Investar Holding Corporation (NASDAQ: ISTR) completed its acquisition of Wichita Falls Bancshares, Inc. on January 1, 2026, paying a total of $112.9 million in cash and shares. The transaction adds $1.2 billion in total assets, $1.0 billion in net loans and $1.0 billion in deposits to Investar’s balance sheet, raising the bank’s total assets to roughly $4.0 billion from $2.8 billion before the deal.
The acquisition expands Investar’s footprint by seven branches in north Texas, including the Wichita Falls and north Dallas markets. By adding these locations, Investar moves closer to the asset thresholds that allow it to compete with larger regional banks such as Hancock Whitney and Origin Bancorp. The deal also strengthens geographic diversification, giving the company a stronger presence in the Gulf Coast and Texas markets where it has been pursuing a multi‑state expansion strategy.
Investar plans to cut approximately 36 % of Wichita Falls’ annual non‑interest expenses through integration efficiencies, while keeping all seven branches open. The company also added two former Wichita Falls directors—David Flack and James Dunkerley—to its board, reinforcing governance and local market expertise. The acquisition was financed in part by a $32.5 million private placement of Series A convertible preferred stock in July 2025, which helped fund the transaction without diluting existing shareholders excessively.
Prior to the acquisition, Investar’s total assets stood at $2.8 billion as of September 30, 2025. Adding Wichita Falls’ $1.2 billion brings the combined entity to just over $4 billion, a 50 % increase that positions the bank beyond the Home Bancorp and First Guaranty thresholds. The deal’s value—$112.9 million—reflects the increase in Investar’s share price from $19.32 on June 30, 2025 (when the July 2025 announcement was made) to $26.72 on December 31, 2025, rather than the $83.6 million figure reported at the time of the initial agreement.
Investar’s stock has shown strong momentum in the months leading up to the acquisition, rising 28.39 % over the past year and 26.8 % in the six months before the October 30, 2025 shareholder and regulatory approvals. Analysts have maintained a “Strong Buy” consensus, citing the bank’s consistent dividend growth and the strategic value of the Wichita Falls addition. The acquisition is expected to deliver synergies that support Investar’s balance‑sheet optimization strategy and enhance shareholder value.
John D'Angelo, President and CEO, said the deal “expands our presence in the north Dallas and Wichita Falls markets, aligns with our multi‑state expansion strategy, and brings a strong culture and experienced leadership to our board.” He added that the integration will “create scale, improve operational efficiency, and position Investar to compete more effectively with larger regional peers.”
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