Investar to acquire Wichita Falls Bancshares in $83.6 million deal

BATON ROUGE - Investar Holding Corporation (NASDAQ:ISTR), currently valued at $190.2 million and trading at a P/E ratio of 8.34, announced Tuesday it has entered into a definitive agreement to acquire Wichita Falls Bancshares, Inc., the parent company of First National Bank in Texas, in a cash and stock transaction valued at approximately $83.6 million. According to InvestingPro analysis, Investar’s stock is currently trading near its Fair Value, with analysts maintaining a strong buy consensus.

Under the terms of the agreement, Wichita Falls shareholders will receive an aggregate of 3,955,334 shares of Investar common stock and $7.2 million in cash, equating to approximately $134.67 per share based on Investar’s June 30 closing price.

First National Bank operates seven branches and two mortgage offices in north Texas, with approximately $1.5 billion in assets as of March 31, 2025. The acquisition represents Investar’s second in Texas and first in the north Dallas market.

"This is a pivotal moment in the history of Investar Bank," said John D’Angelo, President and CEO of Investar. "This merger will create a combined bank with over $4 billion in assets."

In conjunction with the acquisition, Investar also announced a private placement of $32.5 million of 6.5% Series A Non-Cumulative Perpetual Convertible Preferred Stock to selected institutional and accredited investors.

The transaction, unanimously approved by the boards of both companies, is expected to close in the fourth quarter of 2025, subject to shareholder and regulatory approvals.

Janney Montgomery Scott LLC acted as financial advisor to Investar on the merger transaction, while Olsen Palmer LLC served as financial advisor to Wichita Falls.

Following the acquisition, First National Bank will transition to the Investar Bank name, though bank staff is expected to remain substantially intact, according to the press release statement.

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