Investar Holding Corporation announced a definitive agreement to acquire Wichita Falls Bancshares, Inc., the holding company for First National Bank, Wichita Falls, Texas. This acquisition will be for cash and stock consideration, marking a significant expansion for Investar into the Dallas-Fort Worth Metroplex with five new branches. The deal value for Wichita Falls Bancshares is $84 million.
To support this acquisition and for general corporate purposes, Investar completed a private placement of $32.5 million of its newly designated 6.5% Series A Non-Cumulative Perpetual Convertible Preferred Stock. This capital raise strengthens the company's financial capacity for strategic initiatives, including organic growth and other potential acquisitions. The offering provides crucial funding for the expansion.
The merger with Wichita Falls Bancshares, Inc. represents Investar's second deal in Texas, signaling a strategic move to deepen its presence in the state. This expansion is expected to enhance Investar's competitive positioning by leveraging its regional expertise in a new, growing market. The combination of M&A and a capital raise indicates a proactive approach to growth and balance sheet management.
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