Investar Holding Corporation and its wholly-owned subsidiary, Investar Bank, has entered into a definitive agreement to acquire Bank of York, an Alabama state bank headquartered in that state.
Investar, under the terms of the deal approved by the boards of both banks, will pay a total amount of cash merger consideration to Bank of York shareholders equal to $15.0 million. York will also be permitted under the Agreement to make regular and special pre-closing cash distributions to its shareholders in an aggregate amount of approximately $1.0 million.
The move is part of Investar’s continuing multistate expansion and gives the bank a presence along the Interstate 20 corridor in Alabama. Investar has total assets of approximately $2.0 billion and currently operates 21 branches serving southeast Louisiana and three branches serving southeast Texas.
Bank of York has approximately $99.5 million in assets, $46.0 million in net loans, $82.3 million in deposits with $19.6 million in noninterest-bearing accounts, $11.2 million in stockholders’ equity, and a loan-to-deposit ratio of 56.53%. The bank’s staff is expected to remain intact through the acquisition.