a statement. “The acquisition fits well with our strategy of expanding Investar’s footprint in the Louisiana market. We see tremendous value in the acquisition of this 40-year-old franchise that includes a loyal customer base and which brings an attractive cost of funds.”
The boards of both banks have already unanimously approved the acquisition, which is subject to regulatory approvals.
“We are excited to be part of a community bank that can offer our customers a wider range of products and that embraces our tireless commitment to the community,” Citizens Bank President and CEO Carl Fontenot says in a statement. “Citizens Bank’s customers should see a seamless transition and have the ability to work with the same local leadership following the proposed acquisition.”
